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Investigating household food interpurchase behavior through market segmentation

Author

Listed:
  • Diansheng Dong

    (U.S. Department of Agriculture, 1800 M Street NW, Washington, DC 20036)

  • Harry M. Kaiser

    (Cornell University, 349 Warren Hall, Ithaca, NY 14853-7801)

Abstract

In this study, a market segmentation approach is developed and applied to analyze U.S. households' cheese purchases. The segmentation is based on household interpurchase time, or the hazard rate of purchases. In this study, four segments have been discovered in the U.S. market for household cheese purchases. Two of the segments jointly represent about 40% of all cheese-purchasing households and are characterized as frequent buyers with an average interpurchase time of 2 weeks. These frequent-purchase households are larger in size, have greater incomes, have a smaller proportion of African Americans, and are insensitive to coupons. They are often described in the marketing literature as loyal customers. In contrast, the other two segments, which jointly represent about 60% of the households, are characterized by infrequent buyers with an average interpurchase time of 6 weeks. These infrequent-purchase households are smaller in size, have less income, have a higher proportion of African Americans, and are sensitive to coupons. Marketing promotions typically target the infrequent-purchase households. [EconLit citations: D12, C51, C41]. © 2010 Wiley Periodicals, Inc.

Suggested Citation

  • Diansheng Dong & Harry M. Kaiser, 2010. "Investigating household food interpurchase behavior through market segmentation," Agribusiness, John Wiley & Sons, Ltd., vol. 26(3), pages 389-404.
    • Handle: RePEc:wly:agribz:v:26:y:2010:i:3:p:389-404
    DOI: 10.1002/agr.20230
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    References listed on IDEAS

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