Means-end approach in value-based segmentation - ladder triplets sequence approach
Cracow University of Economics
Means-end approach in value-based segmentation - ladder triplets sequence approach
1. Obijectives
The author presents a new approach to market segmentation based on means-end approach and hard laddering data gathering method. Means-end approach is often used for the identification of consumers' cognitive and motivational value maps for the development of advertising and new product development (see i.e. MECCAS, VISTA or STRATA models). In segmentation studies hierarchical value map is used as a base for segmentation on the aggregate level (Grunert 1995), or as method for segment profiling in demographic segmentation (Bottschen, Hemetsberger 1998). Disagreggated approach is used by Kaciak (2012) where segmentation is based on extended row ladder matrix. The new approach is based on triplets data as a result of laddering interview in the representative sample of Polish households concerning the resource allocation into consumption, savings and investment means of attaining the functional, psychological and social consumers' values.
2. Methods
In the proces of segmention new method based on similarities of R - M- E (resource - means- end) sequences is proposed. This sequence-based segmentation uses a new distance measure between sequences of dimensions of consumers’ cognitive-motivational R-M-E structures that is based on Hamming and Damerau-Levenshtein metrics. The analysis consists with four basic steps: 1/ indentification of individual ladders on the basis of triplet R-M-E data, 2/ calculation of triplets frequencies and dropping the outliers (the rare ladders) across the sample, 3/ evaluation of sequencie similarities of the respondents, 4/ calculation of of similarirtes between respondents on the basis of sequence distances, 5/ identification, profiling and visualizing segments. The resulting segments are visualized with the help of metric multidimentional scaling (MDS).
3. Expected results
As a result of the analysis, the segments of Polish households with respect of the strategy of resource allocation are identified and explained. Also the various strategies of seqencial data segmentation is developed and compared with the more classical approach using aggregated solution.
Key words: means-end approach, laddering data, sequence distance, marketing segmentation
Literature:
K., Grunert, Food Quality: A Means-End Perspective, "Food Quality and Preference", 1995/6, s.171-176
G., Bottschen, A., Hemetsberger, Diagnosing Means - End Structures to Determine the Degree of Potential Marketing Program Standardization, "Journal of Business Research" 1998/42, s. 151-159
G., Bottschen, E., Thelen, R., Pieters, Using Means-End Structures for Benefit Segmentation, "European Journal of Marketing" 1999/33/1(2) s. 38-58
E., Kaciak., Teoria środków-celów w segmentacji rynku. Studium teoretyczno-metodologiczne, Kluwer Warszawa 2011