Potential Rating Index by Zip Markets, a geo-clustering approach currently owned by Claritas, LLC., classifies U.S. residential neighborhoods into 68 distinct lifestyle segments. Its methodology was based on the segregation history of the U.S. and facilitated by database integration, considering numerous attributes of each neighborhood by their zip code. It implies that people living close to each other are more likely to share similar status and consumption preference. The approach helps companies in evaluating neighborhood potentials, and to identify the most effective means of communication toward any micro-segment. Still, there exists debate whether local marketing can justify itself given its risk of brand dilution and higher unit cost when compared with national campaigns.
Despite not having nationwide segregation history, Taiwan has a PRIZM equivalence: MasterCard consumer report. It investigates homogeneous preferences of card holders via its database. For instance, women card holders living in Taichung tend to spend more on dining compared with other categories, with an average dining bill amount 35% higher than their Taipei counterparts. It enables restaurant owners to assess market potential, explore opportunities to charge price premiums, and identify their target customers. Yet, it is also important for restaurants operating nationwide to find a balance between localized and country-level marketing strategies, namely appealing to local needs while maintaining overall brand integrity. For example, a chain restaurant marketer may exploit this insight by increasing its women consumer base, offering special menus with a price premium, and limiting the applicability of this campaign to the Taichung area.