Identification and Classification of the Dairy Product Consumer Market: A Customer Segmentation-Based Approach Industry

Document Type : Research Paper

Author

Department of Management, Faculty of Humanities and Social Sciences, Golestan University, Gorgan, Iran.

Abstract

Given the diversity of needs and preferences of consumers in the dairy industry, identifying and segmenting the target market is essential to enhance the effectiveness of marketing activities. Customer segmentation helps companies design more precise strategies and increase customer satisfaction. This research aims to analyze and segment the consumer market to improve marketing decision-making in the dairy industry. The objective of this study was to segment the customers of the dairy industry. This research is a mixed-methods (qualitative-quantitative) study conducted to investigate customers and identify their key needs and demands from dairy companies and products. The study population comprised customers of the dairy industry in Mashhad. In the qualitative phase, 23 dairy industry buyers were selected and interviewed in five focus groups. Using thematic analysis, 60 factors affecting dairy product purchases were identified. These factors were categorized into 14 main components, including product health, product nature, external product factors, product structure, personality and psychological factors, company identity, production power, company competitiveness, distribution, competitive pricing, awareness factors, social factors, and store capabilities in MaxQDA software (2020), aiding in the analysis and identification of key components. In the quantitative phase, 517 questionnaires were collected from various areas in Mashhad using stratified sampling. The validity of the questionnaires was confirmed through content and construct validity, and their reliability was confirmed using Cronbach's alpha. Factor analyses were performed in LISREL software, and customer segmentation was done into two clusters, "Expectant" and "Risk-Averse," using SPSS software. The results of this research can help dairy companies improve their marketing strategies by leveraging the obtained data and more effectively aligning their products and services with customer needs.

Keywords


Extended Abstract

Objectives

Given the limited research on the motivations and driving forces behind dairy product purchases, this article uses consumer involvement as a tool for segmentation to explore domestic dairy product purchases from a new perspective. A precise understanding of customers and their needs is a key factor in the success of companies in the dairy industry. Due to the cultural and social differences among consumers and the diversity of products, the dairy market requires data-driven approaches for customer segmentation. This study, employing a mixed-method approach (qualitative-quantitative) and focusing on dairy industry customers in the city of Mashhad, seeks to provide a more comprehensive view of customer needs and expectations by identifying the factors influencing purchases. The results of this study can help dairy companies design targeted marketing strategies and optimize production and distribution processes.

 

Material and Methods

The present study, from the perspective of approach and strategy, falls under the category of mixed-method research (qualitative followed by quantitative). The research strategy in the qualitative phase involves thematic analysis from focus group interviews, and in the quantitative phase, it employs a survey. The objective of the qualitative phase is to identify the factors influencing dairy product purchases through thematic analysis, while the quantitative phase aims to confirm these factors and segment the customers.

This research involves both identifying and confirming the factors affecting the dairy industry’s customer purchases and is divided into two parts. Initially, the results of focus groups and the thematic analysis from focus group interviews are presented. In the thematic analysis, the factors identified from the focus group interviews are categorized and named using systematic coding methods. In the next step (quantitative), these factors are confirmed through confirmatory factor analysis and customer segmentation in the dairy industry of Mashhad was conducted.

The first part addresses the research question: "What are the factors influencing the purchase of dairy products among Mashhad’s dairy customers?" This section aims to identify the important and influential factors affecting customer purchases. To gather data for this part, focus groups and interviews were conducted, and the themes (the relevant indicators from the thematic analysis process) were categorized and named within the identified constructs.

In the second, quantitative part of the study, data was collected using questionnaires. Then, based on the customer data, confirmatory factor analyses were conducted, followed by customer segmentation through cluster analysis, placing the customers into different segments.

 

Results

The present study identifies and analyzes the factors affecting consumer purchasing behavior in the dairy industry. Through focus group interviews and thematic analysis, 205 initial codes were identified and ultimately classified into 14 main categories. These categories include product health factors, quality, packaging design, product structure, and personality factors. The results indicate that health-related factors, such as freshness and hygiene, are of high importance, especially in light of consumer concerns stemming from previous scandals. Additionally, product quality and factors like taste and smell also play a significant role in consumer purchasing decisions. The examination of external categories, such as packaging design and reusability, highlights consumers' attention to the visual and environmental aspects of products. The findings are highly consistent with previous research and underscore the significant impact of these factors on purchasing behavior in the dairy industry.

 

Conclusion

The analysis of factors influencing the purchase of dairy products clearly illustrates the complexities of consumer decision-making. The results of this study emphasize the growing importance of health and quality considerations in the dairy market. Given the concerns arising from product quality and health, particularly following various scandals, consumers are increasingly focused on the freshness and hygiene of products. Furthermore, the desire to purchase high-quality products with desirable taste has emerged as a key factor in consumer choices. Additionally, attention to packaging design and reusability reflects the environmental concerns of consumers, which can present an opportunity for dairy brands. Ultimately, these findings can assist managers and marketers in the dairy industry in developing more effective strategies and optimizing products.

 

 

Data Availability Statement

“Data available on request from the authors”

Ethical considerations

The authors avoided data fabrication, falsification, plagiarism, and misconduct.

Conflict of interest

The author declares no conflict of interest.

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