Abstract:

An inductive approach is presented in this paper. This approach involves the following stages: The detailed discussion of a study which attempted to identify different market segments to which four separate retail establishments have been catering; the construction of what is termed a segmentation Index; the analysis of universality of the segmentation Index ; and finally the construction of a logical flow model as a guideline for development of a segmentation Index. The largest section of this paper which is the detailed discussion of an empirical study is based on an analysis of the characteristics of typical customers of four retail stores in buying wall-to-wall carpeting. The present article offers a brief discussion of the criteria that can be used for segmentation, the findings of a field study are presented, and finally, an attempt is made to measure the segments on the basis of an index and to focus upon the role of segmentation in the struggle for survival.