Shopper segmentation using multivariate risk analysis for innovative marketing strategies

Abstract

Shopper buying behaviour is essential for the retailers to segment the shoppers in accordance to their disruptive attitude and perception for better innovative strategies which may lead to higher profits. The major purpose of this study to categorize the shoppers into distinct groups based on their risk-based perception for the organized retail outlets in Bangladesh. Seven hundred eighty-five respondents were responding on 21 variables related to store which influence their buying behaviour. In the present study, the shoppers were classified into three segments such as value seekers and disruptive to please shoppers, quality and style-driven shoppers, sensory-driven, and not interested shoppers by using innovative k-means cluster analysis. The results of the study help to retailers in understanding the various disruptive segments of shoppers in relation to their importance for store attributes affected by their demographic characteristics and guide the retailers to take necessary actions regard redesign of retail mix to provide innovative value to the shoppers.