ographic characteristics or geographic dispersion, each of which is widely employed, or market segmentation may be based on one of the following differentiation criteria:
1. Preference segments. There are three identifiable patterns in preference segmentation. These three patterns are as follows:
a. Homogeneous. A market in which there are no natural segments is considered to be homogeneous.
b. Diffused. A diffused market is one with evenly dispersed preferences, and, thus, with no concentration.
c. Clustered. A market is clustered, when natural segments exist, and may be effectively targeted. Nordstrom's
preference segmentation targets unwardly mobile individuals and households ("Nordstrom Plugs . . . ," 1989).
2. Behavioristic characteristics. These characteris tics permit market segmentation on the bases of the following:
a. Buyer purchase occasions. Segmentation in this instance is made on the basis of the occasion for purchase. Nordstrom's emphasizes special purchase occasions for a rela tively wide variety of consumer needs ("Nordstrom's Expansion . .," 1988). b. Benefits sought by buyers through purchase. Nordstrom's targets those consumers who seek high levels of customer service, and a high value/price ratio in an up scale market ("The Nordstrom . . .," 1988).
c. The user status of buyers, non users, ex users, potential users, first time users, and regular users of a spe cific product.
d. Product usage rate for different user groups.
e. Loyalty status of buyers of a specific product or brand. Nordstrom's markets a high proportion of store brand names to develop consumer loyalty ("Nordstrom's Expansion . .," 1988). The company also places a strong emphasis on customer service, as a means of developing consumer loyalty to Nordstrom's as a store (Baldo, 1989).
f. Stag...