A Benefit-Based Approach To Market Segmentation: A Case Study of an American Specialty Coffeehouse Chain in Hong Kong

Amy Y.F. Tan, Sau Yee Ada Lo

Research output: Journal article publicationJournal articleAcademic researchpeer-review

24 Citations (Scopus)


Specialty coffeehouses have become an increasingly important segment of the foodservice industry in Hong Kong. The exponential growth of this segment has generated keen competition. Without a good understanding of their customers, these coffeehouses may end up losing market share to competitors. The purpose of this study is to identify the market segments in Hong Kong specialty coffeehouses based on the benefits sought by customers when they visit specialty coffeehouses. A survey of 1,000 customers was conducted. The results of this study support the effectiveness of segmenting the specialty coffeehouse customers in Hong Kong using the benefits variable. Four distinct segments of customers were identified: service seekers, atmosphere seekers, quality coffee seekers, and marketing-oriented customers. Based on the differences in coffeehouse selection factors, sociodemographic variables, and coffee consumption behaviors among the four segments, managers of specialty coffeehouses in Hong Kong can customize their strategies to meet the needs of these four market segments.
Original languageEnglish
Pages (from-to)342-362
Number of pages21
JournalJournal of Hospitality and Tourism Research
Issue number3
Publication statusPublished - 1 Jan 2008


  • cluster analysis
  • discriminant analysis
  • market segmentation
  • selection criteria
  • specialty coffeehouse

ASJC Scopus subject areas

  • Education
  • Tourism, Leisure and Hospitality Management

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