Customer Segmentation Based on Buying and Returning Behaviour: Supporting Differentiated Service Delivery in Fashion E-Commerce

In shifting market conditions, the choice of supply chain strategies is critical when competing to serve customers (Gattorna, 2010). It is accepted in theory that the “one size fits all” approach to supply chain design is no longer valid (Christopher et al., 2006; Gattorna, 2010; Ericsson, 2011; Godsell et al., 2011). Still organisations, even in the highly competitive e-commerce market, utilise a “one size fits all” strategy to create and deliver value to their consumers, thereby implicitly assuming that consumers’ demands and buying behaviour are homogeneous, and therefore, there is no profitable reason to differentiate delivery in terms of service.