Business Segmentation Bases

Over the past few years examination of potential gaps between segmentation concepts as presented in normative models and practice has emerged as a key issue in business segmentation research. This paper proposes a new methodology for the study of these phenomena and presents research findings. Specifically, we measure the degree of congruence between segmentation strategies adopted by business marketers and the perceived effectiveness of segmentation bases that current literature posits that are conceptually related to particular strategies. Although we broadly confirm the existence of a gap between theory and application, our findings also indicate that under certain conditions there is convergence between normative models and practice. Furthermore, evidence suggests that the current emphasis towards service provision and relationship building is reflected in the perceived effectiveness of segmentation bases.