Selected Market Segments Research Articles

THE CONCEPT OF DIVERSITY MANAGEMENT IN ENSURING THE DEVELOPMENT OF THE MARKET POTENTIAL OF THE ENTERPRISE IN CRISIS CONDITIONS

The article highlights the war-induced problems of formation and realization of the market potential of subjects of the entrepreneurial sector of the national economy. Based on the analysis of scientific views on the essential content of the definition “market potential of the enterprise”, it was concluded that they are dominated by the marketing component of work with the market, which limits management decisions regarding the development of market potential to the sphere of work with consumers. The need to expand this interpretation towards the assessment of the economic feasibility of decisions is argued, which makes it possible to more effectively manage the processes of its expansion, including through the implementation of measures that make it possible to ensure its development, relying on the support of a wider range of stakeholders. The author’s position regarding the management of the processes of building up and developing the market potential of the enterprise based on the concept of “diversity management” was formed. In the light of this concept, the definition of an enterprise is presented as a socio-economic system, designed taking into account the diversity of factors of the external environment and with a rationally justified (from the point of view of the goals of effective functioning) set of structural elements and a system of connections between them, which provides the necessary for the creation of products (services ) the level of diversity, efficiency and effectiveness of technological and management processes aimed at creating consumer values, taking into account the diversity of consumer preferences in selected market segments. This made it possible to outline the spheres and directions of enrichment of diversity in the structure of resources, processes and target markets for the development of the market potential of the enterprise. It is noted that the key sign of the expediency of increasing the level of diversity in the structure of resources, processes and target markets should be the ability of the enterprise to create new consumer values. The importance of developing cooperation with all groups of stakeholders in the field of innovative design of consumer values and technological equipment of innovative business processes is emphasized.

Ensuring the competitiveness of engineering products at the early stages of development

To implement the principle "do it right the first time", a three-stage model for choosing the technical and operational indicators of machine-building products is proposed when drawing up a technical task for development. In the developed model, the pre-selected technical and operational indicators of the product in three stages are sequentially corrected according to the results of a comparative assessment of it with competitors according to such integral criteria as economic effectiveness in operation, quality coefficient, competitiveness coefficient. The proposed model allows to increase the competitive position of the designed model in the selected market segments with minimal time and material costs from the early stages of its life cycle. Keywords: product, development, economic effectiveness, quality, competitiveness, assessment, automobile. faskhiev@mail.ru

Business Model to Create Value for a Client of SPA and Wellness Hotels

Purpose: The article aims to identify the components that make up the package of spa and wellness services that provide the value delivered to specific market segments in the business models of hotel enterprises. Design/Methodology/Approach: A survey was conducted using the questionnaire through the computer-assisted internet interview technique. The survey was carried out between November 2020 and February 2021 among 482 representatives of spa and wellness hotels operating in three-, four-, and five-star Hotels in the Polish market. The empirical procedure was carried out using cluster analysis, principal components analysis, and linear regression analysis using Statistica and RStudio. Findings: The research has identified four market segments for which hotels offer spa and wellness services with customer value. In addition, they also made it possible to identify the components and attributes of an offer of value for customers. On their basis, it should be concluded that the higher the facility category, the greater the hotel guests' expectations of value, i.e., the smaller the difference between the expectations and the minimum requirements. As a result, the main task of hotels is to create a business model through an offer that meets expectations and generates value. Practical Implications: The research results may be an inspiration for shaping, modifying, and redefining spa and wellness hotel business models in terms of the value proposed to selected market segments. Originality/Value: Nowadays, due to the changing environment and the organizational crisis caused by the COVID-19 pandemic, a significant number of enterprises are considering modifying their current business model. Thus, the conducted research allowed the issues related to creating value for the client and shaping business models to be supplemented.

MODEL OF SELECTING TECHNICAL AND OPERATING INDICATORS OF THE PRODUCT IN THE DEVELOPMENT OF THE TECHNICAL TASK

In a competitive market environment, the success of a manufacturer is determined by the competitiveness of its goods and services. The competitiveness of a product is laid down at the stage of its development. Mistakes made early in the development of a new product are costly for the manufacturer in the later stages of its life cycle. To implement the principle “do it right the first time”, a three-stage model is proposed for choosing the technical and operational indicators of industrial products in the development of technical specifications for design. The essence of the model is that the preselected technical and operational parameters of the product are successively adjusted in three stages based on the results of a comparative assessment of it with competitors according to such integral criteria as economic efficiency in operation, quality coefficient and competitiveness coefficient. The process of correction of indicators is carried out in compliance with the rule of transition to the next stage of assessment only after ensuring the superiority of the product over competitors with the tools of the current stage. A three-stage model of the formation of technical and operational indicators of a product in the development of a technical task helps to ensure the competitiveness of the designed product, competitiveness in selected market segments from the early stages of development with minimal labor and material costs. The practical applicability of the proposed model is shown on the example of the formation of a technical assignment for the design of a mediumduty delivery vehicle.

Clustering of Millennials by Brand Perceptions in Relation to Demographic Factors

The corporate brand represents a global set of perceptions of the unique functional and emotional attributes associated with it. These are the result of interactions of all the impressions, experiences, feelings and knowledge of all participating sides based on the products of the company, management style, and the planned or unscheduled communication activities. The study aims to describe Czech Millennials using demographic criteria in relation to their brand perception. The questionnaire was used as the research technique for gaining the primary data. The respondents were questioned about their opinions and perceptions of many issues such as attitudes towards brands, life values, willing to pay, making decisions, searching and buying products, preferences in the field of stability, having fun. Several statements from the questionnaire were tested for the purpose of this paper connected to the sense and sensibility in the decision buying process of Millennials as the consumers in the marketplace of the Czech Republic as one of the Central European countries. Afterwards, the Millennials are classed according to these pre-selected variables into groups by using a cluster analysis in such a way as to ensure the greatest similarity within the clusters and the greatest variation between clusters. Two clusters were formulated. From the carried out survey is obvious consumers with a lower degree of education are more emotional when they purchase goods than consumers with other achieved degrees of education. In relation to gender, we can allege that women are much more motivated by emotions. Younger Millennials are more likely to be motivated by emotions than older ones. Implications for Central European audience: Businesses in the 21st century, especially in developed markets should focus on the adequate targeting of selected market segments to use adequate marketing programs because the use of mass marketing approaches in different areas of business is currently uncompetitive and sometimes totally impossible. Proper targeting has a significant impact on consumers' behaviour and their brand perceptions. The Central European countries such as Poland, the Czech Republic, Hungary, Liechtenstein, Germany, Switzerland, Slovakia, Slovenia and Austria, with a population exceeding 165 million, represent a solid and an attractive market for business opportunities. Ordun (2015) claims that customers (consumers) of so-called generation Y (also said as Millennials) are said to be the second-largest population all of the world. It represents an occasion as well as a challenge not only for business units. Individuals of this generation have very strong buying power but they can as well influence the buying decisions of their parents and children. Moreno, Lafuente and Moreno (2017) present the findings of their research that suggest that Millennials were born in the time period when the technology is understood as an important part of people´s life in all aspects. Thanks to this fact Millennials perceive buying process as joy and their loyalty to purchased brands is relative. They are supposed to spend the money which they earn quickly using the online shopping channels. The current research projects in the area of the currently ongoing and still unfinished phenomenon of the generation Y within the Central European countries does not bring clear and comprehensive results with the possibility of their reliable application on a practical level. The aim of this article is, therefore, to describe Czech Millennials using demographic criteria in relation to their brand perception. The results of the presented marketing research can be understood in general terms as applicable to other Central European countries which are supported by research conducted by Motyka (2017, p. 178) who states that "Czech Millennials are similar to their peers in other European states, but of course not identical because they usually differ from their European peers in terms of life priorities: enrichment and chasing certain trends are not as important for them."

Mathematical model and algorithm of selecting software promotion options differentiated by functionality and business models

Yuriy P. Yekhlakov - Professor, Head of Department of Data Processing Automation, Tomsk State University of Control Systems and Radioelectronics (TUSUR)Address: 40, Lenina ave., Tomsk, 634050, Russian Federation.E-mail: upe@tusur.ruDmitriy N. Baraksanov - Post-graduate Student, Department of Data Processing Automation, Tomsk State University of Control Systems and Radioelectronics (TUSUR)Address: 40, Lenina ave., Tomsk, 634050, Russian Federation.E-mail: upe@tusur.ru The paper focuses on issues and tasks IT companies face with when promoting proprietary software products on consumer markets. It provides the description of the basic software product market represented as a combination of specific prospective customer groups, to which a software product line with relevant functionality can be offered using different delivery business models. The authors suggest three groups of market segment attractiveness: market attractiveness, competition level and a company’s performance in the segment. The authors developed a multi-objective mathematical model for selecting options of software product distribution in selected market segments. The following selection criteria for software distribution options in selected market segments are advanced: maximum of total profit, minimum of promotion expenses, minimum of target segments number and maximum of an integrated measure of segments attractiveness. Limitations of the model include the volume of human resources in each single-discipline group of specialists in an IT company and application of a single option of software product delivery for each of market segments. An algorithm for solution of the problem relies on successive concession method. However, suggested criteria of optimization are applicable for other methods of the multi-objective problem solution. The authors described the results of the model application for a real problem of selecting distribution options for the ‘Electronic Timetable’ software product for specialized secondary education and higher education institutions of Siberian Federal District in Russia. Twenty-four segments were selected for distribution, where two software distribution models were possible - “software as a service” (SaaS) and “application service provider” (ASP). Assessment of qualitative and quantitative parameters of the mathematical model was conducted by experts using optimistic, pessimistic and realistic scenarios. As a result of the problem solution, software product should be distributed as SaaS in 14 segments, and as ASP - in 3 segments. The results of the study may be useful for directors and managers of small IT companies when formulating strategies for proprietary software product distribution in certain target segments.

Strategic marketing in times of recession versus growth: New Zealand manufacturers

Purpose – On the basis of lessons gleaned from previous research into successful strategic marketing practices in times of both recession and growth, and in the face of an ongoing post-global financial crisis “hangover” characterised by unpredictable trading conditions both worldwide and in the Asia-Pacific region, the purpose of this paper is to provide insights and advice for marketing strategists within New Zealand’s manufacturing sector. Design/methodology/approach – The inquiry is based on two point-in-time mail surveys, one during recessionary conditions and the other during favourable economic conditions, with similar samples of 427 and 272 New Zealand manufacturers, respectively. Data analyses were conducted using SPSS and sought to compare and contrast successful strategic marketing decision making between the two time-points. Findings – The results confirm that, irrespective of prevailing economic circumstances, basic strategic marketing plays a pivotal role in facilitating the competitive success of New Zealand manufacturers. However, with the notable exception of three “evergreen” practices – targeting selected market segments, competing on the basis of value-to-the-customer, and finding new ways to do business – the results also suggest that different economic conditions otherwise necessitate quite different priorities for success at each stage of the strategic marketing decision-making process. Research limitations/implications – Due to relatively low-response rates, the extent to which the study samples are representative of the population under scrutiny remains unknown. Also, since an identical questionnaire was administered at two time-points ten years apart, differences in the respondents’ interpretation of certain questions and some of the marketing vocabulary and terminology used cannot be ruled out. Practical implications – The research highlights the important contribution that strategic marketing makes to the achievement of competitive success in New Zealand’s manufacturing sector. It also identifies some of the underlying “key drivers” that best predict successful strategic marketing decision making in times of recession compared with growth, thereby indicating a number of key lessons for marketing strategists. Originality/value – This study addresses a number of gaps in the empirical marketing literature. Although many previous studies have shown various strategic marketing activities to be critical to competitive success, few have examined it as a multi-step decision-making process and none have done so in the context of New Zealand manufacturing. Nor have previous studies sought to compare and contrast effective strategic marketing decision-making set against the background of contrasting economic circumstances.

Transferring diffractive optics from research to commercial applications: Part I – progress in the patent landscape

Abstract In the last 20 years, diffractive optics experienced a strong research interest and was in the center of many development projects in applied optics. To offer a side view for optical engineers, here, we discuss selected, business-related aspects of the current status of the transfer process to bring diffractive optics into commercial products. The contribution is divided into two parts. Here, in part I, we focus on the patent landscape of diffractive optics with a closer look on the temporal development and the distribution over main players. As an important result, currently, new strong patent activities are observed especially in the context of imaging systems. In the second part, the business volumes of selected market segments are discussed.

Organization and efficiency in the international insurance industry: A cross-frontier analysis

This paper employs cross-frontier analysis, an innovative tool based on data envelopment analysis, to provide new insight into the relationship between organization and efficiency in international insurance markets. We are the first to empirically test the expense preference hypothesis and the efficient structure hypothesis in a large cross-country study. For this purpose, we consider 23,807 firm-years for 21 countries from northern America and the European Union—a dataset not previously analyzed in this context. We find evidence for the efficient structure hypothesis in selected market segments, but we find no evidence for the expense preference hypothesis. Our results provide insight into the competitiveness of stock and mutual insurers from different countries. At the country level, the results can be used to compare different insurance markets. Our findings are especially interesting for the strategic management of insurance companies as well as for regulators and boards of national insurance associations.

Correlation, price discovery and co-movement of asset-backed securities and equity

Asset-backed securitisation has become a viable and increasingly attractive risk management and refinancing method either as a stand-alone form of structured finance or as securitised debt in collateralised debt obligations (CDO). The absence of industry standardisation, however, has prevented rising investment demand from translating into market liquidity comparable with traditional fixed income instruments, in all but a few selected market segments. In particular, low financial transparency and complex security designs inhibit profound analysis of secondary market pricing and how it relates to established forms of external finance. This paper represents the first attempt to measure the intertemporal, bivariate causal relationship between matched price series of equity and ABS issued by the same entity. In a two-dimensional linear system of simultaneous equations, it investigates the short-term dynamics and long-term consistency of daily secondary market data from the UK sterling asset-backed securities (ABS)/mortgage backed securities (MBS) market and exchange traded shares between 1998 and 2004 with and without the presence of cointegration. The causality framework delivers compelling empirical support for a strong co-movement between matched price series of ABS-equity pairs, where ABS markets seem to contribute more to price discovery over the long run. Controlling for cointegration, risk-free interest and average market risk of corporate debt hardly alters the results. Once the magnitude and direction of price discovery on various security characteristics, such as the ABS asset class, are qualified, however, it is found that ABS-equity pairs with large-scale commercial MBS/residential MBS and credit card/student loan ABS reveal stronger lead-lag relationships and joint price dynamics than whole business ABS.

Segmenting the Arab markets on the basis of marketing stimuli

Despite the differences among Arab markets (e.g. market size, per capita income, etc.), the existence of numerous important commonalities among the region’s consumers may encourage marketers to adopt across the region’s countries a more integrated marketing strategy based on the principle of market segmentation. For that purpose, the present article proposes a conceptual framework of international market segmentation. The conceptual framework is then tested and supported by empirical research. The results show the existence of a number of thriving consumer segments that transcend national boundaries and which share similar needs and preferences. The findings indicate that in order to approach Arab markets with more efficient marketing strategies, multinationals are requested to standardize their marketing plans to each segment while differentiating their strategies among the different segments. By applying such an approach, the decision maker will be able to identify the relevant marketing variables that may affect consumer decisions and hence know what he must do in order to cater to selected market segments.

N. Kano vartotojų poreikių modelio taikymas segmentuoti paslaugų rinką ir diferencijuoti produktą

Straipsnyje apibendrintos paslaugų rinkodaros ir vadybos teorijoje taikomos paslaugų produkto sampratos. Skiriama keletas iš jų - materialioji, vartotojo poreikių ir naudingumo samprata, grindžiama materialiųjų produkto savybių ir vartotojo suvokiamo naudingumo visuma. Mūsų nuomone, paslaugos produkto koncepcija, pagrįsta materialiųjų produkto savybių ir vartotojo naudingumu, kuris yra suvokiamas tenkinant vartotojų poreikius, visuma, tiksliausiai perteikia paslaugos esmę. Būtent toks požiūris lemtų efektyvesnių paslaugų rinkodaros strategijų kūrimą. Vartotojo poreikių samprata taip pat nėra vienalytė.Vartotojo poreikių modelis, pasiūlytas N. Kano, apibūdina vartotojo pasitenkinimo priklausomybę nuo jo poreikių tenkinimo. Skiriami skirtingi vartotojo poreikių tipai - esminiai, vidutiniai, papildomi. Skirtingų vartotojo poreikių tenkinimas susijęs su įvairiomis paslaugų produkto savybėmis.Paslaugų kūrimas jų savybes pritaikant vartotojų poreikiams išreiškia efektyvios rinkodaros esmę. Straipsnio autorės siūlo paslaugoms diferencijuoti ir rinkai segmentuoti naudoti papildomų vartotojo poreikių kriterijų. Siekiant išsiaikinti šio paslaugos produktų diferencijavimo ir rinkos segmentavimo kriterijaus praktinio taikymo galimybes, aprašytas viešbučio paslaugų rinkos tyrimas, išskiriant vartotojų grupes pagal papildomus jų poreikius.

Demographic and Psychographic Determinants of Coupon Users at Pizza Restaurants

Abstract The use of coupons is a wide-spread promotional technique aimed at encouraging patronage in the restaurant industry. This research focusing on pizza restaurants was conducted to determine if coupon users could be identified based on demographic and psychographic variables. Using descriptive statistics, factor, and cluster analysis, the 30-item mail survey was analyzed. The findings indicated that there are clear differences between those who have a positive attitude toward pizza coupon usage and those who do not. Such information could prove useful to pizza restaurants when developing and devising marketing strategies and target promotions. In addition, the findings could be used to gain a greater understanding of selected market segments.

Short Term Price and Dealing Effects in Selected Market Segments

Changes in relative price and dealing activity are likely to affect different segments of the market in different ways. A distributed lag model is developed for predicing a firm's market share over a period of weeks from knowledge of the changes in these variables. It is tested on aggregate data for a metropolitan market, and applied to data for three classes of underlying segments. The bases for segmenting the market are by family purchasing characteristic, package size, and channel of distribution.

Short Term Price and Dealing Effects in Selected Market Segments

Short Term Price and Dealing Effects in Selected Market Segments

Market Segmentation and the Effectiveness of a Brand's Price and Dealing Policies

HE marketing program of many firms is predicated on the assumption that their customers are heterogeneous with respect to purchasing habits. This assumption is often supported by data reporting that certain segments of customers buy more of a product than others. These customer segments are usually classified in terms of socioeconomic status, life cycle, location, and/or personality characteristics. The authors show that this simple view of market segmentation is not sufficient to provide an effective guide for management decisions. They advance a more precise conceptual framework for the evaluation of market segmentation as a strategy, based on estimates of the demand elasticities of individual market segments. In addition, they present the results of a research project aimed at estimating elasticities with respect to price and dealing activities for selected market segments for a frequently purchased food product. Their work represents an attempt to make the concept of market segmentation more operational and managerially meaningful. INTRODUCTION