Market segmentation of online reviews: A network analysis approach

Hui-Ju Wang

With the popularity of online reviews, brand managers have opportunities to segment their markets according to the reviews of their products or services by customers.

Introduction

In recent years, online review websites, such as TripAdvisor and Yelp, have become popular, as they serve as significant sources of electronic word-of-mouth (eWOM). Researchers have noticed that online reviews of products and services are the main factor influencing 20-50% of consumer buying decisions (Mathwick & Mosteller, 2017). On online review websites, businesses have opportunities to conduct effective market segmentation by analyzing the data on the preferences and online engagement of reviewers/customers.

Market segmentation is a marketing strategy that divides a marketplace into segments among customers with dissimilar characteristics and behavior (Kotler & Armstrong, 2010). It has been an...

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