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Data Mining: A Segmentation Analysis Of U.S. Grocery Shoppers

Author

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  • Kinsey, Jean D.
  • Wolfson, Paul J.
  • Katsaras, Nikolaos
  • Senauer, Benjamin

Abstract

Consumers make choices about where to shop based on their preferences for a shopping environment and experience as well as the selection of products at a particular store. This study illustrates how retail firms and marketing analysts can utilize data mining techniques to better understand customer profiles and behavior. Among the key areas where data mining can produce new knowledge is the segmentation of customer data bases according to demographics, buying patterns, geographics, attitudes, and other variables. This paper builds profiles of grocery shoppers based on their preferences for 33 retail grocery store characteristics. The data are from a representative, nationwide sample of 900 supermarket shoppers collected in 1999. Six customer profiles are found to exist, including (1) "Time Pressed Meat Eaters", (2) "Back to Nature Shoppers", (3) "Discriminating Leisure Shoppers", (4) "No Nonsense Shoppers", (5) "The One Stop Socialites", and (6) "Middle of the Road Shoppers". Each of the customer profiles is described with respect to the underlying demographics and income. Consumer shopping segments cut across most demographic groups but are somewhat correlated with income. Hierarchical lists of preferences reveal that low price is not among the top five most important store characteristics. Experience and preferences for internet shopping shows that of the 44% who have access to the internet, only 3% had used it to order food.

Suggested Citation

  • Kinsey, Jean D. & Wolfson, Paul J. & Katsaras, Nikolaos & Senauer, Benjamin, 2001. "Data Mining: A Segmentation Analysis Of U.S. Grocery Shoppers," Working Papers 14335, University of Minnesota, The Food Industry Center.
  • Handle: RePEc:ags:umrfwp:14335
    DOI: 10.22004/ag.econ.14335
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    File URL: http://ageconsearch.umn.edu/record/14335/files/tr01-01.pdf
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    References listed on IDEAS

    as
    1. Katsaras, Nikolaos & Schamel, Guenter, 1999. "The Grocery Retailing Sector In Germany: Ecr Activities In Comparison To The Usa," Working Papers 14325, University of Minnesota, The Food Industry Center.
    2. Kinsey, Jean D. & Senauer, Benjamin & King, Robert P. & Phumpiu, Paul F., 1996. "Changes In Retail Food Delivery: Signals For Producers, Processors And Distributors," Working Papers 14352, University of Minnesota, The Food Industry Center.
    3. Carlson, Andrea & Kinsey, Jean D. & Nadav, Carmel, 1998. "Who Eats What, When, And From Where?," Working Papers 14312, University of Minnesota, The Food Industry Center.
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    Cited by:

    1. Huffman, Wallace & Rousu, M. & Shogren, Jason F. & Tegene, Abebayehu, 1009. "Are U.S. Consumers Tolerant of GM Foods?," Staff General Research Papers Archive 12336, Iowa State University, Department of Economics.
    2. Huffman, Wallace & Rousu, Matthew & Shogren, Jason F. & Tegene, Abebayehu, 2003. "Better Dead Than GM-Fed? Information and the Effects of Consumers' Resistance to GM-Foods in High-Income Countries," Staff General Research Papers Archive 10345, Iowa State University, Department of Economics.
    3. Senauer, Benjamin, 2001. "The Food Consumer In The 21st Century: New Research Perspectives," Working Papers 14346, University of Minnesota, The Food Industry Center.
    4. Huffman, Wallace E. & Shogren, Jason F. & Rousu, Matthew C. & Tegene, Abebayehu, 2003. "Consumer Willingness to Pay for Genetically Modified Food Labels in a Market with Diverse Information: Evidence from Experimental Auctions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(3), pages 1-22, December.
    5. Matthew Rousu & Wallace E. Huffman & Jason F. Shogren & Abebayehu Tegene, 2007. "Effects And Value Of Verifiable Information In A Controversial Market: Evidence From Lab Auctions Of Genetically Modified Food," Economic Inquiry, Western Economic Association International, vol. 45(3), pages 409-432, July.
    6. Huffman, Wallace E. & Rousu, Matthew & Shogren, Jason F. & Tegene, Abebayehu, 2007. "The effects of prior beliefs and learning on consumers' acceptance of genetically modified foods," Journal of Economic Behavior & Organization, Elsevier, vol. 63(1), pages 193-206, May.
    7. Huffman, Wallace E. & Rousu, Matthew C. & Shogren, Jason F. & Tegene, Abebayehu, 2002. "Should The United States Regulate Mandatory Labeling For Genetically Modified Foods?," Working Papers 18215, Iowa State University, Department of Economics.
    8. Ganiere, Pierre & Chern, Wen S., 2004. "Consumer Acceptance Of Genetically Modified Foods: A Profile Of American Consumers," 2004 Annual meeting, August 1-4, Denver, CO 19972, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Lydia Zepeda & Cong Nie, 2012. "What are the odds of being an organic or local food shopper? Multivariate analysis of US food shopper lifestyle segments," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 29(4), pages 467-480, December.
    10. Wallace E. Huffman & Matthew Rousu & Jason F. Shogren & Abebayehu Tegene, 2004. "Who Do Consumers Trust for Information: The Case of Genetically Modified Foods?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1222-1229.
    11. Kim, Renee B. & Boyd, Milton S., 2004. "Identification of Niche Market for Hanwoo Beef: Understanding Korean Consumer Preference for Beef using Market Segment Analysis," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 7(3), pages 1-19.
    12. Chung, Chanjin & Briggeman, Brian C. & Han, Sungill, 2012. "Willingness to Pay for Beef Quality Attributes: A Latent Segmentation Analysis of Korean Grocery Shoppers," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(4), pages 1-13, November.
    13. Ganiere, Pierre & Chern, Wen S. & Hahn, David E., 2004. "Who Are Proponents And Opponents Of Genetically Modified Foods In The United States?," Working Papers 28315, Ohio State University, Department of Agricultural, Environmental and Development Economics.
    14. Huffman, Wallace E. & Rousu, Matthew C. & Shogren, Jason F. & Tegene, Abebayehu, 2003. "Consumers' Resistance To Genetically Modified Foods In High Income Countries: The Role Of Information In An Uncertain Environment," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25837, International Association of Agricultural Economists.

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