Segmentation in the crisis era<\/p>\n
In June 1997, MasterCard conducted a consumer survey at a time
\nwhen confidence in the Indonesian economy was extremely high.<\/p>\n
Only six months later, that optimism was replaced by deep
\npessimism. The sudden shift in market mood was a tremendous jolt
\nto the activities of business enterprises.<\/p>\n
In December 1998, MarkPlus, in an effort to assist the
\nbusiness community in Indonesia, unveiled a strategic marketing
\nguide for the crisis, replete with projections on changes in
\nconsumer marketing behavior and also market segmentation during
\nthe crisis.<\/p>\n
Projections were based on findings from both developed and
\nother countries which have experienced recessions, with social
\nand cultural change taken into account.<\/p>\n
MarkPlus also conducted a consumer marketing survey in
\nFebruary 1998, in eight major Indonesian cities on the four main
\nislands -- Sumatra, Java, Kalimantan and Sulawesi. Respondents
\nwere 2,500 middle-class housewives (from class A+ to class B).
\nRandom sampling was used.<\/p>\n
The findings bore out the projections of a crisis-induced
\nsegmented market. Most consumers searched for quality goods at
\nreasonable prices. The value-oriented customers accounted for
\n83.5 percent.<\/p>\n
Those who searched for inexpensive products -- price-oriented
\ncustomers -- accounted for 12.1 percent. Consumers who searched
\nfor quality goods with no concern for price -- composed the
\nremaining 4.4 percent.<\/p>\n
In other words, the results of the survey bucked assumptions
\nthat a drop in consumer purchasing power would lead to a rise in
\nprice-oriented customers.<\/p>\n
These findings were presented by MarkPlus Leading Service
\nOfficer Hermawan Kartajaya at the Summer Marketing Educators'
\nConference of the American Marketing Association with the theme
\nSegmentation in the Crisis Era: An Indonesian Experience. The
\nconference was held from Aug. 15 to Aug. 18, 1998.<\/p>\n
It must be acknowledged the survey findings were not shocking.
\nFor the precrisis consumers already persistent in their demands
\nfor quality products, it only followed that despite their reduced
\nspending power, quality labels were not deserted.<\/p>\n
Like consumers in other crisis-hit countries, Indonesians are
\nalso learning to love domestically produced products. The survey
\nshowed that 91.8 percent of respondents would choose domestic
\nproducts, with 51.5 percent selecting high quality goods and 40.3
\npercent willing to accept satisfactory quality products.<\/p>\n
Again, this was no surprise, especially when it is taken into
\naccount that Indonesia has suffered the greatest decline in the
\nvalue of its currency of any crisis-hit country. Prices of
\nimported goods have skyrocketed.<\/p>\n
Quality-conscious Indonesian consumers are not blind
\nnationalists. They choose quality products, and account for the
\n8.2 percent of respondents seeking imported products. From that
\nnumber, 6.1 percent would purchase imported products at
\nreasonable prices, but 2.1 percent vouched that cost was not an
\nissue.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/segmentation-in-the-crisis-era-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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