Market Segmentation in the European Airport Sector
Market segmentation in the European airport sector
Category of segmentation
Loyalty of segmentation
Creating a loyal consumer depends upon having an understanding of the factors that influence purchasing behaviour. Ballini (1993) maintains that the loyalty exhibited by consumers towards an airport can be divided into four distinct categories, i) loyalists, ii) defectors, iii) mercenaries, iv) hostages. According to Ballini (1993) denied that loyalists is represent the most important group of consumers within an airport. Based on their past experiences, they continue to choose the airport as a departure or arrival destination. Defectors is include persons who may be satisfied with the current provision of an individual airport but are not satisfied to the extent that they will automatically choose it. Mercenaries are consumers tend to be price or fashion conscious. They exhibit no loyalty towards a particular airport. Hostages are consumers have no choice over the airport they use and are compelled to accept the services and facilities that are offered.
External stimuli of segmentation
A multitude of external stimuli therefore influence an individual's propensity to purchase goods within an airport environment. Freathy and O'Connell (1998) attempt to conceptualise these factors via the function: PB= f (TE, L, PT, RE, PV). PB stands for propensity to buy, TE stand for tax environment (both direct and indirect taxation in the country of destination), L stand for lifestyle (culture, social class, disposable income, leisure time available), PT stand for product types (merchandise mix, range and depth, number of branded goods available), RE stand for retail environment (ambience of the airport, accessibility to retail outlets, store design and layout, staff attitudes and product knowledge), and PV means perceived value (the utility that accrues to the individual by purchasing or owning the product).
Traditional model of segmentation
Consumer segmentation in
Category of segmentation
Loyalty of segmentation
Creating a loyal consumer depends upon having an understanding of the factors that influence purchasing behaviour. Ballini (1993) maintains that the loyalty exhibited by consumers towards an airport can be divided into four distinct categories, i) loyalists, ii) defectors, iii) mercenaries, iv) hostages. According to Ballini (1993) denied that loyalists is represent the most important group of consumers within an airport. Based on their past experiences, they continue to choose the airport as a departure or arrival destination. Defectors is include persons who may be satisfied with the current provision of an individual airport but are not satisfied to the extent that they will automatically choose it. Mercenaries are consumers tend to be price or fashion conscious. They exhibit no loyalty towards a particular airport. Hostages are consumers have no choice over the airport they use and are compelled to accept the services and facilities that are offered.
External stimuli of segmentation
A multitude of external stimuli therefore influence an individual's propensity to purchase goods within an airport environment. Freathy and O'Connell (1998) attempt to conceptualise these factors via the function: PB= f (TE, L, PT, RE, PV). PB stands for propensity to buy, TE stand for tax environment (both direct and indirect taxation in the country of destination), L stand for lifestyle (culture, social class, disposable income, leisure time available), PT stand for product types (merchandise mix, range and depth, number of branded goods available), RE stand for retail environment (ambience of the airport, accessibility to retail outlets, store design and layout, staff attitudes and product knowledge), and PV means perceived value (the utility that accrues to the individual by purchasing or owning the product).
Traditional model of segmentation
Consumer segmentation in