Economists and marketers have developed theoretical con
structs which suggest that effective market segmentation can
be used to identify differences in price sensitivity among
market segments. The purpose of this investigation is to
extend theory in the industrial marketing literature by using
marketing research to distinguish market segments that are
useful in industrial pricing decisions. Both macrosegmenta
tion, using characteristics of customers (that is, end-use and
usage level), as well as microsegmentation (using behavioral
variables) were utilized in a survey of natural gas customers
to determine if segments of the industrial market differ in
price sensitivity.
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