Segmentation of Consumer Decision Making Process in Online Marketing through Two-Step Cluster Method

Abstract

With the changing technologies and broadening the scope of online marketing, the consumer searches several opportunities in selecting a product. One of the major changes in the consumer decision making process is the transition of passive to active consumer behaviour. Online marketing provides convenience and visualization of varieties of durable to the consumer in a single click. The consumer decision making process comprises five stages - Needs Recognition, Information Search, Evaluation of Alternatives, purchase decision, and post-purchase decision. The sample size of the study is 648 respondents in four districts of Madhya Pradesh and Chhattisgarh respectively. The primary data has been collected through a structured questionnaire. Most of the research in consumer decision making is based on the decision outcome or output of the consumer. This paper studies about consumer decision making process in online marketing of consumer durable. The empirical study is based on the two-step cluster analysis of the stages of consumer decision making in online marketing. After analysis, three clusters have been formed as a concerned buyer, potential buyer, and confused buyer. The research will help in formulating marketing strategies to enhance consumer purchase behaviour.