The purpose of this study was to classify retail shoppers based on utilitarian and hedonic shopping orientations, and to profile the shopper groups in terms of demographic characteristics and shopping outcomes. The data for this study were collected via online survey in the United States. Confirmatory factor analysis (CFA) was conducted to test the measurement model of shopping orientations. A cluster analysis identified groups of retail store shoppers (n=987) based on shopping orientations. Using Ward's method in hierarchical clustering procedure, clusters were formed based on five shopping orientations (aesthetic, shopping enjoyment, convenience seeking, sale proneness, and smart shopping). Then, the K-means clustering procedure with the initial seeds provided by the hierarchical analysis solution obtained final clusters. The final clusters were evaluated and compared in terms of demographic characteristics and shopping outcomes. Chi-square analysis compared demographic characteristics (gender, generation, income, number of children, employment status), while ANOVA compared shopping outcomes. The empirical findings reveal that four distinct retail shopper types represent the consumers in the new millennium: Hedonic shoppers, Utilitarian shoppers, Demanding shoppers, and Apathetic shoppers. Hedonic shoppers were found to shop for fun and entertainment and enjoy the atmosphere and interior of the retail store. However, they showed low ratings on both satisfaction and shopping value. They may use shopping trips to experience fun and pleasure in a relaxed time. To capture these consumers' attention, many retailers must focus on hedonic features of the store image that increase arousal (Clifford, 2010). For instance, store decor and unique products that inspire consumers' curiosity and provide varied experience may be important to these consumers since enjoyment and aesthetic variables are hedonic benefits of shopping (Babin, et al., 1994; Holbrook and Hirschman, 1982). Consumers in this segment tend to be Gen Y and baby boomers with children. For those consumers who shop with their children, retailers may need to create interactive and pleasant atmosphere to attract both adults and children. Also, retailers can emphasize specific themes (e.g., family-oriented entertainment) to differentiate them from other retailers and to encourage these shoppers to spend more time in the store even after they make a purchase. On the other hand, utilitarian shoppers showed the highest convenience-seeking orientation. Also, they were sale-prone and enjoyed smart shopping. They are largely composed of Gen X and females; however, a fair majority of male consumers are also Utilitarian Shoppers. Utilitarian Shoppers scored highest on both satisfaction and value. To target Utilitarian Shoppers, retailers should emphasize economic benefits including time, effort, and price savings. Thus, sales promotion will appeal to this group, but convenient benefits such as convenient location, ease of parking, expanded store hours, and quick and efficient checkout may encourage them to shop more often. Because they exhibited high levels of shopping values and satisfaction, retailers may easily convert them to loyal customers. Demanding shoppers, the majority of young females, were engaged in all shopping orientation dimensions, reflecting both utilitarian and hedonic benefits of shopping. However, their score on shopping value was the lowest, implying that they may be least likely to be store loyal (Williams et al., 1978). Offering in-store promotions and coupons via mail or newspapers may appeal to these consumers who are highly sale-prone (Garretson and Burton, 2003). Since they tend to be Gen X or Y, highly involved with shopping activities, store events such as contests, sweepstakes, and free gifts may encourage them to try new brands or new stores. Furthermore, everyday low pricing (EDLP) strategies may appeal to them as they have either low or low-middle income. Apathetic shoppers tended to be male, baby boomers with high income, not have children, and showed the lowest shopping enjoyment and smart shopping orientations. Surprisingly, Apathetic Shoppers experienced a high level of satisfaction. This group may consider shopping only as a tool to buy goods. Since the majority of the Apathetic Shopper segment do not have children and have higher discretionary income, luxury or leisure products such as expensive watches, cars, sporting goods, and technology products may appeal to this target market. When consumers purchase luxury or big ticket items, they expect higher quality service than when they purchase conventional items (Park and Park, 2010). In order to draw their attention, retailers need to focus on customer service with knowledgeable and friendly clerks because these consumers use limited sources of information on their purchases. To be successful, retailers must understand the factors that encourage or inhibit brick-and-mortar shopping for specific shopper segments. In targeting each shopper group, efficiency, customer service, value, store ambiance, and entertainment should be carefully tailored to respond to consumers' changing predilections and lifestyles.
