Changes in market segmentation over time
In the type of segmentation referred to in this paper, which is generally termed 'cluster analysis', we analyse the data by a number of characteristics simultaneously, instead of sequentially as described above. The type of cluster analysis described in this paper can be considered as a multi-dimensional extension of this type of procedure. Given a number of variables, the computer programme allocates each individual in the sample to one of a pre-determined number of clusters in such a way as to minimise the variance within clusters (or conversely, to maximise the proportion of total variance which is explained by the clustering process).
- This could also be of interest