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Impact of Market Segmentation Strategies on Customer Loyalty: The Mediating Role of Positioning Effectiveness of Interior Design Industries within the Kumasi Metropolis

Received: 17 November 2020     Accepted: 4 December 2020     Published: 22 January 2021
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Abstract

The buying behaviour of potential customers in terms of interior designs in Ghana differs from those in the Western context. There is a relatively low patronage of interior design products or services compared to the Western context (Ogunduyile et al, 2008). Existing literature have often looked at the direct causal relationship between market segmentation strategies and customer loyalty without emphasizing the effectiveness of positioning which could drive customer loyalty (Yim et al., 1999). The paper focuses on assessing the impact of market segmentation strategies on customer loyalty of Interior Design Industries, with the mediating role of positioning effectiveness. A total of 220 customers of Interior Design Industries within the Kumasi Metropolis of which 200 responses were obtained representing 90% response rate. Convenience sampling techniques was used in selecting customer’s whiles Structural Equation Model was used to analyze the data. The study revealed that, Behavioural, psychographic and demographic segmentations impacted positively on customer loyalty. Geographic segmentation variable however, impacted negatively on customer loyalty. Psychographic segmentation impacted positively on positioning effectiveness and customer loyalty. Positioning Effectiveness partially mediates between psychographic segmentation strategies and customer loyalty. Positioning Effectiveness has no mediation between geographic segmentation, behavioural segmentation, demographic segmentation and customer loyalty.

Published in European Business & Management (Volume 7, Issue 1)
DOI 10.11648/j.ebm.20210701.12
Page(s) 1-13
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Interior Design Industries, Market Segmentation Strategies, Psychographic Segmentation, Positioning Effectiveness, Customer Loyalty

References
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  • APA Style

    Alfred Owusu, Gertrude Agyemang. (2021). Impact of Market Segmentation Strategies on Customer Loyalty: The Mediating Role of Positioning Effectiveness of Interior Design Industries within the Kumasi Metropolis. European Business & Management, 7(1), 1-13. https://doi.org/10.11648/j.ebm.20210701.12

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    ACS Style

    Alfred Owusu; Gertrude Agyemang. Impact of Market Segmentation Strategies on Customer Loyalty: The Mediating Role of Positioning Effectiveness of Interior Design Industries within the Kumasi Metropolis. Eur. Bus. Manag. 2021, 7(1), 1-13. doi: 10.11648/j.ebm.20210701.12

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    AMA Style

    Alfred Owusu, Gertrude Agyemang. Impact of Market Segmentation Strategies on Customer Loyalty: The Mediating Role of Positioning Effectiveness of Interior Design Industries within the Kumasi Metropolis. Eur Bus Manag. 2021;7(1):1-13. doi: 10.11648/j.ebm.20210701.12

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  • @article{10.11648/j.ebm.20210701.12,
      author = {Alfred Owusu and Gertrude Agyemang},
      title = {Impact of Market Segmentation Strategies on Customer Loyalty: The Mediating Role of Positioning Effectiveness of Interior Design Industries within the Kumasi Metropolis},
      journal = {European Business & Management},
      volume = {7},
      number = {1},
      pages = {1-13},
      doi = {10.11648/j.ebm.20210701.12},
      url = {https://doi.org/10.11648/j.ebm.20210701.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20210701.12},
      abstract = {The buying behaviour of potential customers in terms of interior designs in Ghana differs from those in the Western context. There is a relatively low patronage of interior design products or services compared to the Western context (Ogunduyile et al, 2008). Existing literature have often looked at the direct causal relationship between market segmentation strategies and customer loyalty without emphasizing the effectiveness of positioning which could drive customer loyalty (Yim et al., 1999). The paper focuses on assessing the impact of market segmentation strategies on customer loyalty of Interior Design Industries, with the mediating role of positioning effectiveness. A total of 220 customers of Interior Design Industries within the Kumasi Metropolis of which 200 responses were obtained representing 90% response rate. Convenience sampling techniques was used in selecting customer’s whiles Structural Equation Model was used to analyze the data. The study revealed that, Behavioural, psychographic and demographic segmentations impacted positively on customer loyalty. Geographic segmentation variable however, impacted negatively on customer loyalty. Psychographic segmentation impacted positively on positioning effectiveness and customer loyalty. Positioning Effectiveness partially mediates between psychographic segmentation strategies and customer loyalty. Positioning Effectiveness has no mediation between geographic segmentation, behavioural segmentation, demographic segmentation and customer loyalty.},
     year = {2021}
    }
    

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    AU  - Alfred Owusu
    AU  - Gertrude Agyemang
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    N1  - https://doi.org/10.11648/j.ebm.20210701.12
    DO  - 10.11648/j.ebm.20210701.12
    T2  - European Business & Management
    JF  - European Business & Management
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    UR  - https://doi.org/10.11648/j.ebm.20210701.12
    AB  - The buying behaviour of potential customers in terms of interior designs in Ghana differs from those in the Western context. There is a relatively low patronage of interior design products or services compared to the Western context (Ogunduyile et al, 2008). Existing literature have often looked at the direct causal relationship between market segmentation strategies and customer loyalty without emphasizing the effectiveness of positioning which could drive customer loyalty (Yim et al., 1999). The paper focuses on assessing the impact of market segmentation strategies on customer loyalty of Interior Design Industries, with the mediating role of positioning effectiveness. A total of 220 customers of Interior Design Industries within the Kumasi Metropolis of which 200 responses were obtained representing 90% response rate. Convenience sampling techniques was used in selecting customer’s whiles Structural Equation Model was used to analyze the data. The study revealed that, Behavioural, psychographic and demographic segmentations impacted positively on customer loyalty. Geographic segmentation variable however, impacted negatively on customer loyalty. Psychographic segmentation impacted positively on positioning effectiveness and customer loyalty. Positioning Effectiveness partially mediates between psychographic segmentation strategies and customer loyalty. Positioning Effectiveness has no mediation between geographic segmentation, behavioural segmentation, demographic segmentation and customer loyalty.
    VL  - 7
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Author Information
  • Department of Marketing, School of Business, Kumasi Technical University, Kumasi, Ghana

  • Department of Marketing, School of Business, Kumasi Technical University, Kumasi, Ghana

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