Journal of Hospitality & Tourism Research 


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Exploring the Korean Wine Market 

Kyuho Lee, Jinlin Zhao and Jae-Youn Ko 
Journal of Hospitality & Tourism Research 2005; 29; 20 
DOI: 10.1177/1096348004268195 


The online version of this article can be found at:


http://jht.sagepub.com/cgi/content/abstract/29/1/20


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EXPLORING THE KOREAN 
WINE MARKET 

Kyuho Lee 

Virginia Polytechnic Institute and State University 

Jinlin Zhao 

Florida International University 

Jae-Youn Ko 

Kyung-Hee University 

This exploratory study identified specific preferences and characteristics of Korean wine 
consumers. Relevant literature was reviewed in an attempt to find the most suitable market 
strategy in the Korean wine market. This study employed samples from members of a Korean 
wine association (KISA) to identify Korean wine consumers’characteristics and preferences. 
The study found Korean wine consumers had interesting preferences and that 
there were some significant differences between these preferences and demographic characteristics 
among the Korean respondents. The paper offers wine marketers suggestions 
about what they need to understand in order to attract Korean wine consumers and what 
may be appropriate and effective wine-marketing strategies and practices in Korea. 

KEYWORDS: wine; Korean wine consumers; wine-marketing strategy 

Historically, Western European countries have dominated wine production. In 
recent years, however, new wine-producing countries, such as Argentina, Chile, 
Australia, the United States, and South Africa, have entered the world’s wine market 
(Spahni, 2000). These countries have several competitive strengths, such as 
low labor costs; grape varieties, such as Chardonnay, Cabernet Sauvignon, Mer-
lot, and so on; technological improvements, such as controlled fermentation 
instead of natural fermentation; and ideal climate conditions (Carreyrou, 2003; 
Johnson, 2001; Oldroyd, 2001; Solana-Rosillo, 1997). 

As a result, the $100 billion global wine industry is becoming more competitive, 
and traditional wine-producing countries are facing challenges from the New 
World wine countries (Carreyrou, 2003). For example, the global share of French 
wine exports decreased to 23% in 2002, compared to 32% a decade prior. 
Although wine consumption in Britain has increased sharply (Johnson, 2001), the 

Authors’Note: The authors wish to thank three anonymous reviewers for their valuable comments 
and suggestions for this study. 

Journal of Hospitality & Tourism Research, Vol. 29, No. 1, February 2005, 20-41 
DOI: 10.1177/1096348004268195 
© 2005 International Council on Hotel, Restaurant and Institutional Education 

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Lee et al. / KOREAN WINE MARKET 21 

Figure 1 

U.S. Wine Exports to South Korea (value $000) 
Amount 

6,000 
5,000 
4,000 
3,000 
2,000 
1,000 
0 

1,191 
2,782 
3,682 
5,620 
1998 1999 2000 2001 
Year 
Note: Adapted from Walker (2002). 

famous Bordeaux wine lost 15% of its market share in the United Kingdom. However, 
the global wine export share from New World countries, such as the United 
States and Australia, has increased. For example, wine exports from Australia 
increased 20% in 2002 compared to 6% a decade prior (Angulo, Gil, Gracia, & 
Sanchez, 2000; Carreyrou, 2003; Orth & Krska, 2002). 

At the same time, world wine production exceeds world wine consumption 
(Dodd, 1997). It is estimated that global wine production surpasses consumption 
by about 20% (Oldroyd, 2001). The total world production was 27,400.74 million 
liters, with an increase of 17.1% from 1994 to 2000. This result is attributed to 
increased production of 63%, 52.8%, and 51.7% respectively, in North America, 
Asia, and Oceania (Vinexpo avec le Concours de Vertumne International & 
Associes, 2002b). 

Around the world, vineyards increased by 7.2% from 1994 to 2000, an expansion 
of 6,003.67 thousand hectares. As early as 1988, there was a total of 3,320 
million liters of surplus wine in the world; this surplus soared to about 6,401 million 
liters between 1999 and 2000 because of a major decrease in wine consumption 
in Western Europe (Beckett, 2001; Spawton, 1990). This growing gap 
between production and consumption has challenged the global wine industry for 
more than two decades. 

It appears that the world wine industry should explore opportunities for expansion 
into new wine markets, such as Korea. Koreans have increased their wine 
consumption rapidly, with an annual growth rate of 20% from 1996, except during 
the 1997-1998 Asian economic crisis. It is estimated that Koreans will consume 
20,000,000 liters of wine by 2006, which is a 36% increase from the 
14,632,000 liters of wine consumed in 2000 (Vinexpo avec le Concours de 
Vertumne International & Associes, 2002a). 

Figure 1 presents U.S. wine exports to South Korea from 1998 to 2001. Korean 
wine imports from the United States have increased sharply, and the Korean market 
will be a key export market for U.S. wineries within 5 years (Stephens, 2003). 

Because of increased disposable income, health concerns, and growing wine 
demands from Korean working women, wine is gaining popularity in Korea 

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22 JOURNAL OF HOSPITALITY & TOURISM RESEARCH 

(Bang, 2000; Ryu, 1994; Seo, 2002; Stephens, 2003). Wine has become an attractive 
substitute for higher alcohol-content beverages. 

For global wine marketers, the export of wine to Korea can be appealing, as the 
Korean government has begun to remove tariffs on imported wine. For example, 
according to the recent Free Trade Agreement (FTA) between Korea and Chile, 
the Korean government will remove the 15% tariff on Chilean wine in 5 years 
(Choi & Huh, 2002). The Korean wine market has huge growth potential for the 
global wine industry (Bang & Cho, 2001; Kim, 2002; Stephens, 2003). 

According to Spawton (1991a), the wine industry has focused more on sales 
than on marketing; however, wine industry managers should emphasize marketing 
because of the global changes in consumers’ behavior and the competitive 
environment (Sharp, 1991; Spawton, 1990). However, most wine-marketing 
research is limited to the European market because of the market’s importance for 
both wine production and consumption. For instance, the European wine countries 
produced almost 74% of the world’s wine, and the market accounted for 
approximately 72% of the world’s wine consumption in 1998 (Spahni, 2000). 

Considerable marketing research has focused on Europe and North America. 
For instance, studies include British wine consumers (Mitchell & Greatorex, 
1989); the Spanish wine market and consumers (Angulo et al., 2000; Gil & 
Sanchez, 1997); port wine–marketing strategies (Lages & Shaw, 1998); Greek 
wine consumers (Kalogianni, Klavdianou, Alexaki, & Tsakiridou, 1999); the 
Hungarian wine market (Williams & Pearson, 1992); European consumers’ wine 
consumption patterns (Smith & Solgaard, 2000); Irish consumers’ wine preferences 
(Keown & Casey, 1995); cross-cultural European wine consumers’motivations 
(Hall, Shaw, & Doole, 1997); information sources of American wine drinkers 
(Dodd, Pinkleton, & Gustafson, 1996); and consumers’ characteristics of 
wine clubs in Canada (Schell, Amero, Cameron, & Scott, 1985). 

Because the global wine industry has become more and more competitive 
(Stephens, 2003; Walker, 2002), wine marketers should begin to explore emerging 
wine markets, such as South Korea. Very little wine-marketing research has 
been conducted in Korea, where there is a large potential for increased wine purchasing. 
It is critical for the wine marketers to better understand Korean wine consumers’purchasing 
behaviors, needs, and preferences in order to develop marketing 
strategies for export to Korea (Beverland, 2002; Dodd, 1997; Sharp, 1991). 

The objective of this article is to answer the following questions: 

• What are Korean wine consumers’ characteristics and specific preferences when selecting 
a wine? 
• Are there any significant relationships between key demographic variables (age, 
gender, income, and the years of wine drinking experience) and their wine selecting 
preferences? 
• What could be effective marketing strategies in the Korean wine market? 
• How should wine marketers implement marketing strategies in Korea? 
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Lee et al. / KOREAN WINE MARKET 23 

LITERATURE REVIEW 

Wine Attributes and Consumer Preferences 

Several researchers have studied wine consumer preferences in various countries. 
Gil and Sanchez (1997) examined wine attributes that affected Spanish 
wine-purchasing preferences. The origin of the wine played the most important 
role when Spanish consumers purchased a local wine. Spanish wine consumers 
also considered price and grape vintage as important attributes. 

Kalogiann et al. (1999) identified the wine preferences of Greek consumers. 
The study found that most Greek consumers considered the following wine attributes 
(listed in order of importance) when purchasing wine: full taste, clarity, 
appellation of origin, aroma, and attractiveness of the label. It was also found that 
most Greek wine consumers preferred to buy wine in supermarkets rather thanin 
wine cellars because of the lower price. 

Keown and Casey (1995) examined the wine purchasing behaviors of Northern 
Irish consumers. The researchers found that the country of origin, brand 
name, grape variety, and region of origin were the most important factors influencing 
Northern Irish wine purchasing. 

Gluckman (1986) analyzed British wine consumers’ behaviors and attitudes. 
He found that there were two groups of considerations influencing British consumers’ 
wine-purchasing decisions: implicit considerations, such as color, packaging 
appearance, country of origin, and size of container; and explicit considerations, 
such as price, quality, reliability, taste, and suitability for all tastes. 

Thomas (2000) discussed the factors influencing New Zealand consumers’ 
wine drinking. According to his study, the New Zealand wine consumers relied 
mostly on the opinions of family and friends, followed by any awards a wine has 
won, price and promotions, and the fame of the label. The New Zealand wine consumers 
tended to listen to friends or family opinion to avoid any risk in their wine 
purchase. 

Effective Wine Marketing 

Spawton (1990) discussed effective wine-marketing methods and global 
wine-marketing strategies. He argued that because of mass wine production and 
intensive competition in the global wine market, wine marketers should identify 
wine customers’ characteristics and purchasing behaviors and anticipate their 
needs. The success of the wine industry depends on how wine marketers establish 
and implement global marketing strategies, not on how much wine they produce 
(Spawton, 1990). 

Goldsmith and d’Hauteville (1998) investigated the characteristics of heavy 
wine drinkers. The researchers found that the enthusiasm and interest of wine 
consumers are key factors motivating heavy wine consumption. The researchers 
suggested that marketers who wish to capture heavy wine consumers should concentrate 
their marketing tactics on the enthusiasm, interest, and involvement of 
those wine consumers. 

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24 JOURNAL OF HOSPITALITY & TOURISM RESEARCH 

Dodd (1997) and Goldsmith (1998) examined the characteristics of wine innovators. 
As opinion leaders, wine innovators are likely to buy new wines, purchase 
wine more frequently than noninnovators, and spread favorable or unfavorable 
word-of–mouth to other consumers about wines that they experienced (Dodd, 
1997; Goldsmith, 1998). 

Most wine innovators acquire wine information from wine magazines, journal 
articles, and wine tastings, in comparison to wine noninnovators, who obtain 
wine information through word-of-mouth from friends or relatives (Dodd, 1997). 
It is important for wine marketers to develop marketing programs, such as a 
frequent-buyer reward program, to attract and retain the wine innovators because 
they are frequent wine buyers as well as opinion leaders who influence other consumers’ 
wine purchases (Goldsmith, 1998). 

Spawton (1991b) claimed that wine consumers felt risk psychologically, functionally, 
and economically when they purchased wine. Psychological risk was 
related to the consumer’s self-esteem. For example, consumers might worry 
about selecting the wrong wine. The functional risk occurred when consumers 
could not decide which wine they should buy for their specific meals or occasions. 
Insufficient wine knowledge could cause the functional risk. The economic risk 
was associated with the value of wine. Consumers often were not confident of the 
true value of wine that they purchased. In particular, when the consumers bought 
an unfamiliar bottle of wine, their sense of an economic risk tended to increase. 

Mitchell and Greatorex (1989) indicated that reducing risk was a key factorin 
purchasing wine and illustrated methods for reducing those risks. They suggested 
taking the opportunity to taste wine and following the recommendation of friends 
and relatives as effective ways to reduce the risks of purchase. In comparison, 
using a store image and buying the most or least expensive wine were considered 
the least popular ways for consumers to avoid the risk of purchasing wines. Novice 
wine consumers were more likely to buy well-known brands based on family 
members’ or friends’ opinions, thereby reducing the risk of wine purchasing 
(Spawton, 1991b). 

Thompson and Vourvachis (1995) argued that consumers tended to depend on 
friends’ or family members’ opinions in their wine selections because wine had 
many attributes, such as flavor or tastes, making identification of those attributes 
difficult. Therefore, wine marketers can be more effective if they offer consumers 
enough opportunities to taste and test wine flavors before purchase (Thompson & 
Vourvachis, 1995). 

Orth and Krska (2002) claimed that international or regional exhibition awards 
for wine products influenced consumer wine purchases significantly. They 
pointed out that wine consumers preferred to buy wine with exhibition awards 
rather than without because the consumers perceived that exhibition awards were 
a quality assurance indicator. 

The Korean Wine Market 

Alcohol consumption is deeply related to a society’s culture (Smith & 
Solgaard, 2000). Traditionally, Korea is a heavy-alcohol-consumption country 

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Lee et al. / KOREAN WINE MARKET 25 

(Stephens, 2003). Koreans have preferred to consume high-alcohol-content beverages, 
such as the traditional Korean sake, Soju (Kim, 2002; Stephens, 2003). 
However, the increasing household income in an improved Korean economy, the 
growing numbers of female drinkers, and the Westernizing of the Korean life style 
have led to a change in Korean drinking patterns, away from strong-alcohol beverages 
to low-alcohol and high-quality alcoholic beverages (Bang, 2000; Ryu, 
1994; Stephens, 2003). 

Dodd and Morse (1994) discussed how wine consumers reflected health concerns 
when they bought wine. The researchers examined sales before and after the 
airing of CBS’s 60 Minutes program The French Paradox. The French paradox 
refers to the fact that the French have a low risk of heart disease, in spite of their 
high fat diet, because of their moderate consumption (one or two drinks daily) of 
red wine. After the program showed that moderate red wine consumption could 
lower heart disease by about 40% or 50%, red wine sales increased by 44.5% in 
the United States. When the Koreans heard the report that moderate red wine 
drinking may reduce heart disease, more and more of them became interested in 
drinking red wine (Bang & Cho, 2001). The heightened health concerns have 
motivated increased wine consumption in Korea. 

Ko, Lee, Park, Lee, and Kim (2002) conducted a study to investigate the 
importance of wine sales in hotel restaurants in Korea. They found that wine sales 
account for an average of 72% of total alcohol sales in the Western restaurants of 
major hotels in Korea, whereas the average wine sales in Korean and Chinese restaurants 
in the hotels are 40% and 15% of the total alcohol sales revenue of the restaurants, 
respectively. They suggested that fewer Koreans consume wine with 
Asian food than with Western food. Ryu (1994) suggested that the wine industry 
may develop a smaller sized bottle of wine in Korea to appeal to new wine drinkers 
because the size reduces the risk of wine purchasing in terms of taste and price 
for the increasing number of new wine drinkers in Korea. 

Many Koreans believed that Western food pairs well with wine (Stephens, 
2003). For example, French wine goes well with French cuisine. Actually, many 
Korean traditional dishes, such as bulgogi and kimchi, could be harmonious with 
full-bodied Cabernet Sauvignon and Merlot (Stephens, 2003). 

Beverland (2002) stressed that global wine companies should tailor their marketing 
strategies to Asian markets. Most of the Asian markets are totally different 
from Western markets in terms of distribution channels, legal systems, cultural 
values, languages, and consumer preferences. According to Beverland (2002), 
Western-style sales and marketing, which emphasize product quality, may not be 
effective in the Asian markets because Asians place a greater importance on forming 
good relationships with their business partners; Asians value trust and human 
association in addition to product quality (Bretherton & Carswell, 2001).For 
example, giving assistance to the local distributors by arranging wine tastings and 
educating sales people could be an effective way to build a good relationship 
with the local distributors in Asian countries (Beverland, 2002; Bretherton & 
Carswell, 2001). 

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26 JOURNAL OF HOSPITALITY & TOURISM RESEARCH 

METHOD 

Instrument 

A quantitative method (self-administered questionnaire) was used to collect 
data regarding Korean wine drinkers’ characteristics and preferences. The questionnaire 
was composed of three major parts, with 35 variables measuring Korean 
wine consumers’ preferences and characteristics. 

The questionnaire was based on relevant literature reviews (Gil & Sanchez, 
1997; Kalogianni et al., 1999; Keown & Casey, 1995). The first part of the questionnaire 
dealt with respondents’ preferences and characteristics when drinking 
or selecting wine. The second part included wine attributes, the purpose of wine 
drinking, and factors influencing wine drinking among Koreans. The last section 
consisted of the respondents’ demographic characteristics, such as age, gender, 
education, occupation, and income. A 7-point Likert-type scale was used to measure 
Korean wine drinkers’ preferences, characteristics, purpose in drinking 
wine, and factors affecting wine consumption. 

The questionnaire was originally developed in English because most of the 
pertinent literature reviews referred to in developing the questionnaire were written 
in English. A Korean Ph.D. student who is fluent in both English and Korean 
and has an extensive knowledge of wine translated the original English questionnaire 
into Korean. A bilingual Korean professor back-translated into English to 
test the readability of the translated instrument. Before data collection procedures 
began, the questionnaire was pilot-tested on 10 Koreans to ensure the reliability 
and clarity of the questionnaire. 

Participants 

The survey was conducted among the members of a wine association (KISA) 
in Seoul during the months of September and October 2002. KISA’s members are 
interested in wine and the sharing of wine information. KISA is one of the largest 
wine associations in Korea and offers regular wine seminars and wine-tasting 
events. Membership is very diversified, ranging from hotel managers to housewives. 
The survey was conducted during KISA’s regular meetings in September 
and October, 2002. The survey questionnaires were distributed to 280 members 
who attended the meetings. Some 218 filled out the questionnaires, generating a 
response rate of 78%. This is a convenience sample of active Korean wine consumers. 
The data were analyzed by using SPSS 10.0 software. 

Data Analysis 

Frequencies and percentages of age, gender, income, education level, and 
occupation of respondents are given in Table 1. In addition, t tests and one-way 
ANOVA tests were employed to analyze Korean wine drinkers’preferences, characteristics, 
and other factors influencing wine drinking by age, gender, and years 
of wine-drinking experience. The researchers also utilized multiple regression 
tests to examine whether any relationships existed between frequency of wine 
drinking, income, gender, and age. 

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Lee et al. / KOREAN WINE MARKET 27 

Table 1 
Descriptive Characteristics of Participants (N = 218) 

Characteristic n Percentage 

Age (years) 
20-29 81 37.2 
30-39 66 30.3 
40-49 48 22.0 
50 or older than 50 23 10.5 
Total 218 100.0 

Gender 
Male 108 50.0 
Female 108 50.0 
Total 216 100.0 

Income 
Below $14,999 74 34.7 
$15,000-$24,999 58 27.2 
$25,000-$39,999 58 27.2 
$40,000 or older 23 10.8 
Total 213 100.0 

Educational level 
High school 17 7.8 
Collegea 66 30.3 
University/graduate 135 61.9 
Total 218 100.0 

Occupation 
Self-employed 15 7.7 
Government worker 5 2.6 
White-collar worker 44 22.5 
Service sector 127 64.8 
Not in workforce 5 2.6 
Total 196 100.0 

Years of wine drinking 
More than 15 years 33 15.2 
10-14 29 13.3 
5-9 50 22.9 
1-4 74 33.9 
Less than 1 year 32 14.7 
Total 218 100.0 

a. College is usually a 2-year program in Korea. 
RESULTS 

Participants 

Table 1 shows the demographic profile of the respondents. The number of 
male respondents (50.0%) was the same as that of female respondents (50.0%). 
The majority of respondents was between 20 and 49 years old (89.5%). 

Most of the respondents had university or graduate degrees (61.9%). A totalof 
30% of the respondents had a 2-year college education; 34.7% of the respondents 
had annual household incomes below US$14,999; and 27.2% and 10.8% had 

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28 JOURNAL OF HOSPITALITY & TOURISM RESEARCH 

Table 2
Descriptive Statistics for Wine Specific Attributes, Factors Influencing Wine
Purchasing, and Purpose of Wine Drinking


Mean Importance Score Standard Deviation 

Wine attributes 
Flavor 5.92 1.80 
Taste 5.75 1.51 
Price 5.02 1.55 
Appelation of origin 4.99 1.69 
Wine brand 4.97 1.52 
Wine reputation 4.68 1.66 
Regional label 4.27 1.62 
Grape vintage 4.01 1.80 

Factors influencing wine purchase 
Friends’ or relatives’ recommendation 4.54 1.83 
Wine publications 4.35 1.68 
Wine promotion 3.79 1.75 
Wine advertising 3.78 1.64 
Wine tasting 3.71 1.79 
Wine seminar 3.28 1.80 

Purpose of wine drinking 
Harmony with food 4.97 1.58 
Status and ambience 4.61 1.67 
Health 4.18 1.78 

Note: 7-point Likert-type scales ranging from 1 to 7, where 1 = not at all important and 7 = 
very important. 

yearly household incomes of US$25,000-$39,999 and US$40,000 or more, 
respectively. 

A total of 65% of the respondents worked in the service industry, 22.5% were 
white-collar workers, 7.7% of respondents were self-employed, and 2.6% were 
government workers. 

Consumers’ Preferences Affecting 
Purchasing and Drinking of Wine 

As presented in Table 2, Korean respondents ranked flavor as the most important 
attribute when purchasing wine (5.92 on a 7-point Likert-type scale), followed 
by taste (5.75) and price (5.02). The lowest wine attributes were grape vintage 
(4.01) and regional label (4.27). 

While being tested for factors influencing their wine purchasing, the respondents 
indicated that recommendations from friends or relatives had the greatest 
influence on their wine purchasing (4.54). Wine seminars had the least effect on 
consumers’ wine purchasing (3.28 mean score). Regarding the purpose of wine 
drinking by the participants, harmony with food had the highest mean score 
(4.97), followed by status and ambience (4.61), and health (4.18). 

As shown in Table 3, the majority of the respondents preferred to drink red 
wine (5.12) followed by white wine (4.59). The mean score of rose wine was the 
lowest (3.10). Table 3 also shows the mean score of the respondents’ preference 

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Lee et al. / KOREAN WINE MARKET 29 

Table 3 
Descriptive Statistics for Different Wine Varieties and Origin of Wine 

Mean Preference Score Standard Deviation 

Wine Variety 
Red 5.12 1.60 
White 4.59 1.52 
Sparkling 3.19 1.71 
Rose 3.10 1.56 

Origin of wine 
France 5.24 1.61 

U.S. 4.34 1.87 
Italy 4.16 1.82 
Australia 3.62 1.72 
Chile 3.56 1.73 
Germany 3.54 1.46 
Spain 3.09 1.56 
Korea 3.08 1.54 
South Africa 2.67 1.51 
Note: 7-point Likert scales ranging from 1 to 7, where 1 = least like and 7 = the most like. 

Table 4
Price and Wine Bottle Size That Wine Consumers Prefer to Purchase


Percentage 

Price 
Under $7.99 1.8 
$8.00-$24.99 24.8 
$25.00-$41.99 34.4 
$42.00-$58.99 29.4 
$59.00-$75.99 8.7 
Over $76.00 0.9 

Size of wine (ml) 
750 75.7 
375 21.4 
200 2.9 

for wine origin. The country of origin most preferred was France (5.24), followed 
by the United States (4.34), and then Italy (4.16). South African wine had the lowest 
mean score (2.67). 

Wine Size and Wine Price 

As presented in Table 4, 34.4% of the participants preferred to buy wine priced 
between $25.00 and $41.99, and 29.4% of the participants preferred to buy wine 
priced between $42.00 and $58.99. Only 0.9% of the respondents preferred tobuy 
wine priced over $76.00. The majority of the respondents preferred to buy 750 ml 
bottles (75.7%). On the other hand, approximately 25% of the respondents 
favored the purchase of 375 ml or smaller bottles of wine. 

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30 JOURNAL OF HOSPITALITY & TOURISM RESEARCH 

Table 5 
Significant Differences in Wine Selection by Gender 

Mean Score 
Variable Male Female t Value p Value 
Preferences 
Red wine 
Italian wine 
South African wine 
Importance 
Grape vintage 
Regional label 
Health 
5.49 
4.42 
2.91 
4.27 
4.49 
4.48 
4.79 
3.90 
2.42 
3.75 
4.06 
3.89 
3.110 
2.150 
2.429 
2.135 
1.986 
2.484 
.002 
.033 
.016 
.034 
.048 
.014 

Note: Significance level at .05. 

Relationship Between Demographic 
Variables and Wine Preferences 

The researchers examined the relationship between key demographic variables 
(gender, age, years of wine drinking, income, and frequency of wine drinking) 
and the importance of each preference; however, this study reports only on 
the significant variables. 

Significant Differences in Wine Selection by Gender 

To determine whether gender is related to importance and preference levels for 
attributes, the researchers utilized t tests to compare males and females on each 
preference and importance rating. 

As presented in Table 5, the participants’ responses to red wine, Italian wine, 
and South African wine were significantly different. Male participants liked red 
wine (df = 217, t statistic = 3.110, p = .002), Italian wine (df = 217, t statistic = 
2.150, p = .033), and South African wine (df = 217, t statistic = 2.429; p = .016) 
significantly more than female participants did. In addition, male respondents 
placed more importance on the grape vintage (df = 217, t statistic = 2.135, p = 
.034) and regional label (df = 217, t statistic = 1.986, p = .048) than did female 
respondents. 

Consideration of health in drinking wine also differed significantly by gender. 
Health issues were more important to males than to females (df = 217, t statistic = 
2.484, p = .014). However, other variables, such as white wine (df = 216, t statistic 
= 1.394, p = .165), taste (df = 216, t statistic = .090, p = .928), and wine reputation 
(df = 216, t statistic = .861, p = .390), did not differ significantly by gender 
when the respondents selected wine. 

As shown in Table 5, all the mean scores of male respondents are higher than 
those of female respondents. The reason may be that the Korean female respondents 
were more cautious and conservative in responding to the questionnaire 
than the Korean males because female Koreans do not drink alcoholic beverages 
as much as men do. 

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Lee et al. / KOREAN WINE MARKET 31 

Traditionally, Korean women do not often drink alcoholic beverages because 
most Korean women tend not to work after marriage, thus having less opportunity 
to drink for social or business purposes. This factor might lead the female Korean 
respondents to answer the questionnaire more conservatively than the male 
respondents did. 

Significant Differences in Wine Selection by Age 

To determine whether age is related to importance and preference levels for 
attributes, the researchers used one-way ANOVA with Tukey’s HSD to identify 
specific group differences. In addition, each significant variable was followed up 
with a linear trend test to see whether the group differences followed a consistent 
pattern. 

ANOVA results in Table 6 show that the red wine preferences of the four age 
groups are not all the same (F = 4.39, p = .005). The researchers used Tukey HSD 
to conduct further post hoc tests to explain the differences by age group as seen in 
Table 7. The results indicated that consumers aged 30 or older liked red wine significantly 
more than did younger respondents. 

Sparkling wine preferences differ according to age group (F = 4.63, p = .004). 
The respondents aged 20 to 29 liked sparkling wine significantly more than 
respondents aged 40 to 50 or older. The importance of the regional label differs by 
age group (F = 2.88, p = .037). Respondents aged 30 to 49 placed greater importance 
on the wine’s regional label when selecting it compared to respondents aged 
20 to 29. The importance of health concerns in Korean wine drinking varies with 
age (F = 4.22, p = .006). Health played an important role in wine drinking to older 
consumers compared to younger consumers. Wine reputation (F = 0.60, p = .618), 
wine brand (F = 0.52, p = .670), and the impact of status and surroundings (F = 
1.39, p = .247) did not differ significantly by the age of the respondents. 

The results of the study indicated that there is a linear relationship between 
consumers’ health concerns and age, as shown in Figure 2. As age increases, 
health concerns become a greater influence on wine drinking. In addition, younger 
consumers tended to like sparkling wine more than older consumers did. 

Significant Differences in Wine Selection by Experience 

To determine whether the number of years of wine drinking is related to importance 
and preference levels for attributes, one-way ANOVA with Tukey’s HSD 
was used to identify specific group differences. 

The number of years a respondent has been drinking wine is significantly 
related to mean responses for preference and importance levels in some variables. 
Table 8 illustrates that the levels of preference and importance are significantly 
different at α = .05 with respect to the respondents’ years of wine drinking. Red 
wine preference, as related to years of wine drinking experience, were not all the 
same (F = 4.74, p = .001). A greater level of preference was placed on red wine by 
respondents who had been drinking for 10 to 14 years, compared to respondents 
who had been drinking wine for 1 to 4 years or less (see Table 9). 

The importance of price and grape vintage were different by the respondents’ 
years of wine-drinking experience. Price and grape vintage were more important 

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Table 6Significant Differences in Wine Selection by Age

20 to 29 30 to 39 40 to 49 50 or Older Linear TrendVariable Years Old Years Old Years Old Than 50 Years Overall FValuea pValue (pvalue)b 

PreferenceRed wine 4.64 5.44 5.50 5.09 5.12 4.39 .005 .225 
Sparking wine 3.38 3.56 2.81 2.26 3.19 4.63 .004 .001 

ImportanceRegional label 4.02 4.33 4.79 3.87 4.27 2.88 .037 .995 
Health 3.65 4.39 4.54 4.70 4.18 4.22 .006 .011 

Note: Significance level at .05.

a. One-way ANOVA test to see if age groups differ on each variable.
b. Test to see whether age is linearly related to variable. 

Lee et al. / KOREAN WINE MARKET 33 

Table 7
Significant Differences in Wine Selection by Age:
Multiple Comparison Post Hoc Test


20 to 29 30 to 39 40 to 49 
Variable Years Old Years Old Years Old 50 or Older 
Preference 
Red wine 20-29 < 30-39a 20-29 < 40-49a 
Sparking wine 50 or older 50 or older 
< 20-29a < 30-39a 
Importance 
Regional label 20-29 < 40-49a 
Health 20-29 < 30-39a 20-29 < 40-49a 

a. Tukey HSD approach to compare all pairs of age groups (significance level at .05). 
factors to respondents whose wine-drinking years were 10 or more compared to 
respondents whose wine-drinking years were fewer than 10. Regarding health 
and harmony with meals, respondents with 10 to 14 years of wine-drinking experience 
considered health and harmony with meals to be more important than those 
with 1 to 4 years of wine experience. Status or surroundings were significantly 
related to respondents’ years of wine drinking, with those having 5 to 9 years 
of experience rating status or surroundings as more important than those having 
1 to 4 years of wine-drinking experience. Variables such as taste (F = 1.75, p = 
.140), flavor (F = 1.32, p = .265), and brand (F = 1.12, p = .349) did not differ significantly 
by respondents’ years of wine-drinking experience. 

Relationship Between Frequency of 
Wine Drinking and Income, Sex, and Age 

The researchers attempted to identify whether any relationships existed between 
respondents’ frequency of wine drinking and demographic characteristics, such 
as income, gender, and age. To detect such relationships, the authors performed 
multiple regression using frequency of wine drinking as the dependent variable, 
and income, gender, and age as the independent variables. The results of the multipleregression 
testindicatedthat the respondents’income, gender, and age had a 
significant role in predicting the frequency of wine drinking. Respondents’ 
income, sex, and age explained 14% of the variance in the frequency of wine 
drinking, which finding was statistically significant (F = 1.47, p = .000). 

There was a significant positive correlation between respondents’ income and 
frequency of drinking (p = .002). Also, there was a significant positive correlation 
between age and frequency of drinking (p = .007). However, gender was not significantly 
related to frequency of drinking. 

DISCUSSION AND CONCLUSION 

The Korean wine market has huge potential for growth and development. Identifying 
consumer preferences and characteristics is critical to expanding and 

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Table 8Significant Differences in Wine Selection by Experience

More Than 10 to 14 5 to 9 1 to 4 Less Than 
Variable 15 Years Years Years Years 1 Year Overall FValuea pValue 

PreferenceRed wine 5.21 6.14 5.18 4.68 5.03 5.12 4.74 .001 
Sparking wine 2.48 3.03 3.40 3.12 3.91 3.19 3.20 .014 

ImportancePrice 5.24 5.90 4.78 4.93 4.59 5.02 3.65 .007 
Grape vintage 4.24 4.86 3.64 3.76 4.16 4.01 2.83 .026 
Health 4.70 4.86 4.14 3.77 4.06 4.18 2.93 .022 
Harmony with meal 5.18 5.59 5.20 4.49 4.94 4.97 3.46 .009 
Status and surroundings 4.79 4.34 5.12 4.12 5.00 4.61 3.70 .006

a. One-way ANOVA test was used to see whether the years of wine drinking experience was significantly related to variables (significance level at .05). 

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Table 9Significant Differences in Wine Selection by Experience:
Multiple Comparison Post Hoc Test

More Than 10 to 14 5 to 9 1 to 4 
Variable 15 Years Years Years Years Less Than 1 Year 

PreferenceRed wine 1-4 < 10-14 yearsa,
less than 1 < 10-14 yearsa 
Sparkling wine more than 15 years <
less than 1 yeara 
ImportancePrice 5-9 < 10-14 yearsa, 1-4 < 10-14 yearsa, 
less than 1 < 10-14 yearsa 
Grape vintage 5-9 < 10-14 yearsa, 1-4 < 10-14 yearsa, 

less than 1 < 10-14 yearsa 

Health 1-4 < 10-14 yearsa 

Harmony with meal 1-4 < 10-14 yearsa 

Status and surroundings 1-4 < 5-9 yearsa 

a. Tukey HSD test was used to compare all pairs of the years of wine drinking experience group (significance level at .05). 

36 JOURNAL OF HOSPITALITY & TOURISM RESEARCH 

Figure 2
Significant Difference of Wine Preference and
Purpose of Wine Drinking by Age Group


0 
0.5 
1 
1.5 
2 
2.5 
3 
3.5 
4 
4.5 
57-point Likert ScaleSparkling Wine 
Health 
20-29 30-39 40-49 50 or over 
50 

Age 

developing that market. The purpose of this study was to identify Korean wine 
consumers’ preferences and characteristics and provide suggestions for promoting 
wine in the Korean market. 

According to the results of the study, the majority of female respondents (65%) 
had started drinking wine within the previous 4 years. Recently, wine has become 
popular among Korean female drinkers because it is easy to drink and has lighter 
alcohol content in comparison with strong, traditional Korean liquors, such as 
Sochu, which is brewed from rice (Seo, 2002). It is expected that the female wine 
market will increase significantly in the total Korean wine market (Bang & Cho, 
2001). Therefore, developing female wine drinkers is an important issue for 
expanding that market. 

The results of the study indicated that young respondents (aged 19-29) liked 
sparkling wine significantly more than did older age groups. Wine marketers may 
introduce a broad range of sparkling wine in the Korean market for the young 
wine drinkers. 

This study revealed that the flavor and taste of wine were the most important 
factors (ranked first and second) in the respondents’ wine selections. Wine marketers 
should facilitate flavor and taste of wine in their marketing effort so that the 
consumers better understand these attributes. 

Harmony with meals was ranked first as the purpose for drinking wine. Asia 
will be the fastest growing region in wine consumption in the next 5 years 
(Vinexpo avec le Concours de Vertumne International & Associes, 2002b). Ko 
et al. (2002) argued that it is critical for wine companies to identify and develop 
wine products that can be easily matched with Asian food in order to boost wine 
consumption and achieve a long-term success in the highly promising Asian market. 
At the same time, it might be necessary for a wine company to educate Korean 
wine drinkers that certain wine can be harmonious with traditional Korean food. 
For example, full-bodied red wines, such as Carbernet Sauvignon and Merlot, go 
well with traditional Korean barbecue, bulgogi (Stephens, 2003). However, many 
Korean consumers perceived that Western wine always goes with Western food 

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Lee et al. / KOREAN WINE MARKET 37 

(Stephens, 2003). Therefore, it is suggested that the wine marketers need to promote 
the fact that Korean wine consumers do not have to restrict themselves to 
Western food whenever they drink wine; they should try Korean food as well. 

The results of the study showed that recommendations from relatives or 
friends played an important role in Korean consumers’ wine-purchasing decisions. 
Keown and Casey (1995) pointed out that many consumers hesitated to buy 
wine because of the risk and uncertainty. According to the results of the study, 
Korean consumers tended to reduce the risk in wine purchasing by listening to 
friends’ or relatives’ recommendations. 

Recently, several wine clubs were established in Korea so that wine consumers 
could share wine information (Lee, 2002; Stephens, 2003). Wine marketers 
should build a good relationship with the wine club members because the members, 
as opinion leaders, may play an important role in spreading wine information 
to their friends or relatives. 

In addition, professional staff can be helpful in providing information and 
advice about wine. Marketers can invite sales personnel from key wine stores, and 
food and beverage managers from major hotels and restaurants in Korea, to their 
wineries and provide tours and tastings. In this way, the personnel can become 
familiar with wine products and eventually provide better wine information or 
suggestions to customers. Also, the knowledge gained helps wine consumers 
reduce any uncertainty or risk regarding their wine purchases (Keown & Casey, 
1995). Roberto (2002) reported that Robert Mondavi has provided a series of 
training seminars and educational events to fine restaurants and hotels. The purpose 
of these events has been to help restaurant and hotel operators better understand 
Robert Mondavi wines as well as successful wine service. Other wine distributors 
and marketers should learn from Robert Mondavi and provide seminars 
and trainings for hotel and restaurant employees. 

The results of the study showed that the level of preference and importance in 
certain research variables differed significantly by age. For example, middle-aged 
and older participants (40 years or older) preferred red wine, compared to younger 
ones, aged 20 to 29. The middle-aged and older respondents’ preference for 
red wine was closely related to their health concerns. According to the results of 
the study, there was also a strong linear relationship between consumers’ health 
concerns and age. As consumers’ age increases, health concerns become an 
important factor in their wine drinking. 

The fact that moderate red-wine drinking could reduce heart disease affected 
older consumers’red-wine preferences. Wine marketers should take advantage of 
the older Korean consumers’health concerns in promoting red wine in their marketing. 
To attracttheolder winedrinkers, marketers’advertisementsand publications 
can focus on explaining the health benefits of drinking red wine. 

The results of the study illustrated that the levels of preferences and importance 
in many variables differed significantly, according to how many years the 
respondents had been drinking wine. Price and grape vintage were more important 
attributes to consumers who had been drinking more than 10 years than consumers 
who had been drinking wine less than 10 years. 

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38 JOURNAL OF HOSPITALITY & TOURISM RESEARCH 

In addition, health concerns and harmony with meals were more important 
issues to consumers who had drunk wine 10 to 14 years than to consumers who 
had started to drink wine only within the past 4 years. However, the considerations 
of surroundings and status were more important aspects in influencing consumers 
whose wine-drinking periods were less than 4 years than to consumers who had 
been drinking wine for 5 to 9 years. These results imply that the consumers whose 
wine-drinking period is less than 4 years may not have enough wine knowledgeto 
appreciate the wine attributes, such as grape vintage and health benefits of wine 
drinking. 

Also, these new wine drinkers drink passively in keeping with external factors, 
such as status and surroundings. Therefore, it is recommended that wine marketers 
provide information related to wine attributes and health benefits to this young 
wine market segment in Korea. For example, a wine retailer in Korea developed 
traditional Korean paintings that also include wine information in Korean and 
attached them to the labels of their imported wine bottles so that Korean customers 
could become familiar with their wine (Seung, 2002). In addition, it might be 
helpful for wine marketers to design and offer wine cultural events so that wine-
drinking beginners can better understand wine (Roberto, 2002). 

The results of the study indicated that two demographic characteristics, 
income and age, are closely related to the frequency of wine drinking. High-
income consumers drink wine more frequently; older consumers drink wine more 
frequently compared to relatively low-income consumers and younger consumers. 
Wine marketers may group Korean wine-drinker segments according to their 
income and age. It will help the wine operators to develop their marketing strategy 
by the characteristics of each wine-consumer segment to accommodate the different 
needs and preferences of each. 

The traditional wine market has been saturated, and the global wine industry 
has become very competitive. Thus, wine marketers need to find new markets. 
The Korean wine market has great potential. The worldwide wine industry hasa 
real opportunity in the Korean wine market if it understands the characteristics 
and preferences of the Korean wine consumers, and if it customizes products, service 
offerings, and marketing. Worldwide wine-marketing managers need to realize 
that they can achieve long-term success in foreign markets if they understand 
the consumer preferences and characteristics of each market. 

Limitations of the Study and Future Study 

The researchers chose the members of KISA as the target population. The 
researchers believe that the Korean wine market is still limited even though, 
recently, the population of wine drinkers has increased rapidly. For example, in 
2002, wine consumption per capita in South Korea was only 0.3 litre, which is 
extremely small compared to the average of French consumers, who drink about 
75 bottles of wine annually (Lankov, 2003; Seoul Wine Expo, 2003). Therefore, it 
is difficult to identify Korean wine drinkers’preferences and characteristics based 
on a systematic approach or a nonconvenience sampling method. The results of 
the study may not represent the general Korean wine consumers because the population 
of the study consisted of Korean wine association members. However, the 

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Lee et al. / KOREAN WINE MARKET 39 

researchers believe that the findings are valid, albeit with the limitations of the 
survey method because the current population of wine consumers in Korea has 
been driven by the more wealthy and educated consumer group. This finding is 
consistent with the characteristics of samples in the study in terms of age, gender, 
occupation, education, and income (Lankov, 2003). 

In addition, the study focused on identifying Korean wine drinkers’ characteristics 
and preferences. It did not discuss other key issues, such as the choice of a 
wine firm’s entry mode, a factor crucial for a foreign wine firm’s success in the 
Korean markets. A firm’s profit in the foreign markets is highly correlated to the 
appropriate selection of its entry mode (Solana-Rosillo, 1997). Most Asian wine 
markets are fundamentally different from Western markets in terms of their marketing 
practices, distribution channels, and pricing strategies (Beverland, 2002). 
Future research may investigate foreign wine firms’ entry mode into Asian wine 
markets as a factor for developing these markets. 

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Submitted March 24, 2003 
First Revision Submitted September 16, 2003 
Final Revision Submitted April 17, 2004 
Accepted May 16, 2004 
Refereed Anonymously 

Kyuho Lee (e-mail: leekyuho@vt.edu), is a Ph.D. student of Hospitality and Tourism 
Management in Pamplin College of Business at Virginia Polytechnic Institute and State 
University. Jinlin Zhao, Ph.D. (e-mail: zhaoj@fiu.edu), is an associate professor at the 
School of Hospitality Management at Florida International University. Jae-Youn Ko, 
Ph.D. (e-mail: jyko@khu.ac.kr), is an assistant professor in the College of Tourism & 
Hotel Management at Kyung-Hee University, Seoul, Korea. 

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