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Spa market segmentation according to customer preference

Basak Denizci Guillet (School of Hotel and Tourism Management, Hong Kong Polytechnic University, Kowloon, Hong Kong)
Deniz Kucukusta (School of Hotel and Tourism Management, Hong Kong Polytechnic University, Kowloon, Hong Kong)

International Journal of Contemporary Hospitality Management

ISSN: 0959-6119

Article publication date: 8 February 2016

6200

Abstract

Purpose

This paper aims to segment spa customers based on their preferences for a set of spa attributes. With the considerable growth rate of the spa market, it is vital for spa professionals to understand spa-goers’ preferences. However, academics and industry professionals have not devised a structured method by which to manage spa customers.

Design/methodology/approach

A survey was conducted using a face-to-face survey with visitors to Hong Kong who had visited a spa. By applying conjoint and cluster analysis, customers could be categorized into distinct segments.

Findings

Four customer segments were identified: spa enthusiasts, high spenders, value seekers and price-sensitive spa-goers. Spa enthusiasts were the largest segment among the four, followed by value seekers, price-sensitive spa-goers and high spenders.

Research limitations/implications

Given the limited academic interest in the area, this study contributes to the literature by providing insights into spa-goers’ preferences and how those preferences can be used to segment spa-goers.

Practical implications

Based on the different needs, preferences and socio-demographic characteristics of the four segments – spa enthusiasts, high spenders, value seekers and price-sensitive spa-goers – spa industry managers could customize their strategies and design different spa services and packages to meet the needs of the four segments.

Originality/value

The combined use of conjoint and cluster analysis provides a new method of market segmentation in the spa industry. This study could help spa professionals to design customized spa products for the distinct segments, and thus retain and attract more spa visitors.

Keywords

Acknowledgements

This project was supported by a grant funded by the Research Grants Council of the Hong Kong Special Administrative Region, China (Project Number: PolyU 5,423/12H).

Citation

Denizci Guillet, B. and Kucukusta, D. (2016), "Spa market segmentation according to customer preference", International Journal of Contemporary Hospitality Management, Vol. 28 No. 2, pp. 418-434. https://doi.org/10.1108/IJCHM-07-2014-0374

Publisher

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Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited

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