Targeting efficiencies among trade show nonattendees

Abstract

When managers define target markets on the basis of market segments, a discrepancy arises between the potential and target markets bringing up two major questions: how much of the nonresponse of the targeted market comes from individuals — who cannot be considered potential customers — and, can we consider the aggregate data of targeted individuals not responding to the marketing effort a reliable source for the acquisition of customers? This issue is analysed in one empirical setting — trade shows targeting retail firms. We first use the aggregate data to estimate, by means of a confirmatory factorial analysis, a model reflecting the reasons involved in nonattendance at trade shows. Then, a cluster analysis is made to identify the individuals actually not interested in trade shows. Our results show that 20 per cent of the targeted retailers were not potential customers. Finally, we found that excluding these individuals resulted in significant and relevant differences in the model estimation. These findings provide managerial implications to improve the design of marketing strategies pursuing the acquisition of new customers and visitors. This paper fills a gap in trade show literature by analysing the under-researched issue of nonattendees and its impact on organisers’ targeting decisions.