Customer segmentation and the establishment of multiple sales channels are of vast interest for industries that offer a high degree of product differentiation. Product add-ons or premium products can be used to target customer groups with a higher willingness-to-pay. Product development and product placement address the specific needs of different customer segments.
Product differentiation helps you reach a broader audience including the low cost segment with a high price-sensitivity and the premium segment with a low price-sensitivity.
In the identification of different customer segments we use the dimensions price-sensitivity, product-sensitivity and importance of image.