Motivations Based Segmentation of Indian Online Consumers

Author(s)

Devinder Pal Singh

Affiliations

Punjabi University Regional Centre for IT & Management, Mohali, Punjab, India

Abstract

Internet proliferation coupled with growing disposable incomes has metamorphosed the Indian consumer behaviour. It has resulted in the emergence of myriad consumer segments. The extant literature is bereft of the knowledge on motives that drive the online consumer behaviour and the evolving online consumer segments. It mandates unravelling the motivations that shape the online consumer behaviour. More over it is necessary to identify the discernable consumer segments. This study aims to examine the underlying motivational structure driving the online consumer behaviour. Further, it intends to categorize Indian online consumers into discrete groups and develop an online consumer typology. The research employs exploratory factor analysis to understand the motivational structure. Hierarchical and K-means clustering are employed to cluster the consumers. It is envisaged that the findings of the study will aid marketers in targeting the consumers for achievement of their goals.

Keywords

Online Shopping, Shopping Motivations, Novelty Seeking, Information Search, Utilitarian, Hedonic, Online Behaviour.

References

1. Al-Maghrabi, T. and Dennis, C. (2011), ‘What drives consumers’ continuance intention to e-shopping?: Conceptual framework and manage- rial implications in the case of Saudi Arabia’, International Journal of Retail & Distribution Management, Vol. 39, No. 12, pp. 899–926.
2. Arnold, M.J. and Reynolds, K.E. (2003), ‘Hedonic shopping motivations’, Journal of Retailing, Vol. 108, No. 2, pp. 1–20.
3. Assaker, G., Vinzi, V.E. and O’Connor, P. (2011), ‘Examining the effect of novelty seeking, satisfaction, and destination image on tourists’ return pattern: A two factor, non-linear latent growth model’, Tourism Management, Vol. 32, pp. 890–901.
4. Babin, B.J., Darden, W.R. and Griffin, M. (1994), ‘Work and/or fun: Measuring hedonic and utilitarian shopping value’, Journal of Consumer Research, Vol. 20, pp. 644–56.
5. Batra, R. and Ahtola, O.T. (1991), ‘Measuring the hedonic and utilitarian sources of consumer attitudes’, Marketing Letters, Vol. 2, No. 2, pp. 159–70.
6. Beldona, S., Racherla, P. and Mundhra, G.D. (2011), ‘To buy or not to buy: Indian consumers’ choice of online versus offline channels for air travel purchase’, Journal of Hospitality Marketing & Management, Vol. 20, No. 8, pp. 831–54.
7. Bigné-Alcañiz, E., C. Ruiz-Mafé, Aldás- Manzano, J. and Sanz-Blas, S. (2008), ‘Influence of online shopping information dependency and innovativeness on Internet shopping adoption’, Online Information Review, Vol. 32, No. 5, pp. 648–67.
8. Bridges, E. and Florsheim, R. (2008), ‘Hedonic and utilitarian shopping goals: The online experience’, Journal of Business Research, Vol. 61, pp. 309–14.
9. Brown, M., Pope, N. and Voges, K. (2003), ‘Buying or browsing? An exploration of shopping orientations and online purchase intention’, European Journal of Marketing, Vol. 37, No. 11/12, pp. 1666–84.
10. Burns, A.C. and Bush, R.F. (2003), Marketing Research: Online Research Applications, Prentice Hall, New Jersey.
11. Chen, Y-T. (2012), ‘Exploring the continuance intentions of consumers for B2C online shopping: Perspectives of fairness and trust’, Online Information Review, Vol. 36, No. 1, pp. 104–25.
12. Childers, T.L., Carr, C.L., Peck, J. and Carson, S. (2001), ‘Hedonic and utilitarian motivations for online retail shopping behavior’, Journal of Retailing, Vol. 77, pp. 511–35.
13. Davis, F., Bagozzi, R. and Warshaw, R. (1989), ‘User acceptance of computer technology: A comparison of two theoretical models’, Management Science, Vol. 35, pp. 982–1003.
14. Demangeot, C. and Broderick, A.J. (2007), ‘Conceptualising consumer behavior in online shopping environments’, International Journal of Retail & Distribution Management, Vol. 35, No. 11, pp. 878–94.
15. Dennis, C., Morgan, A., Wright, L.T. and Jayawardhena, C. (2010), ‘The influences of social e-shopping in enhancing young women’s online shopping behavior’, Journal of Customer Behaviour, Vol. 9, No. 2, pp. 151–74.

Ernst & Young (2013), ‘Rebirth of e-commerce in India’, http://www.ey.com/Publication/vwLUAssets/ Rebirth_of_e-Commerce_in_India/$FILE/EY_ RE-BIRTH_OF_ECOMMERCE.pdf (assessed 15 May 2014).

Farrag, D.A., Sayed, I.M.E. and Belk, R.W. (2010), ‘Mall shopping motives and activities: A multi method approach’, Journal of International Consumer Marketing, Vol. 22, pp. 95–115.

Fiore, A.M. and Kim, J. (2007), ‘An integrative framework capturing experiential and utilitarian shopping experience’, International Journal of Retail & Distribution Management, Vol. 35, No. 6, pp. 421–42.

Forrester (2012), ‘Research online retail forecast, 2011 to 2016 (Asia Pacific)’, http://www.forrester. com/ (assessed 15 January 2014).

Geuens, M., Brengman, M. and S’Jegers, R. (2001), ‘An exploratory study of grocery shopping motivations’, Groeppel-Klien, A. and Frank- Rudolf Esch (Eds.), E-European Advances in Consumer Research, Vol. 5, Association for Consumer Research, Provo, UT, pp. 135–40.

Guido, G. (2006), ‘Shopping motives, big five factors, and the hedonic/utilitarian shopping value: An integration and factorial study’, Innovative Marketing, Vol. 2, No. 2, pp. 57–67.

Gupta, N., Handa, M. and Gupta, B. (2008), ‘Young adults of India – Online surfers or online shoppers’, Journal of Internet Commerce, Vol. 7, No. 4, pp. 425–44.

Ha, S. and Stoel, L. (2009), ‘Consumer e-shopping acceptance: Antecedents in a technology acceptance model’, Journal of Business Research, Vol. 62, pp. 565–57.

Hirschman, E.C. and Holbrook, M.B. (1982), ‘Hedonic consumption: Emerging concepts, methods and propositions’, Journal of Marketing, Vol. 46, No. 3, pp. 92–101.

Hirschman, E.C. (1980), ‘Innovativeness, novelty seeking, and consumer creativity’, Journal of Consumer Research, Vol. 7, No. 3, pp. 283–95.

Hornikk, J. and Ellis, S. (1988), ‘Strategies to secure compliance for a mall intercept interview’, Public Opinion Quarterly, Vol. 52, pp. 539–51.

Huang, Y. and Oppewal, H. (2006), ‘Why consumers hesitate to shop online: An experimental choice analysis of grocery shopping and the role of delivery fees’, International Journal of Retail & Distribution Management, Vol. 34, No. 4, pp. 334–53.

Iksuk, K., Tim, C., Richard, F. and Hyunjip, C. (2005), ‘Mall entertainment and shopping behavior: A graphical modelling approach’, Advances in Consumer Research, Vol. 32, pp. 487–92.

Jamal, A., Davies, F., Chudry, F. and Al-Marri, M. (2006), ‘Profiling consumers: A study of Qatari consumers’ shopping motivations’, Journal of Retailing and Consumer Services, Vol. 13, pp. 67–80.

Jin, B. and Kim, J.O. (2003), ‘A typology of Korean discount shoppers: Shopping motives, store attributes, and shopping outcomes’, International Journal of Service Industry Management, Vol. 14, No. 4, pp. 396–419.

Khare, A. and Rakesh, S. (2011), ‘Antecedents of online shopping behavior in India: An examination’, Journal of Internet Commerce, Vol. 21, No. 2, pp. 187–200.

Khare, A., Singh, S. and Khare, A. (2010), ‘Innovativeness/novelty-seeking behavior as determinants of online shopping behavior among Indian youth’, Journal of Internet Commerce, Vol. 9, No. 3, pp. 164–85.

Kim, S. and Eastin, M.S. (2011), ‘Hedonic tendencies and the online consumer: An investigation of the online shopping process’, Journal of Internet Commerce, Vol. 10, pp. 68–90.

Kim, Hye-Shin (2006), ‘Using shopping motivations to profile inner city consumers’, Journal of Shopping Center Research, Vol. 13, No. 1, pp. 57–79.

Kim, Y-K, Kim, E. and Kang, J. (2003), ‘Teens’ mall shopping motivations: Functions of loneliness and media usage’, Family and Consumer Sciences Research Journal, Vol. 32, No. 2, pp. 140–67.

Koo, D-M., Kim, J-J. and Lee, S-H. (2008), ‘Personal values as underlying motives of shopping online’, Asia Pacific Journal of Marketing and Logistics, Vol. 20, No. 2, pp. 156–73.

Kukar-Kinney, M., Ridgway, N.M. and Monroe, K.B. (2009), ‘The relationship between consumers’ tendencies to buy compulsively and their motivations to shop and buy on the Internet’, Journal of Retailing, Vol. 85, No. 3, pp. 298–307.

Levy, J. (1959), ‘Symbols for sales’, Havard Business Review, Vol. 37, No. 4, pp. 117–24.

Liu, C. and Forsythe, S. (2010), ‘Sustaining online shopping: Moderating role of online shopping motives’, Journal of Internet Commerce, Vol. 9, pp. 83–103.

Manning, K.C., Bearden, W.O. and Madden, T.J. (1995), ‘Consumer innovativeness and the adoption process’, Journal of Consumer Psychology, Vol. 4, No. 4, pp. 329–45.

Mckinsey (2012), ‘Online and upcoming: The Internet’s impact on India’, www.mckinsey.com (assessed 20 January 2014).

Maity, M., Hsu, M.K. and Pelton, L.E. (2012), ‘Consumers’ online information search: Gen yers’ finding needles in the internet haystack, Journal of Marketing Channels, Vol. 19, No. 1, pp. 49–76.

Menon, S. and Kahn, B. (2002), ‘Cross-category effects of induced arousal and pleasure on the internet shopping experience’, Journal of Retailing, Vol. 78, pp. 31–40.

Millan, E.S. and Howard, E. (2007), ‘Shopping for pleasure? Shopping experiences of Hungarian consumer’, International Journal of Retail & Distribution Management’, Vol. 35, No. 6, pp. 474–87.

Naseri, M.B. (2011), ‘Role of demographics, social connectedness and prior Internet experience in adoption of online shopping: Applications for direct marketing’, Journal of Targeting, Measurement and Analysis for Marketing, Vol. 19, No. 2, pp. 69–84.

Nicholls, J.A.F., Li, F., Mandokovic, T., Roslow, S. and Kranendonk, C. (2000), ‘US-Chilean mirrors: Shoppers in two countries’, Journal of Consumer Marketing, Vol. 17, pp. 106–19.

Noble, S.M., Griffith, D.A. and Weinberger, M.G. (2005), ‘Consumer derived utilitarian value and channel utilization in a multi-channel retail context, Journal of Business Research, Vol. 58, pp. 1643–51.

Nunnally, J.C. (1978), Psychometric Theory, McGraw- Hill, New York.

Overby, J.W. and Lee, Eun-Ju (2006), ‘The effects of utilitarian and hedonic online shopping value on consumer preference and intentions’, Journal of Business Research, Vol. 59, pp. 1160–66.

Pearson, P.H. (1970), ‘Relationships between global and specific measures of novelty seeking’, Journal of Consulting and Clinical Psychology, Vol. 34, pp. 199–204.

Roehrich, G. (2004), ‘Consumer innovativeness: Concepts and measurements’, Journal of Business Research, Vol. 57, pp. 671–77.

Rohm, A.J. and Swaminathan, V. (2004), ‘An online typology of online shoppers based on shopping motivations’, Journal of Business Research, Vol. 57, pp. 748–57.

Rose, S. and Samouel, P. (2009), ‘Internal psychological versus external market-driven determinants of the amount of consumer information search amongst online shoppers’, Journal of Marketing Management, Vol. 25, No. 1, pp. 171–90.

Smith, D.N. and Sivakumar, K. (2004), ‘Flow and internet shopping behavior: A conceptual model and research propositions’, Journal of Business Research, Vol. 57, pp. 1199–1208.

So, W.C.M., Wong, T.N.D. and Sculli, D. (2005), ‘Factors affecting intentions to purchase via the Internet’, Industrial Management & Data Systems, Vol. 105, No. 9, pp. 1225–44.

Tauber, E.M. (1972), ‘Why do people shop?’, Journal of Marketing, Vol. 36, October, pp. 46–49.

To, P-L., Liao, C. and Lin, T-H. (2007), ‘Shopping motivations on Internet: A study based on utilitarian and hedonic value’,Technovation, Vol. 27, pp. 774–87.

Truong, Y. (2013), ‘A cross-country study of consumer innovativeness and technological service innovation’, Journal of Retailing and Consumer Services, Vol. 20, pp. 130–37.

Vazquez, D. and Xu, X. (2009), ‘Investigating linkages between online purchase behaviour variables’, International Journal of Retail & Distribution Management, Vol. 37, No. 5, pp. 408–19.

Verhoef, P.C., Nesline, S.A. and Vroomen, B. (2007), ‘Multichannel customer management: Understanding the research-shopper pheno- menon’, International journal of Research in Marketing, Vol. 24, pp. 129–48.

Wagner, T. (2007), ‘Shopping motivation revised: A means-end chain analytical perspective’, International Journal of Retail & Distribution Management, Vol. 35, No. 7, pp. 569–82.

Wang, C-L., Chen, Z-X., Chan, A.K.K. and Zheng, Z-C. (2000), ‘The influence of hedonic values on consumer behaviors: An empirical investigation in China’, Journal of Global Marketing, Vol. 14, No. 1-2, pp. 169–86.

Westbrook, R.A. and Black, W. (1985), ‘A motivation- based shopper typology’, Journal of Retailing, Vol. 61, Spring, pp. 78–103.

Yulihasri, Islam, M.A., and Daud, K.A.K. (2011), ‘Factors that influence customers’ buying intention on shopping online’, International Journal of Marketing Studies, Vol. 3, No. 1, pp. 128–39.

Zhang, Y., Sirion, C. and Howard, C. (2011), ‘The influence of the mall environment on shoppers’ values and consumer behavior in China’, Proceedings of ASBBS annual conference Las Vegas, US, pp. 214–24.