Creating technology‐based merchandising ideas for hair coloring through weak signals, concept optimization and mind‐set segmentation

Purpose – The purpose of this paper is to demonstrate a concept‐response segmentation used to identify different customer “mind‐sets”. Based on this segmentation, in a merchandising situation, one can interact with the customer to identify the segment to which the customer belongs and in turn offer the proper product and merchandising. Design/methodology/approach – The study deals with the creation of new hair products, using both ideation by brand Delphi™ and by experimental design of ideas with conjoint measurement (IdeaMap.Net). It ends with the creation of a merchandising product for hair coloring based on concept segmentation. First the internet was used to facilitate the acquisition and prioritization of new ideas. Then the experimental design of ideas was used to identify which perform well in the body of test concepts. Findings – Three segments were identified: Segment 1 (54 percent) wants easy to use, high technology, and reliable products. Segment 2 (25 percent) wants to give, and get information about themselves, with respect to hair coloring. Furthermore, they want to make information giving/getting a process, not simply a rapid 1‐2‐3 affair. Segment 3 (21 percent) wants results. They want information, primarily what the product will do for them, what it delivers. Research limitations/implications – The innovative research deals with the creation of “new to the world” product ideas and the segmentation of respondents into different groups, based on their mind‐sets. Practical implications – The segmentation results provide the manufacturer and the trade with an opportunity to fine‐tune the development of the new product and its merchandising. One of the recurring questions, however, is how to find these segments in the population? Data mining works by searching for assignment rules that put people into the segments based on a decision rule. The variables used by the decision rule come from external information about the respondent, which the respondent may have provided previously, or patterns of purchases that the individual may have made over time. The objective is to increase the chances of correctly classifying a new individual as a member of one of the three segments, and by so doing present the prospect with a better offer, whether an improved product or shopping experience. Originality/value – The study deals with the creation of new hair products, using both ideation by brand Delphi™ and by experimental design of ideas with conjoint measurement (IdeaMap.Net). This is a discussion towards high tech in merchandising haircoloring products. It examines new opportunities for development.