Questioning the reliability of market segmentation techniques

S. Dibb and P. Stern

Omega, 1995, vol. 23, issue 6, 625-636

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.

Keywords: cluster; analysis; customer; choice; factor; analysis; marketing; market; segmentation (search for similar items in EconPapers)
Date: 1995
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Citations: View citations in EconPapers (4)

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