Benefit-based O2O commerce segmentation: a means-end chain approach

We examined Online-to-Offline (O2O) commerce consumers' market segments and consumption relevant cognitive structures. Laddering interview technique was employed to collect data from 51 O2O consumers in terms of benefits they sought from O2O platforms. A three-group O2O consumer segments were identified based on the benefits they sought, namely Return-sensitive shoppers, Risk-sensitive shoppers, and Rational shoppers, and a corresponding hierarchical cognitive structure model for each sub-group of consumers was developed linking attributes needed to fulfill the benefits and values to reinforce the benefits. The three sub-group O2O consumers were found to be significantly different in terms of the key benefits sought and attributes needed to realize the same benefit sought. Moreover, benefit-based segmentation has shown advantages over the item-based segmentation method used in prior research. This study makes a significant contribution to O2O business regarding consumer purchasing behaviors and segmentation methodology.