CONSUMER SELECTION OF E-MARKETPLACE TYPE BASED ON DEMOGRAPHIC AND BEHAVIORAL SEGMENTATION

Abstract

The increase of internet user penetration in Indonesia are seen by e-commerce players
as a huge opportunity to expand their businesses. Internet nowadays are not only used as
communication media, but also business transaction platform. The rising of e-commerce
industry is followed by the development of new e-commerce marketplaces, which means that
consumer has more choices of shopping places. Even though it is beneficial for consumers, but
it has become a challenge for current as well as future marketplaces. With many choices
available, it will become easier for consumer to switch from one brand to another when they
are not able to find what they’re looking for in a brand. Marketers are looking for answers as
how to not make brand switching happen by knowing their potential customers’ characteristics.
This way, companies can figure what their customers needs and wants are, resulting in the best
treatments for each segment. Segmentation in this research is done through the grouping of 455
respondents in Jakarta that have similar aspects in both demographics and behaviors. The
method of segmentation used are cluster analysis and cross tabulation. The results of this
research indicated the existence of three different segmentation: novice shopper, simple
shopper and dedicated shopper, with each has its own demographic and behaviour
characteristics that are very interesting to be studied.