Aggregation Criteria in Normative Market Segmentation Theory

1978 ◽  
Vol 15 (3) ◽  
pp. 346-355 ◽  
Author(s):  
John O. Tollefson ◽  
V. Parker Lessig
Keyword(s):  
Response Function ◽  
Market Segmentation ◽  
Market Segments ◽  
Marketing Literature ◽  
Theoretical Analyses

The aggregation of consumers into market segments on the basis of similarity of elasticities, marginal responses, or response function coefficients has been presented in the marketing literature as the normative ideal. Explicit theoretical analyses which do not support the use of these criteria and research which reinforces the conclusions of the theoretical analyses are presented. In addition, superior aggregation criteria are identified.

Marketing and Gaelic football

2016 ◽  
Vol 32 (8) ◽  
pp. 15-17
Keyword(s):  
Market Segmentation ◽  
Design Methodology ◽  
Business Success ◽  
Market Segments ◽  
Content Type ◽  
Sports Organizations ◽  
Competitive Edge ◽  
Marketing Activities ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Market segmentation has long been acknowledged as a key component in business success. An ability to recognize and exploit disparities between different consumer segments can prove a rich source of opportunity for firms. Those able to successfully match their offerings with the requirements of specific market segments often secure and sustain a competitive edge. Segmentation strategies are critical to sports organizations as well as to more conventional industries. Sports consumers come in all shapes and sizes and no one-cap-fits-all where marketing activities are concerned. Different sports attract different consumer types. The secret is to identify the unique characteristics of each sub-group and target them accordingly. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

An Empirical Evaluation of Aggregation Approaches for Developing Market Segments

1982 ◽  
Vol 46 (4) ◽  
pp. 65-74 ◽  
Author(s):  
Terry Elrod ◽  
Russell S. Winer
Keyword(s):  
Response Function ◽  
Empirical Evaluation ◽  
Relative Price ◽  
Market Segments ◽  
Purchase Quantity

In this paper criteria for aggregating customers into market segments are empirically tested. Analyses of individual customer response to relative price of a brand show that the relative price maximizing brand profits from each customer performed substantially better in terms of overall brand profits than other criteria such as elasticities and response function coefficients. When customer descriptor variables are linked to the aggregation criteria to account for imperfect segment reachability, a re-examination of brand profitability shows a decrease in overall profit levels but that aggregation criteria remain superior to creating segments based on purchase quantity.

An Approach to Normative Segmentation

1978 ◽  
Vol 15 (3) ◽  
pp. 338-345 ◽  
Author(s):  
Vijay Mahajan ◽  
Arun K. Jain
Keyword(s):  
Conceptual Framework ◽  
Market Segmentation ◽  
Resource Constraints ◽  
Allocation Of Resources ◽  
Market Segments ◽  
Use Of Resources

In current approaches to normative market segmentation, development of segments and allocation of resources to these segments are considered as two independent steps. The result may be infeasible or suboptimal segmentation schemes which contribute to inefficient use of resources. The authors propose a conceptual framework wherein the market segments are developed within the managerial, institutional, and resource constraints. Mathematical formulations and illustrative examples are provided.

scholarly journals A STRATEGIC COOPERATIVE GAME-THEORETIC MODEL FOR MARKET SEGMENTATION WITH APPLICATION TO BANKING IN EMERGING ECONOMIES

2012 ◽  
Vol 18 (3) ◽  
pp. 389-423 ◽  
Author(s):  
Faramak Zandi ◽  
Madjid Tavana ◽  
Aidan O’Connor
Keyword(s):  
Game Theory ◽  
Market Segmentation ◽  
Real Option ◽  
Theoretic Model ◽  
Multi Objective Optimization ◽  
Market Segments ◽  
Real Option Analysis ◽  
Multi Objective ◽  
Person Game ◽  
Systematic Framework

Market segmentation is essential to target efficaciously core-segment customers and to obtain a competitive advantage. Firms when confronted by the range of market segments, have difficulty in deciding the core-segment customers who are the most probable purchasers of their product and services. We propose a novel fuzzy group multi-criteria method for market entry and segment evaluation and selection. This proposed method provides a comprehensive and systematic framework that combines bi-level multi-objective optimization with real option analysis (ROA) and fuzzy cooperative n-person game theory. The contribution of the proposed segment evaluation and selection method is fivefold: (1) it addresses the gaps in the marketing literature on the efficacious and effective assessment of market segments; (2) it provides a comprehensive and systematic framework that combines bi-level multi-objective optimization with ROA and fuzzy cooperative n-person game theory; (3) it considers fuzzy logic and fuzzy sets to represent ambiguous, uncertain or imprecise information; (4) it does not insist on consensus but synthesizes a representative outcome based on qualitative judgments and quantitative data; and (5) it is applicable to national and international market segmentation. The practical application of this proposed framework illustrates the efficacy of the procedures and algorithms.

Segmenting customer brand preference: demographic or psychographic

2002 ◽  
Vol 11 (4) ◽  
pp. 249-268 ◽  
Author(s):  
Chin‐Feng Lin
Keyword(s):  
Market Segmentation ◽  
Comparative Evaluation ◽  
Competitive Advantages ◽  
Brand Preference ◽  
Market Segments ◽  
Complete Market

A multi‐segmenting methodology is proposed for comparing the segmenting capabilities of segmentation variables and providing complete market segmentation information. Demographic and psychographic variables based on the differentiation of consumer brand preference were used to elicit the characteristics of market segments. In a comparative evaluation, the multi‐combination variables of demographic segmentation exhibited market‐segmenting capabilities equivalent to those of psychographic segmentation. The purpose of this research is utilizing multiple segmentation variables to identify smaller, better‐defined target sub‐markets for enhancing business competitive advantages.

scholarly journals Market Segmentation of Supermarket Floral Customers

HortScience ◽  
1992 ◽  
Vol 27 (5) ◽  
pp. 459-462 ◽  
Author(s):  
Bridget K. Behe ◽  
Timothy A. Prince ◽  
Harry K. Tayama
Keyword(s):  
Cluster Analysis ◽  
Factor Analysis ◽  
Market Segmentation ◽  
Demographic Data ◽  
Market Segments ◽  
Product Assortment ◽  
Potential Target ◽  
Item Questionnaire ◽  
Personal Use ◽  
Survey Responses

A profile of consumer groups who purchased floral products from supermarkets was studied with a 106-item questionnaire developed to determine the domain of issues affecting supermarket floral purchases. Thirty-four factors were identified in factor analysis and formed the basis for cluster analysis. Cluster analysis was performed on survey responses to create five homogeneous consumer segments. Demographic data and floral-purchase factors were used to profile market segments and distinguishing elements. Fourteen factors contributed most to the differences between segments, including factors of product assortment, number of purchases, degree of personal use, and package importance. Clusters can be used by supermarket and florist management as potential target markets.

scholarly journals Análisis de la edad cognitiva como criterio de segmentación del turista mayor

2010 ◽  
pp. 91
Author(s):  
Mauro R. Miranda Barreto ◽  
Ana M. González Fernández
Keyword(s):  
Older People ◽  
Market Segmentation ◽  
Positive Contrast ◽  
Tourism Industry ◽  
First Century ◽  
Review Of The Literature ◽  
Market Segments ◽  
Multivariate Statistical ◽  
Developed Economies ◽  
Cognitive Age

La denominada tercera edad constituye uno de los segmentos de mercado más atractivos para la industria turística en las economías desarrolladas del siglo XXI. Este grupo, cada vez más numeroso, cuyos individuos están en plenitud de facultades y con una disponibilidad adquisitiva considerable, no puede ser tratado como un conjunto homogéneo en términos demográficos, psicológicos, ni comportamentales. Realizada una revisión de la literatura sobre los diversos criterios empleados para la segmentación del mercado de mayores, el presente artículo plantea un modelo de medición del constructo “edad cognitiva”, como alternativa a la edad cronológica, variable tradicionalmente utilizada para diferenciar a los mayores, con la finalidad de determinar si existen diferencias significativas entre ambas. El objetivo de esta investigación es, por lo tanto, comprobar si existen divergencias entre las edades cognitivas y cronológicas de las personas mayores, en el caso de que se contraste positivamente esta hipótesis, se justificaría la importancia de utilizar dicha variable en el proceso de segmentación de las personas mayores. Una vez realizada la segmentación se analiza el efecto de la edad cognitiva sobre el comportamiento turístico de los mayores como turistas en los viajes de larga duración. Con la finalidad de alcanzar estos objetivos y una vez recopilada la información, se emplean un conjunto de técnicas estadísticas multivariantes que permitirán contrastar las hipótesis.<br /><br />The so-called third age is one of the most attractive market segments for the tourism industry in the developed economies of the twenty-first century. This group, growing in numbers, whose members are in full authority and considerable purchasing power availability can not be treated as homogeneous in terms of demographics, psychological, or in their behavior. A review of the literature on the various criteria used for greater market segmentation, this article presents a model for measuring the construct "cognitive age" as an alternative to chronological age, variable traditionally used to differentiate older people in order to determine whether there are significant differences between them. The objective of this research is, therefore, to determine whether there are differences between cognitive and chronological ages of the older people, in the case of a positive contrast to this hypothesis, we justify the importance of using that variable in the segmentation process of older people. Once the segmentation is determined, the cognitive age effect on the behavior of the largest tourism and tourists on long journeys will be analyzed. In order to achieve these objectives, and once obtained the information collected, it will be used a set of multivariate statistical techniques which will test the hypotheses raised.<br />

scholarly journals Churn Management in Telecommunications: Hybrid Approach Using Cluster Analysis and Decision Trees

2021 ◽  
Vol 14 (11) ◽  
pp. 544
Author(s):  
Mirjana Pejić Bach ◽  
Jasmina Pivar ◽  
Božidar Jaković
Keyword(s):  
Cluster Analysis ◽  
Decision Trees ◽  
Market Segmentation ◽  
Hybrid Approach ◽  
Variable Structure ◽  
Market Segments ◽  
Chi Square ◽  
Clustering And Classification ◽  
Chi Square Analysis ◽  
Churn Management

The goal of the paper is to present the framework for combining clustering and classification for churn management in telecommunications. Considering the value of market segmentation, we propose a three-stage approach to explain and predict the churn in telecommunications separately for different market segments using cluster analysis and decision trees. In the first stage, a case study churn dataset is prepared for the analysis, consisting of demographics, usage of telecom services, contracts and billing, monetary value, and churn. In the second stage, k-means cluster analysis is used to identify market segments for which chi-square analysis is applied to detect the clusters with the highest churn ratio. In the third stage, the chi-squared automatic interaction detector (CHAID) decision tree algorithm is used to develop classification models to identify churn determinants at the clusters with the highest churn level. The contribution of this paper resides in the development of the structured approach to churn management using clustering and classification, which was tested on the churn dataset with a rich variable structure. The proposed approach is continuous since the results of market segmentation and rules for churn prediction can be fed back to the customer database to improve the efficacy of churn management.

SEGMENTASI PASAR KONSUMEN MAKANAN DI JAKARTA, INDONESIA DENGAN PENDEKATAN FOOD-RELATED LIFESTYLE

2019 ◽  
Vol 11 (2) ◽  
pp. 130-147
Author(s):  
Chandra Cipta Ishano
Keyword(s):  
Market Segmentation ◽  
Research Group ◽  
Process Development ◽  
Demographic Variable ◽  
Deductive System ◽  
Market Segments ◽  
Market Fragmentation ◽  
Product Preference

Recently, the needs and desires of consumers seem to be more diverse. It is caused by the various lifestyle of consumers. Therefore, marketers need to make a classification of consumers or which is called a market segmentation. Market segmentation is the activity for grouping heterogeneous market into smaller homogeneous market in order to form a product preference to the needs of significant market segments. Conventional segmentation tool, such as demographic segmentation is less effective in predicting consumer because of what is often called market fragmentation. Demographic variable is not enough to recognize consumers because marketers need to know the lifestyle of consumers. The concept of lifestyle segmentation as a result of psychographic segmentation group began to develop in the 1970s. Analysis of consumer lifestyle has become a very popular tool in research in the field of marketing.In 1993, the concept of new lifestyle-related products to a category of its achievement with cognitive-deductive system developed by Brunso, Grunert, and Bisp was begun from Market-Based Productand Process Development in Danish (MAPP) research group di Arhuss School ofBusiness.They applied to food by developing an approach to food-related lifestyle (FRL), which was focused as the concept of lifestyle approach to explore market segments related to food generally.

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