Assessing the applicability of market segmentation in the development of elderly care

Academic Public Administration Studies

Assessing the applicability of market segmentation in the development of elderly care

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Title: Assessing the applicability of market segmentation in the development of elderly care
Author: Sintonen, Sanna; Hokkanen, Timo; Hallikas, Jukka; Kaljunen, Leena
Abstract: The organizing responsibility of elderly care is mainly in the public sector, which is under heavy pressure to keep the costs in tight rein due to aging of the population. The present paper approaches the reorganization possibilities of welfare services for elderly through segmentation. Considering the services that elderly need, there are three possible instances that could fill the needs related to elderly welfare: the public sector, private service producers and non-profit organizations based on voluntary work. Segmentation is used as a method to discover the service need and to assess the opportunities for service delivering from each of the mentioned instances. Empirical evidence is provided with two different data sets. The selection of segmentation basis is discussed, i.e. the selection of the proper set of variables or characteristics used to assign potential customers to homogeneous groups. Due to the fact that we use two unrelated data sets, we are able to produce two different segmentation solutions that will give an extend view for planning the entirety of the elderly welfare services so that the private and non-profit services complement the legally guaranteed public services.
URI: http://www.apas.admpubl.snspa.ro/handle/2010/409
Date: 2011-08-05


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