Market segmentation revisited

the predictive utility of demographics

Mohammad B. Naseri, Greg Elliott

Research output: Chapter in Book/Report/Conference proceedingConference proceeding contribution

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Abstract

This paper compares the predictive power of demographic variables to that of other, more complex segmentation variables. To achieve this objective, the mean R-square of 20 demographic models obtained from a representative survey was judged against mean R-square of 34 non-demographic models drawn from existing published studies. The result indicates that demographics have significantly higher explanatory power than some well-established theories. Thus, our finding strongly refutes the proposition advanced by a number of prominent market segmentation researchers that the relationships between demographic segments and marketing variables are too weak to be of any practical value. Based on the result of this analysis, and given the fact that only five variables were used in the demographic models, it is concluded that demographics are, at least as useful as other segmentation bases.
Original languageEnglish
Title of host publicationANZMAC 2006 Abstracts & programme
Subtitle of host publicationBrisbane, Queensland 4-6 December 2006 : advancing theory, maintaining relevance
EditorsElizabeth Macpherson, Ingrid Larkin
Place of PublicationBrisbane
PublisherQueensland University of Technology
Number of pages8
ISBN (Print)1741071593
Publication statusPublished - 2006
EventAustralian and New Zealand Marketing Academy Conference (2006) - Brisbane
Duration: 4 Dec 20066 Dec 2006

Conference

ConferenceAustralian and New Zealand Marketing Academy Conference (2006)
CityBrisbane
Period4/12/066/12/06

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  • Cite this

    Naseri, M. B., & Elliott, G. (2006). Market segmentation revisited: the predictive utility of demographics. In E. Macpherson, & I. Larkin (Eds.), ANZMAC 2006 Abstracts & programme: Brisbane, Queensland 4-6 December 2006 : advancing theory, maintaining relevance Brisbane: Queensland University of Technology.