Terroir in a Bottle: Segmenting Consumer Choices in Generation Y

Abstract

This study aims to understand the terroir effect in influencing consumer’s choice and measure the utility given by the terroir attributes conveyed on a wine label, verifying the heterogeneity of consumer’s evaluation process. It analyzes young consumers belonging to Generation Y, from Italy, applying a Discrete Choice Experiment. An online survey was carried out by a sample of 982 respondents. Latent Class Choice Models were applied and seven latent classes were identified. Findings reveal that while terroir remains important for most of the young consumers, how it is construed and the cues which denote it vary substantially. Managerial implications emerge in terms of search for luxury and fashion cues, traditional representations of terroir and reassurance attributes, and of different price sensitivity.