Segmenting Markets by Bagged Clustering

Segmenting Markets by Bagged Clustering

Since the introduction of market segmentation in the late 1950s, the number of techniques for segmentation has grown enormously. Both a priori and response-based approaches are widely used among researchers and practitioners (Myers and Tauber, 1977). In the case of a priori segmentation, groups are formed according to a criterion that is expected to cause heterogeneity of response among the cus...

Segmenting Markets by Bagged Clustering: Young Chinese Travelers to Western Europe

Market segmentation is ubiquitous in marketing. Hierarchical and non-hierarchical methods are the most popular for segmenting tourism markets. These methods are not without much controversy. In this study, we use bagged clustering on the push and pull factors of Western Europe to segment potential young Chinese travelers. Bagged clustering overcomes some of the limitations of hierarchical and n...

Getting More Out of Binary Data: Segmenting Markets by Bagged Clustering

There are numerous ways of segmenting a market based on consumer survey data. We introduce bagged clustering as a new exploratory approach in the field of market segmentation research which offers a few major advantages over both hierarchical and partitioning algorithms, especially when dealing with large binary data sets: In the hierarchical step of the procedure the researcher is enabled to i...

Bagged Clustering

Segmenting the Banking Market Strategy by Clustering

Customer segmentation is the practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing such as age, gender, interests, spending habits, and so on. One of the easiest definitions is "a group of customers with shared needs". From this definition, it's clear what we need to identify customers with shared needs. The customer segmentation...