Seize market opportunities: market segmentation, profile and monitoring through user-generated content

Abstract

PurposeThe purpose of the study is to propose a normative approach for market segmentation, profile and monitoring using computing and information technology to analyze User-Generated Content (UGC).Design/methodology/approachThe specific steps include performing a structural analysis of the UGC and extracting the base variables and values from it, generating a consumer characteristics matrix for segmenting process, and finally describing the segments' preferences, regional and dynamic characteristics. The authors verify the feasibility of the method with publicly available data. The external validity of the method is also tested through questionnaires and product regional sales data.FindingsThe authors apply the proposed methodology to analyze 53,526 UGCs in the New Energy Vehicle (NEV) market and classify consumers into four segments: Brand-Value Suitors (32%), Rational Consumers (21%), High-Quality Fanciers (26%) and Utility-driven Consumers (21%). The authors describe four segments' preferences, dynamic changes over the past six years and regional characteristics among China's top five sales cities. Then, the authors verify the external validity of the methodology through a questionnaire survey and actual NEV sales in China.Practical implicationsThe proposed method enables companies to utilize computing and information technology to understand the market structure and grasp the dynamic trends of market segments, which assists them in developing R&D and marketing plans.Originality/valueThis study contributes to the research on UGC-based universal market segmentation methods. In addition, the proposed UGC structural analysis algorithm implements a more fine-grained data analysis.