Consumer value segmentation in the energy-efficient appliance industry using cluster analysis

The sustainability of the earth is threatened by environmental degradation, global warming, and excessive population. This has prompted consumers to change their consumption patterns, attitudes, and behaviour. Despite the growing interest in green consumerism, the psychological factors driving pro-environmental behaviours remain underexplored. The present study aimed to operationalise the market segmentation of energy-efficient appliance (EEA) consumers based on demographic and psychographic characteristics. Data (n = 509) was collected through the structured questionnaire in the National Capital Region, India and analysed using Cluster Analysis. The findings revealed three consumer groups: 'Socially-Driven Green Adopters,' 'Efficiency Seekers' and 'Green Lifestyle Advocates'. The chi-square distributions revealed that there was no significant difference in demographic variables, except for family type, among the segments. The study uncovers new consumer segments and explores value-demographics interaction, contributing significantly to the literature on green market segmentation. The findings enable marketers to design targeted strategies for distinct consumer segments based on value-driven preferences.