How to Avoid Random Market Segmentation Solutions

Dominik Ernst, Sara Dolnicar
  • Journal of Travel Research, January 2017, SAGE Publications
  • DOI: 10.1177/0047287516684978

What is it about?

We shows that market segments rarely naturally exist in consumer data. It is critical, therefore, to conduct market structure analysis before extracting market segments from the data.

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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