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11R0124
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"Market Segmentation Strategies for Future Telecommunications Services"
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Naeyang Jeong * , Institute for Basic Science, Korea, South
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Youngsang Yoo, ETRI, Korea, South
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Tae-Young Heo, Korea Maritime University, Korea, South
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* = Corresponding author
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The recent popularity of market segmentation reflects the growing importance of considering a broader set of factors, including consumers' psychology and lifestyles. It has been increasingly regarded as a better alternative for estimating the long-term potential demand, especially for new technology products and services. In this study, we perform a segmentation of the future telecommunication service market using consumers' acceptance toward technology and their general value and lifestyles, as segmentation variables, to reveal characteristics that distinguish different segments. A survey was conducted in June 2006 on 800 consumers aged 15 to 69, residing in Seoul and five other major South Korean cities, through one-on-one interviews. Using the data collected through this survey, we performed a two-phase segmentation analysis. The samples were divided into two sub-groups according to their level of acceptance of new technology. These two sub-groups were further divided each into 5 smaller sub-groups through two rounds of segmentation. The ten sub-groups were then analyzed in their detailed characteristics, including general demographic characteristics, usage patterns in existing telecom services such as mobile service, broadband internet and the status of ownership of a computing or information device and the desire to purchase one. Through these steps, we were able to show that each of these 10 sub-groups responded to telecom services as independent markets. Further, as we grade the willingness of each segment to use future telecom services, we suggest a main target segment of each future telecom service.
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