The Impact of Market Segmentation on Customer Satisfaction

ABSTRACT
This study investigates the impact of market segmentation on customer satisfaction, using Nestlé Nigeria consumers in Ilorin as the focal population. The research examines how demographic, geographic, psychographic, and behavioural segmentation influence various aspects of customer satisfaction, namely perception, experience, perceived value, and expectations. Grounded in the Theory of Stable Market Segmentations, the study employs a quantitative research design, utilizing structured questionnaires administered to a sample of 384 respondents selected through purposive sampling. Data were analyzed using descriptive statistics and the chi-square method to test the hypotheses. Findings reveal significant associations between all four segmentation dimensions and corresponding elements of customer satisfaction. Demographic segmentation notably affects perception, while psychographic and behavioural segmentation strongly influence perceived value and expectations. The study highlights the importance of aligning marketing strategies with specific consumer characteristics to foster personalized engagement and loyalty. It concludes that effective segmentation enhances customer satisfaction and offers practical recommendations for organizations, especially within the FMCG sector, to leverage targeted segmentation for sustainable market performance and customer retention.