Segmentation model for strategic decision-making to increase customer value : A study of absentee proprietors in the Swedishforest industry as a result of urbanization

Abstract: Urbanization is a major factor causing unsupported perceptions within the traditional vision offorest management. Urbanization has led to a reconstruction on forest owners’ economicdependency on the forestry. This contributes in emigration from rural areas to bigger cities.To understand how distant forest owners, manage their forest they need to be segmentedaccording to specific criteria. The purpose of the study is to create a segmentation model thatis theoretically anchored and empirically verified, to increase the customer value and maptheir different needs. Through the purpose a research question was developed: How can asegmentation model for absentee proprietors within the forest industry be developed toincrease the customer value? A segmentation model provides comprehensive knowledge andinsights about forest owners’ different needs. The empirical data, collected through surveys,was presented individually and some connections could be found. Through these connectionsproperty area and distance were chosen as factors that are appropriate for segmentation. Basedon the segmentation factors a correlation analysis was made to create four demographicsegmentations. The visitors: small area, small distance. Conservationists: small area, largedistance. Investors: large area, small distance. Specifiers: large area, large distance. Theconclusion shows that a segmentation model over absentee proprietors is necessary for thestrategic management in forest companies, when it comes to decisions regarding sales criteria,communication and recommended approaches.