Segmenting industrial competitive markets : An example from air freight

Journal of Air Transport Management

Segmenting industrial competitive markets : An example from air freight

Journal: Air Transport Management

Author: Ming-Chih Tsai, Chih-Wen Yang, Hsiao-Ching Lee, Ching-Wei Lien

Published: 2011


Abstract

This paper applies a disaggregated approach to segment industrial markets under competitive structures taking the air-freight market for the high-technology product industry in Taiwan as a case study. Data from firms is used to examine the structure of the air freight industry and we find that carriers are clustered into two strategic groups, express and forwarder. Pricing is a leading strategy recognized by customers for forwarders, whereas service punctuality and freight security are the winning strategies for express. The high-tech freight market is classifiable by shipment destination and size.


Keywords: Industrial market segmentation, Disaggregate model, Strategic group


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