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Questioning the reliability of market segmentation techniques

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  • Dibb, S.
  • Stern, P.

Abstract

Market segmentation techniques and analyses have received considerable attention in the academic literature. This paper compares and contrasts the results from conducting cluster analysis and factor analysis on two data sets, one which is genuine and the other which has been randomly generated. This analysis helps test claims about the validity and effectiveness of such techniques and looks at the reliability of the output. The findings suggest that researchers need to be careful to carry out valid preliminary work before presenting their results. Without such preliminary work it may be difficult to justify the segments which emerge.

Suggested Citation

  • Dibb, S. & Stern, P., 1995. "Questioning the reliability of market segmentation techniques," Omega, Elsevier, vol. 23(6), pages 625-636, December.
    • Handle: RePEc:eee:jomega:v:23:y:1995:i:6:p:625-636
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    References listed on IDEAS

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    1. Stephen Johnson, 1967. "Hierarchical clustering schemes," Psychometrika, Springer;The Psychometric Society, vol. 32(3), pages 241-254, September.
    2. Green, Paul E., 1977. "A new approach to market segmentation," Business Horizons, Elsevier, vol. 20(1), pages 61-73, February.
    3. Sheppard, Blair H & Hartwick, Jon & Warshaw, Paul R, 1988. "The Theory of Reasoned Action: A Meta-analysis of Past Research with Recommendations for Modifications and Future Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(3), pages 325-343, December.
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    Cited by:

    1. Barjak, F. & Lindeque, J. & Koch, J. & Soland, M., 2022. "Segmenting household electricity customers with quantitative and qualitative approaches," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).
    2. Andy Choi & Franco Papandrea & Jeff Bennett, 2007. "Assessing cultural values: developing an attitudinal scale," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 31(4), pages 311-335, December.
    3. Wolf, Ingo & Schröder, Tobias, 2019. "Connotative meanings of sustainable mobility: A segmentation approach using cultural sentiments," Transportation Research Part A: Policy and Practice, Elsevier, vol. 126(C), pages 259-280.
    4. Kovacic, Damir & Radman, Marija & Kolega, Ante, 2002. "Behaviour of Fruit and Vegetable Buyers on the City Markets in Croatia," 13th Congress, Wageningen, The Netherlands, July 7-12, 2002 6963, International Farm Management Association.

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