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1.2 Purpose and methodology
This research aims to survey and analyze the impact of market segmentation on consumer purchase by survey on shampoo consumers and different kinds of products of Clear.
Shampoo consumers choose one kind product for themselves must for one certain reason. Many of them chose Clear and any kind of it and many others chose some else. Different market position attracts different customers. The market segmentation must have an impact on consumers’ behavior.
1.3 Significance
In the recent market, we find with the development of economy, the competition is more and more fierce, and it is increasingly difficult to satisfy customers. The main reason why these enterprises failed in the market is that they ignore the importance of market segmentation. In order to survive and develop in the fierce market competition, enterprises should pide the whole market into several customer groups by their differences in customers’ needs , demands, purchasing behavior and habits. Deeply knowing the impact of market segmentation on the consumer purchase and how the market segmentation influences the consumer purchase, enterprise will pay more attention to market segmentation, and will segment the market more accurately. The more accurate the market position is, the more profit the enterprise can make.
Chapter Two Literature Review
2.1 Consumer behavior research review
Definition: Consumer behavior is the study of inpiduals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. (Paul, 2010, p. 10)
2.2 Market segmentation research review
2.2.1 Definition
Definition: Market segmentation is a marketing strategy which involves piding a broad target market into subsets of consumers, businesses, or countries who have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them. Market segmentation strategies are generally used to identify and further define the target customers, and provide supporting data for marketing plan elements such as positioning to achieve certain marketing plan objectives. Businesses may develop product differentiation strategies, or an undifferentiated approach, involving specific products or product lines depending on the specific demand and attributes of the target segment (An & Chen, 1999, p. 15).
There are many types of market segmentation. The following are the most common forms of market segmentation practices.
Geographic segmentation: Marketers can segment according to geographic criteria—nations, states, regions, countries, cities, neighborhoods, or postal codes. The geo-cluster approach combines demographic data with geographic data to create a more accurate or specific profile (Philip, 2006).
Demographic segmentation: Segmentation according to demography is based on variables such as age, gender, occupation and education level (Reid, 2009, p. 139)or according to perceived benefits which a product/service may provide. Benefits may be perceived differently depending on a consumer's stage in the life cycle. Demographic segmentation pides markets into different life stage groups and allows for messages to be tailored accordingly.