Exploring Consumer Preferences for Locally Produced Wine in the Tanzanian Market: Evidence from Wine Consumers in Dodoma City

Nice Kimaro

1. Department of Rural Development and Regional Planning, Institute of Rural Development Planning, P.O BOX 138, Dodoma, Tanzania
2. Department of Policy, Planning and Management, Sokoine University of Agriculture, Morogoro, 67129, Tanzania

Shauri Timothy

Department of Rural Development and Regional Planning, Institute of Rural Development Planning, P.O BOX 138, Dodoma, Tanzania

Yohana James Mgale

Department of Rural Development and Regional Planning, Institute of Rural Development Planning, P.O BOX 138, Dodoma, Tanzania

DOI: https://doi.org/10.36956/rwae.v5i1.965

Received: 19 October 2023; Received in revised form: 10 January 2024; Accepted: 23 January 2024; Published: 4 February 2024

Copyright © 2024 Nice Kimaro, Shauri Timothy, Yohana James Mgale. Published by Nan Yang Academy of Sciences Pte. Ltd.

Creative Commons LicenseThis is an open access article under the Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) License.


Abstract

In most grape-producing countries, the local wine industry faces intense competition due to the introduction of new foreign wines into the local market and changes in wine consumption and consumer preferences for wines. The same has been observed in the Tanzanian wine industry. The study aims to explore the dynamics of consumer preferences toward locally-produced wine. Data were collected from 200 respondents in Dodoma town through snowball and convenience sampling. Qualitative and quantitative types of data were used. Primary data were collected in the field using field observations, a key informant interview checklist, and structured questionnaires using KoBoToolbox. Secondary data were collected by reviewing different published and unpublished materials, such as reviews and reports regarding consumer preferences for local wine. The research revealed that most consumers consider color, taste, income, brand, and price attributes when selecting wines. Furthermore, the study observed that age, income, marital status, price, wine color, packaging and taste significantly influenced consumers' preference for purchasing locally produced wines compared to other factors included in the model. However, attributes such as geographical origin, vintage and grape variety were not considered in the selection of the wines. The study recommends that local wine producers consider consumers' preferred attributes to increase sales. Local marketers and brand managers should also formulate and employ several positioning, market segmentation and targeting strategies that can help them compete effectively with imported wines.

Keywords: Consumer preference; Consumer behaviour; Consumer perception; Wine markets; Dodoma; Tanzania


References

[1] Khan, N., Fahad, S., Naushad, M. et al., 2020. Grape production critical review in the world. DOI: http://dx.doi.org/10.2139/ssrn.3595842

[2] Bresciani, S., 2017. Open, networked and dynamic innovation in the food and beverage industry. British Food Journal. 119(11), 2290–2293. DOI: https://doi.org/10.1108/BFJ-08-2017-0458

[3] Vrontis, D., Bresciani, S., Giacosa, E., 2016. Tradition and innovation in Italian wine family businesses. British Food Journal. 118(8), 1883–1897. DOI: https://doi.org/10.1108/BFJ-05-2016-0192

[4] Nalyoto, A., Ngaruko, D.D., 2023. Analysis of profit efficiency of grape production: A case of smallholder grape farmers in Dodoma, Tanzania. Huria Journal. 29(1), 1-23. DOI: https://www.ajol.info/index.php/huria/article/view/248992

[5] Migliore, G., Thrassou, A., Crescimanno, M., et al., 2020. Factors affecting consumer preferences for “natural wine”: An exploratory study in the Italian market. British Food Journal. 122(8), 2463–2479. DOI: https://doi.org/10.1108/BFJ-07-2019-0474

[6] Jamali, H.R., Steel, C.C., Mohammadi, E., 2020. Wine research and its relationship with wine production: A scientometric analysis of global trends. Australian Journal of Grape and Wine Research. 26(2), 130–138. DOI: https://doi.org/10.1111/ajgw.12422

[7] Davids, T., Vink, N., Cloete. K., 2022. Covid-19 and the South African wine industry, Agrekon. 61(1), 42-51. DOI: https://doi.org/10.1080/03031853.2021.1975550

[8] Bester, R., Maree, H.J., Burger, J.T., 2012. Complete nucleotide sequence of a new strain of grapevine leafroll-associated virus 3 in South Africa. Archives of Virology. 157, 1815–1819. DOI: https://doi.org/10.1007/s00705-012-1333-8

[9] Pentz, C., Forrester, A., 2020. The importance of wine attributes in an emerging wine-producing country. South African Journal of Business Management. 51(1). DOI: https://doi.org/10.4102/sajbm.v51i1.1932

[10] Gerves, C., 2019. Insights into South African wine consumer behavior: A mixed methods study [Master’s thesis]. Stellenbosch: Stellenbosch University.

[11] Kastenholz, E., Paço, A., Nave, A., 2023. Wine tourism in rural areas—hopes and fears amongst local residents. Worldwide Hospitality and Tourism Themes. 15(1), 29-40. DOI: https://doi.org/10.1108/WHATT-08-2022-0095

[12] Tomas, K., Tuboly, E., 2023. The role of social capital and trust in the success of local wine tourism and rural development. Sociologia Ruralis. 63, 200-222. DOI: https://doi.org/10.1111/soru.12396

[13] Ismail, I.J., 2022. Imported or locally made products? Building customers’ resilience to negative word of mouth (NWOM) about locally made products: Mediation of mes-sage quality in Tanzania. Cogent Business & Management. 9, 2079168. DOI: https://doi.org/10.1080/23311975.2022.2079168

[14] Madalla, N.A., 2021. Farmers' traits preferences for improved banana cultivars in Tanzania and Uganda [Ph.D. thesis]. Alnarp: Swedish University of Agriculture Science.

[15] Marius, R., Suphian, R., & Jani, D., 2020. Determinants of soft drink customer satisfaction and purchase intentions: Comparison between Tanzania's and South Korea's customers. Business Management Review. 23(1), 70-78.

[16] Jani, D., Mzalendo, R., 2015. Tanzania consumers' perception and purchase intention of imported and domestic wines. Business Management Review. 17(1), 122-133.

[17] Nyagango, A.I., Sife, A.S., and Kazungu, I., 2023. Factors influencing the use of mobile phone for accessing agricultural marketing information by grape smallholder farmers in Tanzania, Cogent Business & Management. 10(3), 2257865. DOI: https://doi.org/10.1080/23311975.2023.2257865

[18] Ministry of Agriculture, Food Security and Cooperatives, 2015. Tanzania climate-smart agriculture programme. Ministry of Agriculture, Food Security and Cooperatives: Dar es Salaam.

[19] Kalimangasi, N.N., Isinika, A.C., Mwembezi, G.P., 2021. Input demand response analysis of wine grape farmers in Dodoma city and Chamwino District in Dodoma region, Tanzania: Application of the profit function. African Journal of Agricultural Economics and Rural Development. 9(2), 1–9.

[20] Hair, J.F., Black, W.C., Babin, B.J., et al., 2006. Multivariate data analysis (6th ed.). Pearson Education: New Jersey.

[21] Rochon, J., Gondan, M., Kieser, M., 2012. To test or not to test: Preliminary assessment of normality when comparing two independent samples. BMC Medical Research Methodology. 12, 81. DOI: https://doi.org/10.1186/1471-2288-12-81

[22] Liang, W., Chikritzhs, T., 2012. Brief report: Marital status and alcohol consumption behaviours. Journal of Substance Use. 17(1), 84–90. DOI: https://doi.org/10.3109/14659891.2010.538463

[23] Waziri, A.M., 2014. Assessment of wine packaging effects on customer purchasing decision in Tanzania: A case of Hombolo and Miuji wine industries [Master's thesis]. Dodoma: The University of Dodoma.

[24] Mehta, R., Bhanja, N., 2018. Consumer preferences for wine attributes in an emerging market. International Journal of Retail & Distribution Management. 46(1), 34–48. DOI: https://doi.org/10.1108/IJRDM-04-2017-0073

[25] Lockshin, L., Jarvis, W., d’Hauteville, F., et al., 2006. Using simulations from discrete choice experiments to measure consumer sensitivity to brand, region, price, and awards in wine choice. Food Quality and Preference. 17(3–4), 166–178. DOI: https://doi.org/10.1016/j.foodqual.2005.03.009

[26] Orth, U.R., Malkewitz, K., 2008. Holistic package design and consumer brand impressions. Journal of Marketing. 72(3), 64–81. DOI: https://doi.org/10.1509/JMKG.72.3.064

[27] Atkin, T., Johnson, R., 2010. Appellation as an indicator of quality. International Journal of Wine Business Research. 22(1), 42–61. DOI: https://doi.org/10.1108/17511061011035198

[28] Mueller, S., Szolnoki, G., 2010. The relative influence of packaging, labelling, branding and sensory attributes on liking and purchase intent: Consumers differ in their responsiveness. Food Quality and Preference. 21(7), 774–783. DOI: https://doi.org/10.1016/j.foodqual.2010.07.011

[29] Sherman, S., Tuten, T., 2011. Message on a bottle: The wine label's influence. International Journal of Wine Business Research. 23(3), 221–234. DOI: https://doi.org/10.1108/17511061111163050

[30] Hill, R., Fountain, J., 2022. Wines from the hinterland: comparing availability of local wines on wine lists in two New Zealand tourism destinations. International Journal of Wine Business Research. 34(4), 567-589. DOI: https://doi.org/10.1108/IJWBR-06-2021-0035

[31] Srinivasan, S.S., Till, B.D., 2002. Evaluation of search, experience and credence attributes: role of brand name and product trial. Journal of Product & Brand Management. 11(7), 417–431. DOI: https://doi.org/10.1108/10610420210451616

[32] Bruwer, J., Li, E., 2007. Wine-related lifestyle (WRL) market segmentation: Demographic and behavioural factors. Journal of Wine Research. 18(1), 19–34. DOI: https://doi.org/10.1080/09571260701526865

[33] Stanco, M., Lerro, M., Marotta, G., 2020. Consumers’ preferences for wine attributes: A Best-Worst scaling analysis. Sustainability. 12(7), 2819. DOI: https://doi.org/10.3390/su12072819

[34] Lubawa, G.G., Osabuohien, E.S., 2023. Wine industry in Tanzania and its sustainability: qualitative insights from family-owned wine processing enterprises owners. In B. Marco-Lajara, A. Gilinsky, J. Martínez-Falcó, & E. Sánchez-García (Eds.), Handbook of Research on Sustainability Challenges in the Wine Industry (pp. 194-235). IGI Global. DOI: https://doi.org/10.4018/978-1-6684-6942-2.ch011

[35] Preszler, T.L., Schmit, T.M., 2009. Factors affecting wine purchase decisions and presence of New York wines in upscale New York City restaurants. Journal of Food Distribution Research. 40(3), 16–30. DOI: https://doi.org/10.22004/ag.econ.99488

[36] Atkin, T., Thach, L., 2012. Millennial wine consumers: Risk perception and information search. Wine Economics and Policy. 1(1), 54–62. DOI: https://doi.org/10.1016/j.wep.2012.08.002

[37] Jaeger, S.R., Danaher, P.J., Brodie, R.J., 2010. Consumption decisions made in restaurants: The case of wine selection. Food Quality and Preference. 21(4), 439–442. DOI: https://doi.org/10.1016/j.foodqual.2009.08.017

[38] Hoskins, J., Verhaal, J.C., Griffin, A., 2020. How within-country consumer product (or brand) localness and supporting marketing tactics influence sales performance. European Journal of Marketing. 55(2), 565–592. DOI: https://doi.org/10.1108/EJM-11-2018-0787

[39] Liu, H., Schoefer, K., Fastoso, F., et al., 2021. Perceived brand globalness/localness: A systematic review of the literature and directions for further research. Journal of International Marketing. 29(1), 77–94. DOI: https://doi.org/10.1177/1069031X20973184

[40] López-Lomelí, M.Á., Alarcón-del-Amo, M.D.C., Llonch-Andreu, J., 2019. Segmenting consumers based on their evaluation of local, global and glocal brands. Journal of International Consumer Marketing. 31(5), 395–407. DOI: https://doi.org/10.1080/08961530.2019.1590282

Online ISSN: 2737-4785, Print ISSN: 2737-4777, Published by Nan Yang Academy of Sciences Pte. Ltd.