Abstract
Segmenting a target population so as to focus marketing efforts has been demonstrated to be effective by marketers of innovative manufactured goods. We apply this principle in estimatingcustomer adoption of a new service site, so that marketingcommunications can be more appropriately targeted. Weexamine sources of motivation for service adoption, specificallyformal marketing communications and word of mouthinformation, among the total market and then within key marketsegments, by applying a diffusion model to data on client use ofa new health service clinic. The results suggest that marketingcommunication decisions, particularly regarding media andmessage, can be targeted to reach innovative potential adopterswithin key market segments. Improved forecasts of adoptionpatterns for a second new service site further validate ourresults.
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