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Segmentation strategies in urban retail : an application to nanostores in Bogota

Author(s)
Pan, Xiaodan M. Eng. Massachusetts Institute of Technology
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Massachusetts Institute of Technology. Engineering Systems Division.
Advisor
Anthony Craig.
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M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. http://dspace.mit.edu/handle/1721.1/7582
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Abstract
This research analyzes how to apply segmentation strategies in the nanostore retail market, focusing on a pilot company located in Bogota, Colombia. This study introduces two segmentation strategies: 1) a sketch segmentation strategy based on a basic ordering pattern analysis combined with an extended value matrix, sourced from a customer value matrix created by Marcus (1998); and 2) a precision segmentation strategy based on a diffusion mapping analysis in conjunction with a factor value matrix, derived from the principal component analysis. The work further illustrates how to apply the precision segmentation strategy in assortment planning, with the goal of identifying more valuable products for the pilot company. Considering that product market diffusion is the key to increase purchase intention in the nanostore market, using this strategy can allow the pilot company to utilize resources more efficiently to further improve the diffusion of those valuable products.
Description
Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Engineering Systems Division, 2014.
 
Cataloged from PDF version of thesis.
 
Includes bibliographical references (pages 55-56).
 
Date issued
2014
URI
http://hdl.handle.net/1721.1/92646
Department
Massachusetts Institute of Technology. Engineering Systems Division
Publisher
Massachusetts Institute of Technology
Keywords
Engineering Systems Division.

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