Benefit segmentation

Date of publication: June 15, 1998

Abstract:

This paper presents benefit segmentation as a tool which in conjunction with other consumer information helps obtain directions for new products catering to the mobility needs of different segments. Based on a large qualitative and quantitative exercise carried out on the two-wheeler market (motorcycles scooters and mopeds) in India with a view to providing new product directions the study revealed clear expectations and image perceptions associated with different forms. As the market is not evolved the usage pattern of most owners of two-wheelers were quite similar barring a few variations. A benefit segmentation exercise revealed seven distinct segments among urban consumers with distinct functional and emotional needs. The preferences of different segments to a set of two-wheeler profiles enhanced the actionability of the benefit segmentation information. A benefit segmentation exercise in conjunction with a trade off or a conjoint module would provide both product and communication cues for changing the marketing mix or for developing new products in line with the mobility needs of consumers.

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