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Abstract

Chins is the world largest red grape wine consuming country. Using data from a recent survey conducted in three diverse cities in China, this study examines Chinese consumers’ expenditure and preferences for wine for both self-consumption and gifting. Results indicate that in addition to price, Chinese consumers looked for other wine attributes such as brand and color but there are significant regional differences in wine preference and expenditure. On average, Chinese spend more on gift wines than for their own consumption. Increase in self-consumption contributed significantly to increases in gifting but the reverse effect was much weaker. Factors contributing to self-consumption and gifting are different and sometimes the effects were completely opposite such as consumers’ experiences with wine, the role of wine advertisement, and the occasions when wine was consumed. Implications are drawn for wine standards and classification policies and for wine producers and marketers in China as well as around the world.

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