The potential for consumer segmentation in the Finnish housing market

Gibler, Karen M. & Tyvimaa, Tanja (2014) The potential for consumer segmentation in the Finnish housing market. Journal of Consumer Affairs, 48(2), pp. 351-379.

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This article examines whether cluster analysis can be used to identify groups of Finnish residents with similar housing preferences. Because homebuilders in Finland have been providing relatively homogeneous products to an increasingly diverse population, current housing may not represent the occupiers' preferences so a segmentation approach relying on socioeconomic characteristics and expressed preferences may not be sufficient. We use data collected via questionnaire in a principal component analysis followed by a hierarchical cluster analysis to determine whether different combinations of housing attributes are important to groups of residents. We can identify four clusters of housing residents based on important characteristics when looking for a house. The clusters describe Finnish people in different phases of the life cycle and with different preferences based on their recreational activities and financial expenditures. Mass customization of housing could be used to better appeal to these different clusters of consumers who share similar preferences, increasing consumer satisfaction and improving profitability.

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3 citations in Scopus
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1 citations in Web of Science®

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ID Code: 91380
Item Type: Journal Article
Refereed: Yes
Additional URLs:
DOI: 10.1111/joca.12037
ISSN: 1745-6606
Divisions: Current > Schools > School of Civil Engineering & Built Environment
Current > QUT Faculties and Divisions > Science & Engineering Faculty
Deposited On: 18 Dec 2015 00:42
Last Modified: 06 Jan 2016 06:42

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