Factors Leading to Market Segmentation of Fashion House Business based on Customer Behavior: Evidence from Bangladeshi Fashion Industry

Abstract

The key objective of this paper is to find out factors affecting market segmentation of fashion house business in Bangladesh based on customer behaviour. For the purpose of the study, a judgment sampling of 200 customers from the entire populations has been targeted. Data collected in randomly through using five-point Likert scale (1=strongly disagree, 5= strongly agree) questionnaires. The hypothesis has been developed on the correlation between variables and a total of 14 variables are considered for the study. After analysis of data, it has been revealed that there are two types of customer segments a) low fashionable customers (LFC) and b) high fashionable customers (HFC). The study depicts that, in the case of low fashionable customers, the marketer pay attention to prices, return facilities, online shopping, friendly employees, well decoration and hassle free environment whereas in the case of high fashionable customers marketers pay attention to brand image, quality of clothes, credit cards, customized fashionable clothes, modern and stylish clothes. The study is a part of Segmentation-Targeting-Positioning (STP) analysis where KMO and Bartlett's Test were used to determine the appropriateness of data for factor analysis. The rotation matrix used for extracting the number of leading factors from 14 variables and their relationship and the residuals used to the model fit. The study concluded with the statement that, fashion product marketers must need relevant and adequate concentration on customer behaviour while making product marketing strategy.