Using graphical statistics to better understand market segmentation solutions

Sara Dolnicar, Friedrich Leisch
  • International Journal of Market Research, January 2014, WARC Limited
  • DOI: 10.2501/ijmr-2013-073

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: managers not fully understand the results of a market segmentation analysis because of inadequate presentation of findings.

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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The following have contributed to this page: Professor Sara Dolnicar