Cluster Analysis in Test Market Selection

Paul E. Green, Ronald E. Frank and Patrick J. Robinson
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Paul E. Green: University of Pennsylvania
Ronald E. Frank: University of Pennsylvania
Patrick J. Robinson: Marketing Science Institute

Management Science, 1967, vol. 13, issue 8, B387-B400

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.

Date: 1967
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