The cohort concept : prospects for market segmentation in Malta

Abstract

Market segmentation is the process of identifying specific groups based on their needs, attitudes and interests. Such groups are sets of individual consumers with distinct characteristics. Marketers seek to identify and profile distinct groups of buyers whose needs call for distinct products or services. One of the approaches of market segmentation is that based on cohorts. The German philosopher and sociologist, Karl Mannheim, coined the origin of the cohort concept after the end of World Warr I. He sought to determine the political attitudes and behaviours of youth of that time. Mannheim put forward the notion of groups of people bound together by historical events, and claimed that late adolescence and early adulthood are the formative years during which a distinct personal outlook on politics emerges. This cohort approach is embraced by some marketers in addition to other demographic variables for segmentation such as gender age, income and education. It refers to the notion that people experience significant external events during their late adolescence or early adulthood, which events influence their social values, attitudes and preferences. Cohorts of individuals develop common preferences for music genres, products and services. The local context provides limited opportunity for segmentation given the size of the market, though market segmentation practices carried out by firms can be identified through their promotional and advertising material. Moreover, the National Statistics Office and a limited number of research agencies in Malta provide information relevant for market segmentation. Furthermore, firms' information systems allow marketers to segment their customer base by various segmentation approaches. The research questions refer to the identification of those values and preferences that characterize the various cohorts that prevail in the local scenario. This study is aimed to provide insight and understanding of the nature of cohort segmentation in the Maltese context.