Market Segmentation - Use-Related Segmentation

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According to Schiffman and Kanuk (2007), market segmentation is the process of dividing a potential marketing into distinct subsets of consumers with a common need or characteristic and selecting one or more segments as a target market to be reached with a distinct marketing mix. When a mass customization approach cannot satisfy buyers' individual needs, market segmentation is essential for determining which sizes will best fit groups of customers who share similar needs, thereby increasing customer satisfaction and the profits. There are several bases in segmenting different markets. Most researches are only based on the basic demographic or geographic market segmentation approaches which do not reveal or imply distinctive buying-behavior patterns (Lewis, 1984). Use-related segmentation is more effective and it will be the main focus in this report. First of all, use-related segmentation is defined as a popular and effective form of segmentation that categorized consumers in terms of product, service, or brand-usage characteristics, such as usage rate, awareness status, and degree of brand loyalty. The rate of usage segment can be differentiated as heavy users, medium users and light users. The marketers will usually target on the small group of heavy users. For example, the business travelers will heavily use the business center and the business facilities such as the meeting rooms and video conferencing in the hotel. Therefore, the business hotels will target on those business travelers. Conversely, the resort hotels will target on the leisure travelers who will heavily use the recreation facilities such as spa and outdoor activities (Inbakaran and Jackson, 2005). Besides, the awareness status is also important in segmentation. Many people have to go to other countries for holiday or business purpose. Most of them are pet owners and they would like to bring their pets travel together. To create awareness and interest of pet-travelers, some airlines, hotels...
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