Understanding multi-channel consumer behavior: A comparison between segmentations of multi-channel purchases by product category and overall products

Abstract

This study explores how customers utilize multiple channels in a recent retail environment. It provides a compatible framework for customer segmentation for overall products and major online-focused product categories, which reflect dynamic purchasing needs in multiple channels, using latent class cluster analysis and focusing on demographic characteristics. It extends prior studies’ frameworks by analyzing 15,938 Japanese single-source panelists’ data on low-involvement frequently purchased categories with customers’ demographics. The analyses revealed eight segments, including the specific properties of multi-channel enthusiasts. The findings imply that FMCG product classes and the corresponding consumer segments that are appropriate for cross-selling can be specified in our system, which incorporates possible future dynamic customer needs and can reduce the possibility of significant profit losses.