Segmenting Shoppers on their Behaviour

A retail stores attracts shoppers who vary in their profiles. While some of them are serious shoppers, many of them are "visitors" to the stores. It is not possible for the store to differentiate its offerings to these segments. Classifying these shoppers on demographic and their orientation to shopping has been tried in the developed economies. However, it is felt that in an evolving market like India where shopping orientation are yet to be formed, one of the basis of understanding that shoppers could be their behaviour at the store because behavioural cues are factual data on which a retailer can develop its strategy. Through a study that involved participant observation of 284 shoppers conducted in Ahmedabad segment profiles have been developed. The shoppers were classified into 26 segments based on their behaviour. These segments have also been profiled on the basis of gender, store format and the type of product that they bought. The retail mix ingredients that could be used to deliver better value to each of the segments have been suggested. Based on the study a framework to understand shopper behaviour has been proposed.