The influence of individual characteristics, product attributes and usage situations on consumer behaviour: An exploratory study of the New Zealand, Australian, UK and US wine markets

Abstract

Previous research has suggested that the country of origin cue is important to consumers during their purchase decision making process; the cue is utilised as an indicator of product quality and thus has an effect on purchase decisions. However, country of origin research has been heavily criticised in terms of methodology and has tended to focus on durable, manufactured products such as automobiles, electronics and apparel.

This research investigates whether consumers do utilise the country of origin cue during actual wine purchase decisions and whether consumer perceptions of wine will vary based upon the country from which it originates. In addition, this study also seeks to identify all of the product attributes which are utilised by wine purchasers, and the degree to which these attributes are important to them during the purchase decision process. Finally, the research seeks to understand the influence that individual consumer characteristics (i.e. demographic variables, product knowledge and product involvement) and usage situations will have upon attribute utilisation and importance.

In order to examine these broad research questions, a structured survey was developed and administered to respondents in four countries immediately following an actual wine purchase.

Analysis of the collected survey data revealed that consumers typically utilised only a small number of attributes during their purchase decisions, and that the attributes which were most frequently utilised were not necessarily the most important to wine consumers. The country of origin cue was the eighth most frequently utilised attribute and the fourth in terms of importance. The majority of consumers could accurately identify the country of origin of the wine they had just purchased and their perceptions of wines were found to vary based upon the country of origin. Individual consumer characteristics were found to have varying effects upon attribute utilisation and importance ratings. Three-quarters of all wine purchases were made to resolve just four usage situations, and these situations were found to moderate the origin of the wine that the consumer selected during their purchase decision.

From a theoretical standpoint, this study supports the idea that consumers utilise only a small number of attributes during their decision making process, and that this number will increase as product knowledge and product involvement levels increase. The most important attributes for consumers were found to be intrinsic in nature. Country of origin theory has also been advanced by this study; consumers were found to hold stereotyped perceptions of wine based upon its national origin, and both the nationality and education level of the consumer were found to moderate the utilisation of the country of origin cue. Whilst earlier researchers had suggested that any home country bias may be product specific, this study suggests that it may actually be a product dimension specific phenomenon. The high reliability of the product involvement and subjective knowledge scales should also be of value to future consumer behaviour researchers. Similarly, the idea that the usage situation influenced which product was purchased, but not how it was selected, expands current knowledge.

Practical implications arising from this study include the identification of the importance of having previously tried a wine; marketers could increase sales through the provision of wine tasting opportunities for consumers. The significant correlation between involvement and the frequency of wine consumption also provides wine producers with an opportunity to increase sales through initiatives which will increase consumer involvement with wine. The results indicate that the wine industry should focus on the production and marketing of wines which are suitable for consumption in the identified four dominant usage situations and should seek to increase consumption in dining situations in the US. Finally, promotional strategies linking New Zealand wines with high quality appear to have been successful, but these messages will need to be repeated in order to reinforce the positive consumer perceptions.