Benefit Segmentation: A Decision-oriented Research Tool

Abstract

According to this article, most techniques of market segmentation rely only on DESCRIPTIVE factors pertaining to purchasers and are not efficient predictors of future buyer behavior. The author proposes an approach whereby market segments are delineated first on the basis of factors with a CAUSAL relationship to future purchase behavior. The belief underlying this segmentation strategy is that the benefits which people are seeking in consuming a given product are the basic reasons for the existence of true market segments.