Post hoc Segmentation Methods

For post hoc segmentation purposes we use characteristics or variables to describe consumers. Characteristics such as demographics, media viewing, web browsing habits and shopping patterns, which may be used to identify and reach consumers are called descriptors or descriptor variables. Characteristics that distinguish the segments, typically relating to the needs, preferences, attitudes and usage, are called basis variables. Post hoc models use the basis variables for crafting the segments, and the descriptors for targeting them.

The methods may be classified according to whether interdependence or dependence analytic techniques are employed to segment the market.

Interdependence or descriptive methods are suited for strategy development studies where the objective is to understand the market as a whole, and segment it according to the diverse needs, beliefs, attitudes and behaviours of customers, within their distinct need-states. The basis variables for these studies include needs and desired benefits, product usage behaviour, brand loyalty or a combination of these variables.

Dependence or predictive methods are appropriate for taking decisions relating to new products, pricing, advertising or distribution, with the objective of determining which customers to target and how to target them. The basis variables used would depend on the application of the segmentation.

For decisions pertaining to a new product concept, in addition to product related benefits (attributes), the appropriate basis variables may include product choice, i.e., the product a respondent chooses or intends to buy.

Store patronage (behavioural store loyalty) and store attributes are the relevant basis variables for studies relating to distribution.

Price sensitivity (price elasticity of demand) forms a good basis variable for studies relating to pricing.

Media habits, customer needs, benefits and attitudes are relevant basis variables for studies pertaining to advertising decisions.

Previous     Next

Use the Search Bar to find content on MarketingMind.

Marketing Analytics Workshop

Marketing Analytics Workshop

In an analytics-driven business environment, this analytics-centred consumer marketing workshop is tailored to the needs of consumer analysts, marketing researchers, brand managers, category managers and seasoned marketing and retailing professionals.

Digital Marketing Workshop

Digital Marketing Workshop

Unlock the Power of Digital Marketing: Join us for an immersive online experience designed to empower you with the skills and knowledge needed to excel in the dynamic world of digital marketing. In just three days, you will transform into a proficient digital marketer, equipped to craft and implement successful online strategies.