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Online purchaser segmentation and promotion strategy selection: evidence from Chinese E-commerce market

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Listed:
  • Ying Liu
  • Hong Li
  • Geng Peng
  • Benfu Lv
  • Chong Zhang

Abstract

Online customer segmentation is a significant research topic of customer relationship management. Previous literatures mainly studied the differences between non-purchasers and purchasers, lacking further segmentation of online purchasers. There is still existing significant heterogeneity within purchaser-groups. This paper focuses on Chinese online purchaser segmentation based on large volume of real transaction data on Taobao.com, we firstly extracted and investigated Chinese online purchaser behavior indicators and classified them into six types by cluster analysis, these six categories are: economical purchasers, active-star purchasers, direct purchasers, high-loyalty purchasers, risk-averse purchasers and credibility-first purchasers; then we built an empirical model to estimate the sensitivity of each type of online purchasers to three mainstream promotion strategies (discount, advertising and word-of-mouth), and found that economical purchasers are the most sensitive to discount promotion; direct purchasers are the most sensitive to advertising promotion; active-star purchasers are the most sensitive to word-of-mouth promotion; finally, the implications of online purchaser classification for marketing strategies were discussed. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Ying Liu & Hong Li & Geng Peng & Benfu Lv & Chong Zhang, 2015. "Online purchaser segmentation and promotion strategy selection: evidence from Chinese E-commerce market," Annals of Operations Research, Springer, vol. 233(1), pages 263-279, October.
    • Handle: RePEc:spr:annopr:v:233:y:2015:i:1:p:263-279:10.1007/s10479-013-1443-z
    DOI: 10.1007/s10479-013-1443-z
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    6. Madjid Tavana & Debora Di Caprio & Francisco J. Santos-Arteaga, 2016. "Loyal customer bases as innovation disincentives for duopolistic firms using strategic signaling and Bayesian analysis," Annals of Operations Research, Springer, vol. 244(2), pages 647-676, September.
    7. Farid Huseynov & Sevgi Özkan Yıldırım, 2019. "Online Consumer Typologies and Their Shopping Behaviors in B2C E-Commerce Platforms," SAGE Open, , vol. 9(2), pages 21582440198, May.
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