- Title
- Revisiting the substantiality test: from ethnic marketing to market segmentation
- Creator
- Pires, Guilherme D.; Stanton, John
- Relation
- 5th Royal Bank International Research Seminar. Proceedings: The Fifth Royal Bank International Research Seminar (Montreal, Canada 24-26 September, 2009)
- Relation
- http://nirvana.concordia.ca/april/en/faculty-research/research-chairs-a-professorships/royal-bank-distinguished-professorship/royal-bank-international-research-seminar
- Publisher
- John Molson School of Business, Concordia University
- Resource Type
- conference paper
- Date
- 2009
- Description
- Globalization challenges the effectiveness of market segmentation, requiring action to reinvigorate segmentation approaches to selecting targetable segments. A particular issue is the identification of homogeneous, substantial segments. This paper argues that an approach for identifying ethnic minority markets can be more widely applied to subcultural groups in general. The meaning and application of the concept of substantiality for consumer market segmentation and target selection is analysed. In contrast with subjective interpretations of segment substance anchored on some sufficient potential size to justify time and effort involved in planning, the objective is to ascertain potential substantiality by considering key group dimensions indicative of its potential. Common tests of substance are shown to be essentially an exhortation to evaluate the value of the segmenting opportunity and the need to be consistent with achieving these objectives. While an increase in producer surplus meets this requirement, it is a post hoc consideration or, at least, greatly dependent on the quality of forecasting. The greater challenge for market segmentation is to assess substantiality a priori. The screening approach developed in this paper based on appraising group resources enables such an assessment and has potential applicability to other subcultures.
- Subject
- market segmentation; ethnic marketing; substantiality
- Identifier
- http://hdl.handle.net/1959.13/919546
- Identifier
- uon:8907
- Language
- eng
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