Buyer Segments Research Articles

Schematic Software Company: Accelerating Growth

Sunit Raj was the Vice President, Marketing of Schematic Software Company (SSC), a Software-as-a-Service (SaaS) company. He was pondering how to preserve the company's growth momentum it had achieved over the last few years. In the third quarter of 2021, the company's valuation reached USD 25 billion, representing a year-over-year gain of 50%. Within 12 years of operation, it had over 50,000 employees worldwide and over 100,000 paying customers in more than 150 countries. Raj had to decide the company's future direction among new territories, buyer segments and product categories that would bring revenue and aid in sustaining its growth.

Electric Vehicle Adoption and Sustainability in the Urban City: A Technology Acceptance Model Analysis

This study aims to operationalize the theory of Technology Acceptance Model (TAM) with self- image motives as symbolic meaning for Electric Vehicle (EVs) adoption. EVs in urban city like Jakarta is expected to grow in near future, the vehicle contributes to the reduction of air pollution and greenhouse. Unlike the conventional, EVs has emerged as sustainable transportation one. However, switching mode speed of consumer mobility and the acceptance of new technology is still undefinable and required to explore deeply on the potential buyer segments of EVs based on integrative approach of ‘perceived benefits-attitude-intention’. This research applied the theory of TAM to construct the model of EVs adoption. The mediating role of pro-environmental motives and pro-innovative motives are examined. Data collected with online survey through structured questionnaire and obtained quantitative data. The model was empirically tested by structural equation modelling (SEM) PLS 3.0. The findings confirm that the consumer intention to adopt EVs were significant and positively effects the attitude. They are two distinct sets of consumer motives toward EVs adoption both are pro-environmentalist and pro-innovativeness. This study provides new grounding for the existing EVs literature. The implications are recommended, which may offer deeper insight for policymaker and prominent scholars to encourage EVs adoption and direct the future research for global urban city.

Better richer than environmentally friendly? Describing preferences toward and factors affecting precision agriculture adoption in Italy

Precision agriculture is expected to support and strengthen the sustainability of food production. In spite of the demonstrated benefits of the application of Information Technology to improve agricultural practices, such as yield increase and input reduction, in Italy its adoption still lags behind. In order to understand limits of and perspectives on the adoption of such technologies, we conducted an explorative study. A survey with a choice experiment was carried out in Italy among 471 farmers and people interested in agricultural machinery and technologies. The results highlight how specific factors, such as excessive costs and lack of incentive policies, may limit the spread of precision agriculture. Conversely, the provision of adequate technical support would likely favor its adoption. Furthermore, latent class modeling was used to identify three segments of potential buyers: sustainability seekers; precision agriculture best features supporters; low emissions fans. Potential policy and market implications of this explorative study are discussed in the conclusion.

Willingness to Pay for Conditional Automated Driving among Segments of Potential Buyers in Europe

This study aims to investigate the willingness to pay for conditionally automated cars (CACs) among 8,084 respondents in seven European countries by segmenting potential buyers of CACs. Future deployment of CACs depends on a sufficient willingness to pay among a sufficient large part of the population. Latent profile analysis was employed to identify the variables with the highest loadings on the latent factor “willingness to pay,” based on latent constructs from the Unified Theory of Acceptance and Use of Technology (UTAUT2) model. In addition, we analyzed which factors were associated with willingness to pay for different automated systems in CACs, i.e., for driving on urban roads, motorways, congested motorways, and parking areas. We find that a large share of respondents indicates a generally high willingness to pay for CACs, but classes with a high share of conservatives and young respondents have the lowest willingness to pay.

Impulsiveness in the grocery store: psychographic drivers and segments

PurposeThis study aims to enhance the understanding of impulse buying in grocery stores, where such purchases are pervasive and consumers face greater decision fatigue and diminished willpower than in more frequently examined retail environments. The intent is to demonstrate the influence of variables known to affect impulse buying in other environments on grocery shopping behavior, identify and profile segments that vary along those constructs and reveal how those segment characteristics help to explain impulse buying differences.Design/methodology/approachA purposive sample of 234 grocery shoppers approached at the point of purchase in a metropolitan area in Northeastern USA completed scales for theoretically derived variables and reported on their impulse purchases.FindingsAnxiety, perceived financial pressure (PFP), novelty/variety seeking and shopping enjoyment positively influenced, whereas need for cognition had a negative effect on impulse-purchase activity. Two distinct segments of impulse buyers emerged: anxious and innovative shoppers. Anxious shoppers were higher in anxiety, PFP and compulsive buying, whereas innovative shoppers had higher levels of need for cognition and novelty/variety seeking.Originality/valueThe evidence for the dominance of anxiety and novelty/variety seeking as key motivators of distinct segments of impulse buyers in grocery stores is unique to this study. Results yield new insight on tension between the effects of motivational variables on the immediate impulse buying decision and post-purchase evaluation and add precision to marketers’ efforts to encourage spontaneous in-store decision-making.

Social Media Marketing as a Segmentation Tool

The aim of this study was to determine consumer segments based on the acceptance of shoppable ads from fashion brands on online social media platforms. To achieve this objective, we used the technology acceptance model (TAM) to offer a vision of the perceptions of the shoppable ads, attitudes and behaviors of social network users, using social media marketing activities as a background. Second, we searched for fashion social buyer segments using finite mixture partial least squares (FIMIX-PLS). Third, we sought to characterize these consumer segments. A sample of 486 users of social networks who accessed through mobile devices was obtained. The inclusion of social media marketing variables as antecedents of acceptance allowed us, to a large extent, to understand the intention to buy clothing by these social media users. The a posteriori segmentation technique helps to identify different types of users who use shoppable ads and their relationship with age and concerns about privacy, trust and purchases made on the Internet. The results show that, based on the explained variance and model fit, the proposed variables allow us to explain acceptance, with two groups of consumers within the sample being found.

The Impact of the Covid-19 Pandemic Threat on Purchase Decisions of Travel Agency Customers in Poland

Abstract Introduction. The dynamic increase in world tourism demand was interrupted by the COVID-19 pandemic. The package holidays market is one of the tourism branches affected by the crisis the most. The study aimed at identifying the direction of changes in purchase behaviors regarding package holidays caused by the COVID-19 pandemic. Material and methods. The research on tourists purchasing package holidays during the COVID-19 pandemic was quantitative and covered a nationwide online panel of respondents characterized by a representative distribution for the general population of Poles (n = 1502). At the data analysis stage, logit models of buyers’ behaviors were used. In the estimation process, GLM in R (R Core Team 2022) was applied. Results. The situation related to the COVID-19 pandemic significantly affected how tourists traveled. The conducted analysis made it possible to distinguish four segments of buyers during the pandemic and to identify factors determining the choice of one of the purchase patterns. Compared to the pre-pandemic period, a significant increase in the number of tourists who needed personal contact with sellers at brick-and-mortar travel offices was observed. Conclusions. The study presented a meaningful contribution to understanding purchase behaviors of tourists who prefer package holidays. It is one of the few studies that compared behavior patterns of holiday package buyers in the period before and during the pandemic. The knowledge of changes in package holiday purchase behaviors is essential for travel agencies to design effective marketing strategies.

The Application of CSR and CSV Concepts in Company Marketing Activities

Purpose: The purpose of this publication is to attempt to determine the applicability of the basic assumptions of the CSR (Corporate Social Responsibility) and CSV (Creating Shared Value) concepts in the process of building marketing strategies, their types and the use of marketing-mix tools. Design/methodology/approach: In achieving the objective, a method of critical analysis of national and international literature relating to these issues (CSR and CSV concepts) was used. Findings: The concepts of CSR and CSV can be applied to the marketing strategies of companies. This applies in particular to the organization of marketing in the enterprise, its mission, the selection of markets, the establishment of the buyer segment and the marketing-mix tools. There should be an extension of the marketing cell within the enterprise, which is responsible for creating the marketing strategy and incorporating shared value into the marketing-mix policy. The selection of buyer segments from the point of view of social needs will make it possible to create the company’s offer in the form of shared economic-social value and to include companies from local markets in its creation and distribution channels. Changes to product policy are also needed, which should include the creation of shared-value products. Research limitations/implications: Difficulties in understanding the distinctiveness of the concepts of CSR and CSV by companies. Further research should focus on these problems and the actions taken by companies as a result of these concepts. Practical implications: These include proposals to broaden the scope of marketing research conducted by companies and to focus their product innovation policies on products that create shared value. Originality/value: The text presents issues rarely discussed in the marketing literature on the need for companies to take into account in their marketing strategies changes in the environment, related legislation, the needs of local communities, high levels of buyer education and increasing consumer requirements towards product suppliers.

Crop protection market segmentation: relationship between buyer segments and the use of digital sales channels

Digital technologies are revolutionizing agricultural trade, enabling farm input suppliers to reach customers through multiple channels. The aim of this study was to segment farmers based on their purchasing behavior for crop protection products and to examine segment-specific characteristics in the digital environment. A cluster analysis of 590 German farm managers was used to identify five distinctive buyer segments based on five characteristics: dealer, brand and service orientation, price affinity and autonomous decision making. The results demonstrate that farmers place high value on personal contacts to stationary suppliers when purchasing crop protection products. Service orientation turned out to be a strong mediator of segment membership, while price and product brand are secondary to farmer segmentation. However, traditional typologies are only suitable for the digitization topic to a limited extent, as digital search and information behavior hardly differs. Even though digital information procurement is becoming increasingly interesting for all segments, an openness to e-commerce applies only to a small group of independent buyers. Concerning e-commerce attitudes, the perception of its advantages and the lack of personal contact differentiates the clusters the most. The results contribute to the scientific understanding of farmers’ information and purchasing behavior and provide initial approaches for the development of customer-centric corporate marketing strategies.

Who will adopt electric vehicles? Segmenting and exemplifying potential buyer heterogeneity and forthcoming research

Market segmentation becomes a crucial tool for evolving transportation technology such as electric vehicles (EVs) in emerging markets to explore and implement for extensive adoption. EVs adoption is expected to grow phenomenally in near future as low emission and low operating cost vehicle, and thus, it drives a considerable amount of forthcoming academic research curiosity. The main aim of this study is to explore and identify distinct sets of potential buyer segments for EVs based on psychographic, behavioral, and socio-economic characterization by employing an integrated research framework of ‘perceived benefits-attitude-intention’, The study applied robust analytical procedures including cluster analysis, multiple discriminant analysis and Chi-square test to operationalize and validate segments from the data collected of 563 respondents using a cross-sectional online survey. The findings posit that the three distinct sets of young consumer groups have been identified and labelled as ‘Conservatives’, ‘Indifferents’, and ‘Enthusiasts’ which are deemed to be buddying EV buyers The implications are recommended, which may offer some pertinent guidance for scholars and policymakers to encourage EVs adoption in the backdrop of emerging sustainable transport market.

Profiling the online premium brand consumers based on their fashion orientation

PurposeThis paper attempts to explore and identify the growing segments of online buyers of premium brands in the context of the post-pandemic market in India. The multi-dimensional trait of fashion orientation has been used as the psychographic construct for segmenting young urban consumers who shop on e-commerce platforms.Design/methodology/approachAn online study across major cities resulted in a sample of 555 urban consumers of premium apparel and accessories brands. Hierarchical, two-step and k-means cluster analysis were conducted to identify diverse consumer segments and arrive at a demographic and usage-based profiling of the clusters. Furthermore, one-way analysis of variance was conducted to assess the key drivers for an online purchase among the obtained segments.FindingsThe pioneering use of fashion orientation as a base for segmentation helped identify three distinct clusters of socially conscious fashionistas, fashion involved and fashion indifferent buyers. The study identified significant differences in the demographic composition as well as their usage patterns and purchase motivations to shop online.Originality/valueThe study looks at an extremely important but neglected category of premium brands. The distinct clusters of premium brand buyers highlighted by the study adds theoretical value as well as managerial insights for the premium brand marketer as they seek to target consumers in Asian economies.

Analysis of Changes in Shopping Behaviour of Package Holidays Purchasers Caused by the COVID-19 Pandemic

Purpose: The study aims to identify the direction of changes in shopping behaviour regarding package holidays caused by the COVID-19. Design/Methodology/Approach: The research on tourists purchasing travel packages during the COVID-19 was quantitative on a nationwide online panel of respondents (N=1502), characterized by a representative distribution for the general population of Poles. Using the contingency table and correspondence analysis, authors identify purchasing behaviour before and during the pandemic. Findings: The research results indicate significant changes in purchasing package holidays process caused by the COVID-19, particularly on the stage of travel planning (including the search for information and the pattern of closing the purchase of tourist packages)-the conducted analysis allowed to distinguish four segments of buyers during the pandemic and to create their profiles. Practical Implications: The knowledge of changes in travel packages purchasing behaviour is essential for travel agencies to design effective marketing strategies. Originality/Value: The originality and value of the research is based on three pillars: (1) timeliness and importance of the research problems for the travel agency sector, (2) lack of knowledge about the purchasing decision-making process during the pandemic threat, (3) the deficit of quantitative research on the role of online purchase channels versus the traditional ones in making these decisions.

Links between the Creating Shared Value Concept and a Company's Marketing Strategy

The aim of the article is to try to define the relationship between the corporate social responsibility (CSR) and the creating shared value (CSV) concepts and marketing strategy. To achieve this goal, a method of critical analysis of national and foreign literature relating to these issues was used. On this basis, conclusions were formulated defining the scope and content of these relations. They relate primarily to a company's mission, marketing research and marketing strategy. The relationship between the CSV concept and marketing strategy can be particularly seen in the evaluation and selection of new geographic markets and new buyer segments. They refer to changes in product policy - creation of products constituting common value. Relationships also relate to distribution policy, which may include the creation of local clusters and the inclusion of companies from these markets in production and distribution. (original abstract)

ВИЗНАЧЕННЯ ПРИХИЛЬНОСТІ СПОЖИВАЧІВ ДО НАДАВАЧІВ ПОСЛУГ НА ПРИКЛАДІ АПТЕЧНИХ ЗАКЛАДІВ

UDC 339.133.017; JEL Classification: D12, M31 Purpose: analysis and modeling of the choice of pharmacies by buyers, in particular, the commitment of various segments of potential buyers to a particular pharmacy, which involves preliminary segmentation of pharmacy buyers, identifying types of visitors and analyzing the specifics of their requirements on the one hand, and the level and parameters of services provided by certain pharmacies, with other. Methodology of research: expert research, segmentation of pharmacy visitors, computer modeling. Findings: the potential adherence of various segments of buyers to pharmacies was determined, calculated on the basis of combining the requirements of various groups of consumers to the level of service components and the possibilities of providing the desired level of service for each of the reviewed pharmacies. Originality: an original approach was proposed and a corresponding computer program was developed, numerical calculations were also carried out in it, which allow one to fairly fully and objectively reflect the multicriteria requirements and evaluation criteria from various groups of potential buyers of medicines and pharmaceutical products and prescriptions, to reveal their tendency to one or another pharmacies competing in the retail pharmaceutical market, based on the provision of the latter with a certain level of requirements and conditions of service required by consumers. Practical value: a practical, simple and reliable toolkit has been provided that allows pharmacies to determine the circle of their potential buyers and implement targeted marketing policies aimed at them, and, on the other hand, to identify weaknesses, shortcomings by individual criteria, the elimination of which will attract other customer segments, and also identify the closest competitors for different segments.

The fallacy of the heavy buyer: Exploring purchasing frequencies of fresh fruit and vegetable categories

‘Avocado lover,’ ‘banana lover,’ or ‘berry lover’ – these words are starting to dominate the contemporary marketing campaigns for fresh fruit and vegetable categories. Such campaigns assume that there are sizable buyer segments who purchase a particular fresh category more frequently, who are contributing a larger portion of sales, and who will continue to do so into the future. Yet, an established body of empirical evidence from consumer packaged goods (CPG) categories suggests that these assumptions could be false. The current study empirically examines fresh category purchasing behavior (through a large Nielsen US panel data) by applying three known models: the Negative Binomial Distribution, the Pareto share, and the stability over time analysis (buyers and sales contribution). This study compares the results and finds that despite many differences between fresh and CPG categories, buyers' purchasing behavior follows the same established benchmarks patterns as those observed in CPG contexts. There are many more infrequent or light buyers than heavy ‘lovers’; the heavy buyers contribute roughly 60% of sales; they are purchasing less frequently, and contributing fewer sales as time goes by. These findings carry important implications for marketers, retailers, and farmers of fresh categories. Specifically, the results show which marketing campaigns (i.e., those highly targeted at ‘lovers’ or those with a mass marketing appeal) are better grounded in the empirical evidence about buyer behavior which has the highest probability of increasing consumption.

Security capability and logistics service provider selection: an adaptive choice study

PurposeThe influence of security practices is increasingly common in the supply chain management and logistics literature. However, an under-researched area exists within the logistics service provider (LSP) selection process. The purpose of this paper is to introduce a security capability into the LSP selection process. Specifically, this research seeks to understand partner willingness to compensate and collaborate with service providers that possess a security capability.Design/methodology/approachAdaptive choice modeling is adopted to assess the influence of a security capability in the LSP selection process. This study represents the first use of this method in supply chain management and logistics research. Cluster analysis is also performed to uncover specific buyer segments along with traditional regression-based significance testing and counting analysis.FindingsThe findings indicate that security can have an important influence on the LSP selection process. In particular, the findings note a willingness to pay for a security capability in LSP selection. Applying segmentation techniques to the findings, three LSP buying segments are determined, each placing different importance and value on LSP capabilities.Practical implicationsThis research notes an ongoing provider deficiency in security offerings. Partner firms sometimes maintain a cost focus, but others show a willingness to pay higher prices for access to partners with a security capability. Key practitioner findings include the need to include security with other traditional selection variables. The study walks the researcher and manager through the development of segments based on LSP capabilities.Originality/valueThis manuscript investigates logistic service provider selection. The authors detail an advanced form of conjoint analysis, adaptive conjoint modeling, for first time consideration. Additionally, this is the first study to integrate security into the LSP selection process. This is also the first study to identify a willingness to pay for a security capability.

The choice of new private and benefit cars vs. climate and transportation policy in Sweden

Dedicated to show climate leadership, Sweden has committed to cut 70% of greenhouse-gas (GHG) emissions in the domestic transportation sector by 2030 compared to 2010 levels (except flights). This study evaluated the environmental impacts of three recent new car policies. Based on questionnaires and market supply data, multinomial logit discrete choice models were developed for private buyers and individuals with company cars for private use, denoted benefit cars. Estimates indicated that preferences among individuals with benefit cars were generally in favor of Alternative Fuel Vehicles (AFVs) as compared to gasoline cars, in contrast with private consumers (ceteris paribus). Thus, the company car market seemed to be the main gateway for AFVs into the fleet; however, average GHG emissions per car sold were similar in both buyer segments, which was likely related to stronger preferences for larger and more expensive benefit cars. The results indicated that subsidies to private buyers would be influential only if they decreased the costs of AFVs as compared to conventional vehicles, and that none of the investigated policies had been very effective in shifting choices in favor of AFVs. Reduced fringe benefits tax for AFVs, annually worth up to €1100, resulted in only 0.7% lower average carbon emissions. A ‘Super Green Car’ premium, worth approximately €2000–€4000 at the time of purchase, decreased emissions by 0.4% among private consumers, twice the impact of a five-year tax-exemption for ‘Green Cars’. It appears that more stringent policies are needed to more substantially reduce GHG emissions from new cars.

Combined Vehicle Type and Fuel Type Choices of Private Households: An Empirical Analysis for Germany

This paper examines joint consumer purchasing decisions of vehicle type and fuel type based on a data-set from a Germany-wide survey among 1500 potential car buyers. The goal is to study the buyer segments that are considering to purchase the different types of vehicles and to identify the main determinants influencing the joint choice decision: socio-demographic and household characteristics, attitudes and preferences, as well as vehicle-related attributes. Based on a nested logit model, our results suggest that although German car buyers’ are very heterogeneous regarding their preferences, several similarities are found between buyers of specific vehicle types (10 vehicle classes) and specific fuel types (gasoline, diesel, alternative fuel), e.g. smaller cars and alternative fuel vehicles (AFVs) have commonalities regarding individual’s environmental awareness/behavior and fuel consumption/costs. Policy-makers, when tailoring their policies, can benefit from making use of the specific insights gained from this particularly comprehensive study, and the comparisons made with the German and international scientific literature on the topic. For instance, the similarities between buyers preferring specific fuel types and specific vehicle types can be used for tailorized measures to incentivize individuals’ vehicle type shifting (e.g from larger to smaller vehicles), fuel type switching (e.g. from fossil-fuelled vehicles to AFVs), or both.

The Tenure-Based Customer Retention Model: A Cross-Cultural Validation

International businesses and their marketing managers face complexity in the targeting of different customer groups in multiple countries, with different purchase histories and brand relationship tenures. Thus far, no customer retention model has been suggested to sufficiently reduce such complexity. To fill the gap, this study distinguishes three global customer groups—brand stayers, brand switchers, and category novices—which are differently prevalent in countries of various economic development. In particular, category novices have been a largely neglected segment for emerging markets. The study introduces the tenure-based customer retention model, which proposes the idiosyncratic effects of each group on the basis of tenure-based and attitudinal repurchase drivers. A large-scale consumer study (N = 53,744; 30 countries) cross-culturally validates the suggested model and reflects country-specific factors based on cultural dimensions instead of economic development. The findings broadly support the standardization of international marketing over different countries but not across different buyer segments. Consequently, the study offers insights into the communicative measures that can be used to globally address repurchase intent for each segment.

Identifying the Indian Car Buyer Segments Using Digital Channels of Communication : An Application of Cluster Analysis

Digital technologies have redefined the marketing communication parlance with its unique capabilities. Consumers both males and females belonging to various age groups, occupations, income categories having different educational backgrounds are making use of contemporary digital technologies for searching, comparing, evaluating, and buying goods and services across diverse product categories. Digital marketing has affected each and every industry irrespective of its nature, size, type, and category. Hence, the Indian car market is no exception in which the digital 'Midas' touch is affecting both the customers and marketers. The present study dealt with identifying the specific segments of car buyers who use digital channels of communication while buying a car. The study made use of primary data collected from 801 respondents using area wise proportionate cluster sampling technique. Data was analyzed with the help of SPSS 18.0 version and chi-square and cluster analysis were used as tests of significance to validate the results.