Market Segmentation and Product Steering

Market segmentation evaluation involves analysing the effectiveness and efficiency of businesses' segmentation strategies. It assesses the chosen criteria, segment identification, and marketing strategies for each segment. By evaluating data and performance indicators, businesses can optimize their marketing efforts and gain a competitive advantage in meeting customer needs. Market segmentation is dividing the market based on demographics, psychographics, behaviour, and geography. Factors such as the size and growth of each segment, attractiveness of the segment structure, company goals and resource allocation are considered. This approach allows companies to align their strategies to use resources effectively and take advantage of market opportunities. The importance of market segmentation research lies in its ability to provide valuable insight and guidance to businesses. Understanding the effectiveness of market segmentation strategies is important for companies that want to target and engage their customers more efficiently. By evaluating market segmentation, businesses can identify the most appropriate criteria for segmenting their target market, accurately identify and select target segments, and optimize their marketing strategies for each segment. This research helps businesses allocate resources effectively, increase customer satisfaction and ultimately gain a competitive edge in the market by tailoring their offerings to specific customer needs and preferences. Market segmentation assessment considers important factors such as target market size, customer base, income level, and product offerings. By analysing these variables, companies can assess market potential and understand the composition of segments. This assessment allows companies to adjust their strategies to effectively meet the needs and preferences of different customer groups, leading to more targeted marketing efforts and better business outcomes. The ARAS methodology, which stands for attractiveness, accessibility, effectiveness, and size, is a structured framework for evaluating market segmentation. It enables businesses to systematically assess and prioritize market segments based on profitability, reachability, reliability, and size. This assessment helps companies make informed decisions about resource allocation, marketing strategies and aligning them with overall business goals. By considering factors such as market growth, competition, accessibility, resource availability, and customer size, the ARAS methodology provides a comprehensive approach to improving market segmentation and increasing business success. Alternate Parameters taken as “Degree of concentration, Laws and government agency regulations, Types of competitors, Contribution margins, Complexity.” Evaluation Parameters taken as “Segment factors, Competition, Technological factors, Socio-political factors, Financial and economic factors”. As the result, the type of competitor is placed first and the Complexity is placed at the end while using ARAS Method. In this paper, the type of competitor is ranked number one in the list and the Complexity has got last.

Many online vendors and third-party firms provide consumers with easy-to-use systems to give product reviews and ratings. Availability of online reviews and ratings may significantly influence a vendor's strategies in terms of pricing and market segmentation. Consumers as well as vendors can potentially benefit or lose from such availability though it is unclear whether the net effect to each party is positive, or who gains or loses most. This paper provides an analytical model to study the impacts of online product review and rating systems on vendor marketing strategies, consumer surplus and social welfare. We also examine the effects of both product-level and vendor-level competition on the impact of online reviews and ratings. We find that consumer surplus, vendor profitability, and social welfare can improve with the availability of consumer reviews and ratings, and that vendors may have an incentive to induce higher product ratings by under-charging in earlier periods. Interestingly, we show that, contrary to the conventional wisdom about competition, with the availability of consumer reviews, consumer surplus and social welfare can in fact be higher in a monopolist market than in a duopolistic market.

Purpose: A growing number of commercial open source software, based on free open source software, appears in many segments of software market. The purpose of this study is to investigate how commercial open source software affects proprietary software producer’s pricing (market share or profit), consumer surplus and social welfare. Design/methodology: To analyze the impact of commercial open source software on proprietary software producer, this study constructs two vertical-differentiation models: the basic model considers proprietary software only competing with free open source software, and its extended one considers proprietary software competing with both free and commercial open source software. Findings: This study mainly finds that the presence of commercial open source software leads to the software price and profit for proprietary software producer decrease and the consumer surplus and social welfare increase. However, it does not necessarily cause the decline in the market share for proprietary software producer. Originality/value: The main contribution of this study is to examine the effect of commercial open source software on proprietary software producer’s competitive strategy, consumer surplus and social welfare.

PurposeThe purpose of this paper is to periodize the history of the US senior market segment, a large, lucrative target market.Design/methodology/approachThe paper uses a four‐step adaptation of an existing framework, periodizing the segment's history into three phases: independence phase, mid‐nineteenth century‐1935; growing affluence phase, 1935‐1965; and maturity phase, 1965 to present.FindingsThe senior market began with urbanization resulting from the industrial revolution. The growth of private pensions, two World Wars, a variety of governmental programs such as the GI Bill and Social Security and Medicare Acts, political power resulting from the establishment of groups such as the American Association of Retired Persons, and increasing stress on inclusiveness in marketing accelerated the growth of the market. As baby boomers age, the market is sure to grow in scope and market power.Research limitations/implicationsTime and space limitations require that this paper focus on the senior market only in the USA, and analyze only broad activities, events, and trends.Originality/valueThis paper contributes to the study of marketing history and market segmentation in particular by analyzing the origins and growth of this very large and unique market segment – largely due to the fact that it currently represents about 12 percent of the US population, unique in that all Americans are or likely will be members. It illustrates the confluence of government policy, marketers' never‐ending drive to find new target markets via product differentiation, and the importance of demographic change.

IntroductionEnvironmental taxation is an essential regulatory tool for governments seeking to optimize agricultural production, enhance the environment, and guarantee food safety. Concerns exist, however, regarding the imposition of environmental taxes on agriculture, as this could be detrimental to the interests of agricultural producers and consumers. To address these challenges, it is essential to integrate agricultural production, environmental protection, and economic development, which can better comprehend the effects of agricultural environmental taxes on production decisions, the environment, the economy, and society.MethodsTo better comprehend the effects of agricultural environmental taxes on production decisions, the environment, the economy, and society, this paper constructs a mathematical model and analyzes optimal outcomes from a welfare perspective. The study examines the structure of consumer groups, classifying them as either green or non-green.Results and discussionFirst, when both consumer groups coexist on the market, imposing environmental taxes on non-green agricultural producers does not always result in a reduction in social welfare. Within a specific tax range, it is possible to accomplish a tripling of social welfare, agricultural producer welfare, and environmental benefits. Second, as the tax rate rises, the environment progressively improves while consumer surplus diminishes. Within a particular tax range, producer surplus and social welfare both increase. Third, as the proportion of green consumers in the market and ordinary consumers’ awareness of green agricultural foods increases, the positive impact of taxation on the environment decreases, while its positive impact on producer surplus and consumer surplus increases. Taxation can also have a positive effect on the social welfare under certain conditions.ContributionsFirst, we comprehensively investigate the feasibility of agricultural environmental taxation from a welfare perspective, considering market competition and segmentation, which fills a gap in previous studies. Second, we establish a reasonable range for taxation that simultaneously enhances social welfare, producer welfare, and environmental benefits. Third, we explore the relationship between market segmentation structure, ordinary consumers’ awareness of green agricultural foods, and welfare, providing insights into the different attitudes of countries and regions toward agricultural environmental taxation.

This pedagogical note discusses the differences between second and third-degree price discrimination. The comparison uses four important factors, namely, market segmentation, information about consumers, profit maximization and social welfare. The comparison shows that while market segmentation is a prerequsite for third-degree, it is an equilibrium outcome in second-degree price discrimination. The profit maximization problem is unconstrained under third-degree but it is constrained under second-degree. Both deadweight loss and consumer surplus are positive under third-degree, but they both can be zero under second-degree and the social surplus is maximum.

Promotion plays an important role for the success of a product in the market and accounts for a large portion of the firm’s expenditure. This calls for judicious planning so that the promotion resources can be used efficiently at the same time creating maximum effectiveness. Firms use both mass and segment-driven promotion strategies to promote their product in a segmented market. Mass promotion spreads wider awareness of a product in the whole market with a spectrum effect while the segment-driven promotion is targeted to the distinct potential customers of the segments. This study proposes a mathematical model to determine the optimal length of a promotion campaign for a durable technology product, marketed in a segmented market under the joint effect of mass and segment-driven promotions. An application of the proposed model is demonstrated using real-life data. Differential evolution algorithm is used to solve the model.

This paper explores the symbiotic relationship between market segmentation and product differentiation within the realm of marketing strategies. Market segmentation involves the subdivision of a market into distinct sub-markets, delineated by variations in consumer needs, behaviors, and preferences. Conversely, product differentiation entails the creation of unique products or services tailored to meet the specific demands of consumers within these segmented markets. By examining the interplay between these concepts, this paper elucidates how market segmentation serves as a foundational framework for achieving product differentiation. Through a comprehensive analysis of theoretical frameworks and empirical studies, the paper underscores the strategic significance of aligning market segmentation with product differentiation to enhance consumer satisfaction and competitive advantage. Ultimately, this study provides valuable insights into leveraging market segmentation as a strategic tool for effective product differentiation, thereby fostering sustainable growth and success for firms in dynamic market environments. Practical implications and managerial recommendations will be offered to assist marketers in implementing effective market segmentation strategies to drive successful product differentiation initiatives and gain a competitive edge in the marketplace.

Agricultural pollution and regulation: How to subsidize agriculture?

A comparative analysis of marketing promotions and implications for data analytics

This paper calculates consumer's surplus and producer's surplus created by online auction. It includes 100 auctions completed via eBay. The consumer's surplus is calculated by the difference between the market price outside the auction and the hammer price in the auction. The producer's surplus is determined by the gap between the hammer price and the minimum bid. It discovers that the summation of consumer's and producer's surpluses which constructs the economic welfare exceeds the total value of hammer prices around 1.59 times. The value of the economic welfare is $74 billion in 2007 and $121 billion in 2013. The growth of economic welfare is around 8.62% per year. Additionally, producer's surplus surpasses consumer's surplus which means that online auction is the market for sellers rather than for buyers. The study also finds the determinants of both consumer's surplus and producer's surplus using Tobit model. The modeling reveals that the number of bidders significantly reduces the consumer's surplus but insignificantly raises the producer's surplus. The market price outside the auction raises the producer's surplus. The reduction of $1 of the minimum bid per piece reduces the consumer's surplus by $0.09 billions but increases the producer's surplus by $13.5 billions for the whole auctions in 2014. Therefore, a good strategy to boost the economic welfare created by online auction is to set the starting price low, sell valuable items and keep the number of bidders considerably limited.

Servitization with blockchain in the maritime supply chain

This study theoretically explores the impact of market segmentation uncertainty on producers’ production decisions and their subsequent effects on producers’ profits, consumer surplus, and social welfare. This uncertainty creates a mismatch between the producer’s supply and consumer demand, while also decreasing the producer’s market power. An uncertain market segment incentivizes the producer to pursue higher-quality information, which generates conflicts between the producer and consumers when the producer faces capital constraints. Conversely, when the producer has no capital constraints, the interests of both parties align and obtaining higher-quality information improves consumer welfare outcomes.

Traditional retailers can now partner with on‐demand delivery platforms to fulfill consumers' online orders to fight against manufacturers' direct channels. However, it is hard to say whether traditional retailers benefit from cooperating with such platforms due to market encroachment and high commission fees. We build a game‐theoretic model where the manufacturer could decide whether to introduce its direct channel, and the retailer could decide whether to cooperate with the on‐demand delivery platform. We show that when the platform adopts a reasonable pricing and service policy, the retailer can earn more profit when cooperating with the platform. When consumer acceptance of the manufacturer's direct channel is high, the manufacturer should strategically introduce its direct channel even when there are no sales. We also find that the introduction of the platform lowers the retail price at the offline channel, increasing the market's total demand, consumer surplus, and social welfare. The reason lies in the effect of intensifying downstream competition and satisfying the consumer's demand in more market segments.

Market segmentation is an important issue in today's intensely ompetitive environment. While many methods have been proposed for market segmentation, they can be classified into two categories: descriptive and predictive. Descriptive methods are optimized for segment identifiability while predictive methods are optimized for segment responsiveness. Most existing segmentation methods cannot effectively address both identifiability and responsiveness goals of market segmentation due to their focus on only one aspect of the multiobjective problem. This paper proposes a new market segmentation method that unifies descriptive and predictive methods by simultaneously optimizing multiple objectives. The unified market segmentation method overcomes the limitations of existing segmentation methods and generates Pareto optimal solution sets. It also suggests the optimal number-of-segments and the best solution based on the characteristics of the Pareto front. As a result, the method presents a unified view of possible segmentation solutions and automatically selects the best solution(s) by balancing the tradeoffs. We demonstrate the benefits of our method by empirically evaluating it using data from a cell phone service provider.