Strategy-based segmentation of industrial markets

Article Abstract:

Segmentation of industrial markets is typically based on observable characteristics of firms such as their location and size. However, such variables have been found to be poor predictors of industrial buying behavior. To improve the effectiveness and power of existing approaches to industrial market segmentation, we propose using unobservable characteristics such as organizational strategy in addition to the observable characteristics currently used. An important justification for our approach is that a firm's strategy influences its behavior, especially its buying behavior; as a result, adding the strategic type and orientation of firms to a segmentation scheme is bound to improve the effectiveness of the scheme. To test the effectiveness of our approach, we conducted an empirical study of the purchase of car phones by 200 Dutch firms. The results support our predictions. In fact, they indicate that a firm's strategy is an even more important determinant of industrial buying behavior than the variables currently used. Thus, strategy-based segmentation may be a more powerful and effective approach to industrial segmentation than current approaches. (Reprinted by permission of the publisher.)

Market segmentation, Business-to-business market, Business to business market

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Proactive product service strategies: an application in the European health market

Article Abstract:

This article develops an empirically based framework for formulating proactive product service strategies in the industrial context by investigating the influence of product services on the adoption of a new medical instrument among hospitals in Europe. We define product services as "the set of all potential additional services as a supplier can supplement his product offering with, in order to differentiate his offering relative to the competitors' as perceived by (potential) customers and distributors." Following a stepwise approach for formulating product service strategies, it was found that the perceived relative importance of product services in the context of the adoption of an industrial product differed over market segments, thus making the implementation of a proactive product service strategy potentially effective. Furthermore, the study indicated that the classification of product services as proposed in the literature can be extended meaningfully by distinguishing other categories of product services as well. Finally, specific managerial implications are formulated based on the results of this study. (Reprinted by permission of the publisher.)

Hospitals, Medical Instruments and Supplies, Medical Instruments & Equipment, Medical Equipment and Supplies Manufacturing, Europe, Marketing, Product management, Medical equipment, Customer service, Medical equipment and supplies industry, Medical equipment industry

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Determinants of the adoption of new product development tools by industrial firms

Article Abstract:

Research presented concern strategic planning in new product development, focusing on the factors that influence the adoption of tools by industrial companies to aid the production process. Topics addressed include innovation strategies, the management of the new product development process, and the ways in which new techniques and tools are integrated into production.

United States, Product Development, Statistical Data Included, Analysis, Usage, Industrial research, Tools

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