Segmenting luxe-bargain shoppers using a fuzzy clustering method

Abstract

Purpose – This study aims to identify consumer segments among luxe-bargain shoppers using a fuzzy clustering method based on psychographic variables related to both luxury consumption and bargain processes and profiles the identified segments in behavioral tendencies. Design/methodology/approach – The sample consists of 500 consumers who purchased a luxury brand at a bargain. The analyses involve running a confirmatory factor analysis, a fuzzy clustering analysis based on psychographic variables, and ANOVA for profiling the segments. Findings – A fuzzy clustering analysis identifies four distinct segments: deal hunters, sale-prone shoppers, active luxe-bargain shoppers, and royal shoppers. Each consumer segment exhibits differences in consumer characteristics, demographics, and behavioral tendencies. The study provides insight into varied luxury consumers. Research limitations/implications – In an effort to fill the gap between traditional framework in luxury research and today ' s luxury market that prov...