Evaluating Different Bases for Market Segmentation

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Abstract
While market segmentation has become a major approach to understanding the nature of tourists and their travel behaviour, there exists considerable debate over which bases and statistical approaches provide the best segmentation solutions. Morrison (1996) has offered eight criteria for evaluating the success or value of a segmentation result. This paper used these eight criteria to evaluate two different segmentation approaches used with the same survey sample. An a priori geographic segmentation of visitors to the Wet Tropics region of Australia was compared to an activity based a posteriori segmentation approach. There was evidence that the activity segmentation approach fulfilled the eight criteria more adequately than the geographic approach. It was further suggested that for large samples a multi-stage methodology might be a desirable approach for meeting all eight marketing segmentation effectiveness criteria.

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