The role of shopping mission in retail customer segmentation

In retailing, it is important to understand customer behavior and determine customer value. A useful tool to achieve such goals is the cluster analysis of transaction data.

Introduction

Retail chains have a huge amount of sales data available. An analysis of these data strives to understand customer behavior and determine customer value to increase profits. The information about customers can be utilized in various areas such as new product development (Li et al., 2012), product positioning (Gruca & Klemz, 2003), cross-category dependence (Hruschka et al., 1999; Leeflang et al..