Microsegmentation in Business Markets:

Abstract

In this article we develop an integrated approach to microsegmentation in business markets. Segments of buyers, based on discernible buyer characteristics rationally chosen to be relevant to differences in response profiles, are derived empirically through cluster analysis and then conceptually enriched. A buying behavior model is then used to determine the differential impact of determinants of overt buying behavior across the segments of organizational buyers. The marketing implications of the differences in buying behavior observed across segments are subsequently derived. The approach is applied to the purchasing of automotive fleets demonstrating the feasibility of explicitly incorporating discernible buyer characteristics, indirectly accessible decision-oriented determinants, and actual decisions, into an integrated framework for microsegmentation in business-to-business marketing contexts. Pragmatic issues, generalizability, and research directions are also raised.