Segmenting luxe-bargain shoppers using a fuzzy clustering method
International Journal of Retail & Distribution Management
ISSN: 0959-0552
Article publication date: 15 November 2013
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 provides accessibility of luxury items at lower price points to mass consumers, this study introduces a new concept of “luxe-bargain shopper” and examines varied luxury good consumers in the bargain shopping context. However, the findings of the current study should be interpreted with caution due to sampling method, product category of luxury brands, the limited number of luxury brands used in the study.
Practical implications
The results provide marketing suggestions for each segment of luxe-bargain shoppers.
Originality/value
There is virtually no luxury study conducted in the context of bargain shopping. By examining luxe-bargain shoppers using a robust fuzzy clustering method, this study extends our knowledge of luxury consumption as well as provides a new perspective to segmentation research.
Keywords
Acknowledgements
The authors thank the Special Issue editor and two anonymous reviewers for their assistance in revising the original manuscript. They would also like to thank Professor Leigh Sparks for his comments and suggestions on an earlier draft.
Citation
Lim, C.M., Runyan, R. and Kim, Y.-K. (2013), "Segmenting luxe-bargain shoppers using a fuzzy clustering method", International Journal of Retail & Distribution Management, Vol. 41 No. 11/12, pp. 848-868. https://doi.org/10.1108/IJRDM-01-2013-0012
Publisher
:Emerald Group Publishing Limited
Copyright © 2013, Emerald Group Publishing Limited