Segmenting homedecor clients using loyalty to improve brand equity

Abstract

The present study aims to segment the homedecor clients according to their levels of loyalty towards a brand in order to understand its impact on the company’s brand equity. The study was conducted through quantitative approach. The data collection instrument was a survey applied to a sample of 266 customers of the Spanish market of a homedecor brand. The two-step cluster analysis was performed to identify the existence of different segments of customers. The results show that there are two distinct clusters according to their level of loyalty, named “moderate loyal” and “passive loyal”. The proposed framework might help homedecor businesses and support marketing managers and marketers in developing new marketing strategies that prove to be more effective in intercating with the two different customer profiles that were disclosed.