Market segmentation analysis

INTRODUCTION This working paper presents the findings of research aimed at assessing differences in the value of time by market segment. It draws on findings presented in AHCG’s final report to DETR (AHCG, 1996) and previous research conducted during the course of this research contract (Bates and Whelan, 2001) and it is intended that this document be read in conjunction with those two reports. The paper describes the estimation of a base model for each journey-purpose (business, commuting and other) and shows how each is influenced by: income, journey distance, cost reimbursement, congestion, vehicle occupancy, trip sub-purpose, occupation, age group, gender, household type, ‘free time’, respondent type, time constraints and geographical region. The findings of this analysis are then drawn together to develop a final set of models that allow the value of time to vary across a range of market segments. All models are estimated using GAUSS (Aptech Systems) without taking account of the repeat observations nature of the stated preference data

MARKET SEGMENTATION PRACTICES OF RETAIL CROP INPUT FIRMS

While market segmentation and the associated idea of target marketing are not new, there are questions about how the strategy of market segmentation and target marketing is being used in retail agribusiness firms. Previous research has demonstrated that distinct groups of farmers/customers exist (Alexander). However, retail crop input firms tend to be of modest size and are geographically bound. Both lack of resources and confinement to a specific geographic market present challenges for successful implementation of a market segmentation/target marketing strategy (Stolp). In this study, market segmentation/target marketing practices were explored in two types of crop input retailers: independently owned and operated firms (9 firms) and agricultural cooperatives (11 firms). A number of questions related to market segmentation/target marketing strategy were assessed via a web-based survey and telephone interviews. Referencing Best's seven-step framework, market segmentation is compared and contrasted by firm type; gaps in market segmentation strategy execution are identified; and challenges to implementing a market segmentation strategy are considered. Results show that market segmentation/target marketing was employed by 85% of the crop input retailers in the sample. Key gaps identified in market segmentation strategy execution include measuring market segment attractiveness; evaluating market segment profitability; developing a product-price positioning strategy for a tailored offering; expanding the positioning strategy to include promotional and sales elements of the marketing-mix; and evaluating the progress/success with each target market segment. Addressing these key gaps will aid industry professionals as they work to serve the needs of a continuously evolving farmer/customer base.market segmentation, target marketing, crop inputs, distribution channel, retailer

Application of artificial neural network in market segmentation: A review on recent trends

Despite the significance of Artificial Neural Network (ANN) algorithm to market segmentation, there is a need of a comprehensive literature review and a classification system for it towards identification of future trend of market segmentation research. The present work is the first identifiable academic literature review of the application of neural network based techniques to segmentation. Our study has provided an academic database of literature between the periods of 2000-2010 and proposed a classification scheme for the articles. One thousands (1000) articles have been identified, and around 100 relevant selected articles have been subsequently reviewed and classified based on the major focus of each paper. Findings of this study indicated that the research area of ANN based applications are receiving most research attention and self organizing map based applications are second in position to be used in segmentation. The commonly used models for market segmentation are data mining, intelligent system etc. Our analysis furnishes a roadmap to guide future research and aid knowledge accretion and establishment pertaining to the application of ANN based techniques in market segmentation. Thus the present work will significantly contribute to both the industry and academic research in business and marketing as a sustainable valuable knowledge source of market segmentation with the future trend of ANN application in segmentation.Comment: 24 pages, 7 figures,3 Table

Local network externalities and market segmentation

This paper models interaction between groups of agents by means of a graph where each node represents a group of agents and an arc represents bilateral interaction. It departs from the standard Katz-Shapiro framework by assuming that network benefits are restricted only amongst groups of linked agents. It shows that even if rival firms engage in Bertrand competition, this form of network externalities permits strong market segmentation in which firms divide up the market and earn positive profits. The analysis also shows that some graphs or network structures do not permit such segmentation, while for others, there are easy to interpret conditions under which market segmentation obtains in equilibrium.network structure, network externalities, price competition, market segmentation

Labour Market Structure: A Brief Literature Survey

Labour market is a multi-dimensional entity, with inexorable institutional affiliation. Therefore, the studies on labour market fail to evolve a logical framework to its structure with satisfactory consensus to the theoreticians in totality. It is very interesting to examine the various dimensions of labour market. This paper reviews certain research contributions on labour market structure, segmentation and vulnerability issues.labour market, labour market structure, labour market segmentation, gender concerns and vulnerability in labour market

Take or Pay Contracts and Market Segmentation

This paper examines competition in the liberalized natural gas market. Each .firm has zero marginal cost core capacity, due to long term contracts with take or pay obligations, and additional capacity at higher marginal costs. The market is decentralized and the firms decide which customers to serve, competing then in prices. In equilibrium each .firm approaches a different segment of the market and sets the monopoly price, i.e. market segmentation. Antitrust ceilings do not prevent such an outcome while the separation of wholesale and retail activities and the creation of a wholesale market induces generalized competition and low margins in the retail segment.Entry, Segmentation, Decentralized market