Abstract

Although the basic idea of benefit segmentation lies in using causal, as opposed to descriptive, factors as segmentation criteria, most of the empirical studies do not differentiate between product attributes and the benefit sought by consumers. The objectives of this article are to clarify the distinction between attributes and benefits sought, and to apply a modified laddering technique, based on means‐end theory to use the elicited benefits to form benefit segments. A comparison with attribute‐based segments demonstrates that means‐end chains provide a powerful tool for “true” benefit segmentation.

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