Impulse behavior in economic crisis: a data driven market segmentation
Purpose Clustering is a highly popular and widely used tool for identifying data based market segments. The purpose of this paper is to apply cluster analysis to identify homogeneous subgroups among impulse buyers based on their demographic characteristics and their preference of atmospheric elements. Design/methodology/approach Based on a survey approach with 480 fashion consumers, the study discusses impulse purchases during financial crisis. SPSS process is used to determine the effect of atmospherics on impulse purchases as well as the moderating role of demographics. Cluster analysis (k means method) is used to determine specific segments of impulsive consumption. Findings Despite a significant effect of atmospherics on consumers' impulsiveness, the frequency of purchases is not significantly affected indicating that the economic environment may shape impulsive behavior. Gender, age and education seem to moderate the above relationship. Demographics and store atmospherics define specific segments of impulse buyers. Research limitations/implications The study identifies the clusters formed through the interaction of atmospherics with demographics. It further identifies the impact of atmospheric factors in the case of an economy in crisis. In times of financial hardship, store atmospherics, although appealing, do not seem to adequately promote impulse buying behavior. Understanding consumer's impulsive behavior based on distinctive profiles is of outmost importance to retailers seeking to increase consumption, in particular under conditions of financial hardship. Originality/value The present study explores the role of environmental characteristics on consumers' impulse behavior amidst a financial crisis and identifies the characteristics of specific segments of consumption.
International Journal of Retail Distribution Management