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AdvertisingResearch:Instructor’sManual

Copyright©2012PearsonEducation,Inc.publishingasPrenticeHall

PAGE

PAGE

AdvertisingResearch:Instructor’sManual

Copyright©2012PearsonEducation,Inc.publishingasPrenticeHall

17.Segmentation

ChapterGoals

Afterreadingthischapter,studentsshouldbebetterableto:

• explainthereasonsmarketersandadvertiserssegmentmarkets

• describehowsegmentationresearchinfluencesadvertisingplanning

• evaluateandselectsegmentsforcommunicationstargeting

• identifythecriteriathatcanbeusedtodefineconsumersegment

• planandconductoriginalsegmentationresearch

• identifyandunderstandcommonlyusedsyndicatedsegmentationresearch

NotestotheInstructor

TheChapterLectureprovidesaguidetokeytopicsandcontent.ThePowerPointslidesarenamed:davis_adresearch_ch17.ppt.

Theonlinesupplementalreadingsprovidetwoexamplesofsegmentation.

ATypologyofInformationandCommunicationTechnologyUsers

A2007PewInternet&AmericanLifeProjectsoughttoexplainhowdifferentgroupsofindividualsuseinformationandcommunicationtechnologytoexpressthemselvesonlineandparticipateinonlineactivities.Withthisgoalinmind-thesegmentationofinformationandcommunicationtechnologyusers-researchwasconductedtoclassifyAmericansintodifferentgroupsoftechnologyusersinrelationtothreedimensions:assets,actionsandattitudes.

Assets:Pewaskedaboutindividuals’useoftheinternet,cellphonesandotherdevicesthatconnecttotheinternet(e.g.,videoordigitalcameras),andservicesthatfacilitatedigitalconsumption,participation,andelectroniccommunication(e.g.,broadbandandnon-voiceapplicationsoncellphones).

Actions:Pewaskedaboutonlineactivitiesandbehaviors,suchasdownloadingaudioandvideo,generatingoriginalonlinecontent,andthewiderangeofthingspeopledowiththeircellphonesandcomputers.

Attitudes:Pewaskedpeopleabouttheextenttowhichtheybelieveinformationandcommunicationtechnologieshelpthembemoreproductiveatwork,topursuehobbies,andtokeepupwithfamilyandfriends.Pewalsoaskedabout

informationoverloadandtechnology'scapacitytooffermorecontrolover

individuals’lives.

Theresearchidentifiedtensegmentsofindividuals,whichinturncomprisethreelargergroups.

• AtoneofthecontinuumaretheEliteUsersofinformationandcommunicationtechnologies.(Thisgroupconsistsof31%ofallU.S.adultsandfoursegments,seeFigure17.21.)EliteUsershavethemostinformationtechnology,areheavyandfrequentusersoftheinternetandcellphonesand,tovaryingdegrees,areengagedwithuser-generatedcontent.MembersofallfourEliteUserssegmentstypicallyhavehighlevelsofsatisfactionabouttheroleofinformationandcommunicationtechnologyintheirlives.Thefoursegmentscomprisingthisbroadgroupdiffer,however,onwhetherthey

believethewiderangeofinformation,technologyandcommunicationoptions

ispositiveornegative.

• Middle-of-the-RoadUsers(20%ofallU.S.adults)consistsoftwosegmentswhoseoutlooktowardinformationtechnologyistask-oriented(seeFigure

17.21).Middle-of-theRoadUserstendtouseinformationandcommunicationtechnologiesforspecifictasksmorethanforself-expression.Whilethetwo

segmentsinthisgroupsharesimilarbehaviorsandorientation,theydifferwithregardtotheirviewsofcommunicationtechnologies:onesegmentfinds

theirpatternofinformationtechnologyusesatisfyingandbeneficial,whiletheotherfindsitburdensome.

• IndividualswithFewTechnologyAssets(49%)lieattheotherendofthecontinuum.Foursegmentscomprisethisgroup,unitedinthebeliefthatmodernandwidelyacceptedtechnologyresidesontheperipheryoftheirdailylives.Somefindituseful,othersdon’t,andotherssimplysticktothe“plainold”telephoneandtelevision.

Thefollowingexcerptsareprovidedintheonlinereadings:

• TheExecutiveSummary(reportpagesitovi)providesanoverviewofthefindings,payingparticularattentiontothedefininganddistinguishingcharacteristicsofeachoftheteninformationandcommunicationtechnologygroups.Notehowthesegroupsmeetthecriteriadiscussedinthepriorchapter:

withregardtoclassificationanddescriptivemeasures,individualswithinagroupareverysimilartoeachotherandverydifferentfromindividualsinothergroups.

• AdetaileddescriptionofonesegmentwithineachofthethreebroadgroupsfollowstheExecutiveSummary.Omnivores(whoarepartoftheEliteUsers)aredescribedonreportpages8to11,MobileCentric(whoarepartoftheMiddle-of-the-RoadUsers)aredescribedonreportpages21to23andInexperiencedExperimenters(oneofthefourFewTechnologyAssetsgroups)aredescribedonreportpages27to29.Noticehowthein-depthdiscussionofeachgroupprovidescomparable,detailedinformation,whichrelatesbacktotheinitialinformationalfocusofthestudy:assets,actionsandattitudes.

• Anoverviewofthestudymethodologyconcludestheexcerpts(reportpages

54to55).

GenerationC

Thelabel“GenerationC’wascoinedbyTrendspottingandrefersnottoademographicgroupbutrathertoindividualsofallageswhoproduceandsharecontent.Theseindividualsmixtheirownmusic,edittheirownvideos,posttheirphotographytotheInternet,orwritebooksandblogs.Theyareactivesocialnetworkersandrepresentalargegroupofindividuals,estimatedtonowexceed53millionU.S.adults.GenerationC’smotivationsforparticipatingintheseactivitiesispersonalandexpressive;theywriteablogforthefunofitortheyputtogetheraslideshowofphotostoemailtofriendsandfamily.

TheidentificationofsegmentssuchasGenerationCisonlythefirststepinthedevelopmentofsuccessfuladvertisingstrategy.Successfulstrategyrequiresonetocompletelyunderstandthecharacteristicsofasegmentandtoidentifytheimplicationsofthesecharacteristicsforfuturedecision-making.DanPankraz’spresentationGenerationC-ALookIntoTheirWorlddemonstratesthetypeofin-depthanalysisrequiredforsuccessfulstrategydevelopmentandillustratesthatthisanalysiscanbeascreativeandcompellingasthetopic(orinthiscase,segment)thatisbeingdescribed.

ChapterLecture

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Segmentationbreaksdownpopulationofindividualsintosmallersubgroupswhereindividualsinaspecificsubgrouparesimilartoeachotherintermsofimportantcharacteristicsandpossesscharacteristicsdifferentfromindividualsinothergroups.

Threeimportantaspectsofawell-conceivedsegmentationstudy:

• Successfulsegmentationresearchstartswithawell-formulated

researchquestion.Priortodatacollection,aresearcherneedstoexplicitlyidentifycriteriatobeusedtosegmentanddescribeasample.

• Eachgroupisuniquewithrespecttosegmentationfocus.

Individualswithinagrouparehomogeneous(i.e.,verysimilarto

eachotherwithrespecttocriteriausedtosegmentthesample)andthereisheterogeneityacrossgroups(thatis,eachsegmentisdistinctandhasitsownprofileandidentity,differentthanothergroups).

• Thereisarelationshipbetweensegmentsandoutcomes.

Individualsindifferentattitudinalgroupsshouldshowdistinctly

differentpatternsofbehavior

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SegmentationusedbyObama2008campaignshowninSlide17-4.

I.HowAdvertisersUseSegmentation

Primaryassumptionsofsegmentationarestraight-forward.

• Becauseeachsegmentishomogeneouswithrespecttothebasisforthesegmentation,advertisersexpectindividualsinasegmenttorespondinsimilarwaytosamecommunication.

• Becausesegmentsareformedtoaccentuatedifferences,advertisersdonotexpectthesamecommunicationplanorapproachtoworkformultiplesegments.

Severalreasonsforusingsegmentation.

• Permitsadvertiserstoincreaserelevanceandimpactoftheirmessages.

Segmentationprovidesinformationrequiredforplanningand

presentationofadvertisingcommunicationsthatexactlyfitandrespond

tothecharacteristics,needs,attitudesandlifestylesofauniquesegmentofabroadertargetaudience.

ApproachtomessagecustomizationseenintwoadsdevelopedforExecTrade.Adsdifferinthattheytargettwodifferentsegments.Individualstargetedbyadshownonleftaremostinterestedinmaximizingreturnswhiletheadontherighttargetsindividualswhoaremostinterestedinservicepersonalization.

• Permitsadvertisertorespondtothecurrentstructureandrealitiesofthemarketplace.Usuallyeasiertotakeadvantageofmarketsegments

thatalreadyexistthantotrytocreatenewsegments.

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• Helpsrefineandincreasetheefficiencyofcommunicationplans.

Differentsegmentsoftenhavedifferentmediahabitsandreceptivityto

differenttypesofcommunicationefforts.

• Helpsuncovernewopportunitiesinsecondarysegments.Jell-Ousedsegmentationtodiscoverandtargetagroupofmotherswhowereconcernedaboutthefatandcholesterolintheirchildren'ssnacks.Thisgroup,traditionallynotJell-Ousers,wastargetedinaspecialprintadvertisingcampaignthatcommunicatedfat-free,cholesterol-freecharacterofJell-O.

II.CriteriaforSelectingSegments

Advertisersuseseveralcriteriatoevaluatetherelativeappealandvalueofdifferentsegments.Criteriaandaccompanyingquestionsthatapplytoallsegmentationsituationsare:

• Size.Issegmentofsufficientsizetojustifyexpendituresoftimeandenergyrequiredtodevelopacustomizedcommunicationprogram?

• MediaAccessibility.Canmembersofsegmentbeefficientlyreachedthoughtraditionalandnewmediavehicles?

• MessageAvailability.Canacommunicationmessageorappealbecreatedthatrespondstotheuniqueattitudes,needsand/orbehaviorsofsegmentmembers?

• Responsiveness.Towhatextentaremembersofsegmentlikelytopayattentionandrespondtomessageindesiredway?

• Sustainability.Isthesegmentstableorlikelytogrowforthelong-term,oristhesegmentlikelytodisappearormergewithothersegments?

• Evaluation.Caneffortstowardsegmentbemeasuredinordertodeterminestrengths,weaknessesandoutcomesofcommunicationcampaign?

Product-relatedsegmentevaluationappliesfouradditionalcriteria:

• Profitability.Ifcommunicationcampaignissuccessful,willthisresultinsufficientincreasesinsalestojustifythecampaign?

• Competition.Towhatextentdocompetitivebrandshaveaninterestinsegment?Willcommunicationeffortshavetocombatheavilyentrenchedbrands?

• Defendability.Ifcommunicationcampaignissuccessful,istherelikelytobeasignificantcompetitiveresponse?Cansucharesponsebedefendedagainst?

• Compatibility.Aremembersofsegment,andthetypesofproductstheydesire,compatiblewithexistingordesiredcompanygoals,perspectivesandobjectives?

III.VariablesUsedinSegmentation

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Variablesusedinsegmentationresearchtypicallythatfallintofourbroadcategories:

• demographics

• geography

• psychographics(personalattitudes,values,motivations,andlifestyle)

• relevantattitudesandbehaviors

Canbeusedaseitherclassificationordescriptivevariables.

Classificationvariablesarebasisforsegmentformation.Multiplevariablesfromonecategoryorvariablesfromtwoormorecategoriescanbeused.

Descriptivevariablesusedtodescribethemembersofeachsegment.A.DemographicVariables

Demographicvariablesincludecharacteristicssuchasage,gender,race,ethnicity,householdcharacteristics,occupation,levelofeducation,andsocialclass.

1.Age

Ageisoftenimportantsinceindividualsofdifferentagesarelikelytohavedifferentattitudes,behaviors,productneedsandproductperceptions.Cautionisneededinage-basedsegmentation:definingagesegmentstoobroadlytendstoblurdifferencesbetweenagesegments.Definingagesegmentstoonarrowlyresultsintoomanysmallsegments.

2.Gender

Anunderstandingofthedifferencesbetweenmenandwomeninaproductcategoryprovidesadvertiserswithabasisforcustomizingproductpositioningandadvertisingmessages.

3.Household

Marketersandadvertisersoftensegmentpopulationbasedonhouseholdcharacteristicstoidentifyproductneedsandadvertisingopportunities.Marketingandadvertisingofsingleservingsizefoodproducts,forexample,respondedtotheriseinsinglepersonhouseholds.

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4.Lifestage

Age,gender,householdsizeandotherdemographicvariablesoftencombinedtoformmultidimensionallifestageorfamilylife-cyclesegments.Done,forexample,bycombiningcharacteristicsrelatedtohouseholdcomposition,maritalstatus,andthepresence/absenceofchildren.

Lifestagesegmentationneednotrelyonageorhouseholdcharacteristicsasprimaryclassificationvariables.Mortonhascreatedfivelifestagesegmentsbasedoncareerandwork:

• ProvisionalAdulthood–Choosingacareerandenteringtheworkforce.

• EarlyAdulthood–Progressingincareersandsettlingintowork.

• Middlescense–Reexaminingwork.

• AgeofMastery–Adjustingtorealitiesofworkandapproachingretirement.

• AgeofIntegrity-Disengagingfrompaidworkandsearchingfornewachievementoutlets.

B.GeographicVariables

Advertisersidentifysegmentsbasedongeographicboundariesandpopulationcharacteristics.Themostcommoncriteriausedingeographicsegmentationresearchare:region,populationsize,populationdensity,citysizeandclimate.

Thiscancontributetoseveraltypesofmarketingandadvertisingplanning.

• Differentpurchasepatternsindifferentgeographicareassuggesttheneedfordifferentmediaschedules.Barbequesauceis

purchasedallyearinwarmerclimates.Requiresadifferentadvertisingschedulethancoolermarketswhereproductpurchaseisconcentratedinsummermonths.

• Differentlevelsofproductpurchaseindifferentgeographicareasoftensuggesttheneedfordifferentlevelsofmediaallocation,sincemanyadvertiserswishtoconcentratetheiradvertisingspendingingeographicareasthatshowhigherconsumptionlevels.

C.PsychographicVariables

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“Psychographic"describesaperson'sgeneralattitudes,values,motivations,andlifestyle.Psychographicsegmentationdividesapopulationintogroupsbased

onthesecharacteristics.Itassumesthatwhatpeoplethink,howtheyaremotivated,andhowtheyleadtheirlivesareoftenstrongdeterminantsor

predictorsoftheiruseofspecifictypesofgoodsandservicesaswellastheirchoicetoparticipate(ornotparticipate)incertainbehaviors.

1.AttitudesandValues

Individualsinthesamedemographiccategoryoftenhavedifferentattitudesandvaluestowardlife,career,self-image,andtheimportanceofstatusandrecognition.Explorationofattitudesandvalueshelpsadvertisersbetterunderstandimportantdifferenceswithinandacrossdifferentagegroups.MorganandLevy,forexample,identifiedfourattitudinalsegmentswithinthe

50+agedemographic:

• UpbeatEnjoyer.Mostlikelytofeelthattheirbestyearsarenowandinthefuture.Prioritiesarelookinggoodandstayingactive.Feelfinanciallysecure.

• Insecure.Feelthattheyhavenotbeensuccessfulinlifeandthatbestyearslieinthepast.Afraidtheywillnothaveenoughmoneyforfuture,investconservatively,shopforvalue,andaregenerallyuncomfortablewiththeirappearance.

• ThreatenedActive.Haveapositiveoutlookonlife,althoughoutlooktemperedbyworriesaboutcrime.Veryresistanttochange.Wanttokeeplivingintheirownhomesandworkingatcurrentjob.Donotworryabout"lookingyoung."

• FinancialPositives.Aremoreopentochangeandmoreconcernedaboutlookinggood.Feelfinanciallysecure,

successful,andoptimistic.

2.Motivations

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Motivationsthatunderlieconsumerbehavioroftenprovideaninsightfulbasisforsegmentingaproductcategoryandadvertisingaudience.Motivationalsegmentationassumesthatifanadvertiserunderstandsanindividual'smotivationsforbuyingornotbuyingaproduct(or,morebroadly,forparticipatingornotparticipatinginaparticulartypeofbehavior)thentheycantailortheadvertisingmessagetocapitalizeon(orcounter)thosemotivations.

3.Lifestyle

Thisdividesthepopulationbasedoninterests,activities,hobbies,participationinvariousformsofsocialevents,sports,andotheractivities.Helpsadvertisersunderstandtherelationshipbetweenhowconsumersspendtheirtimeandleadtheirlivesandtypesandbrandstheyuse.Ithasproventobeausefulwayofsegmentingthemarketfor"badge"products(i.e.,productsthatareconspicuouslyconsumedordisplayed)suchasliquor,automobiles,cigarettes,andclothing.

D.Categoryand/orBrand-RelatedAttitudesandBehaviors

Averycommonformofconsumersegmentation.Keyvariablestypicallyrelatetoaspectsofproductusage,brandloyalty,ordesiredbenefits.

1.ProductUsageSegmentation

Thepopulationisdividedtoreflectpatternsinbrandandproductusage,quantityofconsumption,orsituationinwhichproductisused.Characteristicsmaybeusedindependentlyorincombinationwithotherbrandorproductrelatedcharacteristics:

• Brandusagesegmentationdividespopulationintogroupsthatdifferwithrespecttopatternsofbrandusage,typicallybrandusedmostoften.Beerdrinkerscouldbesegmentedtoreflectbeerbrandthathadthegreatestconsumptionwithinthepriormonth.

• Productusagesegmentationdividespopulationintogroupsbasedontypesofproductsconsumed.Beerdrinkerscouldbesegmentedtoreflecttypeofbeer(import,domestic,premium,super-premium)thathadthegreatestconsumptionwithinpriormonth.

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• Quantityofconsumptionsegmentationdividespopulationonbasisofamountofproductconsumed.Beerdrinkerscouldbesegmentedtoreflecttotalamountofbeerconsumedwithinpriormonth.

• Situationofconsumptionsegmentationdividespopulationtoreflectcircumstancesinwhichproductisused.Beerdrinkerscouldbesegmentedtoreflectwhereproductisprimarilyconsumed,forexample,atrestaurants,athome,atabar,etc.

2.BrandLoyalty

Brandloyaltymeasuresconsumerbrandattachment.Brandloyaltysegmentationdividespopulationtoreflectloyaltytoaparticularbrand.Understandingofattitudes,demographics,andmotivationsofdifferentloyaltygroupshelpstheadvertiseridentifycreativeapproachandessentialmessagemostlikelytoreinforceloyaltyamongtheirownusersandreduceloyaltyamongcompetitors'users.

3.BehaviorsinNon-ProductCategories

Individuals’behaviorscanalsobeusedasclassificationvariablesinnon-productcategories.Theyareappropriatewheneverdifferencesinbehaviorsacrossindividualsarebelievedtoexertanimportantinfluenceontargetattitudesorbehaviors.Forexample:

• Ruizandhiscolleaguessegmentedconsumersbasedonthebehaviorsexhibitedduringavisittothemall.Foursegmentswereidentified:RecreationalShoppers,FullExperienceShoppers,Browsers,andMissionShoppers.

• OntarioMinistryofTourismconductedmultiplesegmentationstudiesusingbehaviorsastheclassificationvariable.Studiesincludesegmentationofoutdooractivitiesparticipatedinwhileonvacation,typesofculturalandentertainmentpursuitswhile

onvacation,andtypesofshoppingconductedwhileonvacation.

4.NeedsorBenefits

Needsorbenefitsegmentationcanbeusedforeitherproduct-specificornon-productcategories.Haleyprovidesanexampleofproduct-relatedbenefitsegmentation:benefitssoughtfromtoothpaste.Fourbenefitsegmentsexistwithintoothpastecategorywhereeachsegmentmostvaluesadifferentbenefit.Benefitsegmentsare:

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• Worriers.Mostconcernedaboutdecayprevention.Tendtohavelargefamiliesandareheavyusersoftoothpaste.PreferCrest.

• Sociable.Mostconcernedaboutappearanceandteethbrightness.

Tendtobeyoungerandvaluesociability.Leadanactive

lifestyle.PreferUltra.

• Sensory.Mostconcernedaboutproductitself,especiallyflavorandappearance.Tendtobechildren.Preferflavoredtoothpastes.PreferStripe.

• Independents.Price-driven.Tendtobevalue-orientedmen.Notbrandloyal.Tendtobuywhateverisonsale.

IV.ConductingOriginalSegmentationResearch

Planningandconductoforiginalsegmentationresearchbeginssimilarlytootherresearch:needforresearchisidentified,segmentationisselectedasanappropriateresponsetoinformationalneeds,andsampleandsamplingissuesareaddressed.SegmentationresearchthenfollowsthestepsshowninSlide17-

30.UsesegmentationconductedbyFireflyResearchdesignedtoillustrateprocess"inaction."

A.ExplicitlyStatetheResearchQuestion(s)

Successfulsegmentationresearchstartswithoneormorewell-formulatedresearchquestions.Questionsmakeexplicitinformationneeds.Questionshelpidentifytypesofvariablesthatresearchwillexplor.FireflyResearchproposedtwocorequestions:

• DovisitorstoBrazildifferwithregardtothebenefitstheyseekduringtheirvisit?Ifso,dothesedifferencesresultindifferentbenefit-drivensegments?

• Ifdifferentsegmentsdoexist,aretheresignificantdifferencesingroupcharacteristics?Specifically,aretheredifferenceswithregardtogroup:demographics,travelbehavior,personalitycharacteristics,interests,expectationsandattitudes?

B.IdentifytheRangeofClassificationandDescriptiveVariables

Thepotentialforsuccessfulsegmentationincreasesindirectproportiontoappropriatenessandrelevanceofselectedclassificationanddescriptivevariables.Thesevariablesimportancerequiresthattheresearchermakecertainthatallpotentialvariableshavebeenidentifiedandconsidered.Canbe

accomplishedthrough:(1)reviewofpriorrelatedresearchor(2)originalqualitativeresearch.FireflyResearchusedbothapproaches.Extensivereviewofpriorresearchondestinationtourismuncoveredthreeimportantinsights:

• Benefitssoughtbytravelerscanbeexploredintwoways,eitherdirectlythroughsurveyquestionsorindirectlythoughanalysisoftypesofactivitiesinwhichvisitorsparticipated.

• Travelershaveawideanddiversesetofreasonsfordestinationtravel.Fireflyidentifiedover200typesofdirectbenefitssought.

• Themostusefulsegmentsarethosethataredescribedthroughacombinationofdemographics,behaviors,personalitycharacteristics,motivationsandattitudes.

Theseinsightsledtoasecondstep:aseriesoffourfocusgroupswithindividualswhotraveledtoBrazilforpersonalreasonswithinthepasttwelvemonths.GroupswereusedtoobtaindeeperinsightsintoBraziltravelers’attitudes,behaviorsandmotivations.Informationgatheredfromboththeliteraturereviewandfocusgroupswasusedtocreatealistofnearly400classificationanddescriptivevariables.

C.ReducetheListofSegmentationandDescriptiveMeasures

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Thepriorstepresultedinalargenumberofvariables.Now,aresearchermustreducethenumberofvariablesexaminedtoamanageablenumber.Thiscanbeaccomplishedthroughjudgmentorthroughtheuseofstatisticaltechniques

suchasfactoranalysis.Variablesthat“passthrough”thissteparetranslated

intospecificquestionsonthequestionnaire.FireflyResearchuseditsownjudgment,inconsultationwithitsclient,toidentifyafinallistofvariables,makingcertainthatlistaddressedalltheimportantareasofinquiry.

D.SampleandSurveythePopulation

Aquestionnaireisdevelopedafterclassificationanddescriptivevariablesarespecified.

Sampledesignforeverysegmentationstudyisdifferent.FireflyResearch’ssamplingplan,designedtoefficientlylocateandinterviewtravelerstoBrazil,attemptedtobalancecostandgeneralizability,asfollows:

ThefiveUnitedStatesairportswiththelargestnumberofdirectflightstoBrazilwereidentified.Foraone-weekperiod,allflightstoBrazilfromeachairportwereidentified.RandomsamplingwasusedinthewaitingareaofeachBrazil-bound

flighttoidentifyindividualstobeinterviewed.Respondentswerescreenedtoeliminatethoseundertheageof18andtoselectonlythosetravelingtoBrazilforpersonalreasons.When

anindividualwastravelingwithafamily,thedecision-maker(or

shareddecision-maker)forthetripwasidentifiedandinterviewed.Interviewingbeganonehourpriortoflightboardingandcontinueduntiltheboardingprocesswasfinished.

E.IfNecessary,ReduceDatatoManageableNumberofFactorsorDimensions

Factoranalysisgroupsrelatedquestionstogethersothattheresearchercanidentifybroadertrendsandrelationshipsamongindividualmeasures.

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FactoranalysisofsurveyresponsesresultedinfivebenefitfactorsasshowninSlides17-34and17-35.EachfactorrepresentsaspecifictypeofbenefitindividualsseekwhentheygoonaBrazilianvacation.Similaractivitiesaregroupedtogetherwithinthesamefactor.Eachfactorisgivenanamethatsummarizesanddescribestheactivitiescomprisingthatfactor.

F.UsetheClassificationVariablestoFormSegments

Segmentsareformedusingastatisticaltechniquecalledclusteranalysiswhichplacesrespondentswithsimilarpatternsofresponsetotheclassificationvariablesinthesamesegment.FoursegmentswereformedbyFireflyResearch.Slide17-36showsthesizeofeachsegmentandillustratesdifferencesacrosssegmentswithregardtobenefitssoughtinaBrazilianvacation.Largerpositivenumbersreflectgreaterbenefitimportancewhilelargernegativenumbersreflectgreaterlackofimportance.

Segmentsareformedbyclassificationvariables:

• Segment1:ThrillSeekers(10%ofsample)seekactiveoutdooradventures.Segment’sinterestinoutdooractivitiescoupledwithlackofinterestinallremainingtypesofactivitiesdifferentiatesitfromtheothersegments.

• Segment2:DoItAllsarelargestsegment(35%ofsample).

Segmentlikestoexploredestinationfullyandseeksdiverse

benefitsfallingintoallthreeoftheremainingfourtypesofactivities,wheretheyaremostinterestedinactivitiesassociatedwithecotourism.Notinterestedinshopping.

• Segment3:He

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