Psychographic segmentation for transactional ecommerce

Market research firm BMRB (2004) has developed this segmentation which is used to represent different attitudes to purchasing online.

1 Realistic Enthusiasts (14% 2004, 15% 1999) - characterised by an enthusiastic approach toward e-commerce but they typically like to see the product in real life before making a purchase and they often consider that finding the product to purchase is a difficult process. Examples of this include a willingness to use the Internet for purchases in excess of £500; they are prepared to purchase products from an unknown company and consider the convenience of Internet shopping to be more important than price.

2 Confident Brand Shoppers (18% 2004, 16% 1999) - members of this group are happy to use the Internet for the next time they want to make a purchase in excess of £500, with this confidence stemming from the importance they lay on purchasing well-known brands and the necessity to shop around.

3 Carefree Spenders (19% 2004, 15% 1999) - these consumers are prepared to purchase from unknown companies and do not consider that purchases should be restricted to well-known brands. Furthermore, they are willing to make the purchase without seeing the product first.

4 Cautious Shoppers (14% 2004, 20% 1999) - these shoppers are not likely to purchase goods through an online auction, have concerns over the quality of products they purchase and would like to see the product prior to making a purchase.

5 Bargain Hunters (21% 2004, 16% 1999) - this group would buy from an unknown company or any web site as long as it was the cheapest and is driven not by the convenience of the medium but by price.

6 Unfulfilled (14% 2004, 17% 1999) - this group finds it too difficult to find the products they wish to purchase on the Internet, they would not buy from any web site or through an auction and they think it takes too long for products purchased online to be delivered.

Psychographic segmentation

A breakdown of customers according to different characteristics.

Demographic characteristics

Variations in attributes of the populations such as age, sex and social class.

web site design (see Chapter 7 for a discussion of this approach). This is an extension of the traditional marketing approach of psychographic segmentation. See the box 'Psychographic segmentation for transactional e-commerce' for an example of this type of segmentation applied to online purchase behaviour. Which profile do you fit?

Demographic characteristics

Within each country, adoption of the Internet also varies significantly according to individual demographic characteristics such as sex, age and social class or income. This analysis is important as part of the segmentation of different groups within a target

Psychographic Segmentation Example

Figure 2.19 Summary of demographic characteristics of Internet users

Source: (September 2003) MORI Technology Tracker. See www.mori.com/technology/techtracker.shtml for details

Figure 2.19 Summary of demographic characteristics of Internet users

Source: (September 2003) MORI Technology Tracker. See www.mori.com/technology/techtracker.shtml for details market. Since these factors will vary throughout each country there will also be regional differences. Access is usually much higher in capital cities.

From Activity 2.5 it can be seen that the stereotype of the typical Internet user as male, around 30 years of age and with high disposable income no longer holds true. Many females and more senior 'silver surfers' are also active.

To fully understand online customer access we also need to consider the user's access location, access device and 'webographics', all of which are significant for segmentation and constraints on site design. 'Webographics' is a term coined by Grossnickle and Raskin (2001). According to these authors webographics includes:

Activity 2.5

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