Qual Quant (2013) 47:969–987 DOI 10.1007/s11135-011-9577-z Market segmentation, service quality, and overall satisfaction: self-organizing map and structural equation modeling methods Nai-Hua Chen · Stephen Chi-Tsun Huang · Shih-Tung Shu · Tung-Sheng Wang Published online: 31 August 2011 © Springer Science+Business Media B.V. 2011 Abstract In a service-dominant paradigm, service is the core of society and industry. This study explores the hierarchical roles of core service, facilitating service, and supporting ser- vice that affect customer satisfaction in the service industry. Cable TV services in Taiwan are employed as an example, because their penetration rate in is over 70% with customer expe- rience for over 20years. In this study, customers are first segmented by the self-organizing map (SOM) technique and then service quality is measured with SERVPREF method. A pro- posed model, derived from the service marketing literature, is tested with structural equation modeling (SEM). Finally, moderating effects of customer segments on the proposed SEM model are examined. Results show the SOM technique is a valid method for market segmen- tation. Additionally, the moderating effect of market segments may impact the evaluation of core service quality (CSQ) and overall satisfaction. Furthermore, CSQ determines overall satisfaction for heavy users, whereas facilitating service quality greatly influences younger consumers’ satisfaction. Keywords Market segmentation · Service quality · Customer satisfaction · Cable TV · Service · Self-organizing map · SERVPREF N.-H. Chen Department of Information Management, Chienkuo Technology University, No. 1, Chieh Shou N. Rd., Changhua City, Taiwan, ROC e-mail: nhc@cc.ctu.edu.tw S. C.-T. Huang (B ) · S.-T. Shu Department of Marketing & Distribution, National Kaohsiung First University of Science and Technology, No. 2 Jhuoyue Rd., Nanzih, Kaohsiung 811, Taiwan, ROC e-mail: howhowone2000@gmail.com S.-T. Shu e-mail: stshu@nkfust.edu.tw T.-S. Wang Graduate Institute of Management, National Kaohsiung First University of Science and Technology, No. 2 Jhuoyue Rd., Nanzih, Kaohsiung 811, Taiwan, ROC e-mail: v9328909@gmail.com 123