Design and Explanation of the Model of Dynamic Segmentation through the International Petroleum Product Market of Iran (Case Study: International Gasoline Market)

Document Type : Research Paper


1 Prof. of Business Management, University of Shahid Beheshti, Tehran, Iran

2 Ph.D Candidate of Business Management, Shahid Beheshti University, Tehran, Iran


The main objective of the present study has been paid on segmentation of international petroleum product market of Iran based on panel data econometric approach and a new hybrid approach based on data mining algorithm. For this purpose, in the first step data of 35 gasoline importing countries in the Middle East, Asia and the Pacific between 1995 and 2012 were analyzed and through the seven hypotheses the effect of the identified components on gasoline imports have been examined. The results indicate that the market size, economic development, the structure of the free market, pump gasoline price and income elasticity of demand for gasoline have direct and significant impact on gasoline imports. In a second step, by using the identified construct and data mining algorithm named Classification and Regression Tree, international gasoline market were segmented and sequences of transition of importing gasoline countries to different segments identified. Then, sequences segmented by using data mining algorithm such as K-Means, Kohonen and two step. Analyzing quality of segments in terms of Silhouette index shows the superiority of Kohonen Kohonen, so chosen as a suitable segmentation method of sequence.


Main Subjects

Ahmadi, P., Azar, A., Samsami, F. (2011). Market Segmentation using Neural Networks (Case Study: Pharmaceutical Market in Iran). Journal of business management, 2(6), 1-20. (in Persian)
Bahrainizadeh, M., Esmaeilpoor, M. & Kabiri fard, D. (2017). Market segmentation of coastal tourists with The self organizing maps approach. Journal of business management, 8(4), 745-770. (in Persian)
Baradaran, V. & Biglari, M. (2015). Customer segmentation in Fast Moving onsumer Goods (FMCG) Industries by using developed RFM model. Journal of business management, 7(1), 23-42. (in Persian)
Behnamian, J. &  Asgari, R. (2016). Bi-objective customer segmentation using data mining technique (A case study in Sima-choob). Journal of business management, 7(4), 841-864. (in Persian)
Cavusgil, S. T., Kiyak, T. & Yeniyurt, S. (2004). Complementary approaches to preliminary foreign market opportunity assessment: Country clustering and country ranking. Industrial Marketing Management, 33(7), 607-617.
Cavusgil, S.T. (1997). Measuring the potential of emerging markets: an indexing approach. Business Horizons, 40(1), 87-91.
Ceglowski, J. (2006). Does gravity matter in a service economy? Review of World Economics, 142(2), 307-329.
Dibb, S. & Simkin, L. (2010). Judging the quality of customer segments: segmentation effectiveness. Journal of Strategic Marketing, 18(2), 113-131.
Drummond, G., Ensor, J. & Ashford, R. (2010). Strategic marketing Planing and Control. (Third Edition). Burlington (USA), Routledge.
Falbey, W. (2001). Business Segmentation and Real Estate Development: Measuring the Relationship between Segmentation Bases and Perceived Effectiveness of Segmentation Variables. Wayne Huizenga Graduate School of Business and Entrepreneurship Nova Southeastern University.
Fink, C., Mattoo, A. & Neagu, I. C. (2005). Assessing the impact of communication costs on international trade. Journal of International Economics, 67(2), 428-445.
Frank, R. E., Massey, W. F. & Wind, Y. (1972). Market Segmentation. Englewood Cliffs, New Jersey, Prentice-Hall Inc.
Freund, C. L. & Weinhold, D. (2004). The effect of the Internet on international trade. Journal of International Economics, 62(1), 171-189.
Ghazizadeh, M., Bashiri, M., Karimi, S., Goharpad, G. (2014). Market Segmentation from the consumer's perspective using ANN and identification of their key characteristics based on the Taguchi technique (A case study in a shampoo industry). Journal of New Marketing Research, 4(4), 125-142.
Ha, S.H., Bae, S.M. (2006). Keeping Track of Customer Life Cycle to Build Customer Relationship. In: Li X., Zaïane O.R., Li Z. (eds) Advanced Data Mining and Applications. ADMA 2006. Lecture Notes in Computer Science, vol 4093. 372-379.
Glaister, K. & Thwaites D. (1993). Managerial perception and organizational strategy. Journal of General Management, 18(4), 15-33.
Haining, T., Juanjuan, X. & Bian, Z. (2009). Research on Index System of  Dynamic Customer Segmentation Based on the Case Study of China Telecom. 2009 International Conference on Information Management and Engineering, 441-445 3rd-5th April, Kuala Lumpur, Malaysia.
Hasan, M. K., Al Mamun, M. A., & Islam, M. R. (2015). Market Segmentation and Targeting Strategy for Promoting Cox’s Bazar Beach In Bangladesh As A Tourists’ destination. British Journal of Marketing Studies3(4), 59-72.

Hofstede, F.T., Steenkamp, Jan-Benedict E.M (2002). International market segmentation: issues and perspectives. International Journal of Research in Marketing, 19)3(, 185- 213.

Hasangholipour, T., Miri, S.M., Morovati Sharif Abadi, A. (2007). Market Segmentation Using Artificial Neural Networks Case Study: Meat Products (Sausage). Journal of management research in Iran, 11(55), 59-80.

Kim J., Wei, S., Ruys, H. (2002). Segmenting the market of West Australian senior tourists using an artificial neural network. Tourism Management, 24(1), 25-34.
Kotler, P. & Keller, K. (2011). Marketing Management, (14th Edition). Prentic Hall, New Jersey, USA.
Lännhult, T. (2008). Can Bulk Products be Segmented? A Case Study of AVFORM™ L50. USA, Florida, Karlstad. D-Level.
Liu, Y. (2007). Multicriterion market segmentation: A unified model, implementation and evaluation. A Dissertation Submitted to the Faculty of the Committee to Business administration, Arizona.

Maleki Minbashrazgah, M., Zarei, A. & Hajiloo, Z. (2016). Identifying & Segmenting Key Customers for Prioritizing them Based on Lifetime Value using RFM Model (Case study: Internet customer of Qom Telecommunications Company). Journal of business management, 8(2), 461-478. (in Persian)

Malhotra, N.K., Baalbaki, I.B. (1993). Marketing Management Bases for International Market Segmentation: An Alternate Look at the Standardization /Customization Debate. International Marketing Review, 10(1), 19-44.
Moeini, H., Ranjbarian, B., Rashidkaboli, M., Azarbayejani, K (2012). Foreign Market Analysis: Iran Pistachio as a Case Study. Middle-East Journal of Scientific Research, 11(8), 1087-1094.
Nachum, L. (1994). The Choice of Variables for Segmentation of the International Market. International Marketing Review, 1(3), 54-67.
Papadopoulos, N. & Martín, O. M. (2011). International market selection and segmentation: perspectives and challenges. International Marketing Review, 28(2), 132-149.
Rigby, D. (2005). Management tools 2005. Bain & Co. http://www. fredreichheld. com/management_tools/2005_tools_strategy_brief.pdf.
Root, F. R. (1994). Entry Strategies for International Markets, New York; Lexington Bookspp:171. Industrial Market Segmentation. In: The Marketing Challenge for Industrial Companies. Management for Professionals, Springer, Cham.
Sakarya, S., Eckman, M. & Hyllegard, K.H. (2007). Market selection for international expansion. International Marketing Review, 24(2), 208-238.
Saunders, J. (1994). Cluster analysis. Journal of Marketing Management, 10 (1-3), 13-28.
Sheng, Y. S., Mullen, M. R. (2011). A hybrid model for export market opportunity analysis. International Marketing Review, 28(2), 163-182.
Smith W. R. (1956). Product Differentiation and Market Segmentation as Alternative Marketing Strategies. Osmania Journal of Social Sciences, 21, 3-8.

Sohrabi, B., Raies Vanani, I., & Nik Aein, N. (2017). Customer Segmentation in Pharmaceutical Industry Assisting the Decision Making of Marketing and Sales Managers Based on RFML Model. Journal of business management,  8 (4), 861-884. (in Persian)

Wedel, M. & Kamakura, W. A. (2000). Market Segmentation: Conceptual and Methodological Foundations. International Series in Quantitative Marketing, Pensylvania, USA.
Ye Sheng, S. & Mullen, M. R. (2011). A hybrid model for export market opportunity analysis. International Marketing Review, 28(2), 163-182.