THE IMPACT OF MARKET SEGMENTATION ON ORGANISATIONAL PROFITABILITY

ABSTRACT

The objective of the study was to establish the effect of market segmentation on the corporate profitability of telecommunication companies. The researcher had intended to establish the effect of market segmentation on the corporate profitability of telecommunication companies. The questionnaire was used as the survey method of collecting primary data for the study. Data was collected from primary sources and multiple regression was used for data analysis. The regression result of the study’s model suggests that Market segmentation have impact on Profitability, it is however shown that the coefficient of the independent variable (Market segmentation) positively relate to Profitability. The parameters show that increase in Market segmentation increases Profitability by 30.6%. The regression results also reveal that holding Market segmentation to a constant zero, Profitability will be at a factor of 2.709. This further affirms the importance of Market segmentation in an organization. The regression result also reveals that Profitability and Market segmentation are correlated by 0.737; this indicates a very strong relationship between Market segmentation and Profitability. It is also pertinent to note that Market segmentation has significance lower than 5% (0.013) indicating its statistical significance and suitability for decision making. Using correlation technique, it is evident that all variables have positive correlation as the correlation coefficient is 0.737. This implies that there is a strong positive relationship between Profitability and Market segmentation. Also, the f-stat value of 7.829 is greater than f-tab (4.13). To further certify this is the P-value having significance value less than 0.05. All of this imply that H1 is true and accepted hence rejecting H0. Conclusively, this research found that there is a positive linear relationship between Profitability and Market segmentation. Therefore, On the basis of the findings of this study, it was concluded that market segmentation is crucial in the enhancement of the business of any organization. It is recommended that Organization need to get professional marketers that can enlighten and train their organization as a whole on marketing segmentation, and marketing strategies as a whole.

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TABLE OF CONTENT 

Title page i 

Certificationii

Dedicationiii

Acknowledgementiv

Abstractv

Table of contentvi

CHAPTER ONE: INTRODUCTION

1.1Background of the Study1

1.2Statement of Problem2

1.3Objective of the Study3

1.4Research Question3

1.5Research hypothesis              3

1.6 Scope of the Study 3

1.7 Significance of the Study4

1.8Definition of Terms4

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CHAPTER TWO: LITERATURE REVIEW 

2.1Conceptual Framework6

2.1.1Concept of market segmentation6

2.1.2Bases of market segmentation strategy8 

2.1.3Steps in Market segmentation            12

2.1.4Aim of Market Segmentation15

2.1.5Potential Benefits of Market Segmentation16

2.1.6Implementing Market segmentation17

2.1.7Key considerations in implementing segmentation programmes                  17

2.1.8Requirements for Effective Market Segmentation18

2.2Theoretical Framework20

2.2.1.Planned behavior theory20

2.2.2.Maslow’s hierarchy of needs theory20

2.2.3Clark theory of profitability21

2.3Empirical framework22 

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CHAPTER THREE: RESEARCH METHODOLOGY 

3.1Introduction27 

3.2Research Design27

3.3Target Population27

3.4Restatement of Research Hypothesis27

3.5Source of Data28

3.6Sampling and Sampling Procedure   28

3.7Types of Data and Instrument for Data Collection29

3.7.1Validity and Reliability of the Instrument29

3.8 Data Analysis30

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.0Introduction31

4.1Presentation of Demographic Data32

4.2Analysis Of Respondents’ Response To Research Questions34

4.3Hypothesis Testing40

4.4Discussion Of The Findings42

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CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1Introduction44

5.2Summary of Findings44

5.3Conclusion45

5.4Recommendations45

REFERENCES46

APPENDIX (CES)49