Segmenting luxe-bargain shoppers using a fuzzy clustering method

Purpose – This study aims to identify consumer segments among luxe-bargain shoppers using a fuzzy clustering method based on psychographic variables related to both luxury consumption and bargain processes and profiles the identified segments in behavioral tendencies. Design/methodology/approach – The sample consists of 500 consumers who purchased a luxury brand at a bargain. The analyses involve running a confirmatory factor analysis, a fuzzy clustering analysis based on psychographic variables, and ANOVA for profiling the segments. Findings – A fuzzy clustering analysis identifies four distinct segments: deal hunters, sale-prone shoppers, active luxe-bargain shoppers, and royal shoppers. Each consumer segment exhibits differences in consumer characteristics, demographics, and behavioral tendencies. The study provides insight into varied luxury consumers. Research limitations/implications – In an effort to fill the gap between traditional framework in luxury research and today ' s luxury market that prov...

[1]  Richard G. Netemeyer,et al.  Price Perceptions and Consumer Shopping Behavior: A Field Study , 1993 .

[2]  R. Goldsmith,et al.  Social Values and Fashion Leadership , 1991 .

[3]  Guoxin Li,et al.  Luxury fashion brand consumers in China: Perceived value, fashion lifestyle, and willingness to pay , 2012 .

[4]  Wilfred Amaldoss,et al.  Pricing of Conspicuous Goods: A Competitive Analysis of Social Effects , 2005 .

[5]  George Balabanis,et al.  Between the mass and the class: Antecedents of the “bandwagon” luxury consumption behavior , 2012 .

[6]  Kenneth A. Bollen,et al.  Structural Equations with Latent Variables , 1989 .

[7]  Sookhyun Kim,et al.  The effect of distribution channel diversification of foreign luxury fashion brands on consumers’ brand value and loyalty in the Korean market , 2010 .

[8]  Abhijit Biswas,et al.  The effects of discount level, price consciousness and sale proneness on consumers' price perception and behavioral intention , 2002 .

[9]  John C. Groth,et al.  The exclusive value principle: the basis for prestige racing , 1993 .

[10]  Darren W. Dahl,et al.  Fairness and Discounts: The Subjective Value of a Bargain , 2003 .

[11]  Tony H. Grubesic,et al.  On The Application of Fuzzy Clustering for Crime Hot Spot Detection , 2006 .

[12]  Linda L. Price,et al.  The market maven: A diffuser of marketplace information. , 1987 .

[13]  L. Johnson,et al.  Measuring perceptions of brand luxury , 2004 .

[14]  L. Johnson,et al.  A Review and a Conceptual Framework of Prestige-Seeking Consumer Behavior , 1999 .

[15]  S. Tsai Impact of Personal Orientation on Luxury-Brand Purchase Value: An International Investigation , 2005 .

[16]  Peter J. Rousseeuw,et al.  Finding Groups in Data: An Introduction to Cluster Analysis , 1990 .

[17]  J. Zaichkowsky,et al.  Do counterfeits devalue the ownership of luxury brands , 2000 .

[18]  M. Beverland Uncovering “theories‐in‐use”: building luxury wine brands , 2004 .

[19]  Cornelia Dröge,et al.  A categorization of small retailer research streams: What does it portend for future research? , 2008 .

[20]  C. Tynan,et al.  Co-creating value for luxury brands , 2010 .

[21]  Soyoung Kim,et al.  Predicting purchase intention for private sale sites , 2012 .

[22]  B. Jin,et al.  Shopping is truly a joy , 2004 .

[23]  Robert M. Schindler,et al.  Consequences of Perceiving Oneself as Responsible for Obtaining a Discount: Evidence for Smart-Shopper Feelings , 1998 .

[24]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[25]  S. Baron,et al.  Looking the part: Identity, meaning and culture in clothing purchasing - Theoretical considerations , 2000 .

[26]  Robert M. Schindler,et al.  The Excitement of Getting a Bargain: Some Hypotheses Concerning the Origins and Effects of Smart-Shopper Feelings , 1989 .

[27]  R. Goldsmith,et al.  Some psychological motivations for fashion opinion leadership and fashion opinion seeking , 2006 .

[28]  Terence A. Oliva,et al.  Play as a Consumption Experience: The Roles of Emotions, Performance, and Personality in the Enjoyment of Games , 1984 .

[29]  Nancy J. Rabolt,et al.  Purchasing global luxury brands among young Korean consumers , 2008 .

[30]  Christopher M. Moore,et al.  The nature of parenting advantage in luxury fashion retailing – the case of Gucci group NV , 2005 .

[31]  Devon DelVecchio,et al.  Deal‐prone consumers' response to promotion: The effects of relative and absolute promotion value , 2005 .

[32]  Jane E. Workman,et al.  Fashion consumers and fashion problem recognition style , 2006 .

[33]  Jean-Noël Kapferer,et al.  The specificity of luxury management: Turning marketing upside down , 2009 .

[34]  Jiyun Kang,et al.  Hedonic and utilitarian shopping motivations of fashion leadership , 2010 .

[35]  Glenn B. Voss,et al.  Do Satisfied Customers Buy More? Examining Moderating Influences in a Retailing Context , 2005 .

[36]  Aron O'Cass,et al.  Exploring consumer status and conspicuous consumption , 2004 .

[37]  B. Calder,et al.  Interpersonal Influence on Consumer Behavior: An Attribution Theory Approach , 1977 .

[38]  N. Wong,et al.  Personal taste and family face: Luxury consumption in Confucian and western societies , 1998 .

[39]  Nicola Stokburger-Sauer,et al.  Is luxury just a female thing? The role of gender in luxury brand consumption☆ , 2013 .

[40]  Dhruv Grewal,et al.  The Effect of Store Name, Brand Name and Price Discounts on Consumers' Evaluations and Purchase Intentions , 1998 .

[41]  Marsha L. Richins Special Possessions and the Expression of Material Values , 1994 .

[42]  Naveen Donthu,et al.  An examination of selected marketing mix elements and brand equity , 2000 .

[43]  Yoo-Kyoung Seock,et al.  The relationships of fashion leadership, fashion magazine content and loyalty tendency , 2010 .

[44]  V. J. Rayward-Smith,et al.  Fuzzy Cluster Analysis: Methods for Classification, Data Analysis and Image Recognition , 1999 .

[45]  Bernard Dubois,et al.  Observations: Understanding the world of international luxury brands: The "dream formula." , 1995 .

[46]  Klaus-Peter Wiedmann,et al.  Measuring Consumers' Luxury Value Perception: A Cross-Cultural Framework , 2007 .

[47]  Kevin Lane Keller Managing the growth tradeoff: Challenges and opportunities in luxury branding , 2009 .

[48]  Edwin C. Hackleman,et al.  Deal proneness and heavy usage: Merging two market segmentation criteria , 1980 .

[49]  Youn-Kyung Kim,et al.  Smart shopping: conceptualization and measurement , 2012 .

[50]  Jonathan S. Vickers,et al.  The Marketing of Luxury Goods: An exploratory study – three conceptual dimensions , 2003 .

[51]  Yann Truong,et al.  New luxury brand positioning and the emergence of Masstige brands , 2009 .

[52]  K. B. Monroe,et al.  The Effects of Price - Comparison Advertising on Buyers'''' Perceptions of Acquisition Value, Transa , 1998 .

[53]  H. Leibenstein Bandwagon, Snob, and Veblen Effects in the Theory of Consumers' Demand , 1950 .

[54]  L. Zhan,et al.  Understanding luxury consumption in China: Consumer perceptions of best-known brands , 2012 .

[55]  Christopher M. Moore,et al.  The anatomy of the luxury fashion brand , 2009 .

[56]  Ronald E. Goldsmith,et al.  An analysis of factors affecting fashion opinion leadership and fashion opinion seeking , 2008 .

[57]  Jane E. Workman,et al.  Use of the Need for Uniqueness Scale to Characterize Fashion Consumer Groups , 2000 .

[58]  Konstantinos P. Triantis,et al.  The identification of influential subsets in regression using a fuzzy clustering strategy , 1999 .

[59]  J. Chébat,et al.  The shopping experience of female fashion leaders , 2007 .