Segmentation and Choice Models

Steven Blahut () and Jeff Niemira
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Steven Blahut: Healthcare Strategy Partners
Jeff Niemira: Healthcare Strategy Partners

Chapter Chapter 7 in Quantitative Methods in Pharmaceutical Research and Development, 2020, pp 317-359 from Springer

Abstract: Abstract In the pharmaceutical industry, there are many types of quantitative market research techniques that can be employed throughout a product’s life cycle. In this chapter the focus is on two types of primary market research: market segmentation and choice modeling. While secondary data sources may be employed in these research approaches, here the focus is more on primary data collection via online survey. An overview of online survey development and data collection is presented paying special attention to various key decision points that can directly impact data integrity. Among these are instrument complexity and real-time data monitoring among others. Next, market segmentation is discussed in detail. Segmentation is the creation of smaller homogeneous groups (i.e., segments) from a larger more heterogeneous population. The goal is identify groups of individuals with unique attitudes and behaviors that allow for more targeted marketing efforts. Segments are created via one of several clustering methods, several of which are described here. Finally, choice models are introduced. Choice model is a generic term that refers to a family of approaches that try to deconstruct decisions and identify what attributes drive decision-making. In the pharmaceutical world, these attributes may be product or patient/sufferer characteristics. The decision that is being quantified may be whether or not to write a prescription, how many prescriptions to write, whether or not a given product looks appealing, and so on. Multiple approaches to choice modeling are presented. This chapter is meant to be an introduction to quantitative pharmaceutical market research techniques.

Keywords: Market segmentation; Conjoint; Choice model; Latent class analysis; Discrete choice (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/978-3-030-48555-9_7

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