Challenging “Factor–Cluster Segmentation”

Sara Dolnicar, Bettina Grün
  • Journal of Travel Research, January 2008, SAGE Publications
  • DOI: 10.1177/0047287508318910

What is it about?

Factor-cluster segmentation never leads to better results than using the raw data for extracting market segments.

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 which I commenced in 1994. In collaboration with two world-class computational statisticians (Friedrich Leisch and Bettina Grun) and our students we have made a few contributions which we hope will reduce the risk of suboptimal market segments resulting from future analyses.

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