ABSTRACT
Market segmentation is defined as ‘the process of dividing a market into distinct subsets of consumers with common needs or characteristics, and selecting one or more segments to target with a distinct marketing mix’ (Schiffman & Kanuk, 2004, p. 33). Segmenting consumers is an essential task for marketers, in their effort to understand their needs and characteristics, and develop targeted marketing strategies (Tapp & Clowes, 2000). Market segmentation can also benefit consumers, as products and services are then designed to satisfy their specific needs. As a result, consumers will receive better quality of services and will realize higher satisfaction levels. Schiffman and Kanuk (2004) identified three main steps in the market segmentation process: 1) segmenting a market into homogeneous subgroups; 2) selecting one or more segments to market; and 3) positioning the product or service to achieve a competitive advantage in the market.
