Market Segmentation Based on Customers' Post-Purchase Performance Evaluation

Abstract

Among the important tasks for marketers is to decide whether their organization should pursue a strategy of market segmentation, and if the market is to be segmented, on what basis it should be upon. Segmentation studies have frequently used customer expectations or attribute importance as the basis. However, their limitations, often overlooked, raise questions about their appropriateness. This study adopted a postpurchase performance evaluation based segmentation approach. Tourists' perceptions of restaurant services were examined in order to understand whether tourists could be grouped into distinct segments. The study further explored whether composition of factors influencing dining satisfaction differed between segments. A factor-clustering method identified five distinct segments. Implications of the study are discussed.

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