Sara Dolnicar, Sebastian Kaiser, Katie Lazarevski, Friedrich Leisch
  • Journal of Travel Research, February 2011, SAGE Publications
  • DOI: 10.1177/0047287510394192

What is it about?

Market segmentation (targeting product offers on carefully chosen segments of consumers or target markets) is the key to organisational success. Good market segmentation decisions can only result from well implemented market segmentation analysis. But being an exploratory analysis, there are many pitfalls that can reduce the validity of the analysis. This study offers guidance on how to avoid one of these pitfalls: using data containing an insufficient number of data points (typically consumers) as the basis.

Why is it important?

Market segmentation is widely used in academia to create new knowledge and by industry to identify a promising target segment. High quality market segmentation analysis is the key to achieving these two aims.


Professor Sara Dolnicar
University of Queensland

Improving market segmentation methodology has been one of my key research interests since my PhD. In collaboration with two world-class computational statisticians (Friedrich Leisch and Bettina Grun) and our students we have made a few contributions – at least so we hope – which reduce the risk of suboptimal market segments resulting from the analysis.

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