Sustainability and innovation as segmentation criteria in retail

Sustainability and innovation in retail are concepts that have acquired paramount importance. thanks to the competitive advantages they generate for organisations. Supported by a theoretical framework based on the Theory of Planned Behaviour (TPB), the main objective of this work is to investigate how perceptions of sustainability and innovation can be used as additional variables in customer segmentation. The achievement of this objective responds to the existing gap in the literature, which calls for the need to identify the different types of consumers in retailing according to the variables of sustainability and innovation. Through a CHAID algorithm and on a sample of 510 consumers, four customer segments are obtained that differ significantly in their level of perception of actions related to sustainability and in their perception of innovative practices carried out in retail stores: Sceptical consumers, Relationship-oriented customers, Consumers attentive to sustainability and innovation, and highly innovative consumers. These findings provide actionable insights for retailers, who can design targeted marketing strategies and relational practices to enhance customer engagement. Focussing on sustainability-oriented communication for environmentally conscious consumers or fostering collaborative innovations for highly innovative customers can significantly improve perceptions of sustainable initiatives and strengthen brand loyalty.