Consumer Segmentation Based on Online Shopping Behaviour Among College Students

Title: – Consumer Segmentation Based on Online Shopping Behaviour Among College Students

Authors:  

  1. Vinayak Garg
  2. Bhavika Khemani
  3. Divyansh Chechani

 

Introduction

The rapid growth of e-commerce has significantly transformed the purchasing behaviour of consumers, especially among young adults and college students. With the increasing penetration of the internet, smartphones, and digital payment systems, online shopping has become an integral part of students’ daily lives. E-commerce platforms such as Amazon and Flipkart have made products easily accessible, offering competitive pricing, convenience, variety, and promotional offers that strongly attract the student segment.

College students represent a unique and dynamic consumer group. They are highly exposed to digital marketing, social media influence, peer recommendations, and online reviews. At the same time, they are often price-sensitive due to limited income or dependence on pocket money. Their purchasing decisions may be influenced by various factors such as discounts, brand reputation, delivery speed, trust in online platforms, ease of return policies, and digital payment convenience.

However, not all students exhibit similar online shopping behaviour. Some may prioritize low prices and discounts, while others may focus on brand value or convenience. Therefore, treating college students as a homogeneous group may not provide accurate marketing insights. This highlights the need for consumer segmentation based on behavioural characteristics.

This study aims to identify the underlying factors influencing online shopping behaviour among college students using Factor Analysis and to classify students into distinct segments using Cluster Analysis. The findings of this research will help marketers and e-commerce platforms design targeted strategies tailored to specific student segments, thereby improving customer satisfaction and marketing effectiveness.

 

Objectives of the Study

The main objectives of the study are:

1.     To examine the online shopping behaviour of college students.

2.     To identify the key factors influencing online purchase decisions using Factor Analysis.

3.     To reduce multiple behavioural variables into meaningful underlying dimensions.

4.     To segment college students into distinct groups based on their online shopping behaviour using Cluster Analysis.

5.     To analyze the demographic profile of each identified segment.

6.     To provide managerial implications for e-commerce platforms targeting the student market.

Data Collection Type:

1.     Factor Analysis

2.     Cluster Analysis

 

Data Analysis:

1.     Factor Analysis

·       KMO and Bartlett’s Test

·       Variance Explained

·       Coefficient Matrice

2.     Cluster Analysis

·       Cluster

·       Method

·       Table of Member

Case Processing Summarya
Cases
Valid Missing Total
N Percent N Percent N Percent
73 100.0 0 .0 73 100.0
a. Average Linkage (Between Groups)

Initial Cluster Centers
  Cluster
1 2
Icomparepricesacrossmultiplewebsitesbeforemakingapurcha 5 1
Discountsandpromotionaloffersstronglyinfluencemypurchase 5 1
Itrustonlinereviewsandratingsbeforebuyingaproduct 5 1
Iamconcernedaboutproductqualitywhenshoppingonline 5 1
Ipreferonlineshoppingbecauseitsavestime 5 1
Fastdeliveryisanimportantfactorinmypurchasedecision 5 1
Socialmediaadvertisementsinfluencemyonlinepurchases 5 1
Influencerrecommendationsaffectmybuyingdecisions 5 1
IpreferdigitalpaymentmethodsUPIcardswalletsovercash 5 1
Easyreturnandrefundpoliciesinfluencemychoiceofplatform 5 1
Ifrequentlyshoponlineduringsaleseasons 5 1
Ipreferbuyingbrandedproductswhenshoppingonline 5 1
Iteration Historya
Iteration Change in Cluster Centers
1 2
1 3.331 3.359
2 .000 .000

a. Convergence achieved due to no or small change in cluster centers. The maximum absolute coordinate change for any center is .000. The current iteration is 2. The minimum distance between initial centers is 13.856.

 

Final Cluster Centers
  Cluster
1 2
Icomparepricesacrossmultiplewebsitesbeforemakingapurcha 4 2
Discountsandpromotionaloffersstronglyinfluencemypurchase 4 2
Itrustonlinereviewsandratingsbeforebuyingaproduct 4 2
Iamconcernedaboutproductqualitywhenshoppingonline 4 1
Ipreferonlineshoppingbecauseitsavestime 4 3
Fastdeliveryisanimportantfactorinmypurchasedecision 4 1
Socialmediaadvertisementsinfluencemyonlinepurchases 4 2
Influencerrecommendationsaffectmybuyingdecisions 4 2
IpreferdigitalpaymentmethodsUPIcardswalletsovercash 4 2
Easyreturnandrefundpoliciesinfluencemychoiceofplatform 4 3
Ifrequentlyshoponlineduringsaleseasons 4 2
Ipreferbuyingbrandedproductswhenshoppingonline 4 2
ANOVA
  Cluster Error F Sig.
Mean Square df Mean Square df
Icomparepricesacrossmultiplewebsitesbeforemakingapurcha 37.327 1 1.207 71 30.919 <.001
Discountsandpromotionaloffersstronglyinfluencemypurchase 26.647 1 1.047 71 25.460 <.001
Itrustonlinereviewsandratingsbeforebuyingaproduct 34.649 1 .779 71 44.488 <.001
Iamconcernedaboutproductqualitywhenshoppingonline 60.802 1 .746 71 81.486 <.001
Ipreferonlineshoppingbecauseitsavestime 7.295 1 1.302 71 5.602 .021
Fastdeliveryisanimportantfactorinmypurchasedecision 57.041 1 .774 71 73.690 <.001
Socialmediaadvertisementsinfluencemyonlinepurchases 31.334 1 .890 71 35.209 <.001
Influencerrecommendationsaffectmybuyingdecisions 20.035 1 1.298 71 15.440 <.001
IpreferdigitalpaymentmethodsUPIcardswalletsovercash 30.728 1 1.023 71 30.044 <.001
Easyreturnandrefundpoliciesinfluencemychoiceofplatform 21.372 1 .840 71 25.431 <.001
Ifrequentlyshoponlineduringsaleseasons 27.669 1 .978 71 28.284 <.001
Ipreferbuyingbrandedproductswhenshoppingonline 30.127 1 .927 71 32.499 <.001

The F tests should be used only for descriptive purposes because the clusters have been chosen to maximize the differences among cases in different clusters. The observed significance levels are not corrected for this and thus cannot be interpreted as tests of the hypothesis that the cluster means are equal.

 

Number of Cases in each Cluster
Cluster 1 66.000
2 7.000
Valid 73.000
Missing .000
 
KMO and Bartlett’s Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .863
Bartlett’s Test of Sphericity Approx. Chi-Square 484.609
df 66
Sig. <.001
Communalities
  Initial Extraction
Icomparepricesacrossmultiplewebsitesbeforemakingapurcha 1.000 .812
Discountsandpromotionaloffersstronglyinfluencemypurchase 1.000 .797
Itrustonlinereviewsandratingsbeforebuyingaproduct 1.000 .677
Iamconcernedaboutproductqualitywhenshoppingonline 1.000 .752
Ipreferonlineshoppingbecauseitsavestime 1.000 .515
Fastdeliveryisanimportantfactorinmypurchasedecision 1.000 .761
Socialmediaadvertisementsinfluencemyonlinepurchases 1.000 .764
Influencerrecommendationsaffectmybuyingdecisions 1.000 .471
IpreferdigitalpaymentmethodsUPIcardswalletsovercash 1.000 .619
Easyreturnandrefundpoliciesinfluencemychoiceofplatform 1.000 .789
Ifrequentlyshoponlineduringsaleseasons 1.000 .724
Ipreferbuyingbrandedproductswhenshoppingonline 1.000 .652
Extraction Method: Principal Component Analysis.
Total Variance Explained
Component Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative %
1 6.222 51.852 51.852 6.222 51.852 51.852
2 1.096 9.131 60.983 1.096 9.131 60.983
3 1.015 8.456 69.439 1.015 8.456 69.439
4 .783 6.524 75.963      
5 .680 5.664 81.626      
6 .435 3.627 85.253      
7 .424 3.536 88.790      
8 .352 2.937 91.727      
9 .326 2.720 94.447      
10 .307 2.560 97.007      
11 .220 1.834 98.841      
12 .139 1.159 100.000      
Extraction Method: Principal Component Analysis.
Component Matrixa
  Component
1 2 3
Icomparepricesacrossmultiplewebsitesbeforemakingapurcha .602 .186 .644
Discountsandpromotionaloffersstronglyinfluencemypurchase .613 .453 .465
Itrustonlinereviewsandratingsbeforebuyingaproduct .774 -.275 -.049
Iamconcernedaboutproductqualitywhenshoppingonline .758 .318 -.277
Ipreferonlineshoppingbecauseitsavestime .628 -.337 -.081
Fastdeliveryisanimportantfactorinmypurchasedecision .807 .261 -.203
Socialmediaadvertisementsinfluencemyonlinepurchases .779 -.394 .043
Influencerrecommendationsaffectmybuyingdecisions .678 .073 -.077
IpreferdigitalpaymentmethodsUPIcardswalletsovercash .710 -.333 -.068
Easyreturnandrefundpoliciesinfluencemychoiceofplatform .719 .371 -.365
Ifrequentlyshoponlineduringsaleseasons .738 -.295 .304
Ipreferbuyingbrandedproductswhenshoppingonline .796 .036 -.133
Extraction Method: Principal Component Analysis.
a. 3 components extracted.

 

Anti-image Matrices
  Icomparepricesacrossmultiplewebsitesbeforemakingapurcha Discountsandpromotionaloffersstronglyinfluencemypurchase Itrustonlinereviewsandratingsbeforebuyingaproduct Iamconcernedaboutproductqualitywhenshoppingonline Ipreferonlineshoppingbecauseitsavestime Fastdeliveryisanimportantfactorinmypurchasedecision Socialmediaadvertisementsinfluencemyonlinepurchases Influencerrecommendationsaffectmybuyingdecisions IpreferdigitalpaymentmethodsUPIcardswalletsovercash Easyreturnandrefundpoliciesinfluencemychoiceofplatform Ifrequentlyshoponlineduringsaleseasons Ipreferbuyingbrandedproductswhenshoppingonline
Anti-image Covariance Icomparepricesacrossmultiplewebsitesbeforemakingapurcha .473 -.251 -.025 .082 .028 -.118 -.025 .121 -.015 .000 -.117 .013
Discountsandpromotionaloffersstronglyinfluencemypurchase -.251 .489 .032 -.086 -.043 .061 .037 -.131 .029 -.036 -.009 -.039
Itrustonlinereviewsandratingsbeforebuyingaproduct -.025 .032 .348 -.090 .014 .066 -.139 -.001 -.087 -.058 -.072 -.015
Iamconcernedaboutproductqualitywhenshoppingonline .082 -.086 -.090 .279 .074 -.151 .023 .099 -.005 -.109 -.052 -.031
Ipreferonlineshoppingbecauseitsavestime .028 -.043 .014 .074 .574 -.041 -.097 -.020 -.162 -.064 .001 -.037
Fastdeliveryisanimportantfactorinmypurchasedecision -.118 .061 .066 -.151 -.041 .274 -.044 -.115 -.054 -.042 .049 -.031
Socialmediaadvertisementsinfluencemyonlinepurchases -.025 .037 -.139 .023 -.097 -.044 .342 -.047 -.006 .055 -.077 -.080
Influencerrecommendationsaffectmybuyingdecisions .121 -.131 -.001 .099 -.020 -.115 -.047 .473 .046 -.080 -.103 -.083
IpreferdigitalpaymentmethodsUPIcardswalletsovercash -.015 .029 -.087 -.005 -.162 -.054 -.006 .046 .492 -.021 -.084 .005
Easyreturnandrefundpoliciesinfluencemychoiceofplatform .000 -.036 -.058 -.109 -.064 -.042 .055 -.080 -.021 .407 .073 -.064
Ifrequentlyshoponlineduringsaleseasons -.117 -.009 -.072 -.052 .001 .049 -.077 -.103 -.084 .073 .412 -.031
Ipreferbuyingbrandedproductswhenshoppingonline .013 -.039 -.015 -.031 -.037 -.031 -.080 -.083 .005 -.064 -.031 .420
Anti-image Correlation Icomparepricesacrossmultiplewebsitesbeforemakingapurcha .756a -.523 -.063 .225 .054 -.327 -.062 .257 -.031 -.001 -.265 .029
Discountsandpromotionaloffersstronglyinfluencemypurchase -.523 .799a .077 -.233 -.081 .167 .090 -.273 .059 -.080 -.019 -.086
Itrustonlinereviewsandratingsbeforebuyingaproduct -.063 .077 .879a -.289 .032 .213 -.403 -.002 -.211 -.154 -.191 -.039
Iamconcernedaboutproductqualitywhenshoppingonline .225 -.233 -.289 .797a .186 -.547 .076 .272 -.012 -.323 -.153 -.089
Ipreferonlineshoppingbecauseitsavestime .054 -.081 .032 .186 .896a -.104 -.218 -.038 -.304 -.133 .002 -.076
Fastdeliveryisanimportantfactorinmypurchasedecision -.327 .167 .213 -.547 -.104 .827a -.144 -.320 -.148 -.125 .146 -.091
Socialmediaadvertisementsinfluencemyonlinepurchases -.062 .090 -.403 .076 -.218 -.144 .891a -.116 -.016 .147 -.206 -.210
Influencerrecommendationsaffectmybuyingdecisions .257 -.273 -.002 .272 -.038 -.320 -.116 .828a .095 -.182 -.233 -.186
IpreferdigitalpaymentmethodsUPIcardswalletsovercash -.031 .059 -.211 -.012 -.304 -.148 -.016 .095 .921a -.047 -.185 .011
Easyreturnandrefundpoliciesinfluencemychoiceofplatform -.001 -.080 -.154 -.323 -.133 -.125 .147 -.182 -.047 .902a .179 -.154
Ifrequentlyshoponlineduringsaleseasons -.265 -.019 -.191 -.153 .002 .146 -.206 -.233 -.185 .179 .894a -.075
Ipreferbuyingbrandedproductswhenshoppingonline .029 -.086 -.039 -.089 -.076 -.091 -.210 -.186 .011 -.154 -.075 .957a
a. Measures of Sampling Adequacy(MSA)
Correlation Matrix
  Icomparepricesacrossmultiplewebsitesbeforemakingapurcha Discountsandpromotionaloffersstronglyinfluencemypurchase Itrustonlinereviewsandratingsbeforebuyingaproduct Iamconcernedaboutproductqualitywhenshoppingonline Ipreferonlineshoppingbecauseitsavestime Fastdeliveryisanimportantfactorinmypurchasedecision Socialmediaadvertisementsinfluencemyonlinepurchases Influencerrecommendationsaffectmybuyingdecisions IpreferdigitalpaymentmethodsUPIcardswalletsovercash Easyreturnandrefundpoliciesinfluencemychoiceofplatform Ifrequentlyshoponlineduringsaleseasons Ipreferbuyingbrandedproductswhenshoppingonline
Correlation Icomparepricesacrossmultiplewebsitesbeforemakingapurcha 1.000 .602 .385 .347 .286 .469 .411 .272 .367 .310 .504 .373
Discountsandpromotionaloffersstronglyinfluencemypurchase .602 1.000 .330 .446 .293 .433 .320 .440 .282 .430 .411 .441
Itrustonlinereviewsandratingsbeforebuyingaproduct .385 .330 1.000 .592 .416 .488 .699 .408 .588 .497 .629 .559
Iamconcernedaboutproductqualitywhenshoppingonline .347 .446 .592 1.000 .298 .744 .452 .379 .474 .687 .452 .573
Ipreferonlineshoppingbecauseitsavestime .286 .293 .416 .298 1.000 .445 .532 .413 .537 .393 .401 .464
Fastdeliveryisanimportantfactorinmypurchasedecision .469 .433 .488 .744 .445 1.000 .535 .553 .521 .651 .441 .617
Socialmediaadvertisementsinfluencemyonlinepurchases .411 .320 .699 .452 .532 .535 1.000 .508 .546 .385 .645 .614
Influencerrecommendationsaffectmybuyingdecisions .272 .440 .408 .379 .413 .553 .508 1.000 .345 .483 .476 .578
IpreferdigitalpaymentmethodsUPIcardswalletsovercash .367 .282 .588 .474 .537 .521 .546 .345 1.000 .432 .537 .469
Easyreturnandrefundpoliciesinfluencemychoiceofplatform .310 .430 .497 .687 .393 .651 .385 .483 .432 1.000 .325 .572
Ifrequentlyshoponlineduringsaleseasons .504 .411 .629 .452 .401 .441 .645 .476 .537 .325 1.000 .526
Ipreferbuyingbrandedproductswhenshoppingonline .373 .441 .559 .573 .464 .617 .614 .578 .469 .572 .526 1.000
Covariance Matrix
  Icomparepricesacrossmultiplewebsitesbeforemakingapurcha Discountsandpromotionaloffersstronglyinfluencemypurchase Itrustonlinereviewsandratingsbeforebuyingaproduct Iamconcernedaboutproductqualitywhenshoppingonline Ipreferonlineshoppingbecauseitsavestime Fastdeliveryisanimportantfactorinmypurchasedecision Socialmediaadvertisementsinfluencemyonlinepurchases Influencerrecommendationsaffectmybuyingdecisions IpreferdigitalpaymentmethodsUPIcardswalletsovercash Easyreturnandrefundpoliciesinfluencemychoiceofplatform Ifrequentlyshoponlineduringsaleseasons Ipreferbuyingbrandedproductswhenshoppingonline
Icomparepricesacrossmultiplewebsitesbeforemakingapurcha 1.709 .932 .563 .570 .439 .764 .616 .443 .576 .430 .766 .563
Discountsandpromotionaloffersstronglyinfluencemypurchase .932 1.402 .436 .665 .408 .639 .434 .650 .400 .540 .565 .603
Itrustonlinereviewsandratingsbeforebuyingaproduct .563 .436 1.249 .832 .547 .681 .895 .568 .787 .590 .816 .721
Iamconcernedaboutproductqualitywhenshoppingonline .570 .665 .832 1.580 .441 1.167 .651 .595 .714 .916 .661 .832
Ipreferonlineshoppingbecauseitsavestime .439 .408 .547 .441 1.385 .653 .718 .607 .757 .491 .548 .630
Fastdeliveryisanimportantfactorinmypurchasedecision .764 .639 .681 1.167 .653 1.556 .764 .861 .778 .861 .639 .889
Socialmediaadvertisementsinfluencemyonlinepurchases .616 .434 .895 .651 .718 .764 1.313 .727 .750 .467 .858 .812
Influencerrecommendationsaffectmybuyingdecisions .443 .650 .568 .595 .607 .861 .727 1.558 .516 .640 .691 .832
IpreferdigitalpaymentmethodsUPIcardswalletsovercash .576 .400 .787 .714 .757 .778 .750 .516 1.435 .549 .747 .649
Easyreturnandrefundpoliciesinfluencemychoiceofplatform .430 .540 .590 .916 .491 .861 .467 .640 .549 1.126 .401 .701
Ifrequentlyshoponlineduringsaleseasons .766 .565 .816 .661 .548 .639 .858 .691 .747 .401 1.349 .705
Ipreferbuyingbrandedproductswhenshoppingonline .563 .603 .721 .832 .630 .889 .812 .832 .649 .701 .705 1.333

 

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