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Purpose

This paper seeks to use the consumer‐perceived levels of internet shopping skills and challenges, to cluster the young Chinese customers and to compare the quality perceptions of customers from the different clusters.

Design/methodology/approach

A survey of 237 college students from Beijing with the average age of 20.2 was conducted via a paper‐and‐pencil questionnaire. All the constructs were measured using established scales. The students completed the questionnaire in their native language.

Findings

The paper finds that, at the present level of internet development in China, online consumers can be segmented on the basis of their self‐rated internet skills and their perception of the challenges involved in online shopping.

Practical implications

Online customer segments obtained through internet skill and challenge level perceptions are demonstrated to explain some of the differences in the online shopping behaviors and service quality perceptions. The managers of online stores in China could segment young Chinese consumers based on this conceptual background.

Originality/value

The online shopping environment in China is characterized by a relatively low level of participation, but a rapid rate of growth, especially among young consumers. This is one of the first studies which evaluated the young Chinese consumers' online shopping behaviors and provided a conceptual basis for segmenting this market.

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