Do product variants appeal to different segments of buyers within a category?

Abstract

PurposeThis study responds to the call of Fader and Hardie for more research on buyer behaviour toward stock keeping units (SKU). This paper aims to examine whether different SKU‐based product variants appeal to buyers with different demographic characteristics.Design/methodology/approachThis study examines the product variants (such as size, formulation, type) of a range of brands in six consumer goods categories. The authors calculate and compare the market share of each variant within each demographic group. If a variant has a higher market share within a specific demographic group than the overall average, this indicates segmentation at the product variant level.FindingsThe findings show that there are many differences in the market shares of product variants among different demographic groups of buyers. The largest differences are found extensively within the age and employment status variables.Originality/valueFunctionally different product variants tend to draw different demographic‐based segments of buyers, which has not been previously shown.