Wine Choice Behaviour: The Effect of Regional Branding

As Australia embarks on the new millennium, marketers must understand the basis of consumer choice, both domestically and internationally. Generally, brands are becoming globalised (Boze and Patton, 1995), but the wine industry provides an interesting example of global branding in the context of a plethora of brand names. In Australia alone, over one thousand wine companies produce over 16,000 wine brands (Spawton, 1998). This array of wine product creates a complex marketplace, which causes consumers great difficulty when making a purchase decision (Greatorex and Mitchell, 1988). To combat this problem, wine companies have been using branding as a means of differentiating their product (Lockshin, 1997). The introduction of geographical indicators (registered names for specific regions of origin) has spurred on the use of regional branding as a branding tool. This research is being conducted to clarify the effect of regional branding on consumer choice behaviour. The results from the qualitative research stage highlighted the fact that a small number of consumers used regional branding as a cue in their choice decision. These consumers generally had higher perceived knowledge of wine, greatly enjoyed purchasing wine and spent a longer time in the wine retail outlet than other consumer groups. A quantitative study will now be conducted to clarify which consumer groups use regional branding as part of the choice process and to determine the importance of a company's brand and price used in consumers' choice process. As wine is not the only product branded by its region of origin, this research will be beneficial to other product categories such as cheese, seafood and olive oil (Belk King, 1997).