CONSUMER SEGMENTATION AT COFFEE SHOPS AROUND THE UNIVERSITY OF JEMBER AREA: K-MEANS CLUSTERING APPROACH

Abstract

Coffee consumption in Jember has increased significantly, driving the growth of coffee shops around the Jember campus area. These coffee shops offer a variety of menu and a comfortable atmosphere for studying and socializing. Fierce competition has made it necessary for owners to implement marketing strategies based on market segmentation. Consumer segmentation analysis based on geographic, demographic, psychographic, and behavioral characteristics is essential to determine the target market and enhance competitiveness. The objectives of this study are to analyze consumer characteristics and geographic, demographic, psychographic, and behavioral segmentation of coffee shop customers in the Jember campus area, and analyze the reasons consumers choose coffee shops. Consumer segmentation is analyzed using k-means clustering. The research findings indicate that the characteristics of coffee shop customers around the Jember campus, based on geographic, demographic, psychographic, and behavioral factors, are men aged 18–25 who are unmarried, hold a bachelor’s degree, and earn untill Rp3,000,000 per month. Consumers come from outside Jember, with a travel time to the coffee shop of ≤5 minutes. Consumers obtain information and visit coffee shops with friends, choosing from various coffee shop options. Consumers visit once a week, spending untill Rp25,000, and visit between 8:00 and 10:00 PM. Based on cross-tabulation analysis, the optimal segmentation of coffee shop consumers around the Jember campus is divided into five clusters: coffee lovers, social drinkers, organic connoisseurs, FOMO connoisseurs, and cafe lovers. The factors that most influence the choice of a coffee shop are the comfort of the venue, price, and taste.