Segmentation of Markets Based on Customer Service

Abstract

Customer service represents a significant opportunity for segmenting markets. This article reviews the importance of customer service and the conceptual issues associated with segmenting industrial markets on the basis of customer service. A methodology is presented which can be used by managers to classify a market into segments with different customer service needs. Empirical results from a high‐technology industry are also presented. The article emphasises the need to recognise the differing customer service requirements of segments of customers when establishing priorities for customer service expenditures.

Citation

Sharma, A. and Lambert, D.M. (1990), "Segmentation of Markets Based on Customer Service", International Journal of Physical Distribution & Logistics Management, Vol. 20 No. 7, pp. 19-27. https://doi.org/10.1108/EUM0000000000369