Market Segmentation Strategies Research Articles

The Moderating Effect of Long-Term Orientation Culture on the Relationship between Trust, Personalization and Customer Satisfaction and Loyalty: A Proposed Framework

Several studies in the field of relationship marketing (RM) have reported that trust and service personalization are significantly related to customer satisfaction and loyalty. Conversely, another set of studies have reported mixed findings. In the same vein, ample relational studies have argued that cultural values significantly impact customer perception and evaluation of services. Yet very little is known of the interaction effect of long-term orientation culture on the association between the independent, mediating and the dependent variables. To fill the gap, this conceptual paper proposes the moderating effect of long-term orientation culture on the impact of trust and personalization on customer satisfaction of bank services. However, the need for the researchers to empirically validate the conceptual model subsequently is felt. The insights provided by this paper can assist bank managers in addressing the issues of customer dissatisfaction and loyalty erosion that embattle the banking industry through a market segmentation strategy that recognizes the differences in the individual customer value orientation.

(Re)Writing the body: a prosumption analysis of pregnancy

PurposeTheories of prosumption offer social marketers an opportunity to improve market segmentation strategies and health campaigns by improving understanding of audiences. The purpose of this paper is to provide a framework to understand how women produce and consume ideologies of pregnancy.Design/methodology/approachA total of 19 pregnant women ages 24‐38 years completed qualitative, in‐depth interviews. Data analysis included a grounded theory approach and constant‐comparative method using open and axial coding to reduce the data and identify themes across the data.FindingsThis study addressed prosumption in three meaning‐making sites: the physiological basis of pregnancy; perceptions of medicine and the biomedical model during pregnancy; and perceptions of media surrounding pregnancy.Research limitations/implicationsThis study applied prosumption theory in a new social context: pregnant women. Findings articulate the importance of gender and the necessity of incorporating women's lived experiences into theories of prosumption.Practical implicationsSocial marketers benefit from improved understandings of pregnant women's body identity, perceptions, and opportunities for empowerment and agency in reproductive health. The proposed “purist pregnant woman” myth impacts effective strategies in social marketing and health communication campaigns. Findings suggest that pregnant women may serve as a receptive audience for a range of health issues.Social implicationsThis study extends our understanding of prosumers, suggesting that prosumption of pregnancy reduces alienation, humanizes and demedicalizes health care and the birthing process.Originality/valueThis study offers theoretical and practical implications for social marketing and health communication campaigns to improve pregnancy health outcomes through an improved understanding of prosumers.

Efectos de los fallos en la compra ‘online’ sobre la satisfacción con la página web: análisis de las distintas respuestas según las características demográficas del consumidor

Consumer dissatisfaction after experiencing an online service failure is the main reason for customers abandoning online purchases. However, not all consumers respond to these situations in the same way. The aim of this study is to identify segments of consumers according to their different satisfaction with online shopping, from the dual perspective of having experienced or not, a service failure in the purchase. Results, from a sample of 397 online consumers, confirm that the effect of online service failures in consumer satisfaction differs based on consumers’ gender and age, providing valuable information for online retailers to effectively implement market segmentation strategies.

Why do firms cross‐list their shares on foreign exchanges? A review of cross‐listing theories and empirical evidence

PurposeFinancial markets’ integration and technological advances in equity trading may have reduced the potential benefits from listing a firm's shares on a foreign exchange. Nevertheless, a significant number of firms continue to cross‐list every year. This paper examines the recent cross‐listing trends and reviews the literature on motives to cross‐list.Design/methodology/approachThe literature review includes a summary of theoretical studies grouped into cross‐listing theories including market segmentation, liquidity, investor recognition, information disclosure, legal bonding, proximity preference and business strategy theories, and also includes a discussion of testable implications and empirical evidence for each of the above mentioned cross‐listing theories.FindingsAn extensive cross‐listing literature offers a number of theories on the motives to cross‐list that in most cases complement each other by encompassing different aspects of the complex cross‐listing behavior. Nevertheless, continuous market developments, such as significant regulatory and technological changes in the ways capital markets operate, raise new questions on why firms cross‐list and call for further research to continue.

Adopting self-service technology to do more with less

Purpose– Employees have traditionally played a major role in the customer ' s service experience. Yet self-service technology (SST) replaces the customer-service employee experience with a customer-technology experience. This paper seeks to use a service-dominant logic lens to gain fresh insight into the consumer experience of SST. In particular, it aims to consider the resources that are integrated when consumers use SSTs, their co-production role and what might constitute value.Design/methodology/approach– The paper presents findings from 24 semi-structured interviews that focus on the everyday experiences of consumers in using SST. Both genders and all socio-economic categories within all adult age groups from 18 to 65+ were included.Findings– There is a danger that organizations embrace SST as an economic and efficient mechanism to “co-create” value with consumers when they are merely shifting responsibility for service production. The paper identifies risks when customers become partial employees and concludes that customers should perceive the value they gain from using SST to be at least commensurate with their co-production role.Research limitations/implications– The qualitative study was confined to the consumer perspective. Future research within organizations and among employees who support consumers using SST would extend understanding, as would research within the business-to-business (B2B) context. Quantitative studies could measure the frequency and extent of the phenomena the authors report and assist with market segmentation strategies.Practical implications– The application of service-dominant logic highlights potential risks and managerial challenges as self-service, and consequent value co-creation, relies on the operant resources of customers, who lack the tacit knowledge of employees and are less easy to manage. There is also the need to manage a new employee role: “self-service education, support and recovery”.Originality/value– The paper draws attention to managerial challenges for organizations to ensure that SST adoption enhances and does not destroy value. Additionally, it highlights the importance of distinguishing between co-production and co-creation.

Multiattribute Dimensions of Service Quality in the All-You-Can-Eat Buffet Restaurant Industry

As the buffet restaurant industry grows in popularity in the Western industrialized world, it has also become increasingly competitive. In such an environment, marketers are understandably concerned about how to maintain or increase market share through better service quality and effective segmentation strategies. This article reports a two-phase study conducted to determine the dimensions of service quality in the all-you-can-eat buffet restaurant industry from the consumer's perspective. Factor analysis revealed twelve distinct dimensions made up of 87 different attributes. The 12 dimensions were able to discriminate among three groups of buffet restaurant patrons, namely: the (a) frequent, (b) less frequent, and (c) more frequent patrons. Managerial implications of these findings for market segmentation, targeting, and promotional strategies are discussed.

Outbound Tourism Holiday Behavior of Spanish Residents: Choice of Destination

This paper presents a destination choice model by Spanish outbound travelers. Using 2009 data from the survey conducted by the Institute of Tourism Studies on 4559 outbound trips from Spain, we estimate a multinomial logistic model of outbound tourism demand to all destinations around the World. Socio-demographic characteristics of individuals and relevant features of travels have been included as explanatory variables and the estimated model has proved they are statistically significant. Furthermore, we check for the model robustness and confirm that the average percentage of correct predictions supports the utility of the model.Although the countries with the greatest market shares are relatively similar (most of them are European countries), empirical results are very robust and clearly identify different profiles of travelers according to the selected destination. This is obviously a great advantage to address market segmentation and design marketing strategies and policy incentives for each segment.

Dimensions of Market Demand Associated with Dance Schools

Dimensions of Market Demand Associated with Dance Schools Therefore the purpose of this study was to identify dimensions of market demand for dance schools. Dance is an activity requiring a strong relationship between the artist, marketer and audience. Marketing has generated sufficient commercial interest in the field, transforming dance into a thriving business. The growth of the dance industry has resulted in a highly competitive business environment. Effective management and marketing strategies (market segmentation, market promotion, program differentiation, and pricing strategy) may be formed for dance schools to ultimately satisfy consumer needs and also achieve business success. Cultural Learning, Personal Benefits, Program Offering, School Operation, Instruction Quality, and Economic Consideration would be positively predictive of the consumption level at dance schools. New technologies might also influence of purchase intent and must be consider by marketers.

Examining world market segmentation and brand positioning strategies

PurposeThis paper aims to examine the conceptual as well as empirical linkages between segmentation bases and brand positioning strategies in the context of discussing practical implications for firms operating in increasingly globalizing markets.Design/methodology/approachThis paper empirically examines an inventory of market segmentation factors in relation to four global strategic positioning decision options.FindingsThe two studies reported suggest that a combined use of macro and micro‐bases to segment world markets is significantly linked to the perceived positioning strategies of global top brands, whereas firms seeking more localized positioning strategies use only micro‐bases to segment.Practical implicationsThe conceptual and empirical findings reported in this paper pave the way for embarking on promising and relevant future research that is needed to substantiate and enrich the academic understanding and managerial practice of segmentation and strategic brand positioning decisions in world markets.Originality/valueThis paper is unique in identifying a link between global brand positioning and segmentation factors.

Competing with Free: The Impact of Movie Broadcasts on DVD Sales and Internet Piracy

The creative industries have frequently expressed concern that they can't compete with freely available copies of their content. Competing with is particularly concerning for movie stu-dios, whose content may be more prone to single-use consumption than other industries such as music. This issue has gained renewed importance recently with the advent of new digital video recording and distribution technologies, and the widespread availability of Internet piracy.We examine competition between free and paid video content in two important contexts: the impact of legitimate distribution in one channel on sales through paid channels, and the im-pact of illegitimate free distribution in pirated channels on sales through paid channels. We do this by studying the impact of movie broadcasts on DVD demand and the impact of piracy avail-ability at the time of broadcast on DVD demand for movies shown on over-the-air and cable television during an eight-month period in 2005-2006.With respect to the impact of movie broadcasts on sales, we find that movie broadcasts on over-the-air networks result in an increase in DVD sales at Amazon.com by an average of 118% in the week after over-the-air broadcast. With respect to the impact of piracy on sales, we use the tele-vision broadcast as an exogenous demand shock and find that the availability of pirated content at the time of broadcast has no effect on post-broadcast DVD sales gains. Together our results suggest that creative artists can use product differentiation and market seg-mentation strategies to compete with freely available copies of their content. Specifically, the post-broadcast increase in DVD sales suggests that giving away content in one channel can stimulate sales in a paid channel if the content is sufficiently differentiated from its paid counterpart. Likewise, the example of post-broadcast piracy suggests that if products appeal to a different customer segment than paid products do, the presence of products need not harm paid sales.

International Cross-Listing and Shareholders’ Wealth

This study evaluates the relationship between international cross-listings and shareholders’ wealth across different host markets and across time. For a sample of cross-listings by European companies in the US, in the UK, and within Europe, the findings show that US and UK cross-listings, on average, result in positive cumulative abnormal returns around the announcement of cross-listing. No such evidence exists for the rest of European cross-listings. In addition, the Sarbanes-Oxley Act (SOX) of 2002 affects negatively the wealth benefits of US cross-listings, while wealth creation around UK cross-listings is primarily concentrated in Alternative Investment Market listings rather than Main Market listings. There is no evidence that the introduction of the Euro affects the wealth effects of cross-listings within the Eurozone. Finally, this study provides evidence on the relative importance of alternative theories on the wealth effects of cross-listing, including market segmentation, legal bonding, liquidity, investor recognition, proximity preference, market timing and business strategy theories, after considering the effect of the introduction of the Euro and the adoption of SOX. The results show that significance of the alternative theories varies across host markets and over time.

Market Segmentation and Customer Focus Strategies and Their Contribution towards Effective Value Chain Management

Today in this hyper-competitive business world, Each and every business entity is striving day and night to gain supremacy over others and few successfully obtained that destiny. Modern business is all about winning the stiff battle of competition with variety of business weapons and going ahead with making right changes in those weapons at the right time. Market segmentation and customer focus strategies are certainly two sharp weapons among those and can contribute profoundly for ensuring vast and fast growth. This article intended towards finding out the contribution of these two strategies for effective value chain. Explorative and qualitative research work has been done for achieving that goal. The findings suggests that market segmentation helps organizations to segment the whole market in an effective way and thus immensely assist in delivering diversified and customized product and services. On the other hand customer focus strategies also assist firm in great way to focus on specific customers and make am effective market and customer driven value chain.

Socio-Demographic Determinants of Participation in Swimming Amongst Working Residents of Warsaw

The aim of research is to assess the correlation between socio-demographic factors and swimming activity among the working population of Warsaw. The questionnaire survey included 4405 randomly selected residents of Warsaw. The correlation between the swimming activity and the variables characterizing the socio-demographic structure of the respondents were assessed by log-linear modelling. The significance of the impact of factors included in the analysis was determined using the chi-square test. Thirty-five per cent of the respondents declared recreational swimming. Gender, age, BMI, education, occupation, and income were significantly related to the swimming activity. Women (33%) – compared to men (38%) – were almost 1.2 times less likely to participate in swimming; similarly, overweight people (33%, OR = 0.90) and obese people (33%, OR = 0.92). People from Warsaw from 20–29 years (43%), with higher education (40%), incomes above the national average (40%), and representing the profession of an actor (52%), swam relatively more often. The results of the study might help in developing marketing plans and market segmentation strategies, as well as in forecasting the development trends of the leisure activity.

SYMBOLIC AND FUNCTIONAL BRAND EFFECTS FOR MARKET SEGMENTATION

This study investigates the interrelationships among brand personality, brand preference, customer perceived value, and golfers’ performance in the context of Taiwan’s golf clubs market. The theoretical and statistical relationships among these constructs are developed and verified. Using survey data from 345 out of 1,000 randomly selected golfers, this study employs ANOVA, Factor Analysis, and Discriminant Analysis to examine the research hypotheses. The findings reveal that (1) notable brand personality factors including Reliability, Fashion, Masculine, Excitement, Wholesome, Leadership, Sentiment, Feminine, and Uniqueness could explain brand preference to a large extent, (2) golfers’ customer perceived value regarding various golf brands are considerably dissimilar, and (3) golfers’ deviation in performance significantly relates to brands. In addition to conventional bases for market segmentation (i.e., demographics, psychographics, lifestyles, etc.), this paper clearly provides practical guidelines of implementing brand personality for market segmentation and promotion strategies. Brand personality proves to be a useful segmenting variable. The findings and the statistical results offer supportive evidence for implementing appropriate branding management on both functional (i.e., customer perceived value and performance) and emotional attributes (i.e., brand personality) in order to enhance competitiveness.

Do Brand Personalities Make a Difference to Consumers?

Branding means much more than just giving a brand name and signalling to the outside world that such a product or service has been stamped with the mark and imprint of an organization. Brands are a direct result of the strategy of market segmentation and product differentiation. A brand not only merely acts on the market, but also it organises the market, driven by a vision, a calling and an apparent design of what the category should become. Numerous brands wish only to identify completely with the category of the product, thereby expecting to control it. Today, there is a proliferation of brands in the Indian market. Brands of varying shapes, sizes, texture and many other distinctive features are available based on our choice, tastes and traditions. This varying demand is evident in any brand from the car we drive to the food we take. These brands awake interests in the consumers on the basis of the personalities they hold. Every brand thus, has its own distinct personality that appears to us in a different way in different situations. Hence, it is considered imperative for the study to investigate the significance of brand personality which will be crucial for marketers in their decision making and would eventually frame itself as an important variable for branding success.

A Profile Of Elderly In-House Shoppers

The growth of both in-home shopping and the elderly market have recently sparked the interest of practitioners and academicians. Based on a national probability sample, this study provides some insights into the characteristics of older in-home shoppers. The results indicate that elderly users of in-home shopping have relatively distinct profiles that tan be of value in the development of market segmentation strategies. Directions for future research are provided.

The impacts of technology evolution on market structure for green products

This paper studies how two technologies, Zero-Sum and Synergy, impact the market structure strategy for green products. We develop mathematical models to determine the optimal price, traditional quality, and environmental quality in order to maximize profit. We also perform sensitivity analysis to derive conditions under which a firm tends to adopt the Market Segmentation strategy rather than the Mass Marketing strategy. Our results indicate that to increase total green quality, investing in technology improvement to enable Synergy is more effective than introducing more products. Finally, we investigate the effects of government regulations on the selection of these two marketing strategies and two technologies.

Market Segmentation: The Rise of Nevada as a Liability-Free Jurisdiction

This Article exposes and analyzes the rise of Nevada as an almost liability-free jurisdiction. Without much public attention, Nevada has embarked on a strategy of market segmentation with a differentiated product — a shockingly lax corporate law. Nevada law generally protects directors and officers from liability for breaches of the duties of loyalty, good faith, and care that are widely believed to be staples of U.S. corporate law. Nevada highlights these broad protections as a reason to incorporate there rather than in Delaware, the dominant state in the interstate market for incorporations. Market segmentation with lax law has allowed Nevada to overcome significant barriers to entry. By tailoring its product to a particular subset of the market, Nevada gained market power in a segment that is not served by Delaware. Nevada’s clear, no-liability law makes Delaware’s competitive advantages less significant and leaves it unable to respond effectively. In offering lax corporate law, Nevada capitalizes on its reputation as a lax regulator. Firms may incorporate in Nevada for a variety of reasons that include extracting private benefits, saving on incorporation taxes, and minimizing litigation costs. The data, however, is consistent with some firms choosing Nevada for the first, less benign reason.Normatively, policymakers should find it worrisome if high agency cost firms, which would benefit the most from legal oversight, disproportionally choose Nevada’s lax law. Another reason for concern is that Nevada may create competitive pressures towards the bottom.

On the borderline: Exploring liminal consumption and the negotiation of threshold selves

In this paper we explore the complex mediation of selves and symbolic resources that occurs on the threshold between two sociocultural identities. Using the anthropological theory of liminality as a lens of analysis, in line with the inherent interdisciplinary genesis and practice of interpretive consumer research, a theory of liminal consumption is presented. This theorization of the consumption practices of young adolescents, who belong neither in world of child nor of teen but who are concurrently embedded in both, is characterized by stillness and movement, darkness and light, ambiguity and focus. Thus this shadowed reality, this fruitful darkness belies agentive consumption and active engagement with signifiers of a duality of mediated selves. In thus considering liminal characteristics as congruent with furthering theorization of identity and consumption, we highlight the inherent problematization of an integral aspect of marketing theory and practice, specifically the notion of age alignment and boundary creation at the heart of marketing segmentation strategies, in the process contributing to a debunking of the ‘tween’ myth, as marketing’s final frontier of target segments.

In which contexts do different market segmentation strategies work best?

Segmentation is a term that is found in every textbook and every course on marketing; a number of articles have been devoted to it in learned journals. It is therefore a matter of surprise that nowhere in this mass of material has the author been able to find even a glimmer of recognition that the very concept of segmentation itself requires to be segmented: there are many ways of segmenting an audience, and some of them are better suited to some audiences — and some projects — than to others. This paper suggests the creation of a two-dimensional grid, setting the principal different segmentation techniques on one axis against, on the other axis, the commonest circumstances (of industry sector and consumer life cycle) in which these techniques are applied. Examples are given, of different techniques and varying circumstances, together with suggestions on the implications of each. Suggestions are made of the possible advantages for various parties of some rather clearer thinking on the issues raised.