Unintended consequences of race‐based segmentation strategies

The purpose of this paper is to review the pitfalls and potentials of segmentation decisions based on the visible demographic variable of race.

The paper takes as its approach a review of assumptions and values of use of race as a marketing segmentation strategy, but places them against the inherent dangers that could be overlooked in a retail environment. The paper's purpose is to note the misuse of the planning tool of segmentation.

Dealing with race‐driven decisions could create an unwelcome or even segregating situation with potential for customer loss or even discrimination. The business needs to understand how to attract and retain customers of all types.

It is easy to forget that people of any type could be valued customers, and no store should, intentionally or otherwise, desire to discourage some customers at the expense of gaining others.