Questioning the reliability of market segmentation techniques

S. Dibb, P. Stern

Research output: Contribution to journalArticle

28 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)625-636
Number of pages12
JournalOmega
Volume23
Issue number6
DOIs
Publication statusPublished - Dec 1995
Externally publishedYes

Keywords

  • cluster analysis
  • customer choice
  • factor analysis
  • market segmentation
  • marketing

ASJC Scopus subject areas

  • Strategy and Management
  • Management Science and Operations Research
  • Information Systems and Management

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