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A profile of Koreans: who purchases fashion goods online?
Heewon Sung Yangjin Jeon
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Heewon Sung Yangjin Jeon, (2009),"A profile of Koreans: who purchases fashion goods online?", Journal
of Fashion Marketing and Management: An International Journal, Vol. 13 Iss 1 pp. 79 - 97
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Abstract
Purpose – The purpose of this paper is to classify internet users by fashion lifestyles, to profile the
demographic and internet usage characteristics of each segment, and to examine evaluation for
fashion e-retailers’ attributes.
Design/methodology/approach – A total of 1,211 internet users who have visited an online
fashion mall at least once participated in a web survey. Lifestyles were analyzed by factor analysis,
generating five factors. Five segments were obtained by k-mean cluster analysis. Descriptive analysis,
ANOVA, chi-square tests, and radar charts were employed.
Findings – Internet users were classified into Economical Shopper, Recreational Shopper,
Fashion/brand Shopper, Fashion Follower, and Individualistic Shopper. Each segment presented
different characteristics in demographics and internet usages. In addition, segments evaluated
e-retailers’ attributes differently. Fashion/brand Shopper presented the highest levels of overall
satisfaction and intention to purchase fashion goods online, while Fashion Follower showed the
opposite.
Research limitations/implications – A profile of each segment explained who they are and why
they buy or shop for fashion goods online. Evaluation for e-retailers’ attributes indicated how online
marketers responded to potential buyers’ needs and values.
Originality/value – The paper offers valuable recommendations to apparel e-retailers based on
characteristics of each segment.
Keywords Market segmentation, Lifestyles, Internet shopping, Electronic commerce, Fashion,
South Korea
Paper type Research paper
Introduction
Now internet is ubiquitous and has become a major marketing channel to expand
business opportunities. Online market has shown its rapid growth all over the world.
In the US online market, 132 million people spent more than $130.3 billion in 2006 and
annual spending per buyer had increased from $457 in 2001 to $784 in 2006
(Machrotech, 2007). Korean e-retailing sales volume in 2006 was more than 13.4 trillion
won (approximately $14 billion), increased by 26.1 percent from the previous year, and Journal of Fashion Marketing and
clothing/fashion related products took the largest part of merchandise (Korean Management
Vol. 13 No. 1, 2009
National Statistical Office, 2007). The number of e-retailers selling clothing/fashion pp. 79-97
related products was increased to 49.8 percent of those in 2005. E-commerce market q Emerald Group Publishing Limited
1361-2026
size of People’s Republic of China reached 1.1 trillion yuan in 2006 (approximately 15.2 DOI 10.1108/13612020910939897
JFMM billion), which was almost 48.6 percent increased in 2005 (National Internet
13,1 Development of Agency of Korea, 2007).
Customers in one market – online market – may be too heterogeneous in their
needs and values. Hence, marketers are trying to identify relatively homogeneous
groups with similar product desires or interests. Within a number of segmentation
variables, lifestyle has been suggested as one of the most fundamental factors (Vyncke,
80 2002). Since physical product attributes have become more comparable due to
technology development while consumers are much more complicated than before,
marketers have relied on psychological variables of consumers rather than physical
attributes of products. Understanding consumers’ lifestyles would help marketers to
communicate properly with their target audience and develop marketing strategies
effectively.
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This study examined Korean online users to provide e-market segments for fashion
products by fashion lifestyles. In comparing the number of internet users in Asia
countries in 2005, China (111 million), Japan (66milllion), India (60million), and Korea
(33million) were ranked in order, whereas the internet usage rate of Korea (68.35
percent) was highest (Japan, 51.54 percent, China, 8.44 percent, India 5.44 percent)
(National Internet Development of Agency of Korea, 2008). According to the same
source, the internet usage rate of Korea reached 75.5 percent in 2007. As Korea is one of
the leading countries with well-developed infrastructure of the internet use and about
three-quarters of population have used the internet, it would be appropriate to examine
Korean consumers as a representative e-retailing market in Asia. The internet users
generally possess high propensity to become the first-time buyer at online shopping
mall. As Korea is considered as a testing market for new products from a global
marketing perspective (Park, 2007), Koreans are fastidious and sensitive in styles and
fashions. Investigating fashion lifestyles of Koreans will provide information about
shopping orientation of Asians who are very refined in fashion tastes.
The purpose of this study was to identify a lifestyle typology relevant for predicting
individual differences in evaluation for online fashion mall attributes. In order to
accomplish this goal, first, we classified online users based on fashion lifestyles, and
then profiled different fashion lifestyle segments with regard to demographics and
internet usage trends. Finally, we identified differences among segments in terms of
online shopping mall attributes. The findings of this study would offer guidelines for
fashion e-retailers to improve market segmentations and corresponding strategies.
Literature review
Lifestyles
Lifestyles are defined as “patterns in which people live and spend time and money,
reflecting a person’s activities, interests, and opinions, as well as demographic
variables” (Blackwell et al., 2001, p. 219). Psychographic variables such as lifestyle
provide more underlying reason of consumer behavior while demographics provide
physical attributes of consumers that are easily observable to identify homogeneous
groups. Psychographic variables help to construe why they buy, while demographic
variables focus on who buy products. Lifestyles change more rapidly than value
(Blackwell et al., 2001), so marketers must keep track contemporary lifestyle trends of
targets and reflect in product development, communication message, or promotion
strategy.
Lifestyle is subdivided into product-related lifestyle which is a person’s activities, A profile of
interests, and opinions about specific products (Ahn et al., 2005). Consumers’ response Koreans
to the internet shopping mall would vary according to product categories, so we
measured fashion lifestyles to focus on fashion products online. Fashion lifestyles
consist of fashion orientation (fashion consciousness, fashion leadership) and clothing
shopping orientation (brand/retailer loyalty, utilitarian/hedonic orientation, and
impulsive/planned orientation) (Kim and Lee, 2004). Although demographic 81
characteristics are identical, an individual’s interests or shopping activities
regarding fashion-related items would lead to different buying process. Thus,
fashion lifestyle would be a useful factor for market segmentation to understand
changes in consumers’ values and to interpret consumers’ buying behaviors.
Gutman and Mills (1982) profiled consumers by employing fashion lifestyle scales.
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They used four fashion lifestyle factors and classified consumers into seven segments.
Shopping orientations or shopping specific lifestyles were also useful for market
segmentation (Bellenger and Korgaonkar, 1980; Moy and Kincade, 2002; Shim and
Kotsiopulos, 1993). Literatures indicated that lifestyle segments differed in evaluation
or selection on retail attributes. A number of studies employed fashion lifestyles as
market segmentation for Korean consumers and compared differences in store
selection criteria or intention to purchase fashion products on e-shopping mall (Park
et al., 2004; Park et al., 2005).
Methodology
Instrument and data collection
The instrument consisted of three sections, including 45 items. The first section
included 21 items modified from previous studies (Park et al., 2004; Park et al., 2005;
Shim and Kotsiopulos, 1993). In the second section, 13 items were adapted from
JFMM evaluation measurement scale for online fashion mall attributes (Jiang and
13,1 Rosenbloom, 2005; Park and Kang, 2005). Also, one item for general satisfaction and
one for intention to purchase at online fashion malls were included in this section.
Overall satisfaction was defined as customer’s overall evaluation of general online
service quality, and purchase intention indicated customer’s likelihood of buying from
e-retailers. Each item was measured using five-point Likert-type scales ranging from
82 “strongly disagree” (1) to “strongly agree” (5). The last section included demographic
information (age, gender, occupation, and annual income per household), internet
usages (total hours to use the internet a day, total number of connecting internet per
day, the number of visiting fashion e-retailers per month), and purchasing experience
of fashion e-retailers. Also, respondents were asked to write the number of items in
each category of casual wear, sports wear, formal wear, under wear, bags/purses,
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shoes, cosmetics/perfumes, and other accessories where they purchased during six
months.
The data were collected from the internet users through the web survey. Web
survey was conducted by the internet research institute during two weeks of January,
2006. The sample was directed to a web site by clicking on the URL to the survey.
Final sample
The total of 1,211 useful data were obtained. Over 52 percent of the samples were
female. About 34.8 percent were between the ages of 15-24 years, 43.7 percent were
between 25-34 years, and 21.6percent were between 35-39 years. About 53 percent
reported that total annual household incomes were in the $20,000-49,999. Respondents
used the internet about 3 hours per day. All of respondents had visited the online
fashion mall at least one time, and approximately 70 percent of them had experienced
to buy fashion items. The average number of items purchased during six months was
7.71. The most frequently purchased items were casual wears, followed by
cosmetics/perfume, accessories (ornaments), and shoes.
Results
Results on fashion lifestyle factors
Principal components factor analysis with varimax rotation was used to identify the
underlying dimensions of fashion lifestyle scale. Five factors were generated,
explaining 59.5 percent of the total variance. Factor 1 was the inclination to be aware of
latest fashion trends, labeled as “fashion consciousness”. Factor 2 was labeled as
“shopping enjoyment”, which was a tendency to enjoy shopping itself regardless of
any plan to buy. Factor 3, labeled as “brand consciousness” represented the confidence
and quality in connection with well-known brands. Factor 4, labeled as “personality
pursuit” was a tendency to value personal tastes above anything else. Factor 5 was
named as “economical orientation”, which was the inclination to consider values for the
money. The factor loadings, means (SD), and Cronbach’s alpha coefficients were listed
in Table I. The mean of “personality pursuit” factor items or “economical orientation”
factor items was generally higher than the mean of the other three factors. That was,
respondents in general seemed to emphasize personal tastes and economical aspects of
fashion products.
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Factor Eigen % of
Factor title (Cronbach’s a) Items loading value variance Mean SD
Fashion consciousness (0.79) Many people regard me as being a fashion leader 0.820 3.392 16.15 2.67 0.89
I am the first to try new fashion 0.808 2.70 0.79
I am confident in my ability to recognize fashion
trends 0.765 2.99 0.79
I consume a time to coordinate color or style of my
garments 0.517 2.99 0.89
I buy styles which I see on TV or the internet 0.466 2.92 0.87
Shopping enjoyment (0.73) I like to shop for fashion products even though I have
no intention to buy 0.714 2.464 11.74 3.20 0.99
I am pleased to shop 0.710 3.36 0.89
It is my pleasure to buy fashion products 0.615 3.17 0.89
I make my shopping trip fast 20.605 3.25 0.86
I often go shopping even though I do not need
anything 0.499 2.69 0.91
I usually shop with others 0.390 3.36 0.91
Brand consciousness (0.80) I can trust in well-known brands 0.884 2.275 10.83 3.23 0.90
A well-known brand means good quality 0.850 3.17 0.87
I purchase well-known brand products although they
are expensive 0.707 2.75 0.98
Personality pursuit (0.62) Clothes are one of the most important ways to
express my individuality 0.690 2.237 10.65 3.59 0.77
It is important to be well-dressed 0.628 3.41 0.81
I buy clothes I like, regardless of current fashion 0.590 3.73 0.80
I try to choose clothes that are new and unique 0.559 3.05 0.90
Economical orientation (0.68) I buy clothes when they are in sales 0.784 2.119 10.09 3.53 0.83
I buy clothes by comparing prices in different stores 0.720 3.61 0.90
I consider value for money 0.658 3.73 0.81
scores of fashion
Koreans
lifestyles
Factor analysis and mean
83
Table I.
A profile of
JFMM Results on profiling market segments
13,1 Factor scores from the five lifestyle factors were used to conduct cluster analysis to
identify market segments. Five clusters were obtained by the SPSS k-means clustering
method, which was appropriate for large data sets (Allred et al., 2006). Table II showed
differences between lifestyle clusters by analysis of variance with Duncan tests. Each
segment was labeled based on fashion lifestyle factors which best described its
84 characteristics.
The first cluster (N ¼ 237) showed the second highest level of personality and
economical perspectives, but did not care about fashion or brand names, and do not
enjoy shopping at all, so it was called “Economical Shopper”. Cluster 2 (N ¼ 215)
showed the highest levels of shopping enjoyment and economical orientation, named
as “Recreational Shopper”. This group enjoyed shopping for fashion products,
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considered values for money, but also considered well-known brands. Cluster 3
(N ¼ 249) showed the highest level of fashion and brand consciousness, but less cared
about shopping enjoyment or economical orientation, so called as “Fashion/Brand
Shoppers”.
Cluster 4 (N ¼ 286) showed the second highest levels of fashion, brand
consciousness and shopping enjoyment, but lowest in personality and economical
orientation, naming as “Fashion Follower”. The last group (N ¼ 224) displayed the
highest level of personality and brand consciousness, but did not care about
practicality or fashion, naming as “Individualistic Shopper”. This cluster had neither
desire for fashion leadership nor any interest in fashion, but cared about personality
and well-dressed appearance.
The classification results indicated 98 percent of original cases were correctly
classified. Classification analysis of the 1,211 cases showed correct classification
ranging from 96.8 percent for Fashion/brand Shopper to 99.3 percent for Fashion
Follower. A classification matrix for five-group discriminant analysis was reported in
Table III. The results demonstrated that the discriminant functions were fairly
accurate in predicting group membership.
differences by fashion
Cluster means and
lifestyle factors
85
Table II.
A profile of
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86
13,1
analysis
JFMM
Table III.
Demographics
Gender
Male 578 47.7 136 57.4 23 10.7 128 51.4 175 61.2 116 51.8 150.63 * * *
Female 633 52.3 101 42.6 192 89.3 121 48.6 111 38.8 108 48.2
Age
15-19 157 13.0 18 7.6 41 19.1 24 9.6 38 13.3 36 47.13 * * *
20-24 264 21.8 44 18.6 61 28.4 49 19.7 56 19.6 54 24.1
25-29 263 21.7 56 23.6 44 20.5 55 22.1 73 25.5 35 15.6
30-34 266 22.0 64 27.0 37 17.2 54 21.7 69 24.1 42 18.8
35-39 261 21.6 55 23.2 32 14.9 67 26.9 50 17.5 57 25.4
Occupation
Students 423 34.9 70 95 44.2 76 30.5 99 34.6 83) 37.1 72.163 * * *
Service-related job 108 8.9 19 8.0 11 5.1 20 8.0 40 14.0 18 8.0
Gov./Org.-related job 253 20.9 63 26.6 40 18.6 53 21.3 52 18.2 45 20.1
Prof. technicians 101 8.3 21 8.9 10 4.7 18 7.2 29 10.1 23 10.3
Enterprisers 61 5.0 13 5.5 1 0.5 20 8.0 18 6.3 9 4.0
Professional and manager 65 5.4 9 3.8 10 4.7 21 8.4 15 5.2 10 4.5
Housewives 151 12.5 29 12.2 42 19.5 28 11.2 28 9.8 24 10.7
Others 49 4.0 13 5.5 6 2.8 13 5.2 5 1.7 12 5.4
Annual income
Less than $20,000 398 32.9 75 31.6 74 34.4 61 24.5 117 40.9 71 31.7 34.688 *
$20,000-29,999 299 24.7 71 30.0 58 27.0 55 22.1 66 23.1 49 21.9
$30,000-49,999 345 28.5 65 27.4 54 25.1 86 34.5 68 23.8 72 32.1
$50,000-69,999 106 8.8 16 6.8 16 7.4 30 12.0 26 9.1 18 8.0
$70,000-89,999 30 2.5 4 1.7 5 2.3 9 3.6 4 1.4 8 3.6
More than $90,000 33 2.7 6 2.5 8 3.7 8 3.2 5 1.7 6 2.7
Internet usages
Fashion e-mall experience
Yes 844 69.7 178 75.1 170 79.1 201 80.7 141 49.3 154 68.8 82.98 * * *
No 367 30.3 59 24.9 45 20.9 48 19.3 145 50.7 70 31.3
characteristics by fashion
lifestyle segments
Demographic and
internet use
87
Table IV.
A profile of
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88
13,1
JFMM
Table V.
internet use
Demographic and
lifestyle segments
characteristics by fashion
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Tests
Total Economical Recreational Fashion/brand Fashion Individualistic ANOVA
M SD shopper shopper shopper follower shopper F
Internet usages
Fashion e-mail experience
Total hours per day 2.95 1.41 3.18 A 3.03 A 3.03 A 2.55 B 3.07 A 8.16 * *
Numbers of connecting internet per
day 6.18 8.22 6.29 5.23 6.80 5.80 6.79 1.548
Number of visiting fashion e-retailers
per month 11.48 17.30 8.65 C 15.18 A 13.10 AB 10.19 BC 10.79 BC 5.15 * *
Numbers of items purchased online 7.71 11.28 6.34 C 9.39 A 9.20 AB 6.30 C 6.79 BC 3.31 *
Notes. A, B, C ¼ significant mean differences by Duncan tests; * p , 0.05; * *; p , 0.001
Recreational shopper. The majority was female (89.3 percent), with the higher A profile of
observation number in 15-19 years and 20-24 years of age. Students and housewives Koreans
took highest proportions (44.2 percent, 19.5 percent respectively) within the group as
well as between groups. The household income distribution was almost similar to
Economical Shoppers. Nearly 80 percent had bought fashion items on e-retailers. As
Recreational Shopper enjoyed shopping and spent time for shopping most, this group
showed the highest numbers of visiting fashion e-retailers, contrary to Economical 89
Shopper. These characteristics were also consistent with the highest number of items
purchased on e-retailers (M ¼ 9:39).
Fashion/brand shopper. A little over half of this segment was male. Respondents
between 35 and 39 years presented the highest proportion (26.9 percent) within group
as well as across groups. Enterpriser, professional/manager occupations were a
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slightly higher than the overall sample. This segment presented a relatively higher
proportion of high income levels than did the other four groups. Almost 81 percent of
this segment had purchased fashion items on e-retailers which was the highest
proportion among five clusters. This group showed the second highest numbers of
visiting e-fashion mall (M ¼ 13:1) and fashion items purchased (M ¼ 9:20).
Fashion follower. More than 61 percent of this group was male, which represented a
heavier proportion of male consumers than the overall sample distribution. Almost 50
percent was age ranged from 25 to 34 years old. These two age groups showed higher
proportions compared with the overall distribution of respondents. Service-related and
professional technician jobs were more highly represented in this segment than the
overall sample. The lowest household incomes (less than $20,000) showed highest
representation than expected within this segment. A little over half of this segment did
not purchase any fashion items on e-retailers, which was the largest proportion of
inexperienced consumers for e-retailers between groups.
Individualistic shopper. About 52 percent was male, and three age groups (15-19,
20-24, and 35-39 years) showed higher representation compared with the overall
sample distribution. High representation in students and professional technician jobs
might be related to age distributions. This group had a relatively higher representation
of $ 30,000-49,999 than the overall sample. About 31.3 percent of this group did not buy
any product on fashion e-retailers, which was closed to the overall sample distribution.
Although this group used the internet as similar to other three groups, this group did
not visit fashion e-retailers neither purchase fashion items as similar as Fashion
Follower did.
90
13,1
JFMM
Table VI.
Fashion e-retailer’s
service attributes by
fashion lifestyle segments
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5
Economical Recreational Fashion/brand Fashion Individualistic
Total shopper shopper shopper follower shopper
E-retailer’s attributes M SD (19.6%) (17.7%) (20.6%) (23.6%) (18.5%) F
Discussion
We profiled market segments of potential consumers who would buy fashion items on
e-retailers. Internet users belonged to one of five fashion lifestyle segments. In order to
provide the differences between clusters graphically, Figures 1-5 were drawn based on
factor scores in Table II. We provided distinctive characteristics of each segment.
Figure 1.
Fashion/brand shopper
JFMM
13,1
92
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Figure 2.
Recreational shopper
Figure 3.
Economical shopper
93
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Figure 4.
Individualistic shopper
Figure 5.
Fashion follower
would be the first major target for e-retailers. Finding is comparable with the
Fashion/brand Shopper of Park et al.’s study (2005).
become loyal consumers. About 30 percents who do not buy any fashion item online
are potential consumers to become first-time buyers since they have visited fashion
e-retailers at least once.
Five lifestyle segments are Fashion/brand Shopper, Recreational Shopper,
Economical Shopper, Individualistic Shopper, and Fashion Followers. The first two
segments are the most potential and important target market for e-business. Luxury
brand or flagship store marketers in addition to multi shop retailers who collect
exclusive fashion items from various well-known brands are suitable to target
Fashion/brands Shoppers. Since consumers in this segment have needs for
high-quality products with premium brands, proper product assortments that are
compatible with consumers’ tastes and current fashion trends are necessary.
Individual Shopper is similar to Fashion/brand Shopper in terms of brand or
personality pursuits but different in fashion consciousness. Thus Individual Shopper
could be the second target market for exclusive fashion brands.
Fashion e-retailers such as fast fashion brands are proper for Recreational group
because this segment needs for a high-quality, wide variety of merchandise at valued
prices. Characteristics of McFashion brands would satisfy this segment of both
economical and brand orientations. Economical Shopper is typical, practical online
users, so basic items at valued prices rather than trendy, well-known brand items are
appropriate. To enhance the purchase of fashion goods online for this segment,
e-retailers require reinforcing after service attributes and price-related promotions.
Fashion Follower segment exhibits relatively negative attitudes toward fashion
e-malls, so it would be difficult to satisfy them. However, since this segment is
interested in fashion, brands, and shopping, there is possibility to increase online
shopping usages by stimulating these inclinations. Besides, it is necessary to inform
positive aspects of online shopping so that this segment is comfortable with e-retailers.
segments for online fashion mall users. E-business marketers can create online store
environments and marketing mix strategies by supplementing negative perspectives
of online fashion mall attributes in accordance with each segment’s characteristics.
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Corresponding author
Heewon Sung can be contacted at: hsung@gnu.kr
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