Role of Market Segmentation and the Impact on Alibaba Company Online Business

Abstract

This study investigates the influence of market segmentation on Chinese internet companies, focusing on measurability, market demand, and entry barriers. It aims to fill a gap in the existing literature by analyzing how these factors affect segmentation methods, particularly in enterprises like Alibaba. Employing a quantitative approach, the research used surveys distributed to employees and senior managers from twenty randomly selected Chinese enterprises. The survey, developed with input from literature review and expert consultation, covered various aspects including measurement methodologies, market demand, entry barriers, and market segmentation. Data analysis involved statistical techniques such as Cronbach alpha, factor loading analysis, Pearson correlation analysis, and multiple linear regression analysis. Results indicated that market demand significantly influences segmentation strategies and decision-making, emphasizing the importance of understanding consumer preferences. Entry barriers were found to shape market segments and strategies, underscoring the need for firms to align their strategies with market demands to deliver tailored products. The study sheds light on the complexities of China's market dynamics and entry barriers, emphasizing the strategic importance of addressing these challenges and the impact of market demand on segmentation. These findings offer practical insights for navigating the Chinese market and contribute to academic understanding of the relationship between market segmentation, consumer behavior, and business strategy in Chinese online companies.