shopper taxonomy for retail strategy development

Segmentation of shoppers has been explored by many academic researchers and business practitioners seeking to understand shopping behaviour or to develop marketing strategies for particular customer groups. Market segmentation holds the key to successful marketing strategy as it encourages understanding of the key variables that differentiate specific segments.

The shopper taxonomy determined through this study is based on a set of variables that is relevant and appropriate for shopper segmentation and reflects the key aspects important to shoppers in motivating shopping behaviour towards a specific retail location. This taxonomy extends the proposed motivational taxonomy of Westbrook and Black (1985), derived from Tauber's (1972) earlier research. Westbrook and Black defined this taxonomy through shopping motives, and identified categories of product-oriented, experiential and a combination of product and experiential shoppers. Their research findings, however, pointed to a six-cluster typology, defining department stone shopping around seven motivations aligned with evaluating options and acquiring the products, engaging in the sales process and gaining stimulation and affiliation through the retail environment.

The “apathetic”, “shopping-processed involved” and “choice optimisation” shopper segments described by Westbrook and Black align with the “have to” “experiential” and “practical” “segments found in this study in terms of their focus on the shopping activity itself and the affiliation and stimulation motives associated with the shopping activity. Other associations between shopper segments across the two studies are less clear, and may be explained through the differing purposes for which the studies were undertaken and resulting variation in the measures used to define the motivational constructs.     

The impact of retail store format on the satisfaction-loyalty link: An empirical investigation

Maintaining and improving customer loyalty is an important strategic goal for businesses as competition has intensified in almost all sectors of the economy. Retailers, in particular, feel the need to invest in customer loyalty more than ever before as channels and store format alternatives available for consumers to shop at have proliferated. However, current research in marketing provides little guidance to retail managers about developing and sustaining shopper loyalty across different store formats. Toward filling this gap, the present research examines the shopper satisfaction-loyalty link in two different store formats (supermarkets and hypermarkets). Using data from surveys of 505 Spanish shoppers at both types of retail formats, we examined how shoppers' attitudinal and behavioral loyalty develop differently. Our results reveal important differences and offer directions for the pursuit of different strategies by supermarkets and hypermarkets. The specific strategies, and the implications of this research for theory and practice are discussed.     

Temporal and financial risk assessments: How time and money constrain shopper behavior and influence purchase solutions

PurposeThe purpose of this paper is to better understand the constraints that make shopper behavior unique from consumers and how those constraints manifest themselves in retail purchase solutions.Design/methodology/approachThis study utilized value laddering and phenomenological research methodologies to explore the data gathered from 39 interviews of male and female grocery shoppers.FindingsThis research examines the perceived constraints on shopper resources. The data reveal that all shoppers perceive themselves to be constrained by both finances and time. These findings hold across all income, age, and employment strata. As a result, price and convenience no longer function as segmentation tools. Instead, pricing and convenience become thresholds setting shopper “floor” expectations for retailers, service providers and brands.Research limitations/implicationsThis study was limited to grocery shoppers largely located in the southern US. Future research could expand on the variety of product categories and conditions explored, along with the cultural diversity of the participants.Practical implicationsShoppers' broader view of purchase relationships reduces the importance of transactional savings. Shopper consideration of total market basket value, allows for more focus on services and relationships to drive shopper value. Shopper constraints can result in purchase outcomes different than what consumer research would indicate.Originality/valueThis research is the first to examine elements which may constrain shoppers, particularly temporal and financial risk assessments, and how they impact shopper purchase solutions.     

Simulated Attention-Tracking Methodologies: An Examination of Measurement Efficacy

This study introduces and examines a simulated attention-tracking methodology as an emerging technique to improve the study of in-store shopper behavior and decision making. To assess the viability of this new methodology, we examine its efficacy in producing consumer behavior data consistent with results predicted by the marketing literature. Empirical data across five grocery categories are used to examine the influence of personal, product, and situational differences on external information search. Findings show that the attention-tracking methodology is able to demonstrate expected results in almost all cases. The methodology is also able to provide a more complete view of external information search through tracing the observed search behavior preceding decision making. This proof of methodology responds directly to calls in the marketing and retailing literature to test new and emerging methodologies in support of research on in-store marketing and shopper behavior. Findings also provide managers with a methodology to examine the actual impact of marketing actions intended to capture shoppers’ attention at the retail shelf and to influence behavior.     

For Indian online shoppers,have saying and doing parted ways?

Grounded in the theory of planned behavior (TPB) and based on both perceptual as well as behavioral data, the study explores e‐service quality (e‐SQ) dimensions’ influence on merchandise value perception (MVP) and how these value perceptions, in turn, impact shopper loyalty intention, finally leading to word‐of‐mouth (WOM) and store patronization behavior. The model was tested for measurement and structural validity, mediation by MVP, and moderation by gender. Findings suggest that: (1) e‐SQ dimensions of efficiency and fulfillment have direct effect on MVP; (2) MVP is a key mediating variable facilitating “indirect‐only” mediation between e‐SQ dimensions and online shoppers’ loyalty intentions; (3) mediation by MVP is not moderated by gender; (4) strong association between shoppers’ loyalty intention and intention to spread positive WOM; and (5) “saying” and “doing” are incompatible because online shoppers’ loyalty intentions or WOM do not translate into store patronization behavior.     

Black middle class township shoppers: a shopper typology

Due to an increase in spending power amongst Black middle class, this growing segment has become a lucrative investment opportunity for many retailers in South Africa and most emerging markets. The purpose of this study is to segment township consumers according to their demographics, life stage, attitudes towards township shopping centres and Living Standards Measure, to understand shopping patterns of township consumers. A survey among Soweto Black middle class township respondents was conducted, and maximum likelihood factor analysis was used to identify attitudes towards township mall factors. The study revealed five factors namely entertainment, convenience, mall essence, staff and mall basics, which were all consistent with previous studies, with the exception of staff and mall basics, which was revealed in this study. A K-means cluster analysis was then used to segment township shoppers according to their attitudes. Four shopper segments were discovered, namely disappointed crusaders, upcoming loyals, social seekers and local loyals, which, despite investigating shopper attitudes in place of shopper behaviour alone, were similar to well-establish shopper typologies. Each segment was profiled according to demographic variables, attitudes as well as shopping patterns. Results, therefore, suggest that retailers and developers need to consider the unique needs and differences among Black middle class consumers when developing retail strategies as they reveal unique characteristics from typical shopper typologies. Given similarities in some emerging countries such as India, the findings of this study could be generalized to other middle class consumers from emerging markets. Similar shopper segments may arise, which may be consistent with previous shopper typology studies and new segments unique to emerging market middle class consumer may be unveiled.     

Loyalty Formation for Different Customer Journey Segments

The proliferation of new touchpoints empowers today’s customers to design their own journey from search to purchase. To address this new complexity, we segment customers by their use of specific touchpoints in the customer journey, investigate the association of several covariates with segment membership, consider the rise of mobile devices as potential “game changers” of existing segments, and explore how the relationships among product satisfaction, journey satisfaction, customer inspiration, and customer loyalty differ across segments. Based on anticipated utility theory and using latent class analyses on large-scale data from two samples of 2,443 and 2,649 journeys, we identify five time-consistent segments―store-focused shoppers, pragmatic online shoppers, extensive online shoppers, multiple touchpoint shoppers, and online-to-offline shoppers―that differ considerably in their touchpoint and mobile device usage, their segment-specific covariates, and their search and purchase patterns. The five segments remain unchanged in the two data sets even though the usage of mobile devices has increased substantially. Furthermore, we find that the relationships between various loyalty antecedents and customer loyalty differ between the segments. The insights from this paper help retailers develop segment-specific customer journey strategies.     

Innovations in Shopper Marketing: Current Insights and Future Research Issues

Shopper marketing refers to the planning and execution of all marketing activities that influence a shopper along, and beyond, the entire path-to-purchase, from the point at which the motivation to shop first emerges through to purchase, consumption, repurchase, and recommendation. The goal of shopper marketing is to enable a win–win–win solution for the shopper–retailer–manufacturer. Shopper marketing has emerged as a key managerial practice among manufacturers and retailers, who are eagerly embracing innovations in the different aspects of shopper marketing. We review current and potential innovations in shopper marketing. We identify the managerial challenges to achieving new win–win–win solutions among shoppers, manufacturers, and retailers in shopper marketing and outline future scenarios and research issues related to these challenges.     

Clustering Attitudes and Behaviors of High/ Low Involvement Grocery Shopper

The purpose of this exploratory and quantitative study was to examine the attitudes and behaviors of 14,807 grocery shoppers. These respondents across the US were asked to answer attitudinal, behavioral, and demographic related questions. Shoppers were profiled by analyzing their responses to 16 relevant attitudinal and behavioral questions. A cluster analysis was performed followed by a discriminant analysis to determine attitudinal and behavioral variables explaining cluster membership. A cross-tabulation analysis assessed demographic variables that correlated with cluster membership. Two clusters were identified: high and low involvement grocery shoppers. In an event that has long been perceived as low involvement, a large percentage (53%) can be categorized as high involvement grocery shoppers. These shoppers tend to be younger. They were more likely to enjoy the hunt of finding products/deals, seek the advice of others and perceive that the products they buy reflect upon them. Grocery stores have a significant opportunity to target this high involvement shopper. Grocery stores will need to create an integrative, engaging online and in-store experience to attract high involvement shoppers and ultimately increase store loyalty. The results of this research has significant communication, branding and digital marketing implications.     

Online Shopper Reviews: Ramifications for Promotion and Website Utility

Today's consumers are empowered with online shopper reviews which are mostly written and posted by buyers, customers, users, or visitors at a website. Shopper reviews will become more popular and ubiquitous in e-tailing in the near future. However, the marketing literature is still limited when it comes to knowledge of how shoppers perceive and use online reviews in their purchase decisions. Hence, this study explored shoppers’ predispositions toward positive or negative reviews and examined the impact of consumers’ attitudes and usage patterns on their perceived helpfulness and credibility of online shopper/peer reviews. One interesting finding from our study of 342 online shoppers was that consumers who would pay greater attention to positive reviews gave reviews more credible and usefulness ratings than their counterparts who would focus on the negative reviews.     

An empirical analysis of buying behaviour in UK high street womenswear retailing using the Dirichlet model

Clothes shopping behaviour is thought to be characterized by a high degree of segmentation but there appears to be little previous research to validate these assumptions. In addition, the belief that clothes shoppers are fickle has led to scepticism regarding the ability of empirical models to analyse consumer behaviour in this sector. However, an empirical analysis of 'Fashiontrak' data compiled by Taylor Nelson Sofres plc using the Dirichlet model highlights regular and predictable patterns of consumer behaviour; there appears to be little difference between how shoppers frequent womenswear retailers and how they buy fast-moving consumer goods brands despite major structural differences between the two (such as purchase frequency, pricing levels, durability of the product). The implications that these observations have on customer loyalty, marketing planning, store patronage and store location and performance planning are discussed.     

The Impact of Frequent Shopper Programs in Grocery Retailing

Frequent shopper programs are becoming ubiquitous in retailing. Retailers seem unsure however about whether these programs are leading to higher loyalty, or to higher profits. In this paper we analyze data from a U.S. supermarket chain that has used a number of frequent shopper rewards to improve sales and profitability. We find that while these programs are profitable, this is only because substantial incremental sales to casual shoppers (cherry pickers) offset subsidies to already loyal customers. In this way our findings are inconsistent with existing theories about how frequent shopper programs are supposed to work. We construct our own Hotelling-like model that explicitly models cherry picking behavior and show that its predictions match the data quite closely. We further test the predictions of our model by characterizing the impact of such programs on trip frequency and basket size. We then use the model to examine more complex scenarios. For example, our analysis suggests that frequent shopper programs may be unprofitable if they eliminate all cherry picking. This may explain why some retailers seem dissatisfied with their programs. We end by proposing a solution that retains the benefits of the frequent shopper programs and yet continues to let supermarkets benefit from price discrimination.     

Online grocery shopping: the impact of shopping frequency on perceived risk

Online grocery shopping has enjoyed strong growth and it is predicted this channel will continue to grow exponentially in the coming years. While online shopping has attracted an abundance of research interest, examinations of online grocery shopping behaviour are only now emerging. Shopping online for groceries differs considerably from general online shopping due to the perishability and variability of the product, and frequency of the shopping activity. Two salient gaps underpin this research into online grocery shopping. This study responds to calls to investigate the online shoppers’ experience in the context of online purchasing frequency. Second, this study examines the mediating effect of perceived risk between trust and online repurchase intention of groceries. An online survey was employed to collect data from shoppers who were recruited from a multi-channel grocery e-retailer’s database. The online survey, comprising 16 reflective validated scale items, was sent to 555 frequent and infrequent online grocery shoppers. Results find that while customer satisfaction predicts trust for both infrequent and frequent online grocery shoppers, perceived risk fully mediates the effect of trust on repurchase intentions for infrequent online grocery shoppers. Furthermore, path analysis reveals that the developed behavioural model is variant across both groups of shoppers. Theoretically, we provide a deeper understanding of the online customer experience, while gaining insight into two shopper segments identified as being important to grocery e-retailers. For managers, this study tests an online customer behavioural model with actual purchasing behaviour and identifies the continued presence of perceived risk in grocery e-retailing, regardless of purchase frequency or experience.     

How in-store educational and entertaining events influence shopper satisfaction

While recent years have seen an increased use of educational and entertaining events within the store environment, little seems known about how consumers value such events. This study investigates how the staging of education and entertainment-focused in-store events impacts on consumers’ value perceptions, arousal levels and store satisfaction. It is hypothesized that such events have a positive effect on store satisfaction but that their effects are moderated by a shopper’s motivational orientation. Findings from a scenario-based experiment among 786 shoppers from two retail categories (hardware and computer stores) provide support for this. The findings show that task-oriented consumers derive more value and satisfaction from an education-focused event than from an entertainment-focused event, while recreation-oriented consumers appreciate either type of event. The study findings imply that providing education themed events is a safer option for retailers than providing entertainment-focused events because education satisfies a wider range of shopper needs. Shoppers overall derive pleasure from entertainment but task-oriented shoppers tend to also see it as a hindrance to the convenience of shopping, with the result that for these shoppers the hosting of entertainment-focused events may result in reduced store satisfaction levels.     

Environmental profiles of female apparel shoppers in the Midwest,USA

Abstract Concern for the environment has become an accepted part of our lifestyle. A largely untapped consumer commodity with strong reuse or recycling potential is textiles and apparel. Apparel retailers can benefit from a knowledge of the environmentally concerned apparel shopper and can be instrumental in extending society's appreciation for environmental responsibility. The purpose of this exploratory study was to segment female apparel shoppers into environmentally oriented groups and to profile each group with respect to importance of store attributes, lifestyle activities, general environmental attitudes and textile disposal patterns. Factor analysis, stepwise multiple regression and chi-square analysis were used to analyse data from 113 returned questionnaires. The results indicated that environmental groups can be profiled for textile/apparel products and that each group places emphasis on a different set of store/product attributes when making patronage and purchasing decisions. Profiles of each environmental group with suggestions for retail marketing approaches are provided.     

Consumer Shopping Styles and Online Shopping: An Empirical Study of Indian Consumers

ABSTRACT

The generalizability and applicability of the Consumer Shopping Inventory (CSI) scale on Indian sample in predicting online shopping behavior was examined. CSI scale has been adapted by researchers to validate its applicability in different countries. Results revealed new factors and different segments of consumers were identified by factor analysis. The findings posit that the original U.S. eight-factor model could not be confirmed completely on Indian sample. However, the study found support for five factors: quality-conscious shopper, fashion-conscious shopper, uninterested shopper, impulsive shopper, and brand-conscious shopper. Online shopping behavior was categorized under convenience, information availability, and cost factors. Demographic factors do not influence consumers' decision to shop online. Consumers shopping online frequently and Impulsive shoppers are likely to look at convenience factor of online shopping. Information availability was important for fashion-conscious shoppers, consumers frequently shopping online, and impulsive shoppers. Brand-conscious shoppers and quality-conscious shoppers were not likely to purchase online.     

Profiling shoppers’ coping behaviours during a pandemic crisis: A regulatory focus perspective

Using the regulatory-focus theory (i.e. promotion- and prevention-focused concepts), the research investigates shoppers' positive/negative coping behaviours and segmentation linked to COVID-19. Supported by an online survey with 213 shoppers conducted after the first national lockdown (March 2020), factor analysis identified a set of four shopping factors meaningful to profile shoppers’ coping behaviours and segmentation. Positive coping is represented by quality-, price- and brand-focused shopping factors, whereas negative coping is represented by store-focused. The resultant three shopper segments are known as the mindful shopper (positive and negative coping), and the indulgent and the optimal shoppers (more positive coping).     

Creating Shopper Value: Co-Creation Roles,In-Store Self-Service Technology Use,and Value Differentiation

This study examines how retailers can use self-service technologies (SST) to increase shopper satisfaction. Using a survey of 188 consumers of a new self-service kiosk launch within a convenience-store (c-store) setting, we examine how such retailers might influence shopper's perceptions of value by better involving customers in the service delivery experience. Our proposed model links classic service operations and marketing design insights to the service-dominant logic perspective of service value co-creation. We find that shoppers perceive enhanced value creation from the new SST when they feel comfortable in their roles and the surrounding service design supports those roles.     

How does shopper-based mall equity generate mall loyalty? A conceptual model and empirical evidence

Understanding the antecedents of shopper mall loyalty remains one of the crucial issues for both mall managers and retailing researchers. We propose a conceptual model that explains the psychological process by which shopper-based mall equity (e.g., the perceived mall value) generates mall loyalty. We collected data from shoppers in two urban North-American shopping malls (N=905). The empirical results were generally supportive of the model: Mall loyalty was significantly predicted by the commitment that shoppers held toward the mall; and that commitment, in turn, was significantly predicted by shopper's positive awareness of the mall's characteristics, and shopper's self-congruity. The latter construct, in turn, was significantly predicted by mall image dimensions such as the mall's environment and the quality of the products and services found in the mall. We also found the model to be invariant between female and male shoppers. Theoretical and managerial implications of the model and the findings were also discussed.     

Shopper-Facing Retail Technology: A Retailer Adoption Decision Framework Incorporating Shopper Attitudes and Privacy Concerns

Continual innovation and new technology are critical in helping retailers’ create a sustainable competitive advantage. In particular, shopper-facing technology plays an important role in increasing revenues and decreasing costs. In this article, we briefly discuss some of the salient retail technologies over the recent past as well as technologies that are only beginning to gain traction. Additionally, we present a shopper-centric decision calculus that retailers can use when considering a new shopper-facing technology. We argue that new technologies provide value by either increasing revenue through (a) attracting new shoppers, (b) increasing share of volume from existing shoppers, or (c) extracting greater consumer surplus, or decreasing costs through offloading labor to shoppers. Importantly, our framework incorporates shoppers by considering their perceptions of the new technology and their resulting behavioral reactions. Specifically, we argue that shoppers update their perceptions of fairness, value, satisfaction, trust, commitment, and attitudinal loyalty and evaluate the potential intrusiveness of the technology on their personal privacy. These perceptions then mediate the effect of the technology on shopper behavioral reactions such as retail patronage intentions and WOM communication. We present preliminary support for our framework by examining consumers’ perceptions of several new retail technologies, as well as their behavioral intentions. The findings support our thesis that shopper perceptions of the retailer are affected by new shopper-facing technologies and that these reactions mediate behavioral intentions, which in turn drives the ROI of the new technology.