Abstract:

In attempting to develop market segments for retail establishments, a Segmentation Index can be used effectively. This is a tool constructed by using a number of subjective and objective criteria in order to determine socio-economic status of the existing customers of an on going concern. Segmentation Index is an important guide for marketing strategy development. In addition to its uses to identify the market segments and loyal versus casual customers, Segmentation Index displays an important relationship to Store Image. By developing congruence between Segmentation Index and Store Image the firm can improve its probability of survival and prosperity in its niche in the marketplace.