Customer Segmentation: SMPI Model

This chapter examines the antecedents of patronage intentionpatronage intention and how they relate to consumer shopping motives in organized retailingorganized retail/organized retailing. A practical approach to customer segmentationcustomer segmentation is proposed. As a result, a structural model of the pillars of customer-centricity in organized retailingorganized retail/organized retailing is attempted. The hypothetical model of consumer preferenceconsumer preference, shopping motivation, and patronage intention (SMPI ModelSMPI Model) is first proposed and tested using the structural equation modeling approach. Two of the nine consumer preferenceconsumer preference factors (store atmospherics and problem-solving) motivate super/hypermarket store consumers utilitarianly. in comparison, eight factors (store atmospherics, pricing and value, assortment, in-store delights, convenience, product/service quality and reliability, person-to-person experience, and problem-solving) motivate consumers in a hedonistic manner. The overall result of the SMPI modelSMPI Model re-establishes the notion that shoppers who are strongly motivated by hedonic components are more likely to be satisfied with a supermarket/hypermarket that can provide them the hedonic value of their shopping outings and, therefore, to be committed to the supermarket. Furthermore, shoppers who buy for hedonic motives place more value on the store. In addition, the study tested the moderating effect of consumer demographic characteristics. The main result and contribution of the empirical analysis, namely the segmentation table, is presented for retail store managers as a quick reference for strategy development.