MOHANBIR SAWHNEY
Ontela PicDeck (B):
Customer Segmentation, Targeting, and Positioning
The Quantitative Customer Segmentation Study
Although Joe Levy felt that the customer persona provided a good starting point to begin thinking about PicDeck’s segmentation, he believed that he needed quantitative data to get a more precise understanding of the relative attractiveness of different customer segments. This would require data on end users regarding their preferences and behaviors related to mobile devices and imaging. He therefore hired a market research firm to conduct a quantitative customer segmentation study.
The firm conducted a national survey of 2,000 respondents who were selected from lists of mobile telephone customers aged 15 and older. The questions in the survey ranged from respondents’ current mobile phone behavior and camera experience to general technology aptitude and price sensitivity. The survey questions are listed in Exhibit 1. The research firm used a random sampling approach to ensure that the respondent sample accurately represented nationwide wireless subscribers.
Analysis of Customer Survey Data
Identifying Segments—Cluster Analysis of Preference Data
The research firm performed a cluster analysis on the responses. A cluster analysis is a statistical technique that identifies groups of customers who have similar survey response patterns. The number of clusters is determined in part by how different the response patterns are.
If all survey respondents tend to give the same responses, then only one cluster is identified.
For this survey, six clusters of respondents were identified, each with a different response pattern. Details of each cluster are provided in Exhibit 2, which lists the mean responses to each question for each cluster.
©2009 by the Kellogg School of Management, Northwestern University. This case was prepared by Patrick Dupree, Christine Hsu,
Ryan Metzger, Fuminari Obuchi, Arun