et al.

: New England Journal of Entrepreneurship, Fall 2010

CASE - 8
Psychographic Segmentation of the Self-employed:
An Exploratory Study

Matthew G. Kenney
Art Weinstein
lthough it is well established in the academic litera-

A
adoption or nonadoption of the proposed technology
ture that entrepreneurs share common traits, there (Verhallen, Frambach, and Prabhu, 1998).
has been limited research dedicated to evaluating Business market analysis means understanding people,
psychographic profiles of the self-employed. Using the relationships, and psychological drivers. By analyzing pur-
Nominal Group Technique, the authors gleaned insight chase motives, marketers can better understand why buyers
from a panel of experts in an effort to segment the self- act the way they do in the marketplace. As an example, small
employed based on personality traits and the benefits they and medium-sized family business clients of professional
receive from an entrepreneurial career. The findings show service providers (accounting, insurance, and law firms)
that self-employed individuals can be classified into four were researched using organizational psychographics.
distinct segments: Exemplars, Generals, Moms and Dads, Market segments were identified based on CEO motivations
and Altruists. Each group derives different benefits from for operating the business. In descending order, the eight psy-
self-employment. Understanding these benefits can greatly chographic segments of family business owners, which
assist entrepreneurship educators and marketers of small ranged from more than a third of the sample to less than 5
business oriented products and services. percent, were as follows: loving parents, autocrats, empire
Keywords: psychographics, segmentation, entrepreneurial builders, fortune hunters, recruits, rebels, status seekers, and
characteristics, nominal group technique social benefactors. These grouping motivations impacted
purchasing attitudes and behavior (File and Prince, 1996).

The academic literature is replete with research discussing Literature Review

the character traits entrepreneurs seem to possess. However, Core Segmentation Research
there is a gap in the literature relative to psychographic pro- Psychographic segmentation is the process of grouping indi-
files of the self-employed. For example, while it is generally viduals based on attitudes, opinions, personality traits, beliefs,
accepted that entrepreneurs have a high locus of control, and lifestyles (Piirto, 1991). Although there have been con-
comfort with ambiguity, and various other traits (MacPhee, flicts within the academic community as to the reliability and
1987; Erkkila, 2000), less research has been done into the psy- validity of psychographic measures (Wells, 1975), this seg-
chology behind why some entrepreneurs are driven to mentation approach has become an important tool used by
change industry and societal paradigms while others, who companies to identify trends within market segments and
presumably share the same traits, toil in relative obscurity help crystallize causal relationships between consumer deci-
content to earn less than similarly qualified professionals sions and purchase intentions (Piirto, 1991).
(Hamilton, 2000). A testament to the widespread acceptance of psycho-
This study examines existing literature insofar as how graphic research is the success of SRI’s VALS program and the
entrepreneur differences extend beyond demographics and Yankelovich Monitor, which was cofounded in 1958 by mar-
unobservable characteristics (e.g., corporate strategy). ket research pioneer Daniel Yankelovich. Today they sell psy-
Psychographic segmentation is an emerging area of research. chographic information to many of the world’s largest com-
Strategic types (defenders, prospectors, analyzers, and reac- panies (Yankelovich Partners, 2005). According to
tors) and strategic orientation (customer orientation, finan- Yankelovich (1964):
cial orientation, internal orientation, human relations orienta- Demography is not the only or the best way to segment
tion, and research and development orientation) were found markets. Even more crucial to marketing objectives are differ-
to be useful organizational psychographics in a study of car ences in buyer attitudes, motivations, values, patterns of
phone purchases by Dutch firms (a new-buy purchase deci- usage, aesthetic preferences, and degree of susceptibility (p.
sion). In contrast, the two firmographic variables, firm size 83).
and industry, had little explanatory value with respect to the Smith’s (1956) pioneering work in the field was heavily

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 New England Journal of Entrepreneurship, Vol. 13 [2010], No. 2, Art. 1

rooted in the quantitative aspects of market segmentation. output. Austrian theories espouse the opposite of the neo-
Psychographic theory, by contrast is an outgrowth of motiva- classical equilibrium view school, stating that information
tion research (Wells and Tigert, 1971), which posits an exten- about an opportunity, rather than an individual’s attributes,
sion of Haley’s (1968) benefit segmentation theory that states determine who will become an entrepreneur.
descriptive segmentation techniques such as demographics, Entrepreneurship-related academic literature justifiably
geography, and usage are beneficial but provide limited focuses heavily on trait theory of entrepreneurial leadership.
insight into consumer intention. Scholarly journal articles frequently discuss an entrepre-
Haley’s hypothesis was that perceived benefits drive pur- neur’s willingness to take risks, high locus of control, and rel-
chase intention, which has largely been empirically support- ative comfort with ambiguity, etc. (see Figure 1). However,
ed by subsequent scholarly research (Haley, 1999). does knowing these qualities and traits truly help marketers
Psychographics goes one step further by exploring the gene- of business-to-business (B2B) products or services define the
sis of how consumers cognitively determine these benefits. entrepreneurial market? It is likely that the aforementioned
traits are shared by paradigm changing entrepreneurs (e.g.,
Entrepreneurial Segmentation: Theories and H.Wayne Huizenga, Michael Dell, Martha Stewart etc.), as well
Insights as sole proprietors working from a home office.What are the
Psychological constructs affecting entrepreneurial cognition key psychographic variables that separate radical and vision-
include learning style (Johnson, Danis, and Dollinger, 2004), ary entrepreneurs (Wawro, 2000) from the small business
parental support and influence (Matthews and Human, owner who chooses self-employment even though he or she
2004), maturity and life experiences (Reynolds, 2004), satis- is statistically more likely to earn less money (Hamilton,
faction (Johnson,Arthaud-Day, Rode, and Near, 2004), and self- 2000) than comparably qualified corporate employees?
confidence (Cooper,Woo, and Dukelberg, 1988). Since entrepreneurs have the ultimate decision-making
While there are myriad resources in the scholarly litera- authority in their ventures, understanding how and why they
ture, such as the Panel Study of Entrepreneurial Dynamics, choose this career path (and the benefits they receive from
in empirically examining entrepreneurship as social and eco- it) will greatly assist B2B marketers in defining their market
nomic phenomena (Gartner, Shaver, Carter, and Reynolds, and crafting appropriate product and promotional strategies.
2004), there is a gap in the literature relative to the psycho-
analytic study of entrepreneurs (Kets de Vries, 1996). Persuasive
According to Jones-Evans (1995) “research has demonstrated Moderate Risk Taker
considerable inconsistency in identifying a set of characteris- Flexible
tics by which those individuals can be termed entrepreneurs Creative
Autonomous
or entrepreneurial” (p. 27).
Problem Solver
This may be due to that fact that since Cantillon first used Need to Achieve
the word entrepreneur in an academic context, scholars have Imaginative
been unable to reach consensus as to a proper definition High Locus of Control
(Dana, 2001). Thus, an agreed upon conceptual framework Leadership Ability
for entrepreneurial development does not exist (Shane and Diligent
Venkataramen, 2000; Outcalt, 2000). Displays Initiative
Ward (2005) attributes this phenomenon to the fact that
Figure 1. Entrepreneur Qualities and Traits
entrepreneurship has historically been viewed from three Source: Adapted from Erkkila, 2000.
unique perspectives: economic, sociological, and idiosyncrat-
ic. Shane (2000) explains that three philosophical schools of Research Methodology
thought have emerged relative to entrepreneurship: neoclas- The Nominal Group Technique (NGT) was utilized to collect
sical equilibrium theory, psychological theory, and Austrian data for this study as it has been proven to be an effective
theory. qualitative research method. Using small judgment samples, it
Neoclassical equilibrium theories posit that attributes of collects penetrating insights from subject matter experts
the individual, rather than information about an opportunity (Streibel, 2003). This technique allows the group to reach
determines who becomes an entrepreneur. Essentially, entre- consensus quickly while assuring that each participant is
preneurs are born not made, and possess certain skills that afforded equal opportunity to express his or her opinions.
lead to their avocation. Psychological theories suggest that The origins of NGT can be traced back to Delbecq and Van
the ability to recognize opportunity stems from intrinsic De Ven’s (1971) Program Planning Model (PPM). NGT was
motivation. For example, McClelland (1961) theorized cer- established to mitigate the inherent limitations of the brain-
tain traits, such as the need for achievement, influence one’s storming technique. By the early 1970s it was clearly estab-

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lished by social scientists that interaction within groups viewed entrepreneurs as undertakers of opportunity who
often has the effect of inhibiting the performance of certain assume risk in expectation of a profit. The key component of
members (Taylor, Berry, and Block, 1958). entrepreneurship is viewed as willingness to accept uncer-
A nominal group is defined as a group that works togeth- tainty (Cantillon, 1931; Casson, 2002).
er but does not interact directly (Delbecq and Van De Ven,
1971). The process of collecting data is as follows: Dr. Joe Goldblatt
Dr. Goldblatt is Professor of Tourism and Hospitality
• A small group of experts is assembled in an effort to Management in the School of Tourism & Hospitality Manage-
reach consensus. ment and Executive Director for Professional Development
and Strategic Advancement at Temple University in Philadel-
• A facilitator provides open-ended questions to the par-
phia, Pennsylvania. He is an educational consultant, speaker,
ticipants and encourages them to share their answers author, and editor of 15 books. Dr. Goldblatt is also a very
without fear of judgment. The anonymity of the partici- successful entrepreneur having produced more than 1,000
pant’s response is assured. high-profile events, ranging from presidential inaugurations
• Responses are collected and shared by the facilitator to the opening of Donald Trump’s Taj Mahal Resort (Temple
with the entire group. University, 2007).
• The ideas are evaluated and anonymously voted on by Jo Hamilton, Ph.D.
the group members in an attempt to reach consensus. Dr. Hamilton is a professor in Franklin University’s Master of
Business Administration Program and teaches courses in
Advantages and Limitations of NGT entrepreneurship, knowledge management, organizational
The primary advantage of NGT is that it assures equal partic- ethics and leadership. As a consultant she has helped com-
panies including Wendy’s International, Bank One,American
ipation of group members. It also is highly structured and
Electric Power, Cardinal Health, and Lucent Technologies
allows for in-depth critical analysis by respondents (Potter, increase performance in the areas of B2B relationship man-
Gorden, and Hamer, 2004). Its disadvantages include a lack of agement, custom web-based learning, performance support,
synergy and cross fertilization of ideas received through team effectiveness, and business strategy alignment
brainstorming. The process is also somewhat mechanical (Franklin University, 2007).
(Sample, 1984) compared to other qualitative techniques. Kenneth Proudfoot
NGT requires an expert in the subject area to facilitate the Mr. Proudfoot is the former Founding Director of the Larry
discussion (Potter et al., 2004). However, it may be temping Friedman International Center for Entrepreneurship and
for expert facilitators to interject their own opinions, which Professor of Entrepreneurship at Johnson & Wales
would bias the findings. University. He is the founder of the Rhode Island Micro-
The validity (Van Teijlengen et al., 2006) and reliably (Vella enterprise Association, president of the Enterprise Institute
of Rhode Island, and has taught and/or designed undergrad-
et al., 2000) of NGT has been demonstrated. NGT is an effec-
uate courses in global entrepreneurship, financing the
tive technique for an exploratory study. However, qualitative entrepreneurial venture, and managing change and innova-
research has more potential for researcher bias and lacks the tion (ESAC, 2007). He is also a 2006 recipient of the Leavey
generalizability of quantitative research methods (Miles and Award for Excellence in Private Enterprise Education.
Huberman, 1994). Thus, additional quantitative methods
should be utilized in future investigation of the psychograph- Figure 2. Subject Matter Experts
ic qualities of the self-employed.
Data Collection
Subject Matter Experts During a four-week period the authors accumulated verbal
For the purposes of this research study a trilateral panel was and written feedback from each subject matter expert as to
established consisting of individuals who have a long track the psychological and personality traits of the self-employed
record of both scholarly achievement and entrepreneurial for the purpose of psychographic segmentation. Content
experience (see Figure 2). Each panel member has consider- analysis was performed in order to categorize large amounts
able experience working with entrepreneurs ranging from of text into narrow categories and establish precise defini-
home-based businesses to leaders of high-growth entrepre- tions (Stemler, 2001). As the data were collected and coded,
neurial firms. it soon became apparent that four classifications of self-
The panelists and facilitator concurred that Cantillon’s employed individuals were emerging:
definition of an entrepreneur as a self-employed individual
(Formaini, 2001) was more appropriate than the 1. Entrepreneurs who amass fortunes and/or iconic
Schumpeterian (1961) definition, which states that entrepre- stature. A group Hamilton (2000) referred to as “super-
neurship is not contingent upon self-employment. Cantillon stars” (p. 605).

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 New England Journal of Entrepreneurship, Vol. 13 [2010], No. 2, Art. 1

2. Small business owners who are technically proficient ing brands but adequate infrastructure and core technical
but remain small due to their inability and/or unwilling- competencies. As a result, the company realized tremendous
ness to delegate authority and give up control. growth and Koch is viewed as a paradigm-changing entrepre-
3. Lifestyle-based entrepreneurs who maintain a small, neur.
likely home-based, business and see self-employment Exemplar Sam Walton changed the landscape of his indus-
not as a vocation but rather a complement to their pre- try by creating a culture that valued the role of teamwork in
ferred way of life. pursuit of a shared goal. Tangible rewards such as employee
4. Owners of nonprofit organizations who are dedicated stock options in combination with subtle tactics, such as
to helping others, relieving a perceived injustice, or ded- referring to employees as associates, managers as coaches,
icated to a social cause in some way. and customers as neighbors resulted in internal stakeholders
having immense loyalty for Walton despite often having bur-
Findings densome work conditions (Bergdahl, 2004).
Content analysis shows that the self-employed can be classi- Another Exemplar, Southwest Airlines founder Herb
fied into four psychographic segments: Exemplars, Generals, Kelleher has received similar devotion from employees.
Moms and Dads, and Altruists (see Figure 3). While individu- According to Schwartz (1996) this employee devotion and
als within these groups share most, if not all, of the traits set ultimately the company’s long record of profitability in a tur-
forth by Erkkila (2000) and other scholars, it is clear that bulent industry can be traced to the golden rule set forth by
members of each segment derive different benefits from self- Kelleher:
employment.
Employees are No. 1.The way you treat your employ-
Segment 1: Exemplars ees is the way they will treat your customers. Think
The word “exemplar” derives from the Latin word exemplum small to grow big. Manage in the good times for the bad
and refers to a desired model, or something that should be times. Irreverence is OK. It’s OK to be yourself. Have
imitated. Essentially, Exemplars are the entrepreneurs who fun at work. Take the competition seriously, but not
have an enormous impact on their industry and society. yourself. It’s difficult to change someone’s attitude, so
These entrepreneurs share the same aforementioned traits as hire for attitude and train for skill.Think of the compa-
others entrepreneurs but tend to be more visionary. While ny as a service organization that happens to be in the
Exemplars reflect the societal perceptions of the self- airline business. Do whatever it takes. Always practice
employed, they are actually the rarest segment (MacPhee, the Golden Rule, internally and externally.
1987).
For instance, Cruikshank (2006) notes how in the 1970s a Exemplars do not seem to reflect the negative traits many
young Steve Jobs would spend time in department stores people in society have of entrepreneurs as mercurial, prima-
looking at the design of kitchen appliances and visualizing a rily internally motivated, and unconcerned with risk
personal computer that would be as easy to use and as ubiq- (Jennings, Cox, and Cooper, 1994). Rather, they tend to be
uitous as household appliances. Future billionaires Bill Gates true leaders who view their companies as vehicles of social
and Michael Dell, each leaving college to pursue the oppor- good and positive change. While Exemplars often reap the
tunities they recognized, reflect the visionary (Wawro, 2000) financial gains incumbent with leading an industry and/or
and risk-taking propensity (Jennings, Cox, and Cooper, 1994) societal paradigm shift, financial gain does not appear to be a
of the Exemplar. motivator. Money appears to satisfy but not motivate, which
A key characteristic that seems to separate Exemplars suggests Two-Factor Theory (Herzberg, 1984) has some appli-
from the other entrepreneurial segments is their ability to cability to an entrepreneurial career path.
leverage the talents of others in fulfillment of their vision. One quality of an Exemplar is that he or she often willing-
Similar to what Napoleon Hill viewed as a Master Mind ly cedes power to a professional CEO once the company
Alliance, Exemplars seem to be aware of their strengths and reaches a certain critical mass. They are intuitive and self-
weaknesses and take proactive steps to mitigate their weak- actualized, and thus realize that they do not have the skill set
nesses via hiring or strategic relationships. Jim Koch, founder and/or managerial acumen to grow the company to the next
of Boston Beer Company, notes that as an entrepreneur “you level. Essentially, an Exemplar will put the best interest of
can believe that your judgment is infallible and develop a shareholders ahead of his or her ego. A recent example of
whim of iron which can lead you into making dumb mis- this phenomenon was Jet Blue founder David Neeleman step-
takes” (Ericksen, 1997, p. 55). To avoid this phenomenon, ping down as CEO after recognizing the company needed a
Koch chose to grow his business by outsourcing production, leader with better operational skills (Schlangenstein and
under close supervision, to other breweries that had declin- Mildenberg, 2007).

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 et al.: New England Journal of Entrepreneurship, Fall 2010

Segment 2: Generals in a psychographic context in that they perceive similar ben-

Generals, by contrast, would be much less likely to cede efits from self-employment.
power due to their overly developed locus of control. The The problem most Generals have is their inability to let go
term General can be somewhat deceiving as this segment of the reins once their goal of profitability has been achieved
is often leading either a very small team or, in many cases, (Jennings, Cox, and Cooper, 2004). This results in a paradox
no team at all. This descriptive term is used to reflect the in that the skills that allow Generals to achieve profitability
need for control in virtually every facet of his or her ven- will ultimately lead to their downfall. Ward’s (2003) descrip-
ture. Generals tend to be very technically proficient but tion of paradoxical entrepreneurial organizations seems to
lack the vision and leadership skills inherent in Exemplars. encapsulate the path followed by many Generals by noting
This truth is evident to every stakeholder except the these organizations:
General, who is likely to view himself or herself as an
Exemplar. Become dominated by the function that has driven
Gerber (1986) notes that self-employed individuals have their success, and hubris develops, causing them to fail
three personalities: entrepreneur, technician, and manager. to see how their organization is losing touch with a
All three must be present if a venture is to get off the ground changing environment, even leading them to believe
but once the venture is launched one of the personalities that they shape the environment and do not need to be
tends to dominate and ultimately dictates the course of the concerned with external changes. Thus, the heroic
venture. The General has enough entrepreneurial vision to vision on which the organization was founded
identify a market opportunity that complements his or her becomes a heroic self-concept (p. 103).
strengths and has a modicum of skills in the functional areas
of business that allow for the venture to remain sustainable. Traits such as obsession with quality that are essential in
Generals are often found in the technical trades and profes- the formative stages of a venture can be destructive at later
sional services. The sole proprietor of a small landscaping stages of a venture. This is a paradox Generals seem unwill-
business and a home-based management consultant may, ing or unable to predict or prevent.
although dissimilar in a demographic context, be very similar

Figure 3: Psychographic self-employed segments

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Segment 3: Moms and Dads Segment 4: Altruists

Members of this segment tend to view their venture as an Members of this psychographic segment tend to associate
extension of themselves. Entrepreneurship isn’t as much success and derive benefits by advancing a social cause
about being self-employed as it is about being true to their and/or helping others. Their entrepreneurial activities are
avocation.This segment nurtures their ventures much like a mission based (Brickerhoff, 2000) and are likely to establish
parent would with a child in that they appear to be emotion- nonprofit corporations. According to the National Center for
ally attached to the enterprise and will make decisions to Charitable Statistics (2007) there are 1,397,263 nonprofit
protect the venture that may not be in their best commercial organizations in the United States, which represents a 28.8
interests.This psychographic segment is comprised of three percent increase since 1996. Of the nonprofits, 7.4 percent
subsegments of entrepreneurs. Each subsegment is motivat- are private foundations created by Exemplars and/or the
ed by lifestyle considerations but derive different benefits organizations they founded and 36.2 percent of the nonprof-
from their career choices. The three subsegments of Moms its generate $25,000 or less in revenue (NCCS, 2007). The lat-
and Dads were found to be ter statistic shows that a significant number of Altruists are
likely running their ventures on a part-time basis while work-
• Lifestyle entrepreneurs:Business owners who choose self- ing for others, which mitigates some of the pressure of
employment primarily for the lifestyle benefits an entre- fundraising. It also demonstrates that Altruists may lack some
preneurial career path offers. These are individuals who of the business acumen required to manage a venture.
own businesses closely aligned with their personal inter- Many Altruists appear somewhat naïve in that they tend to
ests, values, and passions (Marcketti, Niehm, and Fuloria, believe that their altruistic purpose will be enough to sustain
2006). These ventures are unlikely to generate significant their business (Brickerhoff, 2000). In reality,Altruists may face
revenue but are desirable to entrepreneurs seeking to the greatest challenges as their tax status limits potential rev-
escape bureaucratic or corporate environments. The enue streams and established professionally managed chari-
struggling artist who sells his or her wares without much ties have existing relationships with the finite number of
prospect of financial gain would be a prototypical lifestyle grant-makers.
entrepreneur.
• Franchisees: According to the International Franchise Management Implications
Association (2004), there are 767,483 franchise units in Psychographic segmentation of the self-employed benefits
the United States, which provide 9,797,117 jobs or 7.4 marketers of small business related products and services as
percent of the nation’s private sector jobs. It is the con- marketers will have clearer insight into how and why entre-
sensus of the panel that the franchisees should be classi- preneurs make decisions. Entrepreneurship and marketing
fied as a subsegment of Moms and Dads because the pri- educators will also benefit from the findings of this study as
mary benefit sought by this segment is mitigated risk they show that entrepreneurial activity may be influenced as
and leveraging shared resources, similar to the benefits much by perceived psychographic benefits as one’s entrepre-
one receives as part of a family unit. neurial traits.While the literature suggests traits drive behav-
• Family Business Owners: Sharma, Chrisman, and Chua iors, the findings of this study suggest traits and the per-
(2007) define family business as “a business governed ceived benefits of self-employment drive behaviors.
and/or managed on a sustainable, potentially cross-
generational, basis to shape and perhaps pursue the Marketing to Exemplars
formal or implicit vision of the business held by mem- Exemplars will be interested in scaling their venture and
bers of the same family or a small number of families” positioning it as an alternative to existing offerings.
(p.2). Culture within family firms is unique in that Therefore, marketers may want to appeal to the visionary
there is a dynamic interaction between family values facet of this segment by embracing and validating their
and expectations, and business values and expecta- vision. Sales representatives will likely not see the same
tions (Naldi et al., 2007). Moms and Dads tend to opportunity as the Exemplar, but they shouldn’t be critical of
indoctrinate their children into the business at an the Exemplar’s vision. Numerous executives have rued the
early age and communicate to them, either tacitly or day their managers ignored the vision of an Exemplar and
explicitly, that the family business is a viable potential lucrative opportunities have been missed. For instance,
career path. The motivation for these parents is pro- Exemplars such as Bill Gates and Steve Jobs recognized com-
tecting their children via ensuring future employment, mercial opportunities for technology developed by Xerox’s
but these actions may foster feelings of guilt and/or PARC division (Abate, 2004) that Xerox engineers thought to
resentment among those children intent on forging a be of little commercial value. Marketers need to look at this
different career path. segment much in the way private equity investors view this

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segment: as entrepreneurs who have the ability to potential- thus marketers should be cognizant not to present products
ly shift industry and societal paradigms. or services that will radically change the status quo.
Exemplars will be interested in the negotiating terms and
prices more than other segments, perhaps even discussing Marketing to Altruists
volume discounts with prospective vendors long before the This segment offers the least potential for business-to-busi-
business is operational. Of course, many exemplary visions ness marketers insofar that a significant percentage of these
do not come to fruition, which is why they are usually dis- ventures generate minimal revenue. Selling to Altruists, how-
missed by vendors. To identify potential Exemplars, B2B mar- ever, is somewhat easier than selling to the other segments in
keters should look to associations such as the MIT Enterprise that the entrepreneur will be fixated on his or her mission.
Form or high-tech incubators, as this segment will be the So long as the product/service helps to fulfill the mission the
most proactive at networking and be far more open to the entrepreneur will be receptive, provided he or she has ade-
prospect of bringing in new vendors than the other psycho- quate cash flow to complete the transaction.
graphic segments.
Research Agenda
Marketing to Generals According to Pink (2001) there are 30 million self-employed
Marketers can determine if an entrepreneur is a General rel- individuals in the United States alone, yet relatively little
atively quickly by examining the growth trajectory of the research has been conducted to psychographically segment
business. If it appears that the venture has remained at a this group. This exploratory study should serve as the foun-
plateau and the entrepreneur does not express a desire to dation for future quantitative and qualitative research in this
grow the business, he or she is likely a General. Thus, mar- area. Larger samples and different data collection techniques
keters should play to the overly developed locus of control will allow future researchers to utilize factor analysis, cluster
that typifies this segment. A hard sell should not be used, but analysis, and discriminant analysis to identify the underlying
rather a calculated business case should be presented to the dimensions of response data.
General as they will be more analytical and less emotional Future researchers may also want to establish if each seg-
when developing relationships with vendors than the other ment is comprised of subsegments, similar to the Moms and
segments. The value proposition should be presented in a Dads. Additionally, psychographic segmentation of intrapre-
way that the benefits satisfy the General’s need to control neurs is an area of future interest. Predicting entrepreneurial
and heroic self-concept, rather than stressing the value to the propensity among employees contributes to the long-term
General’s end customers. Generals will feel as if they know health of an organization as it’s been demonstrated that
their customers better than anyone and resent the inference organizations that maintain an entrepreneurial culture are
that they could be providing better service than they are cur- able to attract higher quality job applicants (Olmsted, 2005)
rently providing. and out-perform their competitors (Parboteeah, 2000).
By determining the perceived benefits individuals gain by
Marketing to Moms and Dads choosing self-employment as a career path, future
This segment will have a somewhat parental relationship researchers can make an important contribution to the orga-
with their customers and businesses. Marketers, unlike when nizational behavior, entrepreneurship, and marketing litera-
marketing to Generals, should promote the value proposi- ture. Addi-tionally, these findings would greatly benefit B2B
tion’s impact on the business and customers. This segment marketers. An overwhelming number of businesses in the
will be focused on quality over quantity, and likely put the United States are small businesses (Small Business
best interest of the internal and external stakeholders above Administration, 2006) and understanding the attitudes,
their own self-interest. lifestyles, and motives of those business owners would
Another key consideration when marketing to this seg- enhance marketing efficiency and effectiveness.
ment is their higher level of risk aversion. Unlike Exemplars, Future researchers should replicate this study with a dif-
Moms and Dads are much more likely to prefer a safer entre- ferent panel of subject matter experts. If their findings indi-
preneurial path, which is reflected by their penchant for pur- cate validity and reliability, the study should be expanded
chasing franchises and working in family businesses. quantitatively. A questionnaire could be created and the
Leveraging the power of a franchised brand and an apprecia- responses could be interpreted using factor and cluster analy-
tion of family business traditions are important to this group, sis in an effort to support the qualitative research findings.

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About the Authors

MATTHEW G. KENNEY ([email protected]) is president of Kenney College Graduate School of Global
Entrepreneurship. Kenney College, based in Miami, Florida, offers a Master of Business Administration degree
with an entrepreneurship specialization. Dr. Kenney is the author of two books and many peer-reviewed jour-
nal articles on the subject of entrepreneurship.

ART WEINSTEIN ([email protected]) is a professor of marketing in the Huizenga School of Business and
Entrepreneurship, Nova Southeastern University, Fort Lauderdale, Florida. Dr. Weinstein is the author of
Handbook of Market Segmentation and Superior Customer Value in the New Economy and has written
extensively on segmentation and entrepreneurial marketing.

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