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Transportation Dissertation

Title The Study of Market Segmentation of Online Shopping with Picking up at Convenience Stores
Year 2006
Summary

Student:Yu Szu Lin, 2006.06

nstitute of Traffic and Transportation National Chiao Tung University

   Online shopping and convenience stores picking-up is a trend of shopping and picking-up of goods for online shoppers. The purpose of this study is to analyze the market segmentation of customers and propose the promotion strategies by customers’ characteristics, which is defined by some of the demographic characteristics and life style characteristics. This paper first classifies customers by “number of pick-up stores available” and “the most often chosen store”, and then uses self-organizing map (SOM) method for market segmentation, in which the target market is determined by customers’ purchase frequency. Finally, the promotion strategies are proposed by customers’ characteristics. Since attracting new customer is important, and maintaining present consumers is easier and needs lower cost, an important-performance analysis (IPA) is then applied for generating service quality improvement strategies.
  It is found from this study that the target customers of 7-11 and CVS are similar, who are mainly composed by 25-to-39-year-old female customers and have the life style of caring for public interest. Meanwhile, according to IPA to present customers, 7-11 is suggested to improve its service of “notification message of goods arrival” first, followed by the service of “gifts for bonus”, while CVS is first suggested to improve its service of “in-store processing time”, and also followed by the term of “gifts for bonus”.

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