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Step 5: Extracting Segments

In: Market Segmentation Analysis

Author

Listed:
  • Sara Dolnicar

    (The University of Queensland)

  • Bettina Grün

    (Johannes Kepler Universität Linz)

  • Friedrich Leisch

    (Universität für Bodenkultur Wien)

Abstract

This chapter focuses on the task of grouping consumers and, in so doing, revealing naturally existing or creating artificial market segments. The chapter covers algorithms falling into three categories: distance-based methods, model-based methods, and algorithms integrating variable selection with the task of extracting market segments. In addition, data structure analysis is introduced. Data structure analysis provides insight into whether the resulting market segments are naturally occurring in the market; created but stable; or created and unstable across repeated calculations. A series of questions are included in a checklist to assist with the implementation of this step.

Suggested Citation

  • Sara Dolnicar & Bettina Grün & Friedrich Leisch, 2018. "Step 5: Extracting Segments," Management for Professionals, in: Market Segmentation Analysis, chapter 0, pages 75-181, Springer.
    • Handle: RePEc:spr:mgmchp:978-981-10-8818-6_7
    DOI: 10.1007/978-981-10-8818-6_7
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