Exploring relationship variables and Information and Communication Technologies use in industrial segmentation

Abstract

PurposeIn tourism, the adoption of Information and Communication Technologies (hereinafter ICT) and variables concerning firms’ links with suppliers have been recognized as key determinants to improve companies’ competitiveness. From the perspective of efficient management of company resources, segmentation has become a key tool and is particularly significant and current in the business-to-business context. The purpose of this paper is to study the segmentation of firms in the tourist industry according to perceived ICT use and relationship value and benefits. In addition, from the management approach, the authors seek to describe the segments that enable the development of differentiated strategies aimed at consolidating relationship benefits in the long term.Design/methodology/approachUsing a sample of 310 travel agencies who evaluated the relationship with their main supplier, the authors attempt to examine the utility of these variables as segmentation criteria for identifying heterogeneous groups.FindingsThe estimation of a finite mixture model suggests that these bases are able to discriminate firms into four latent segments with different levels of ICT use and relationship variables.Research limitations/implicationsThis research contributes to the understanding of the role that ICT and relationship variables have in the segmentation processes of tourism companies. Literature on segmentation in the business-to-business (B2B) context is limited and it is hard to find studies which apply latent methodology using behavioral criteria related to the use of ICT and relationship variables.Practical implicationsSegmentation of the tourism organizational market based on valuations of supplier relations and ICT use can help suppliers to design or adapt differentiation marketing strategies. Since agencies place the most value on confidence and value, tourism service suppliers should focus their efforts on improving the elements of service provision that increase perceived trust/confidence and value (i.e. growing the number of contacts, proximity to customers or sincerity, etc.). If agencies feel they can rely more on their providers, they will value their relationship more positively thereby favoring its long-term continuity.Originality/valueThe novelty in this work lies in the application of latent segmentation methodology and the simultaneous use of bases associated with ICT and relationship variables in B2B tourism.