Different segments have different needs and respond differently to different stimuli in their buying behaviour. Products may be similar but different group of consumers value the product or service differently, thus enable businesses to charge at different prices.

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Market Segmentation

By understanding the price sensitivity and profitability of a product, the Revenue Manager will understand how to adjust the pricing and inventory availability to maximise revenue for the business

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​Pricing

When discount is given for early bird / advance purchase tickets, the price fence used is based on transactional characteristics (controlled availability) rather than segmentation

Fencing

This is the last stage of the process and it often influences consumers on their next purchase of a similar product or service. In this question, the friend is experiencing cognitive dissonance, a state where the buyer experiences discomfort, caused by a post purchase conflict

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​Customer Decision-making Process

Different consumers place different values on different products at different times. Businesses can increase their revenue by catering to different market segments at different prices. Optimising the composition of consumers means to have an optimal mix of market segments

H323

Segmentation Strategy