Benefit segmentation in industrial markets

This article investigates whether or not traditional bases of industrial segmentation, such as SIC codes and company size, produce segments that are homogeneous within and heterogeneous between with respect to benefits sought. The study is applied to the acquisition of nonintelligent data terminals. We discovered that the traditional bases do not yield segments that seek significantly different dimensions. Alternatively, a benefit segmentation approach is demonstrated that results in segments substantially different from the traditional approach.