MARKET SEGMENTATION COMPONENTS AND THE PRODUCTIVITY OF INDIGENOUS OIL AND GAS COMPANIES IN RIVERS STATE, NIGERIA

Abstract

Market segmentation strategies are critical to organisational success as when properly executed, aids to enhance productivity. However, most organisations despite the importance of these segmentation strategies, do not boarder, consequently, organizational losses or failures are experienced. The objective of this study was to evaluate the effect of market segmentation components (Behavioural segmentation, Geographical segmentation, Demographic segmentation) on productivity of indigenous oil and gas companies in Rivers State, Nigeria. Survey research design was adopted for the study. The population of study consist of 322 management staff of 11 indigenous oil and gas companies in River state, Nigeria. Total enumeration was used for the study sample size as the population was not large. Primary source of data collection was adopted via a validated instrument. Cronbach alpha reliability coefficients for the constructs ranged from 0.608 to 0.768 Simple random sampling technique was used and 307 copies of the questionnaire came back representing 84%. Data was analysed using descriptive and inferential statistics. Multiple regression was used to test the hypothesis. Findings indicates that Market segmentation components (Behavioural, Geographical Demographic,) have significant effect on productivity of indigenous oil and gas companies in River state, Nigeria ((Adj.R2 = 0.627; F (3, 303) = 172.594, p < 0.05). The study concluded that market segmentation components have significant effect on productivity of the selected indigenous oil and gas companies in Rivers State, Nigeria. The study recommended that management of indigenous oil and gas companies in River State should conduct market research to identify their target market and their needs, preferences, locations, and behaviours as to remain sustained in business.