Market segmentation of online shoppers: a Bayesian approach

Manit Mishra and Snigdha Mohapatra

International Journal of Business Innovation and Research, 2023, vol. 32, issue 1, 81-96

Abstract: Trust among online shoppers is an essential prerequisite for a flourishing e-retail. This study identifies trust-based segments among online shoppers in India. The antecedent constructs of trust in e-retailing context are theorised and a response-based segmentation is carried out using Bayesian latent structure regression (BLSR) with variable selection. BLSR is run on survey response from 263 respondents to extract the segments. The findings are validated by a focus group discussion involving 12 online shoppers. The study makes four unique contributions. First, there are no universal drivers of trust in e-retail. Second, Indian online shoppers can be segmented based on trust into - 'inner-directed' and 'outer-directed' shoppers. Third, trust levels of inner-directed shoppers are influenced by their technology-savvy characteristics and brand knowledge. And fourth, trust levels of outer-directed shoppers are shaped by e-retailer's care. The findings provide e-retailers with segment-level, strategic market interventions for trust formation among online shoppers.

Keywords: trust; segmentation; BLSR; e-retail; online shopping. (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=134258 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbire:v:32:y:2023:i:1:p:81-96

Access Statistics for this article

More articles in International Journal of Business Innovation and Research from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().