Profitability Analysis by Market Segments

Beik, Leland L.; Buzby, Stephen L.

doi:10.2307/1249946

Cited by 26 publications

(9 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This study presents the application of ABC to the cost allocation in the marketing functions. Beik and Buzby (1973) stated that cost analysis from the viewpoint of marketing decision provides useful information needed to plan and control marketing costs and to devise appropriate marketing strategies for selling products. Marketing costs are those which arise out of the activities of market delineation, purchase motivation, adjustment of the product to meet customer demands, communication of the seller's message to the customer, and physical distribution.…”

Section: Activity-based Costing (Abc)mentioning

confidence: 99%

See 1 more Smart Citation

Time-Driven Activity-Based Costing Systems for Marketing Decisions

Park

Jung

Jahmani

2019

Studies in Business and Economics

View full text Add to dashboard Cite

The activity-based costing (ABC) systems emerged as a management accounting innovation in the mid-1980s in response to dissatisfaction with traditional management accounting techniques and heightened international competition. Although ABC provides many advantages for managerial decision making, ABC tends to be outdated due to its limitations and is substituted by the time-driven activity-based costing (TDABC) systems. TDABC requires estimates of only two parameters: how much it costs per time unit of capacity to supply resources to activities and how much time it takes to perform each activity. TDABC allows incorporation of variation in the time demands made by different types of processes and consequently the representation of all possible combinations of activities that a process performs. This paper uses TDABC to calculate marketing costs and describes TDABC as a useful technique to reduce marketing resource costs and to support effective marketing decision making in various contexts such as marketing processes restructuring, marketing mix choices, customer profitability and price differentiation for customer classes.

show abstract

Section: Activity-based Costing (Abc)mentioning

confidence: 99%

“…The number of distinct marketing functions may vary and such may be due to types of products sold, the diversity and expanse of markets, and perhaps the size of the company. This study uses the typical marketing functions which Beik and Buzby (1973) grouped as follows:…”

Section: Activity-based Costing (Abc)mentioning

confidence: 99%

Time-Driven Activity-Based Costing Systems for Marketing Decisions

Park

Jung

Jahmani

2019

Studies in Business and Economics

View full text Add to dashboard Cite

show abstract

“…Even general studies of market segmentation have paid little or no attention to the evaluation and selection stages (Beane, Ennis 1987;Weinstein 1987;Wind 1978). Authors generally limit themselves to analyzing how to evaluate segment stability (Bettman 1971;Calentone, Sawyer 1978;Lehmann et al 1982;MacLachlan, Johansson 1981), congruence (Green 1977), internal homogeneity and profitability (Eckrich 1984;Van Auken, Lonial 1984;Beik, Buzby 1973), to mention only the most relevant.…”

Section: Literature Reviewmentioning

confidence: 99%

Market Segment Evaluation and Selection Based on Application of Fuzzy Ahp and Copras-G Methods

Aghdaie

Zolfani

Zavadskas

2012

Journal of Business Economics and Management

View full text Add to dashboard Cite

Market segment evaluation and selection is one of the critical marketing problems of all companies. This paper presents a novel approach which integrates fuzzy analytic hierarchy process (FAHP) and COPRAS-G method for market segment evaluation and selection. Fuzzy AHP is used to calculate the weight of each criterion, and COPRAS-G method is proposed to prioritize market segments from the best to the worst ones. The application of fuzzy set theory allows incorporating the vague and imprecise linguistic terms into the decision process. This study can be used as a pattern for market segment selection and future researches. A case study on a chair manufacturing company is put forward to illustrate the performance of the proposed methodology.

show abstract

“…For example, marketers usually want to assess high-income segments because those consumers may pay higher prices for products and services. However, while this market segment is likely to face stiff competition among businesses, it can lead to bigger profits in the short term; the competition may marginalise it in the long term (Beik and Buzby, 1973). Therefore, some businesses transition from such high competition to less intensive competitive markets, such as those in rural locations.…”

Section: Types Of Consumer Segmentationmentioning

confidence: 99%

How can marketers encourage people to buy more fruit? Understanding and modelling consumer behaviour

Hoàng¹

View full text Add to dashboard Cite

Profitability Analysis by Market Segments

Cited by 26 publications

References 0 publications

Time-Driven Activity-Based Costing Systems for Marketing Decisions

Time-Driven Activity-Based Costing Systems for Marketing Decisions

Market Segment Evaluation and Selection Based on Application of Fuzzy Ahp and Copras-G Methods

How can marketers encourage people to buy more fruit? Understanding and modelling consumer behaviour

Contact Info

Product

Resources

About