Analyzing Client Profitability Across Diffusion Segments for a Continuous Innovation

作者：Sood Ashish^*; Kumar V.

来源：Journal of Marketing Research, 2017, 54(6): 932-951.

DOI：10.1509/jmr.16.0209

• profitability
• newproduct adoption
• successive generation
• countries
• diffusion of innovation

While a time-based segmentation approach to customer segmentation for new products allows firms to identify consumers in the innovator and early adopter segments, this study adds a profitability-based perspective to generate new insights. Using six years of data on the adoption of technology services over three generations from a large technology manufacturer-service provider across seven countries, the authors provide empirical evidence that the short-termand long-term profitability per period of clients in the early majority segment is the highest, followed by the latemajority, the innovators, the early adopters, and the laggards, respectively. While a time-based segmentation approach enables firms to identify consumers who are likely to adopt new products sooner than others, a profitability-based perspective can complement their targeting strategy and enhance overall profits. Managers canmake informed decisions on investments required to develop new markets with better estimates of the profitability of consumers from later segments. Our study offers managers the necessary insights to develop a roadmap for identifying and targeting themost profitable clients.

• 出版日期2017-12
• 单位华中科技大学