Scribd
Upload
82 views2 pages

Criteria: Measurable? Accessible? Substantial? Differentiable? Actionable? Total

The document evaluates the segmentation of customers into 4 segments based on 5 criteria: 1. The segments are measurable as each segment contains thousands of customers and their profiles and purchasing power can be analyzed. 2. The segments are accessible as the company can effectively reach and serve each of the 4 segments based on their preferences. 3. The segments are substantial with the two largest segments containing over 38,000 customers each but the smaller segments are still sizable at over 14,000 each. 4. The segments are differentiable as customers in each segment have distinct preferences across 7 characteristics that are different from other segments. 5. The segments are actionable as the company has the resources to serve all

Uploaded by

Minh Doan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
82 views2 pages

Criteria: Measurable? Accessible? Substantial? Differentiable? Actionable? Total

The document evaluates the segmentation of customers into 4 segments based on 5 criteria: 1. The segments are measurable as each segment contains thousands of customers and their profiles and purchasing power can be analyzed. 2. The segments are accessible as the company can effectively reach and serve each of the 4 segments based on their preferences. 3. The segments are substantial with the two largest segments containing over 38,000 customers each but the smaller segments are still sizable at over 14,000 each. 4. The segments are differentiable as customers in each segment have distinct preferences across 7 characteristics that are different from other segments. 5. The segments are actionable as the company has the resources to serve all

Uploaded by

Minh Doan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Evaluation of segmentation

Criteria 1- Fully 2- Disagree 3- Neither 4 - Agree 5- Fully


disagree disagree nor agree
agree
Measurable? 5
Accessible? 5
Substantial? 3.8
Differentiable? 4.4
Actionable? 5
Total 23.2

1. Measurable. The size, purchasing power, and profiles of the segments can be measured.

Number of Cases in each


Cluster

1 41,000

2 38,000
Cluster
3 14,000

4 24,000
Valid 117,000
Missing ,000

Our customers are segmented into 4 segments, each segment is assigned 1.25 points, and
we can measure the size of individual segments, so we grade 5 (1.25 x 4 segments) in the
above table
2. Accessible. The market segments can be effectively reached and served

Final Cluster Centers

Cluster

1 2 3 4

Bulk-Breaking 5,0 3,5 3,4 1,7


Spatial Convenience 4,7 3,5 5,6 2,2
Waiting/ Delivery time 4,3 3,8 5,1 2,9
Product Assortment 2,5 4,1 5,5 6,8
Product variety 3,3 4,3 6,1 6,0
Customer Serviece 4,8 7,5 4,7 5,3
Information Sharing 4,8 6,7 3,6 4,5
Low Price 6,5 2,7 1,9 6,8
We chose to serve 4 segment segments. It means for each segment we reached and served
effectively we will allocate 1.25 point. Based on information in your case to allocate point
for each segment then sum up to find the final point.
For example, as for segment1, if the company can satisfy both low price and bulk-breaking,
we assign 1.25 points, if the company just satisfy either low price or bulk-breaking, we
assign 0.625 (=1.25/2), if the company satisfy neither low price nor bulk-breaking, we assign
0 point.
And we assign 1.25 points to segment 2, 3, 4, then sum the points of 4 segment to put in the
table, we grade 5 points for this field.

3. Substantial

With the size of our company, the number of people surveyed in group 1 and group 2 is
large, we give each group 1.25 points, while for group 3 and group 4 is the small segment,
we give each group 1 point. group 0.625 points. Total in this column, we grade it 3.75 points.

4. Differentiable

Final Cluster Centers

Cluster

1 2 3 4 Differentiable ratings
1st 2nd
Bulk-Breaking 5,0 3,5 3,4 1,7 Ratings
cluster cluster
Spatial Convenience 4,7 3,5 5,6 2,2 1 2 0.8
Waiting/ Delivery time 4,3 3,8 5,1 2,9   3 0.8
Product Assortment 2,5 4,1 5,5 6,8   4 0.4
Product variety 3,3 4,3 6,1 6,0 2 3 0.8
Customer Service 4,8 7,5 4,7 5,3   4 0.8
Information Sharing 4,8 6,7 3,6 4,5 3 4 0.8
Low Price 6,5 2,7 1,9 6,8 Total   4.4

5. Actionable

Because of the size resources of the company, we choose to serve all 4 segments, each
segmentation grade 1.25 points, so we have 5 points in this field.

You might also like