A Methodology of Market Segmentation Using Customer’s Surfing and Buying History on the Internet Shopping Malls

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2.1 Market Segmentation
2.2 Benefit Segmentation
2.3 Market Segmentation in the Electronic Marketplace


Lots of shopping malls continue to search for a competitive advantage in an increasingly tight market in the electronic marketplace. Market segmentation is considered to be one of important strategies for competitive advantage because of its capability to manage customers. There are three types of information that might be used for segmentation in the Internet shopping malls, which are customer’s profile, surfing and buying history. We suggest a methodology of benefit segmentation using customer’s surfing and buying history. Traditional market segmentation methodologies based only on customer’s profile fail to utilize abundant information that customer’s surfing and buying history give about his/her preference. Our methodology consists of four steps: 1) analysis of product web pages, 2) data preparation, 3) estimation and its interpretation, 4) development of marketing mix. Our methodology is to give a useful guideline to the Internet shopping malls for market segmentation.

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