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Market segmentation - Wharton Faculty Platform

CHAPTER 11 Market segmentationYORAM (JERRY) WIND and DAVID R. BELLAll markets are heterogeneous. This is evident fromobservation and from the proliferation of popularbooks describing the heterogeneity of local andglobal markets. Consider, for example, The NineNations of North America(Garreau, 1982), Latitudesand Attitudes: An Atlas of American Tastes, Trends,Politics and Passions(Weiss, 1994) and MasteringGlobal Markets: Strategies for Today s Trade Globalist(Czinkota et al., 2003). When reflecting on the natureof markets, consumer behaviour and competitiveactivities, it is obvious that no product or serviceappeals to all consumers and even those who pur-chase the same product may do so for diverse rea-sons.

ant to recognize that applications of segmentation cover a diversity of business contexts. In an indus-trial buying setting, Gensch et al.(1990) provide compelling evidence of the positive consequences of segmentation of electrical equipment buyers. In a 1-year test segmentation applied in two of three geographic districts, sales increased 18 ...

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