Determining market boundaries
It is important to be precise in describing the market where the products are to be compared, since the customer requirements and obligatory product properties that the are used to define the functional unit may be different on different markets.
The market is where the product reaches its customer. It is thus via purchases on the market that the customers can express their requirements to the product from which we can identify the obligatory product properties that that we use to define the functional unit. Therefore, it is important to be precise in describing the market for the product, in terms of its delimitation in space and time, and in terms of the customers on the market.
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- Further theory on geographical market boundaries How to determine geographical segmentation of a market by differences in: geography, administration, regulation or culture.
- Further theory on temporal market boundaries How to identify temporal segmentation of markets in consequential LCA.
- Further theory on customer segments and niches How to define customer segments and niches in consequential LCA.
- Customer segments for office chairs An example on identifying niche markets for office chairs in Denmark.
- Temporal markets for fresh tomatoes An example of a strong seasonality of supply resulting in temporal markets for North American fresh tomatoes.
- Temporal markets for electricity An example on peak and base load of electricity resulting in temporal markets for electricity.
- Geographical market for electricity An example on a geographical market for hydro-power in Norway.
- Markets for bicycles in Mozambique An example on the geographical markets for bicycles collected as lost property and recycled in Mozambique.
How to cite this: Consequential-LCA (2015). Determining market boundaries. Last updated: 2015-10-27. www.consequential-lca.org.