Services Segmentation

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Services Segmentation

• Priceline.com

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Segmentation

• Identify and profile distinct groups of buyers
  who might require separate product and/or
  marketing mixes
• A rational adjustment of product and marketing
  effort to consumer/user requirements
• Key concept CONSUMER DIFFERENCES (Consumer
  Heterogeneity).

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Segmentation American Cable TV
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Bases for Segmentation

• Primary Determinants of consumption or
  transaction utility
• e.g., benefits sought, usage behavior, (who,
  what, where, when, how, why?).
• Secondary Addressable characteristics related
  to primary segmentation basis (mostly for
  profiling)
• e.g., geographic, demographic

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Benefit Segmentation
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Segmentation in Services

• Product Segmentation
• Heterogeneity due to variations in the valuation
  of consumption utility
• Services Segmentation
• Heterogeneity due to variations in the valuation
  of
• Consumption utility
• Transaction utility

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Segmentation The Services Perspective (contd.)
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Segmentation Retail Financial Services in Asia
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Segmentation An Illustration

• British Airways
• 35 of customers generate 60 of sales
• segment specific services
• Concorde, First Class, Club Europe, Club World,
  Euro Traveller, World Traveller and domestic
  Shuttle
• value to segment overall benefit
• core product supplementary service
• payoffs Virgin Limo Service!

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Priceline.com - Today