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ABSTRACT:
One of the fundamental pillars of properly set up marketing communication is customer orientation, defining their needs and preferences and then creating their profiles. Following this fact, the aim of the study is to create subsegments of Generation Y (Millennials) in the Czech market based on identified factors in terms of lifestyle as the non-traditional segmentation descriptive variable. In order to achieve the aim of the study, AIO parameters within psychographic segmentation were used to process primary data collected by marketing research carried out in the form of a questionnaire. Overall, 999 respondents who are residents of the Czech Republic participated in this marketing research. The characteristics of Generation Y (Millennials) and the determination of the main points for external and internal marketing strategies create the basis for the comparison of subsegments based on the criteria determining the possible success of the company in this process.
KEY WORDS:
brands, exploratory factor analysis, cluster analysis, Millennials, segmentation
https://doi.org/10.34135/communicationtoday.2023.Vol.14.No.2.9
1 Introduction
Market segmentation by grouping customers with comparable needs offers a commercially viable process for serving these customers.1 Market segmentation is crucial for marketing achievement: the most successful firms manage their business based on segmentation.2 Wedel and Kamakura state that an emphasis on understanding the dynamic nature of preferences and the composition of market segments is essential for strategies focused on evolution rather than diffusion of products and entrepreneurship.3 Companies that segment their markets align their strengths and offerings with groups of customers most likely to reply to them.4 Segmentation helps to understand customers, allocate resources, adjust the product mix, and develop and evaluate new approaches with regard to products and markets.5, Customer segmentation increases not only customer fulfilment but also the company's expected profits.6 Chen et al. noted that different marketing strategies used in customer segmentation make the most of customer value.7 Sung adds that customer knowledge and predictions are applicable to a certain period, so it is necessary to track customer actions between segments to detect changes in segments over time, and then examine segment knowledge and predict customer segment behaviour patterns, as this is helpful in responding to customers properly and implementing customer-centric strategies.8
Psychographic approaches in segmentation attempt to go beyond the surface of consumers to recognise purchase motivation among other...