Factors determining market segmentations in the service industry the case of mobile telephone in Kenya

Abstract

The aim of this study was to establish the practice of market segmentation b_v the mobile telephone operators in Kenya; if so, to identify the factors used. The study also aimed at determining the importance of geographic factor in segmenting the mobile telephone market and to establish a difference between the geographic and socio- economic factors used by the mobile telephone operators. The study had three hypotheses: first, mobile telephone operators in Kenya practise market segmentation; second, the geographic location is the most important factor used in segmenting the market; and, third, there is the difference between the geographic and socio-economic factors used by the mobile operators in Kenya. To test these hypotheses, the two- , . paired t-test was used. All the three hypotheses were accepted. Thus the findings of the study showed that mobile telephone operators in Kenya practised market segmentation and the geographic location was the most important factor. The findings revealed that there was the difference between the geographic and socio-economic factors used by mobile telephone operators. Further research is recommended to consider more market segmentation factors and other telephone service providers in the telecommunications sector