Determinants of wine consumption of US consumers: an econometric analysis

Abstract

Purpose The purpose of this paper is to identify econometrically the determinants of wine consumption of US consumers. Design/methodology/approach In empirically identifying driving forces of wine consumption, we used 122 survey responses from Northern California consumers. Findings The study found that even knowledgeable or frequent consumers of wine purchase across all price points. Further, a significant positive correlation exists between knowledge and volume of wine consumed. All three regression techniques applied in this paper indicate that knowledge remains the most important determinant in wine consumption. Practical implications The results emphasize the need for US wineries to better educate and connect with consumers by developing compatible positioning strategies and marketing programs that are as informative as they are appealing. Originality/value As one of the few studies of the US wine market employing econometric analysis, this paper offers a fresh perspective on the consumption behavior of wine drinkers in the USA.