Market segmentation in Malta : the extent of the practical application of the theory of market segmentation in the retail market for clothes in Malta

Abstract

This dissertation discusses the extent to which retailers in the clothing industry in Malta segment the market. Does theory correspond to the way retailers segment the market in practice? The literature review presents a number of issues in the light of market segmentation, such as the advantages benefited from its implementation, the underlying requirements for segmenting a market, and the ways in which to approach market segmentation, whether management or market-driven. It also includes the sort of variables, which should be considered when categorising members of the market into particular segments, and the appropriate communications approach to adopt subsequent to the identification of target markets. The methodology of the data collection consists of both qualitative and quantitative research. Questionnaires were used in both cases however the former incorporated four in-depth interviews, while in the latter, a questionnaire made up of 24 statements using a semantic-differential scale was distributed to 84 retailers. The qualitative research was used as the basis for the quantitative research. The computer program SPSS was used to analyse the data collected from the surveys in the quantitative research, whereby relationships between the demographic information of the respondents, and the variables were outlined. The conclusion of the study lists the main findings from the data collection, and pin-points any implications for management. It also includes directions for new research.