Value and Lifestyle Segmentation Strategies and Customer Patronage of Food and Beverage Firms in Rivers State

Abstract

This study investigated the relationship between value and lifestyle segmentation strategies and customer patronage of food and beverage firms in Rivers State. Specifically, the objectives of the study were to determine the extent to which status-oriented consumers and principleoriented consumers relate with sales volume growth and market share growth of food and beverage firms in Rivers State. The chosen population for this study was twenty-nine (29) registered food and beverage firms in Rivers State. The census approach was adopted to select respondents for the study. The study purposively selected two hundred and ninety (290) respondents, however only two hundred and forty (240) respondents provided information for the analysis of the data. Kendall’ tab-u was used to test four hypotheses. From results of the analysis, it was revealed that status-oriented consumer and principle-oriented consumers which are the dimensions of VAL segmentation strategies positively and significantly relate with sales volume growth and market share growth (measures of customer patronage) of food and beverage firms in Rivers State. Based on these findings, it was concluded that there are number of ways in which a market can be segmented. An organization will need to use the right strategy that is best for its products or services. Often, the best choice arises from using various strategies. The perception of cultural differences in today’s global market could be the key for any organization’s success. Therefore, the study recommended that Marketers should use value and lifestyle segmentation strategy to reach target audience by being careful at their status and principles.