Market segments: Revealed or constructed?

Abstract

This thesis investigates the nature of market segments. The study is framed by the notion of two opposing paradigms: positivism, wherein market segments are seen as fixed, enduring entities and social constructionism, wherein market segments are seen as malleable, temporary phenomena. It is shown that whilst current segmentation research is dominated by a positivist paradigm, an increasing number of studies are producing findings which do not concur with positivist assumptions.In order to advance research into the social construction of market segments, a proposition is put forward that firms themselves may be able to create changes in segments: specifically segments defined in terms of consumer personality types. This proposition is tested by an experiment that measures the causal effect of "romantic" and "classicist" advertising treatments on students' personalities. It is demonstrated conclusively that, in this instance, advertising has a significant effect on personality score. It is further shown that reference group, socio-economic group and gender also impact significantly on personality score. From these results, a new model of the social construction of market segments is built in which the dichotomy of market segments as revealed on the one hand or constructed on the other is rethought by replacing the opposing notions of changing or not changing with the concept of rate o f change. Personality segments come to be seen as constructed from a variety of antecedents which are themselves subject to differing rates of change. The implications for managers and researchers are substantial.