An Experiential Exercise in Product Benefit Segmentation

Abstract

This exercise provides students with a practical learning experience in product benefit segmentation. Benefit segmentation stresses causal factors rather than descriptive factors for identifying market segments. The conceptual base underlying this approach is that the benefits which people are seeking in consuming a given product are the basic reasons for the existence of true market segments. For many products this approach predicts consumer behavior much more accurately than do descriptive factors such as demographics or volume of consumption. Because of its subjective nature, however, the benefit concept is difficult for marketing students to grasp without actual exposure to derivation techniques.