Customer Segmentation Strategies in Emerging Markets: A Review of Tools, Models, and Applications

Authors

  • Oluwatolani Vivian Akinrinoye  CitrinePurple Resource Outsourcing Limited, Lagos Nigeria
  • Omolola Temitope Kufile  Fordham University, Gabelli School of Business, United States
  • Bisayo Oluwatosin Otokiti  Department of Business and Entrepreneurship, Kwara State University.
  • Onyinye Gift Ejike  The Velvet Expression Nigeria
  • Samuel Augustine Umezurike  Jo and Samak Global Services Ltd, Benin Kebbi, Nigeria.
  • Abiodun Yusuf Onifade  Independent Researcher, California, USA

Keywords:

Customer Segmentation, Emerging Markets, Clustering Algorithms, Machine Learning, Market Strategy, Data-Driven Marketing

Abstract

Customer segmentation is a pivotal strategy in marketing that enables firms to understand heterogeneous consumer behaviors and develop tailored approaches to serve distinct market groups. In emerging markets, characterized by rapid economic transitions, demographic diversity, and evolving consumer expectations, segmentation strategies require nuanced frameworks and adaptive tools. This paper presents a comprehensive review of customer segmentation strategies employed in emerging markets, focusing on the tools, models, and real-world applications shaping this domain. The review draws insights from empirical and conceptual studies across multiple sectors, including retail, banking, telecommunications, and e-commerce, to highlight how businesses leverage segmentation to enhance market penetration and customer engagement. The study categorizes segmentation approaches into traditional demographic and psychographic models, data-driven methods such as clustering algorithms, and advanced machine learning techniques like neural networks and decision trees. It evaluates the effectiveness of these tools in identifying latent customer needs, predicting purchasing behavior, and optimizing product offerings. Particular attention is given to how firms in resource-constrained environments use segmentation to balance cost-efficiency with value creation. Furthermore, the review underscores the growing importance of digital platforms and big data analytics in enabling dynamic and personalized segmentation, even in regions with infrastructural limitations. Case studies from Africa, Asia, and Latin America are examined to illustrate practical applications and outcomes of segmentation initiatives. The findings indicate that hybrid models combining qualitative insights and quantitative analytics offer the most robust segmentation strategies in emerging markets. Challenges such as data quality, cultural variability, and limited technological adoption are also discussed, along with recommended solutions. This review contributes to both academic literature and managerial practice by mapping current segmentation strategies and offering a framework for future research and implementation. It encourages organizations operating in emerging markets to adopt agile, data-informed approaches to segmentation that are sensitive to local contexts and global trends.

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2020-02-29

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[1]
Oluwatolani Vivian Akinrinoye, Omolola Temitope Kufile, Bisayo Oluwatosin Otokiti, Onyinye Gift Ejike, Samuel Augustine Umezurike, Abiodun Yusuf Onifade, " Customer Segmentation Strategies in Emerging Markets: A Review of Tools, Models, and Applications" International Journal of Scientific Research in Computer Science, Engineering and Information Technology(IJSRCSEIT), ISSN : 2456-3307, Volume 6, Issue 1, pp.194-217, January-February-2020.