A market can also be segmented by level of customer service, stage of production, price / performance characteristics, credit arrangements with customers, location of plants, characteristics of manufacturing equipment, channels of distribution, and financial policies. The key is to choose a variable or variables that so divide the market that customers in a segment respond similarly to some aspect of the marketer’s strategy. In relation to bargain holidays and / or package holidays, the variable should be measurable; that is, it should represent an objective value, such as income, rate of consumption, or frequency of buying, not simply a qualitative viewpoint, such as the degree of customer happiness.
Also, the variable should create segments that may be accessible through promotion. Even if it is feasible to measure happiness, segments based on the happiness variable cannot be reached by a specific promotional medium. Finally, segments should be substantial in size; that is, they should be sufficiently large to warrant a separate marketing effort. Once segments have been formed, the next strategic issue is deciding which segment should be selected.