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Article
Publication date: 20 July 2012

Rusnah Muhamad, T.C. Melewar and Sharifah Faridah Syed Alwi

The purpose of this paper is to explore the different segments of consumers in the Islamic financial services industry (IFSI) and their relationship with product/brand…

6985

Abstract

Purpose

The purpose of this paper is to explore the different segments of consumers in the Islamic financial services industry (IFSI) and their relationship with product/brand positioning for Islamic financial services (IFS).

Design/methodology/approach

In‐depth interviews were conducted with individuals in managerial positions among the key market players in the IFSI to explore the segmentation of consumers and their buying motives.

Findings

Four segments of IFS consumers emerged, namely, Religious conviction group; Religious conviction and economic rationality group; Ethical observant group; and Economic rationality group. These segmentation groups were appropriately categorized through a psychographic (value)‐based approach.

Research limitations/implications

The empirical findings of this study pave the way for embarking on promising and relevant future research, which is needed to substantiate and enrich the academic understanding and managerial practice of linking market segmentation and brand positioning for IFS in the global market. Future research should focus on analysing these issues from the perspective of consumers of IFS to identify the purchase trend.

Practical implications

The study provides empirical evidence of the bases or initial dimensions of consumer segmentation for IFS. The findings are useful in guiding the management of institutions offering IFS in making decisions relating to the marketing communication and promotion strategy as well as product and brand positioning strategy.

Originality/value

For both academia and the IFSI, this study provides useful knowledge in strategically using market segmentation to position IFS in the global market.

Article
Publication date: 13 November 2009

Edward R. Bruning, Michael Y. Hu and Wei (Andrew) Hao

The aim of this paper is to propose an approach to international market segmentation that identifies meaningful cross‐national consumer segments, which focuses on airline…

3494

Abstract

Purpose

The aim of this paper is to propose an approach to international market segmentation that identifies meaningful cross‐national consumer segments, which focuses on airline passengers in the NAFTA market.

Design/methodology/approach

A conjoint analysis is used to evaluate consumers' preferences for six flight attributes: price, in‐flight service, number of stops before destination, on‐time performance, frequent flyer programme, and country of airline. A cluster analysis based on the relative importance scores of each of the six flights attributes then identifies five segments that prioritize similar product attributes within each country.

Findings

A representative sample of 4,787 airline passengers from the three countries reveal that price is the most important attribute for consumers from the USA and Canada, while on‐time performance is the most important attribute for Mexican consumers. A cluster analysis identifies five segments that prioritize similar product attributes within each country. It is also found that there are five cross‐national consumer segments in the NAFTA market that are homogeneous in terms of consumer preferences but heterogeneous in terms of relative group size and demographic variables.

Research limitations/implications

The study is based on a purposive sample, which limits the ability to generalize to the whole population with any known degree of precision.

Practical implications

The research produces practical operational information on each segment that is translatable into strategy, specifically in terms of positioning, promotion, and targeting of the airline service.

Originality/value

The paper sheds light on the nature of cross‐national segmentation in the NAFTA air passengers market and the resulting cross‐national segmentation will be highly relevant for international marketing management.

Details

European Journal of Marketing, vol. 43 no. 11/12
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 7 September 2015

Rusnah Muhamad and Sharifah Alwi

The purpose of this paper is to discuss how the current research on the Islamic financial services industry attempts to classify its consumers and provide a fresh and…

1270

Abstract

Purpose

The purpose of this paper is to discuss how the current research on the Islamic financial services industry attempts to classify its consumers and provide a fresh and critical insight into the retail Islamic banking market segmentation to harness and enhance understanding, as well as provide a guideline for a better segmentation to bank marketers.

Design/methodology/approach

This study is conceptual in nature. Based on Qur’anic verses and previous literature, the authors aim to propose an applicable model of market segmentation for the retail Islamic banking market in Malaysia. Consumer segmentation in the conventional financial service industry is analysed, and prior studies on the selection criteria of Islamic banks are evaluated.

Findings

In moving forward, taking cue from the classification of people in classical doctrinal and historical literature and the initial exploratory study conducted from the managerial perspective, the authors propose five cluster groups of consumers for the retail Islamic banking market in Malaysia, namely, religious conviction, religious and economic rationality, economic rationality, ethical observant and economic rationality and ethical observant. A discussion linking consumer segmentation to the branding in the retail Islamic banking market is discussed.

Research limitations/implications

The five cluster groups of consumers for the retail Islamic banking market in Malaysia proposed in this study pave the way for embarking on promising and relevant future research, which is needed to substantiate and enrich the academic understanding and managerial practice of linking market segmentation and brand positioning for Islamic banking market in Malaysia. Future research should focus on verifying the five proposed segments by conducting empirical studies on a larger scale among the retail banking consumers in Malaysia and globally.

Practical implications

The study provides an initial bases or dimensions of consumers of the retail Islamic banking market in Malaysia. The proposed consumers segments are useful in guiding the management of Islamic bank in Malaysia in making decisions relating to the promotion strategy as well as product and brand positioning strategy.

Originality/value

For both academia and the Islamic banking industry, this study provides useful knowledge in strategically using market segmentation to position Islamic banking products and services in Malaysia and the global market.

Details

Asia-Pacific Journal of Business Administration, vol. 7 no. 3
Type: Research Article
ISSN: 1757-4323

Keywords

Article
Publication date: 31 May 2022

Jianfang Qi, Yue Li, Haibin Jin, Jianying Feng and Weisong Mu

The purpose of this study is to propose a new consumer value segmentation method for low-dimensional dense market datasets to quickly detect and cluster the most…

Abstract

Purpose

The purpose of this study is to propose a new consumer value segmentation method for low-dimensional dense market datasets to quickly detect and cluster the most profitable customers for the enterprises.

Design/methodology/approach

In this study, the comprehensive segmentation bases (CSB) with richer meanings were obtained by introducing the weighted recency-frequency-monetary (RFM) model into the common segmentation bases (SB). Further, a new market segmentation method, the CSB-MBK algorithm was proposed by integrating the CSB model and the mini-batch k-means (MBK) clustering algorithm.

Findings

The results show that our proposed CSB model can reflect consumers' contributions to a market, as well as improve the clustering performance. Moreover, the proposed CSB-MBK algorithm is demonstrably superior to the SB-MBK, CSB-KMA and CSB-Chameleon algorithms with respect to the Silhouette Coefficient (SC), the Calinski-Harabasz (CH) Index , the average running time and superior to the SB-MBK, RFM-MBK and WRFM-MBK algorithms in terms of the inter-market value and characteristic differentiation.

Practical implications

This paper provides a tool for decision-makers and marketers to segment a market quickly, which can help them grasp consumers' activity, loyalty, purchasing power and other characteristics in a target market timely and achieve the precision marketing.

Originality/value

This study is the first to introduce the CSB-MBK algorithm for identifying valuable customers through the comprehensive consideration of the clustering quality, consumer value and segmentation speed. Moreover, the CSB-MBK algorithm can be considered for applications in other markets.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 19 August 2009

Lyn S. Amine and J. Alexander Smith

We re‐evaluate modern segmentation assumptions and methods by referencing several postmodern characteristics of consumers in global markets. Drawing on contributions from…

2877

Abstract

We re‐evaluate modern segmentation assumptions and methods by referencing several postmodern characteristics of consumers in global markets. Drawing on contributions from sociology, political sociology, social theory, anthropology, philosophy, psychology, consumer behavior, and international marketing, we posit three research questions, discussion of which leads to the formulation of research propositions. Real‐life consumer and marketing examples are quoted as evidence of the need to go beyond reliance on modern segmentation to incorporate postmodern thinking into consumer analysis as a necessary ‘second step.’ This paper invites reflection on how marketers should adapt to new, complex, and changing consumer realities, which are summarized as multi‐dimensionality, unpredictability, inconsistency, search for meaning, and peak experiences by means of consumption.

Details

Multinational Business Review, vol. 17 no. 3
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 31 May 2011

Charlotte Gaston‐Breton and Oscar Martín Martín

The purpose of this paper is to present a two‐stage international market selection and segmentation model addressed to help decision makers such as foreign institutions…

16515

Abstract

Purpose

The purpose of this paper is to present a two‐stage international market selection and segmentation model addressed to help decision makers such as foreign institutions and market‐seeking multinational enterprises (MNEs) identify and select the most suitable European countries and groups of consumers.

Design/methodology/approach

The first stage is conceived as a macro‐segmentation screening process based on market attractiveness. The second is a micro‐segmentation process addressed to identify which groups of people are most similar across Europe in terms of social and personal values. The authors' model is rooted in previous assumptions and findings from international market selection (IMS) and Inglehart's theory of material and post‐material values.

Findings

The model is applied to the current 27 European Union (EU) member states and is validated through the groups of countries empirically obtained. The model allows us to cluster the European countries by market attractiveness, group the European consumers by personal and social values and describe the value orientation of the resulting clusters.

Research limitations/implications

The authors used cross‐sectional data to validate their model. Among the implications, they encourage international marketing and business scholars to make use of Inglehart's framework.

Practical implications

Institutional decision makers and market‐seeking MNEs can follow or adapt the prescribed model in order to identify the most promising and similar European countries and groups of consumers. Public policy makers can gain an in‐depth understanding of specific personal and social values allowing them to shape public policy agendas.

Originality/value

This paper contributes to the existing literature on IMS and segmentation in three ways: it proposes an original and parsimonious two‐stage IMS and segmentation integrative model for both country‐level and consumer‐related analyses (suitable to handle and reduce the European diversity that decision makers have to face when dealing with the general public or consumer products); it applies theoretically grounded general segmentation bases and an alternative established framework of consumer values (Inglehart's value system), and it adopts an updated and pan‐European perspective over the enlarged EU.

Details

International Marketing Review, vol. 28 no. 3
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 1 February 2002

Geng Cui and Pravat Choudhury

As the population and purchasing power of ethnic minority consumers in the USA continue to grow, more marketers are using subcultural segmentation and targeted marketing…

14614

Abstract

As the population and purchasing power of ethnic minority consumers in the USA continue to grow, more marketers are using subcultural segmentation and targeted marketing to reach these consumers. Meanwhile, some marketers have grown increasingly concerned with the cost‐effectiveness of ethnic segmentation and differentiated marketing. This research reviews various methods for segmenting the ethnic markets and suggests the nested approach and cost‐benefit optimization for analyzing the cost‐effectiveness of ethnic segmentation and marketing. Furthermore, this research proposes four alternative strategies for marketing in a multicultural environment. Directions for future research and managerial implications are explored.

Details

Journal of Consumer Marketing, vol. 19 no. 1
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 11 March 2014

Gergely Szolnoki and Dieter Hoffmann

The purpose of this study is to test the segmentation based on the usage of sales channels and to compare the segments with each other in terms of socio-demographic and…

2862

Abstract

Purpose

The purpose of this study is to test the segmentation based on the usage of sales channels and to compare the segments with each other in terms of socio-demographic and behavioural characteristics.

Design/methodology/approach

This study was conducted using representative data collected in Germany through a face-to-face interview. 2,000 German consumers answered questions towards the usage of different sales channels when purchasing wine as well as socio-demographic and other behavioural questions. A hierarchical cluster analysis was run, to classify the respondents into segments.

Findings

The results illustrate the usefulness of this kind of segmentation and show significant differences between the six consumer groups: discount-customers, food-retail-customers, supermarket-customers, cellar-door-customers, wine-store-customers and multichannel-customers. These segments differ in their socio-demographic as well as in their behavioural structure. Furthermore, the six segments could be split into two groups depending on their average purchase value: a basic group and a premium group.

Practical implications

This segmentation provides an analysing tool for the German retailers, which is able to identify the loyal and potential consumers of the different sales channels.

Originality/value

This segmentation was conducted using the purchase activity of German consumers in different sales channels. This segmentation approach has been never used to identify, describe and classify wine consumers.

Details

International Journal of Wine Business Research, vol. 26 no. 1
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 1 May 1987

T.P. Beane and D.M. Ennis

It is important to remain creative when conducting segmentation research, as many different ways to segment a market can exist. Five main bases are discussed: geographic…

30547

Abstract

It is important to remain creative when conducting segmentation research, as many different ways to segment a market can exist. Five main bases are discussed: geographic, demographic, psychographic, behaviouristic and image. This is followed by an overview of the main techniques used to establish and verify segments, including automatic interaction detector, conjoint analysis, multidimensional scaling and canonical analysis.

Details

European Journal of Marketing, vol. 21 no. 5
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 October 1994

W. Fred van Raaij and Theo M.M. Verhallen

Proposes domain‐specific market segmentation as a promising approach ascompared with segmentation based on general or on brand‐specificvariables. Treats product…

17779

Abstract

Proposes domain‐specific market segmentation as a promising approach as compared with segmentation based on general or on brand‐specific variables. Treats product differentiation and positioning as the counterpart of market segmentation. The link between market segmentation, on the one hand, and product differentiation, on the other hand, is the product benefit. The product benefit is the interaction of the product and the consumer.

Details

European Journal of Marketing, vol. 28 no. 10
Type: Research Article
ISSN: 0309-0566

Keywords

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