Market Segmentation in Hospitality Research
Market segmentation in hospitality research: no longer a sequential process
John T. Bowen William F. Harrah College of Hotel Administration, University of Nevada, Las Vegas, USA
Explores development in market segmentation relating to hospitality and tourism research published between 1990 and 1998. The literature is divided into three sections: segmenting a market; market targeting and marketing positioning. Identifies new areas for research, deeper examination of segments, identification of difference between markets, and more segments.
Introduction
“One of the most important strategic concepts contributed by the marketing discipline to business firms and other types of organizations is that of market segmentation” (Myers, 1996). Segmentation involves a three-step process (Kotler et al., 1999). The first step in this process is market segmentation, dividing a market into distinct groups of buyers who might require separate products and/or marketing mixes. The company identifies different ways to segment the market and develops profiles of the resulting market segments. One of the most frequently used methods for segmenting a market has been demographic segmentation. Demographic segmentation consists of dividing the market into groups based on demographic variables such as age, gender, family life cycle, income, occupation, education, religion, race, and nationality One reason for the popularity of . this method is that consumer needs, wants, and usage rates often vary closely with demographic variables. Another is that demographic variables are easier to measure than most other types of variables. Other variables can be used to segment markets. For example, geographic, psychographic and behaviouristic variables are other common segmentation variables. Geodemographic segmentation, such as the segments created by PRIZM, creates profiles of different zip codes. Geodemographic segmentation is based on the premiss that birds of a feather flock together. For example the
John T. Bowen William F. Harrah College of Hotel Administration, University of Nevada, Las Vegas, USA
Explores development in market segmentation relating to hospitality and tourism research published between 1990 and 1998. The literature is divided into three sections: segmenting a market; market targeting and marketing positioning. Identifies new areas for research, deeper examination of segments, identification of difference between markets, and more segments.
Introduction
“One of the most important strategic concepts contributed by the marketing discipline to business firms and other types of organizations is that of market segmentation” (Myers, 1996). Segmentation involves a three-step process (Kotler et al., 1999). The first step in this process is market segmentation, dividing a market into distinct groups of buyers who might require separate products and/or marketing mixes. The company identifies different ways to segment the market and develops profiles of the resulting market segments. One of the most frequently used methods for segmenting a market has been demographic segmentation. Demographic segmentation consists of dividing the market into groups based on demographic variables such as age, gender, family life cycle, income, occupation, education, religion, race, and nationality One reason for the popularity of . this method is that consumer needs, wants, and usage rates often vary closely with demographic variables. Another is that demographic variables are easier to measure than most other types of variables. Other variables can be used to segment markets. For example, geographic, psychographic and behaviouristic variables are other common segmentation variables. Geodemographic segmentation, such as the segments created by PRIZM, creates profiles of different zip codes. Geodemographic segmentation is based on the premiss that birds of a feather flock together. For example the
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