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Customer segmentation in business-to-business markets: The influence of a firm’s market segmentation practices on its overall performance: An analysis of Dutch-located firms operating in metal industries.

Seppenwoolde, J.J. (2018) Customer segmentation in business-to-business markets: The influence of a firm’s market segmentation practices on its overall performance: An analysis of Dutch-located firms operating in metal industries.

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Abstract:Since effective customer segmentation can enhance the overall performance of a business, marketers should put effort in the conceptualization of a well-structured segmentation model. The existing literature provide good guidelines for this and previous research has identified multiple models and variables which can be used while segmenting customers. However, both, the relevance and/or importance of these variables as well as the correct combination or sequence in which these variables should be used has not been researched yet. This study shows, based on the information gathered from five different companies, which previous defined variables in literature should be used by vendors operating in metal industries in order to segment their clients. The underlying assumption being used indicates that better customer segmentation leads to better market orientation and eventually to better overall business performance. Therefore, the company with the highest score on market orientation performance can be considered as most effective regarding customer segmentation practices. The findings show that company size, industry, product and brand-use, size of order, buyer-seller relationships and finally the purchasing function of an organization are the characteristics that should be used by marketers in exactly this sequence and combination in order to be most effective. Besides the investigation in the customer segmentation variables, this research investigated as well whether different segments receive different treatments or not. Findings of the research show that both economical aspects and relational aspects, which are both positively influencing supplier satisfaction, are important determiners in receiving preferred customer status.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:83 economics, 85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/75353
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