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Exploring supermarket loyalty card analysis to identify who buys fairtrade

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Abstract:

The aim of this paper is to show how supermarket loyalty card data from a panel of over 1.7 million shoppers can be analysed to provide insights to profile the fairtrade shopper in order to enhance making targeted marketing decisions. The paper demonstrates the huge marketing potential that loyalty-card-based shopper segmentation can bring to objectively describe who buys fairtrade products, compared to profiling shoppers through a claimed/reported behaviour data-set. A paired-samples t-test is used to test the degree of appeal of fairtrade tea, coffee, chocolate, drinking chocolates, banana and sugar categories in Tesco to life-stage and lifestyle shopper segments in terms of their retail sales values over 104 weeks. The results show that analysing loyalty cards based on actual behaviour provides a more detailed picture of how specific fairtrade food product categories appeal to the various life-stage and lifestyle shopper segments.

Keywords: cross shopping; ethical shopper; fairtrade; loyalty card data; market segmentation

Document Type: Research Article

DOI: https://doi.org/10.1080/09593969.2014.890954

Affiliations: Kent Business School, University of Kent, Kent, UK

Publication date: 2014-05-27

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