Benefit‐feature segmentation: a tool for the design of supply‐chain strategy

Purpose – This paper aims to assess the effectiveness of different segmentation schemes as the basis of marketing strategy, with particular respect to supply‐chain decisions, and to propose a new procedure capable of combining benefits sought and features available.Design/methodology/approach – In a study of buyers and consumers of beef in Brazil, segments based on three approaches were derived by hierarchical cluster analysis, fine‐tuned by K‐means cluster analysis. The outcome was evaluated for the viability and actionability of the preferred procedure, both objectively and through interviews with managers in the beef‐supply business.Findings – The results revealed that a segmentation scheme combining benefits sought and features available yields more homogeneous and actionable segments, and has real promise as an input to the formulation and implementation of supply‐chain strategy.Research limitations/implications – This promising innovation in market segmentation requires further study, and testing in...

[1]  M. Wedel,et al.  Market Segmentation: Conceptual and Methodological Foundations , 1997 .

[2]  J. Gutman.  A Means-End Chain Model Based on Consumer Categorization Processes , 1982 .

[3]  Richard Gray,et al.  Benefit segments in a freight transport market , 1995 .

[4]  M. Wedel,et al.  Introduction to the Special Issue on Market Segmentation , 2002 .

[5]  M. Christopher.  Logistics & Supply Chain Management , 1998 .

[6]  Barbara L. Gross,et al.  Why we buy what we buy: A theory of consumption values , 1991 .

[7]  P. Kotler,et al.  Principles of Marketing , 1983 .

[8]  Peter R. Dickson,et al.  Market Segmentation, Product Differentiation, and Marketing Strategy , 1987 .

[9]  Michel Wedel,et al.  Segmenting retail markets on store image using a consumer-based methodology , 1991 .

[10]  Klaus G. Grunert,et al.  What's in a steak? A cross-cultural study on the quality perception of beef☆ , 1997 .

[11]  Larry Lockshin,et al.  Using product, brand and purchasing involvement for retail segmentation , 1997 .

[12]  John Saunders,et al.  Competitive positioning : the key to market success , 1993 .

[13]  Sally Dibb,et al.  Market Segmentation: Diagnosing and Treating the Barriers , 2001 .

[14]  T. S. Robertson,et al.  A successful approach to segmenting industrial markets , 1992 .

[15]  Rolph E. Anderson,et al.  Multivariate Data Analysis with Readings , 1979 .

[16]  Russell I. Haley.  Benefit Segmentation: A Decision-oriented Research Tool , 1968 .

[17]  S. Issanchou,et al.  Consumer expectations and perceptions of meat and meat product quality. , 1996, Meat science.

[18]  Michel Wedel,et al.  International Market Segmentation Based on Consumer–Product Relations , 1999 .

[19]  Michel Wedel,et al.  Clusterwise regression and market segmentation : developments and applications , 1990 .

[20]  Lawrence W. Barsalou,et al.  Deriving Categories to Achieve Goals , 1991 .

[21]  P. Kotler,et al.  From market driven to market driving , 2000 .

[22]  K. Walley,et al.  UK consumer attitudes concerning environmental issues impacting the agrifood industry , 2000 .

[23]  Rolph E. Anderson,et al.  Multivariate data analysis (4th ed.): with readings , 1995 .

[24]  Yoram Wind,et al.  Issues and Advances in Segmentation Research , 1978 .

[25]  Y. Datta,et al.  Market segmentation: an integrated framework , 1996 .

[26]  R. Pieters,et al.  A means-end chain approach to consumer goal structures , 1995 .

[27]  M. McDonald,et al.  Market Segmentation: How to Do It, How to Profit from It , 1998 .

[28]  R. Bagozzi,et al.  Goal Setting and Goal Striving in Consumer Behavior , 1999 .

[29]  P. Kotler.  Marketing Management: Analysis, Planning, Implementation and Control , 1972 .

[30]  George S. Day,et al.  Market Driven Strategy: Processes for Creating Value , 1990 .

[31]  T. J. Reynolds,et al.  A means-end analysis of brand persuasion through advertising , 1995 .

[32]  Jose Maria Gil,et al.  MARKET SEGMENTATION AND WILLINGNESS TO PAY FOR ORGANIC PRODUCTS IN SPAIN , 2000 .

[33]  T. Novak,et al.  Value-System Segmentation: Exploring the Meaning of LOV , 1992 .

[34]  Allan D. Shocker,et al.  Goal-Derived Categories and the Antecedents of Across-Category Consideration , 1996 .

[35]  J. Wardle,et al.  Development of a Measure of the Motives Underlying the Selection of Food: the Food Choice Questionnaire , 1995, Appetite.