Use of factor analysis and cluster analysis in market segmentation and consumer typology
For the two segmentation models, factor analysis and cluster analysis, general assessment criteria are laid down and the marketing view-point is singled out as the most important. In particular the paper deals with the two segmentation methods with regard to the consequences for interpretation inherent in the model. A practical example in the sphere of housekeeping is used to demonstrate a way of determining attitude types using both cluster analysis and factor analysis. Three principles of type allocation are proposed. This also provides a method of estimating the proportions of the consumer population belonging to the various types. It is stressed that both methods are able to provide valuable information for marketing.
- This could also be of interest