Customers' Segmentation based on Influential Factors on their Purchase Intention

Abstract

This research aims at associating two groups of demographic and transaction related factors and furthermore, proposes customer churn factor as another influential factor in customer value analysis. To this end, at first, customers' transaction data in a real local ISP in a four year period are utilized for segmentation purpose using k-means method. Regarding service nature of the case, customers' behavior has been considered in terms of customer satisfaction factors. The results of Exploratory Factor Analysis (EFA) indicate that three factors of service quality, expectation confirmation and post-purchasing satisfaction are influential factors. Then, association rules using GRI algorithm are exploited in order to investigate among customers' behaviors and propose appropriate strategies and action plans for each customer segment. Finally, segmentation results are associated with physiographic variables and existence of a significant difference among identified segments is more investigated using one way ANOVA test. The results clarified that expectation confirmation and post- purchasing satisfaction as hygienic factors and service quality as an incentive factor influence customer loyalty.

Keywords

• customer churn
• segmentation
• physiographic variables