Behavioural segmentation using store scanner data in retailing: Exploration and exploitation in frequently purchased consumer goods markets
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Consumers treat and react to promotions diversely in terms of their promotion proneness and variety seeking tendency. This paper investigates 589 consumers with 169678 transaction records in the US salt-snack market ranging from year 4 to year 7 in IRI Market Dataset for exploring how their purchase behaviours evolve in the consumer life cycle. A set of algorithms is presented to process store scanner data for measuring consumers’ promotion proneness and variety seeking tendency, which are then used for conducting clustering analysis. Four types of purchase behaviours including “Promotion averseâ€, “Bargain huntersâ€, “Opportunistic explorersâ€, and “Opportunistic exploiters†are identified and assigned accordingly for each consumer in each year. Even though consumers’ purchase behaviours will dynamically and freely shift within or among those four behavioural segments over time, two clear behavioural evolvement patterns can be identified statistically in the consumer life cycle. In the US salt-snack market, some consumers who are initially not sensitive to promotions will gradually evolve to take advantage of promotion to try alternatives for extending their market knowledge. Some explorers’ promotion proneness will gradually increase and outweigh their variety seeking tendency over time, thus, those opportunistic explorers become inclined to buy any brands on promotion. In contrast, consumers who initially prefer to buy their familiar brands will become m
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How to Cite
Luo, C., Bruijn, O. D., & Chen, Y. W.. (2015). Behavioural segmentation using store scanner data in retailing: Exploration and exploitation in frequently purchased consumer goods markets. Journal of Business and Retail Management Research, Volume 10 Issue 1.
Citation Context
APA
Luo, C., Bruijn, O. D., & Chen, Y. W.. (2015). Behavioural segmentation using store scanner data in retailing: Exploration and exploitation in frequently purchased consumer goods markets. Journal of Business and Retail Management Research, Volume 10 Issue 1.
MLA
Luo, Cheng, et al.. "Behavioural segmentation using store scanner data in retailing: Exploration and exploitation in frequently purchased consumer goods markets." Journal of Business and Retail Management Research, Volume 10 Issue 1, 2015.
Chicago
Cheng Luo, Oscar De Bruijn, and Yu-wang Chen. "Behavioural segmentation using store scanner data in retailing: Exploration and exploitation in frequently purchased consumer goods markets." Journal of Business and Retail Management Research Volume 10 Issue 1 (04 Nov 2015).
Harvard
Luo, C., Bruijn, O. D., & Chen, Y. W. (2015) Behavioural segmentation using store scanner data in retailing: Exploration and exploitation in frequently purchased consumer goods markets. Journal of Business and Retail Management Research, Volume 10 Issue 1
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