Segmentation of online buyers and its implication in determining marketing strategies (Indonesian case study)

The fast growth of e-commerce business in several previous years has attracted attention of many researchers. There are numerous research investigate about purchase behavior. Despite of that, only a few study conducted to determine segmentation of online buyers. Market segmentation is the most fundamental and basic step in determining marketing strategies. This study illustrates the segmentation of online buyers in Indonesia, follows by the characteristics for each segments. The segmentation uses demographic, behavioral and psychographic variables derived from prior research. The measurement tool was distributed through online social media and gathered 246 valid data. From this study it is revealed that potential online purchaser could be grouped into three segments based on behavioral factors (online buying frequency and spending, payment method, and favorite online market type) and psychographic factors (trust, ease of use, interactive speed, perceived usefulness, customer communication, word-of-mouth, and online purchase intention). After interpreting the findings, this study gives recommendation for organization that involved in e-commerce business to formulate marketing strategy especially for the targeted market.