Evaluating alternative segmentation strategies in standardindustrial markets

Authors: Rao, Chatrathi P; Wang, Zhengyuan

Source: European Journal of Marketing, Volume 29, Number 2, 1995 , pp. 58-75(18)

Publisher: Emerald Group Publishing Limited

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Abstract:

Examines alternate segmentation strategies in the standardindustrial products market. Using data obtained from 164 Indianindustrial buyers, provides several empirical tests of a widely heldbelief that traditional segmentation approaches may serve as effectivesurrogate measures for distinct benefit segments. Results suggest thatthe link between traditional and benefit segmentation approaches are farweaker than might be expected. There is no strong empirical evidencesupporting the proposition that benefit segments derived from clusteranalysis are dependent on sales volume, industry type, characteristicsof purchasing agents, and other potential correlates of benefitsegments. The findings have implications for both academics andpractitioners in industrial marketing.

Keywords: Industrial Marketing; Marketing Segmentation; Marketing Strategy; Research

Document Type: Research article

DOI: http://dx.doi.org/10.1108/03090569510080950

Publication date: 1995-02-01