A taxonomy of differences between consumers for market segmentation

A new taxonomy of differences between consumers is presented. It is argued that there are at least five generic types of differences between consumers: preferences for product benefits, consumer interaction effects, choice barriers, bargaining power, and profitability. Recognition of these distinct types of consumer heterogeneity has implications for the identification of. p relevant segmentation variables, the methods used to form segments, and the appraisal and optimization of existing segmentations. (C) 2002 Elsevier Science B.V. All rights reserved.