Chapter 6 · Advanced Techniques of Market Analysis · Slide 238/274

Benefit Segmentation Paradox

When segmenting by expected benefit, one must clearly distinguish between two types of variables:

6.3 · SegmentationParadox

Benefit Segmentation Paradox

When segmenting by expected benefit, one must clearly distinguish between two types of variables:

Type (i) · Separating

Discriminating variables

Important for separating the sample into internally homogeneous segments.

Type (ii) · Understanding

Driver variables

Important because they represent the benefit or characteristics that respondents demand most within each segment.

It is tempting to assume that the two are the same. Sometimes yes — but most of the time not: The "drivers" often do not vary between segments at all and have no discriminating power (e.g. price, quality).

QUESTIONSTAR · Dr. Paul Marx238 / 274

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