Segmenting spa customers based on rate fences using conjoint and cluster analyses

Abstract

The purpose of this study was to segment spa customers based on their preferences for spa rates and restrictions. A survey was conducted using a self-administrated questionnaire distributed to Chinese visitors in Hong Kong with spa experience. Four distinct customer segments were identified by combining conjoint and cluster analyses: treatment-oriented spa goers, guarantee-sensitive spa goers, price-sensitive spa goers, and fewer days advance booking seekers. The results support the effectiveness of combining conjoint and cluster analyses in market segmentation studies. The findings will be useful for spas in designing rate fences preferred by different types of customers, which could in turn increase spa revenue.