Paper Type
Complete Research Paper
Description
Because smartphones are now ubiquitous, it becomes for the first time economically feasible to operationalize personalized marketing measures also for physical grocery retailing. A particularly interesting and high valu target group in this domain is the one of variety seeking, since this group is most likely to respond positively to new offers and recommendations. However, present methods in identifying variety seekers rely on qustionnaires and ignore that variety seeking may differ between product categories. In this paper, we present a model for measuring variety seeking behavior on a high level of granularity, based on a consumer´s purchases in individual product categories. Our study has three main contributions. Firstly, we contribute to the customer segmentation research stream by providing a novel way for identifying customers´ overall extent of variety seeking as well as their specific variety seeking at a category level. Second, for the most important retail categories we characterize the extent of variety seeking and provide a data-driven approach that is easy to operationalize by practitioners "“ especially for deploying large-scale personalized marketing measures in social or mobile commerce in physical stores. Finally, we provide a method to reconcile the highly granular category-level results with existing per person typologies.
TOWARDS HIGH RESOLUTION IDENTIFICATION OF VARIETY-SEEKING BEHAVIOR
Because smartphones are now ubiquitous, it becomes for the first time economically feasible to operationalize personalized marketing measures also for physical grocery retailing. A particularly interesting and high valu target group in this domain is the one of variety seeking, since this group is most likely to respond positively to new offers and recommendations. However, present methods in identifying variety seekers rely on qustionnaires and ignore that variety seeking may differ between product categories. In this paper, we present a model for measuring variety seeking behavior on a high level of granularity, based on a consumer´s purchases in individual product categories. Our study has three main contributions. Firstly, we contribute to the customer segmentation research stream by providing a novel way for identifying customers´ overall extent of variety seeking as well as their specific variety seeking at a category level. Second, for the most important retail categories we characterize the extent of variety seeking and provide a data-driven approach that is easy to operationalize by practitioners "“ especially for deploying large-scale personalized marketing measures in social or mobile commerce in physical stores. Finally, we provide a method to reconcile the highly granular category-level results with existing per person typologies.