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Cluster Analysis in Test Market Selection

Author

Listed:
  • Paul E. Green

    (University of Pennsylvania)

  • Ronald E. Frank

    (University of Pennsylvania)

  • Patrick J. Robinson

    (Marketing Science Institute)

Abstract

Selection of "matched" areas for test marketing is an important undertaking if reliable comparisons among markets are to be made. This usually has been done on a rather arbitrary basis, largely because of the large number of market characteristics on which markets can be viewed as similar or different. The authors suggest a numerical procedure--cluster analysis--for matching prospective test markets on the basis of a large variety of characteristics which could affect test marketing results. In this way, markets can be pre-selected so as to reduce undesired variability among test areas.

Suggested Citation

  • Paul E. Green & Ronald E. Frank & Patrick J. Robinson, 1967. "Cluster Analysis in Test Market Selection," Management Science, INFORMS, vol. 13(8), pages 387-400, April.
    • Handle: RePEc:inm:ormnsc:v:13:y:1967:i:8:p:b387-b400
    DOI: 10.1287/mnsc.13.8.B387
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    Citations

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    Cited by:

    1. Larson, Ronald B., 1994. "Testing Promotions In Different Markets Is Essential," Promotion in the Marketing Mix: What Works, Where and Why, April 28-29, 1994, Toronto, Canada 279600, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    2. Vahidin Jeleskovic & Yinan Wan, 2024. "The impact of Facebook-Cambridge Analytica data scandal on the USA tech stock market: An event study based on clustering method," Papers 2402.14206, arXiv.org.
    3. Donald R. Fraser, 1978. "Does Branching Matter?," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 1(1), pages 61-69, December.
    4. Lemmens, A. & Croux, C. & Stremersch, S., 2012. "Dynamics in international market segmentation of new product growth," Other publications TiSEM 306086bd-670f-48d2-97d1-3, Tilburg University, School of Economics and Management.
    5. Lemmens, Aurélie & Croux, Christophe & Stremersch, Stefan, 2012. "Dynamics in the international market segmentation of new product growth," International Journal of Research in Marketing, Elsevier, vol. 29(1), pages 81-92.
    6. Cox, P. Thomas & Siskin, Bernard & Miller, Allan, 1969. "A More Objective Procedure For Determining Economic Subregions: Cluster Analysis," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 1, pages 1-8, December.
    7. V Kumar & Amalesh Sharma & Shaphali Gupta, 2017. "Accessing the influence of strategic marketing research on generating impact: moderating roles of models, journals, and estimation approaches," Journal of the Academy of Marketing Science, Springer, vol. 45(2), pages 164-185, March.
    8. Aguilar, Francisco X. & Cai, Zhen, 2010. "Exploratory analysis of prospects for renewable energy private investment in the U.S," Energy Economics, Elsevier, vol. 32(6), pages 1245-1252, November.
    9. Paul E. Green & Abba M. Krieger & Yoram Wind, 2001. "Thirty Years of Conjoint Analysis: Reflections and Prospects," Interfaces, INFORMS, vol. 31(3_supplem), pages 56-73, June.
    10. Huerta-Muñoz, Diana L. & Ríos-Mercado, Roger Z. & Ruiz, Rubén, 2017. "An iterated greedy heuristic for a market segmentation problem with multiple attributes," European Journal of Operational Research, Elsevier, vol. 261(1), pages 75-87.
    11. Liou, F. M. & Ding, C. G., 2002. "Subgrouping Small States Based on Socioeconomic Characteristics," World Development, Elsevier, vol. 30(7), pages 1289-1306, July.

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