Using the best-worst method to examine market segments and identify different influences of consumer choice

Abstract

Wine marketers use market segmentation to target different products to different segments in order to increase sales, often with little evidence about what influences choice within or between segments. In this paper we provide initial results using a relatively new and very straightforward method for measuring consumer preferences. The best-worst scaling method (also called max-diffs) simply asks consumers to look at sets of products, attributes, or other factors to be compared and choose from each set the best/most favourable and the worst/least favourable. A simple count and manipulation results in a single preference scale, where the differences may be compared as distances rather than rank order. This paper shows how segmenting the consumers using factors such as gender, frequency of consumption, wine involvement and age produce segments with similar preferences for different varietal wines. Two country examples are used, Israel and Australia, to show the ability of the Best-Worst method to develop ‘maps’ of segments across markets based on patterns of choice. The goal of this paper is to demonstrate the practical and a scholarly usefulness of this approach and to show the method for a larger cross-national study across major wine consuming markets.