A Generalized Normative Segmentation Methodology Employing Conjoint Analysis
Conjoint Measurement: Methods and Applications, 4e. Anders Gustafsson, Andreas Herrmann, & Frank Huber (Editors), 4th edition, Springer: New York, 321-346, 2007
25 Pages Posted: 11 Jun 2016
Date Written: 2007
Since the pioneering research of Wendell Smith (1956), the concept of market segmentation has been one of the most pervasive activities in both the marketing academic literature and practice. In addition to being one of the major ways of operationalizing the marketing concept, marketing segmentation provides guidelines for a firm’s marketing strategy and resource allocation among markets and products. Facing heterogeneous markets, a firm employing a market segmentation strategy can typically increase expected profitability as suggested by the classic price discrimination model which provides the major theoretical rationale for market segmentation (cf. Frank, Massey and Wind 1972).
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