Online Consumer Segmentation Study Based on Factors Affecting E-Commerce Selection

Abstract

Indonesia has considerable e-commerce growth potential supported by the increasing number of internet users. The rapid growth of e-commerce is characterized by the increasing number of e-commerce resulting in the increasingly intense competition among e-commerce. The purpose of this study is to do online buyer segmentation based on the attributes of the website. The survey using an online questionnaire was given to 338 online buyers in Indonesia. Factor analysis is used to verify the construct model used using Confirmatory Factor Analysis (CFA). Finally, segmentation analysis is applied to identify groups of respondents and create their profiles. Based on segmentation analysis, the study identified five segments, namely, assurance seekers, secure seekers, convenience seekers, convenience and secure seekers, and social connectivity seekers. Each of the five segments varies greatly in the selection of websites for purchases and describes the differences in their online shopping orientation. Companies need to develop a plan to consider the unique characteristics of the online market segment to attract and retain users. The findings of this study can be used as guidelines for the development of a multi-dimensional strategic framework by online retail companies.