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Benefit-based O2O commerce segmentation: a means-end chain approach

Author

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  • Lin Xiao

    (Nanjing University of Aeronautics and Astronautics)

  • Zixiu Guo

    (UNSW Sydney)

  • John D’Ambra

    (UNSW Sydney)

Abstract

We examined Online-to-Offline (O2O) commerce consumers’ market segments and consumption relevant cognitive structures. Laddering interview technique was employed to collect data from 51 O2O consumers in terms of benefits they sought from O2O platforms. A three-group O2O consumer segments were identified based on the benefits they sought, namely Return-sensitive shoppers, Risk-sensitive shoppers, and Rational shoppers, and a corresponding hierarchical cognitive structure model for each sub-group of consumers was developed linking attributes needed to fulfill the benefits and values to reinforce the benefits. The three sub-group O2O consumers were found to be significantly different in terms of the key benefits sought and attributes needed to realize the same benefit sought. Moreover, benefit-based segmentation has shown advantages over the item-based segmentation method used in prior research. This study makes a significant contribution to O2O business regarding consumer purchasing behaviors and segmentation methodology.

Suggested Citation

  • Lin Xiao & Zixiu Guo & John D’Ambra, 2019. "Benefit-based O2O commerce segmentation: a means-end chain approach," Electronic Commerce Research, Springer, vol. 19(2), pages 409-449, June.
    • Handle: RePEc:spr:elcore:v:19:y:2019:i:2:d:10.1007_s10660-017-9286-3
    DOI: 10.1007/s10660-017-9286-3
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    1. Aditya Halim Perdana Kusuma Putra, 2024. "Learning from the Past Bridging Digital and Physical Markets: A Guidelines for Future Research Agenda of Online-to-Offline (O2O) Marketing Strategy," International Review of Management and Marketing, Econjournals, vol. 14(3), pages 82-96, May.
    2. Pei-Ju Wu, 2023. "O2O switching determinants and successful drivers in omnichannel retailing services," Service Business, Springer;Pan-Pacific Business Association, vol. 17(3), pages 771-788, September.
    3. Park, Jonghwa & Han, Kyunghyun, 2024. "Exploring Small Entrepreneurs' Goals in Electronic Commerce Ecosystem: A Goal Hierarchy Approach," 24th ITS Biennial Conference, Seoul 2024. New bottles for new wine: digital transformation demands new policies and strategies 302510, International Telecommunications Society (ITS).
    4. Pinyi Yao & Mohamad Fazli Sabri & Syuhaily Osman & Norzalina Zainudin & Yezheng Li, 2023. "Consumers’ Continued Intention to Use Online-to-Offline (O2O) Services in Omnichannel Retail: Differences between To-Shop and To-Home Models," Sustainability, MDPI, vol. 15(2), pages 1-23, January.
    5. Pinyi Yao & Syuhaily Osman & Mohamad Fazli Sabri & Norzalina Zainudin, 2022. "Consumer Behavior in Online-to-Offline (O2O) Commerce: A Thematic Review," Sustainability, MDPI, vol. 14(13), pages 1-24, June.

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