Modern marketing techniques in industrialized countries cannot be
implemented without segmentation of the potential market. Goods are no
longer produced and sold without a significant consideration of customer
needs combined with a recognition that these needs are heterogeneous.
Since first emerging in the late 1950s, the concept of segmentation has
been one of the most researched topics in the marketing literature.
Segmentation has become a central topic to both the theory and practice
of marketing, particularly in the recent development of finite mixture
models to better identify market segments.
This second edition of Market Segmentation updates and extends the
integrated examination of segmentation theory and methodology begun in
the first edition. A chapter on mixture model analysis of paired
comparison data has been added, together with a new chapter on the pros
and cons of the mixture model. The book starts with a framework for
considering the various bases and methods available for conducting
segmentation studies. The second section contains a more detailed
discussion of the methodology for market segmentation, from traditional
clustering algorithms to more recent developments in finite mixtures and
latent class models. Three types of finite mixture models are discussed
in this second section: simple mixtures, mixtures of regressions and
mixtures of unfolding models. The third main section is devoted to
special topics in market segmentation such as joint segmentation,
segmentation using tailored interviewing and segmentation with
structural equation models. The fourth part covers four major approaches
to applied market segmentation: geo-demographic, lifestyle,
response-based, and conjoint analysis. The final concluding section
discusses directions for further research.
