Development of a taxonomy of strategic market segmentation: a framework for bridging the implementation gap between normative segmentation and business practice

Sausen, Karsten; Tomczak, Torsten; Herrmann, Andreas

doi:10.1080/09652540500171340

Cited by 57 publications

(52 citation statements)

References 42 publications

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“…Understanding the different browsing habits and dwell times of travellers also allows the airport to make informed decisions about managing passenger flows and improving communications (for example, through the provision of improved signage and information monitors). However as Sausen et al (2005) note the inherent value of segmentation extends beyond the identification of consumer group needs and towards the achievement of broader strategic and marketing goals.…”

Section: Discussionmentioning

confidence: 99%

“…Dolincar and Lazarevski (2009) for example identified that managers had a limited understanding of the procedures underlying market segmentation and as a consequence had difficulty interpreting results. Other such as Sausen et al (2005) note the limitations of normative models that reduce segmentation to a process for classifying consumer groups many of which may be intuitively rather than rationally derived (Quinn 2009). This however is not to deny the wider contribution that strategic market segmentation can make in achieving an organisation's corporate goals.…”

Section: Segmentation Theorymentioning

confidence: 99%

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Spending time, spending money: passenger segmentation in an international airport

Freathy

O’Connell²

2012

The International Review of Retail, Distribution and Consumer R

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Changes within the air transport sector have required many European airports to either develop or expand their commercial activities. Strategies have included the expansion of retail space, a broadening of the tenant and merchandise mix and the development of a passenger segmentation strategy. This paper explores the efficacy of this approach by identifying the behaviour of different passenger segments while in an international airport.Using a framework of strategic market segmentation, it identifies how travellers allocate their time having entered 'airside' and details any purchases made. Using observational research and a face to face quantitative survey, 301 passengers were tracked and interviewed.Through a broad based, a priori form of segmentation, significant differences in shopping behaviour are identified. Such findings assist with the development of the airport's commercial strategy and allow a number of observations to be made about the value of market segmentation from both a theoretical and managerial perspective.

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Section: Discussionmentioning

confidence: 99%

Section: Segmentation Theorymentioning

confidence: 99%

Spending time, spending money: passenger segmentation in an international airport

Freathy

O’Connell²

2012

The International Review of Retail, Distribution and Consumer R

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“…Distinction of segmentation at a strategic or at an operational level has been made by several authors such as Goller et al (2002) and Sausen et al (2005). The general assumption behind the dimension is that there is a fundamental difference in how the firm is affected by the segmentation (Clarke and Freytag 2008).…”

Section: Introductionmentioning

confidence: 99%

Strategy-aligned fuzzy approach for market segment evaluation and selection: a modular decision support system by dynamic network process (DNP)

2013

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In competitive markets, market segmentation is a critical point of business, and it can be used as a generic strategy. In each segment, strategies lead companies to their targets; thus, segment selection and the application of the appropriate strategies over time are very important to achieve successful business. This paper aims to model a strategy-aligned fuzzy approach to market segment evaluation and selection. A modular decision support system (DSS) is developed to select an optimum segment with its appropriate strategies. The suggested DSS has two main modules. The first one is SPACE matrix which indicates the risk of each segment. Also, it determines the long-term strategies. The second module finds the most preferred segment-strategies over time. Dynamic network process is applied to prioritize segment-strategies according to five competitive force factors. There is vagueness in pairwise comparisons, and this vagueness has been modeled using fuzzy concepts. To clarify, an example is illustrated by a case study in Iran's coffee market. The results show that success possibility of segments could be different, and choosing the best ones could help companies to be sure in developing their business. Moreover, changing the priority of strategies over time indicates the importance of long-term planning. This fact has been supported by a case study on strategic priority difference in short-and long-term consideration.

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“…Sausen et al (2005) distinguish two causes: (i) poor fit between market segmentation theory and 'real world' applications (eg: Crittenden et al 2002;Kalafatis and Cheston, 1997);…”

Section: Introductionmentioning

confidence: 99%

Judging the quality of customer segments: segmentation effectiveness

Dibb

Simkin

2010

Journal of Strategic Marketing

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Market segmentation is well established in marketing theory and applied by organizations from all industry sectors. Despite wide-spread use, developing and implementing segmentation schemes is rarely problem free. Testing the quality and robustness of segments is one of the difficulties which marketers face. The literature describes segment quality criteria which are intended to help with this task, yet there is little evidence of their deployment and efficacy in practice. Using a longitudinal case study from the Eastern European mobile phone market, the practical application, impact and efficacy of these segment quality criteria are examined. The findings reveal the value of combining 'hard' statistical and 'soft' segment quality criteria to test the validity and robustness of segmentation outputs prior to implementing the segmentation. Implications from this case for managers seeking to select and deploy suitable quality criteria are considered.

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Development of a taxonomy of strategic market segmentation: a framework for bridging the implementation gap between normative segmentation and business practice

Cited by 57 publications

References 42 publications

Spending time, spending money: passenger segmentation in an international airport

Spending time, spending money: passenger segmentation in an international airport

Strategy-aligned fuzzy approach for market segment evaluation and selection: a modular decision support system by dynamic network process (DNP)

Judging the quality of customer segments: segmentation effectiveness

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