Segmentation in low-penetration and low-involvement categories: An application to lottery games

Abstract

Market segmentation is accepted as a fundamental concept in marketing and several authors have recently proposed a segmentation model where personal and environmental variables intersect with each other to form motivating conditions that drive behavior and preferences. This model of segmentation has been applied to packaged goods. This paper extends this literature by proposing a segmentation model for low-penetration and low involvement (LP-LI) products. An application to the lottery games in Chile supports the proposed model. The results of the study show that in this type of products (LP-LI), the attitude towards the product category is the most important factor that distinguishes consumers from non consumers, and heavy users from light users, and consequently, a critical segmentation variable. In addition, a cluster analysis shows the existence of three segments: (1) the impulsive dreamers, who believe in chance, and in that lottery games can change their life, (2) the skeptical, that do not believe in chance, nor in that lottery games can change their life and (3) the willing, who value the benefits of playing.

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