Segmenting Green Tea Consumers by Purchase Motivation in South Korea

Abstract

Since the 1990s green tea consumption in South Korea has been gradually increasing because consumers consider green tea as beneficial to health. It is, therefore, necessary to know the factors influencing each motivational cluster according to sociodemographic characteristics. This study aims to obtain an empirical understanding of the green tea market by using a segmentation approach to provide better information for green tea marketers in Korea. A self-administered survey was obtained from 595 consumers in Seoul, Korea. Four distinct segments from cluster analysis were identified based on motivation: low motivated (18.0%), social seekers (35.7%), want-it-all (25.3%), and refreshment (21.0%). A multinomial logit regression analysis was used to identify the characteristics of consumers who are most likely to opt for a suitable motivation segment. Results indicated that the determinants of consumer motivation are age, occupation, price, company, and purchasing place.

KEYTERMS:

• green tea
• logit regression analysis
• purchase motivation
• market segmentation

Acknowledgments

This study was carried out with the support of the Research Program for Agricultural Science & Technology Development (Project No. PJ00856201), National Academy of Agricultural Science, Rural Development Administration, Republic of Korea.