From national to local: A geodemographic segmentation model for market targeting in Vietnam's major cities

Spatial analysis, particularly through geodemographic segmentation, has emerged as a critical determinant for enterprise strategic decision-making in market entry, exploitation, and expansion. This study contributes to the under-explored field of geodemographic segmentation in Vietnam by developing...

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Main Authors: Nguyen Ngoc Son, Chau Bao Anh, Thu Hang Le, Vu Anh Duc
Format: Article
Language:English
Published: Elsevier 2025-06-01
Series:Sustainable Futures
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Online Access:http://www.sciencedirect.com/science/article/pii/S2666188825001327
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author Nguyen Ngoc Son
Chau Bao Anh
Thu Hang Le
Vu Anh Duc
author_facet Nguyen Ngoc Son
Chau Bao Anh
Thu Hang Le
Vu Anh Duc
author_sort Nguyen Ngoc Son
collection DOAJ
description Spatial analysis, particularly through geodemographic segmentation, has emerged as a critical determinant for enterprise strategic decision-making in market entry, exploitation, and expansion. This study contributes to the under-explored field of geodemographic segmentation in Vietnam by developing a robust model. By employing a combination of Principal Component Analysis (PCA) and K-means clustering, the research examined a comprehensive set of demographic variables (population, housing, marital status, educational attainment) across 11,165 administrative units. This analysis resulted in the segmentation of these units into 15 distinct clusters based on their characteristics. Subsequently, the model was further refined by focusing on major cities like Hanoi, Da Nang, and Ho Chi Minh City, integrating both geographic and demographic variables for a market segmentation analysis. Owing to its focus on practical application, this study is anticipated to be a pioneering effort in the Vietnamese context, paving the way for the exploration of geodemographic segmentation models across diverse industries such as banking, retail, food, and hospitality.
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institution Kabale University
issn 2666-1888
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publishDate 2025-06-01
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series Sustainable Futures
spelling doaj-art-3aba5d3dcc69434a8b7d232f1ed45fe82025-08-20T03:45:34ZengElsevierSustainable Futures2666-18882025-06-01910056210.1016/j.sftr.2025.100562From national to local: A geodemographic segmentation model for market targeting in Vietnam's major citiesNguyen Ngoc Son0Chau Bao Anh1Thu Hang Le2Vu Anh Duc3Faculty of Law, Ton Duc Thang University, Ho Chi Minh City, VietnamFaculty of Law, Ton Duc Thang University, Ho Chi Minh City, Vietnam; Corresponding author.Faculty of Business Administration, Foreign Trade University, Hanoi, VietnamFaculty of Law, Ton Duc Thang University, Ho Chi Minh City, VietnamSpatial analysis, particularly through geodemographic segmentation, has emerged as a critical determinant for enterprise strategic decision-making in market entry, exploitation, and expansion. This study contributes to the under-explored field of geodemographic segmentation in Vietnam by developing a robust model. By employing a combination of Principal Component Analysis (PCA) and K-means clustering, the research examined a comprehensive set of demographic variables (population, housing, marital status, educational attainment) across 11,165 administrative units. This analysis resulted in the segmentation of these units into 15 distinct clusters based on their characteristics. Subsequently, the model was further refined by focusing on major cities like Hanoi, Da Nang, and Ho Chi Minh City, integrating both geographic and demographic variables for a market segmentation analysis. Owing to its focus on practical application, this study is anticipated to be a pioneering effort in the Vietnamese context, paving the way for the exploration of geodemographic segmentation models across diverse industries such as banking, retail, food, and hospitality.http://www.sciencedirect.com/science/article/pii/S2666188825001327Market segmentationGeodemographic segmentationPrincipal component analysisK-means clusteringfactor analysis
spellingShingle Nguyen Ngoc Son
Chau Bao Anh
Thu Hang Le
Vu Anh Duc
From national to local: A geodemographic segmentation model for market targeting in Vietnam's major cities
Sustainable Futures
Market segmentation
Geodemographic segmentation
Principal component analysis
K-means clustering
factor analysis
title From national to local: A geodemographic segmentation model for market targeting in Vietnam's major cities
title_full From national to local: A geodemographic segmentation model for market targeting in Vietnam's major cities
title_fullStr From national to local: A geodemographic segmentation model for market targeting in Vietnam's major cities
title_full_unstemmed From national to local: A geodemographic segmentation model for market targeting in Vietnam's major cities
title_short From national to local: A geodemographic segmentation model for market targeting in Vietnam's major cities
title_sort from national to local a geodemographic segmentation model for market targeting in vietnam s major cities
topic Market segmentation
Geodemographic segmentation
Principal component analysis
K-means clustering
factor analysis
url http://www.sciencedirect.com/science/article/pii/S2666188825001327
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