Retail buyer segmentation based on the use of assortment decision factors

• The results support findings from previous older research studies that selling history has a great impact on apparel buyers' buying decisions.
• As Swindley (1992) indicated, profit related factors continued to be very important criteria in the decision-making process.
• Floor space had one of the lower rating scores for current apparel retailers.
• Four cluster groups were the best cluster result: (1) Least Factor Use Buyers, (2) Traditional Factor Use Buyers, (3) Consumer-Oriented Buyers, and (4) Most Factor Use.
• Each cluster group was characterized by buyer demographics and company characteristics.

The purpose of this study is to provide detailed information about apparel retail buyers' buying behaviors based on their use of assortment decision factors. After interviews with five retail buyers and merchandisers, surveys were conducted in Seoul, South Korea for this exploratory study. Apparel retail buyers, merchandisers, and retail store owners, who are involved in assortment planning and buying, participated in the survey (N=378). Results of factor analysis created seven assortment decision factor groups. Based on the factor groups, four cluster groups were the best cluster result: (1) Least Factor Use Buyers, (2) Traditional Factor Use Buyers, (3) Consumer-Oriented Buyers, and (4) Most Factor Use Buyers. Because this study used convenience and snowball sampling methods in one country, the findings cannot be generalized to the general population of apparel retail buyers and merchandisers. However, the study provides researchers with planning factors and cluster information for retail buying behavior. The results offer insight to buyers for their decision-making by organizing assortment decision factors from the most to the least important, especially for younger buyers, who need guidance about assortment planning. Although assortment planning and trade-off decisions are known to be extremely important to retail success (e.g., Kok et al., 2008), no previous study identified a typology of retail buyers on the basis of their consideration of assortment decision factors. This study adds new information and confirms the application of traditional assortment decision factors from 1980s and 1990s to post-2008 era.