Services Segmentation and Emergent Customer Behavior: A Case Study

Abstract

Traditional approaches to segmentation have been questioned in terms of their economic efficiency, and found to be ineffective in online environments. The research objective was to identify how market segmentation can be reconceptualized to support decision-making in dynamically changing environments, and where engagement with customers occurs both online and off-line. A value-in-use segmentation methodology was developed through a workshop to address segmentation challenges identified through the case study, and tested against forces anticipated to drive future environments. Its feasibility for implementation was interrogated against records of off-line engagement and data streaming into the case organization's warehouse as customers engaged online.

KEYWORDS:

• market segmentation
• customer-centric engagement
• service-dominant logic