Customer decision-making styles as a tool for segmenting digital products market in Iran

Shahryar Mohsenin · Seyedamir Sharifsamet · Mohammad Rahim Esfidani · Lucas A. Skoufa

12 citations0/0 files storedJournal of Islamic marketing

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Consumer Behavior and Marketing Influence Consumer Retail Behavior Studies Consumer Behavior and Market Dynamics

Abstract

Purpose The purpose of this paper is to define and develop digital products market segments in Tehran based on consumers’ buying decision-making styles (CDS) and testing applicability of Sproles and Kendall’s model [consumer style inventory (CSI)] for this steady growing market in Tehran and contributing to theories of market segmentation. Design/methodology/approach This research used exploratory factor analysis (EFA) to explore and identify digital products shoppers CDS. In addition, to determine whether the selected items and factors loaded, measured the identified CDS correctly, confirmatory factor analysis (CFA) was used to substantiate the number of explored CDS. Then, cluster analysis was executed to pinpoint decision-making groups and demographic characteristics such as gender, marital status, age, education and digital shopping experience to profile the diagnosed clusters. Findings Five CDS were distinguished for digital products customers (four former styles and one new one’s named “Premeditated buying”) through EFA and CFA analysis as a tool for segmenting; four clusters are, namely, “Best Seekers”, “Premeditators”, “Innovation Seekers”, and “Price Insensitive”. Practical implications It will be beneficial to companies focussing on the Iranian digital market. This study identifies each cluster behaviour based on demographic data too. Originality/value This is the first study focussing on market segmentation using extracting digital products decision-making styles. As the new shopping style, “Premeditated buying”, has been explored from this analysis and due to the nature of digital products, this CDS has not been found in previous studies and is unique to Iranian digital products shoppers.

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References

1981Evaluating Structural Equation Models with Unobservable Variables and Measurement Error 1988Structural equation modeling in practice: A review and recommended two-step approach.1956Product Differentiation and Market Segmentation as Alternative Marketing Strategies 1986A Methodology for Profiling Consumers' Decision‐Making Styles 1985Measurement in Cross-Cultural Psychology 2000A multi‐method investigation of consumer motivations in impulse buying behavior 1989Statistical procedures and the justification of knowledge in psychological science.1992Statistical procedures and the justification of knowledge in psychological science.

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