Multichannel Segmentation vs. Demographic Segmentation

Abstract: The aim of this study is to generate a multichannel segmentation model for high involvement products and to compare it to the widely spread demographic segmentation. In addition, the study also aims to identify demographic and psychographic profiles to provide a rich descriptive picture of the new customer segments. The study combines the literature of the multichannel and segmentation fields. Moreover, it builds upon the knowledge of previous multichannel segmentation models, which exclusively focused on specific product categories and industries by investigating the effects of a high product involvement on consumers’ channel preferences and channel selections. To accomplish these aims, the study at hand utilizes a quantitative approach within the frame of a single case study that focuses on IKEA Sweden. The analysis reveals that the multichannel segmentation model entails a unique set of segments when looking at high involvement products. These segments are strongly directed towards offline channels as three out of four segments showed preferences for offline channels while only one segment showed a slight preference for online channels. Furthermore, two segments selected offline channels exclusively. The other two segments display a multichannel behavior as they selected both offline and online channels for purchasing high involvement products, yet these two segments selected offline channels more recently than online channels. Additionally, the multichannel segmentation model might be a more contemporary relevant segmentation model than the traditional demographic segmentation model. Even though these findings are only directly applicable to the previous research, these findings nevertheless support both, theoretically and practically, the relevance and topicality of research in this field. First, this paper provides a theoretical basis for further investigations that focus on product involvement and second, it establishes a valuable practical instrument to segment and categorize customers within a multichannel environment.