Q. Benefit segmentation in consumer behaviour?
The benefit segmentation approach is foundation upon the belief that it is possible to measure consumer value systems in detail together with consumer thoughts about a variety of brands in the product category of interest. Grouping customers on the basis of benefits sought from consumption will lead to multiple segments every with a number of benefits sought. A few benefits will appear in multiple segments. It is nevertheless the total configuration of benefits sought which differentiates one segment from another. Even though it is likely every segments will seek multiple benefits. It is the relative importance every segment assigns to a particular benefit that is likely to show differentiation between segments. The true market segments are on the basis of causal relationship between the benefits sought from consumption and future purchasing behaviour. Forms of segmentation as well as geographic demographic and psychographic tools provide merely descriptive data based on after the fact characteristics of consumers. Such approaches are consequently not necessarily seen to be successful predictors of consumer choice.
A key benefit of using benefit segmentation is seen to occur from the fact that outcomes can then be acted upon producing segments which will react another way to altered marketing mix variables. Thelen, Botschen, and Pieters (1999) argue that benefit segmentation has become the preferred technique for successful product positioning new product introduction pricing as well as advertising. It must be noted that benefit segmentation is seen as the first stage in the segmentation process. Characteristics such as income, age, lifestyle and media habits are then included in the process to permits marketers to develop strategies to reach and communicate effectively with each segment.
Pieters, Botschen and Thelen acknowledge that advantage segmentation is a powerful tool product attributes and the benefits sought by consumers. They dispute that the mean send chain theory of cognitive structures holds that consumer behaviour is driven by the true advantages sought which in turn drives the desire or preference for certain attributes. If the focal point of a segmentation study is on the level of preferred attributes the underlying advantages sought by customers will not be clearly identified Means-end theory holds that a product and service or behaviour is stored in memory as a for predicting consumer preference and behaviour they as well point out that many of the empirical studies undertaken in this area have not differentiated adequately between chain of hierarchically related elements. The chain begin with the product or service attribute and establishes a sequence of links with personal values through the perceived consequences or else benefits produced by certain attributes of the product. The means-end sequence is seen as a four-step process
Step 1: product specific attributes (great climate) leads to
Step 2: functional benefit (likely to be sunny when we visit) leads to
Step 3: practical benefit (the children will spend all their time at the beach) leads to
Step 4: emotional pay-off (the parents will have a relaxing and stress free holiday).
Product attributes are denotes by which consumers satisfy the desired consequences of consumption. The dispute that consumers purchase goods and services to provide satisfaction to the consumer at both a functional and emotional level is a basic premise of marketing (Kotler et.al 2001). Consequently market segmentation strategies which group customers together based on the benefits they seek from consumption provides a powerful diagnostic tool whereby manipulation of elements of the marketing mix be able to influence consumer behaviour by better matching the market tenders with the desired consumption outcome (Thelen, Botschen and Pieters 1999).