Making sense of market segmentation: a fashion retailing case

Abstract

PurposeThe purpose is: first to review the marketing segmentation literature and its antecedents; second, to evaluate the organizational practice of marketing segmentation in a specific commercial context noted for its dynamism and complexity, fashion retailing; third, to assess theoretical and practical implications; and finally to identify an agenda for future research.Design/methodology/approachThrough the analysis of an instrumental case study examining practice in fashion retailing this paper makes a contribution to current market segmentation debates. Sensemaking properties are used as a disciplined structure in which to report the case and make sense of segmentation.FindingsThis research demonstrates that the definition and scope of market segmentation is broader than the current marketing literature suggests. In practice, based on evidence from this research, contemporary segmentation solutions include implicit assumptions, judgement and compressed experience, which are latent within the modelling processes.Research limitations/implicationsFurther research needs to be extended to different organizational settings in order to develop further our understanding of the tacit and intuitive aspects of segmentation decisions.Practical implicationsIntuitive decision‐making processes and tacit knowledge employed in them are difficult to replicate and make explicit. However, a better understanding of these intuitive processes would offer practitioners an opportunity to systematically improve the quality of decision‐making.Originality/valueThis research broadens normative theoretical perspectives on market segmentation by highlighting intuitive and tacit dimensions. Combining sensemaking within the case study analysis has helped structure thought trials to provide a rare qualitative insight into the managerial construction of segmentation.

Judging the quality of customer segments: segmentation effectiveness

“…Although it is worth noting the views of Wedel and Kamakura (2000), who suggest that the extent of homogeneity within segments may be artificially manufactured by practical managerial constraints (Quinn et al, 2007).…”

“…Despite these advantages (cf: Clarke and Freytag, 2008), developing and implementing workable segmentation schemes is rarely problem free (Dibb and Simkin, 2008;Dibb and Wensley, 2002;Goller et al, 2003;Millier, 2000;Palmer and Millier, 2004;Quinn et al, 2007;Verhallen et al, 1998).…”

Skill requirements in retail work: the case of high-end fashion retailing

“…For example, Williams and Connell (2010: 350) suggest high-end retailers are those 'between the mass discounters and luxury market'. Similarly, Quinn et al (2007) recognise the difference between general fashion clothing retailers typically located in city centres, offering a mid to low-priced retail offer and designer retailers who offer much higher-priced products.…”

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

“…The value of this approach lies in its ability to anticipate future behaviour (Riquier et al, 1997), detect, evaluate and select previously untargeted groups (Sarabia, 1996;Sudbury and Simcock, 2009) and act as a precursor to the development of a competitive strategy (Cahill, 1997;Dibb and Wensley, 2002;Quinn et al, 2007). The outcomes that stem from a successful segmentation strategy are varied and include a reduction in competitive rivalry, pricing stability, protection against substitution and an opportunity to build differentiation.…”