Exploring relationship variables and Information and Communication Technologies use in industrial segmentation

Abstract

Purpose In tourism, the adoption of Information and Communication Technologies (hereinafter ICT) and variables concerning firms’ links with suppliers have been recognized as key determinants to improve companies’ competitiveness. From the perspective of efficient management of company resources, segmentation has become a key tool and is particularly significant and current in the business-to-business context. The purpose of this paper is to study the segmentation of firms in the tourist industry according to perceived ICT use and relationship value and benefits. In addition, from the management approach, the authors seek to describe the segments that enable the development of differentiated strategies aimed at consolidating relationship benefits in the long term. Design/methodology/approach Using a sample of 310 travel agencies who evaluated the relationship with their main supplier, the authors attempt to examine the utility of these variables as segmentation criteria for identifying heterogeneous groups. Findings The estimation of a finite mixture model suggests that these bases are able to discriminate firms into four latent segments with different levels of ICT use and relationship variables. Research limitations/implications This research contributes to the understanding of the role that ICT and relationship variables have in the segmentation processes of tourism companies. Literature on segmentation in the business-to-business (B2B) context is limited and it is hard to find studies which apply latent methodology using behavioral criteria related to the use of ICT and relationship variables. Practical implications Segmentation of the tourism organizational market based on valuations of supplier relations and ICT use can help suppliers to design or adapt differentiation marketing strategies. Since agencies place the most value on confidence and value, tourism service suppliers should focus their efforts on improving the elements of service provision that increase perceived trust/confidence and value (i.e. growing the number of contacts, proximity to customers or sincerity, etc.). If agencies feel they can rely more on their providers, they will value their relationship more positively thereby favoring its long-term continuity. Originality/value The novelty in this work lies in the application of latent segmentation methodology and the simultaneous use of bases associated with ICT and relationship variables in B2B tourism.

Identifying relevant segments of AI applications adopters – Expanding the UTAUT2’s variables

“…There are diverse papers on segmentation concerning technology adoption in different contexts, such as mobile banking (Shaikh and Karjaluoto, 2015), mobile financial services apps (Karjaluoto et al, 2019), information and communication technology adoption (Fuentes-Blasco et al, 2017), mobile phone use (Rondan-Cataluña et al, 2010), mobile TV versus mobile news apps , and even video games (Ramírez-Correa et al, 2018). However, none were found on a posteriori segmentation related to AI app adoption using latent class segmentation.…”

Axes of relationship value between manufacturers and retailers

“…In this sense, the literature recognises the benefits and costs deriving from the product/service or from the manufacturer’s main activity itself (e.g. Ulaga and Eggert, 2006; Barry and Terry, 2008; Kelly and Scott, 2011; López Sánchez et al , 2012; Tang and Hsu, 2015), from the more personal interactions between buyer and seller (Price and Arnould, 1999), from the logistics service itself in the improvement of key activities such as storage, transport and distribution (Audy et al , 2012), or from the use of information and communication technologies (ICTs) in these operational processes (Perego et al , 2011; Fuentes-Blasco et al , 2017). Following this line of research, the main contribution of this study is the definition of a model for measuring relationship value between manufacturers and retailers, determining the integral dimensions based on benefits and costs.…”

Segmenting tourism companies with relational and technological bases

“…Since the year 2000 academic research is more limited compared to the consumer market. Regarding the criteria used, there is little empirical evidence on the formation of tourism business segments based on relational variables (Weinstein, 2014;Thomas, 2016;Fuentes et al, 2017). Added to this is the limitation on the simultaneous study of several criteria, since the contributions focus on the observation of one or two segmentation bases.…”

“…This type of segmentation has sometimes been criticised for being more of a sectorisation than a segmentation (Rezaei & Ortt, 2013). For this reason, in recent years there has been a tendency to use relational-type criteria, that is, linked to the behaviours and assessments that companies make of their relationship with their providers (Heirati et al, 2016;Thomas, 2016;Brotspies & Weinstein, 2019;Shi et al, 2022), as well as criteria associated with the use of technologies (Weinstein, 2014;Fuentes et al, 2017).…”

“…Added to this is the limitation on the simultaneous study of several criteria, since the contributions focus on the observation of one or two segmentation bases. Similarly, there are still few studies that address segmentation based on technological variables (Guo et al, 2017;Fuentes et al, 2017).…”