Decision-making tree

Momentarily, big data is a phenomenon that offers companies a lot of information about their customers. On the other hand, this data will also give many information about potential customers. To reach these potential customers is another story altogether and a way to attract these customers can be by initiating a new marketing strategy with the use of segmentation. In this blog segmentation will be discussed and an example of targeting a new group will be explained by using a decision tree.

Segmentation is used to subdivide a market to attract potential customers during marketing campaigns. The segmentation criteria are indicators which are used to identify or assign groups Segmentation as told by Peelen & Beltman (2013) is described as indicators such as geographical, demographic and socioeconomic characteristics. Another example of indicators can be transactional, behavioural and lifestyle data. According to the article from Raconteur (2016) transactional data is related to what the average spending’s of a customer are where lifestyle data refers to people’s identity and interests. Lastly there is behavioural data which is related to people’s online and offline activity and which channels they use to make purchases.

Currently tour operators are not making concrete use of this kind of segmentation techniques. Mostly the segmentation is based on the type of products instead of the type of costumers. Tour operators could use segmentation to start up a new brand or marketing campaign. Nowadays a lot of data is collected and with this data a good segmentation strategy could be initiated. A model such as the decision tree could be the first start-up for a new strategy. The decision tree is a model which can help you analysing patterns to make good decisions (Peelen & Beltman, 2013).

In Figure 1 a decision tree is formed based on the Mentality-Model of Motivaction. Motivaction has used a lot of data to create 8 mentalities. These 8 mentalities can be the first inspiration to create a new strategy based on lifestyle and transactional choices from these target groups. As an example the target group 20-30 year olds has been chosen. Three of the following mentalities fit the age group of 20-30 years old very well: Cosmopolitans, Upwardly Mobiles and the Postmodern Hedonists (Motivaction International, 2016). An example of how a decision tree can be built up is as follows:

Figure 1: Decision-tree based on the Mentality-Model by Motivaction (2016)

(Motivaction International, Opwaarts mobielen, 2016)
(Motivaction International, Postmoderne hedonisten, 2016)
(Motivaction International, 2016)

As seen in figure one the decision tree can be used create segments within a wider target group. In the example the profile of the Cosmopolitans has been used to define the greater example. As the cosmopolitans are mostly high-spenders, it can be concluded that they will be into more luxury holidays. In a marketing strategy aspects of their lifestyle aspects for instance could be addressed to convince them of purchasing their luxury travels at your brand.



Matthews, D. (2016, September 1). How connected data is targeting consumers. Retrieved at October 1, 2016, from Raconteur:

Motivaction International. (2016). De acht Mentality-milieus. Retrieved at October 1, 2016, from Motivaction; research and strategy:

Motivaction International. (2016). Kosmopolieten. Retrieved at October 1, 2016, from Motivaction; research and strategy:

Motivaction International. (2016). Opwaarts mobielen. Retrieved at October 1, 2016, from Motivaction; research and strategy:

Motivaction International. (2016). Postmoderne hedonisten. Retrieved at October 1, 2016, from Motivaction; research and strategy:

Peelen, E., & Beltman, R. (2013). The nature of the CRM strategy. In E. Peelen, & R. Beltman, Customer Relationship Management. Pearson Education Limited.


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