The market segmentation in Malaysia by using psychographic dimensions

Abstract

The rapidly changing market place environment has resulted in a majority of consumers at both national and international levels feeling confused and facing difficulties in making decisions. Among the contributing factors towards the phenomena are over-selection of products and services, sophisticated and complex products, innovative marketing communication, dumping of counterfeiting products and similarities in branding. In the same development, many scholars and researchers have long acknowledged the importance of knowing why customers choose a particular product and service and the factors that influence them to make the selection. In response to this competitive environment, scholars in the marketing field have introduced the concept of differentiation and market segmentation. The purpose of market segmentation is to identify the taxonomy of consumption patterns by dividing a market into several homogeneous sub-markets. By using this concept, marketers can formulate product strategies, or product positions, tailored specifically to the demands of these homogeneous sub-markets which are defined by predetermined segmentation variables (Chin, 2002, p.249) while companies can increase profitability by utilizing market segmentation. Furthermore, segmentation can also enhance marketing effectiveness and develop or maintain an organization’s ability to benefit from identifiable marketing opportunities (Weinstein, 1987 in Quinn, Hines and Bennison, 2007).