A survey of the challenges and pifalls of cluster analysis application in market segmentation

International Journal of Market Research

Volumn 53, Issue 3, 2011, Pages 391-414

  Tuma, Michael N ^a   Decker, Reinhold ^a   Scholz, Sören W ^a  

^a BIELEFELD UNIVERSITY   (Germany)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84859941750     PISSN: 14707853     EISSN: None     Source Type: Journal    
DOI: 10.2501/IJMR-53-3-391-414     Document Type: Article

References (61)

1. Akaike, H. (1974) A new look at statistical model identification. IEEE Transactions on Automatic Control, AC-19, pp. 716-723.
2. Aldenderfer, M.S. & Blashfield, R.K. (1984) Cluster Analysis. Beverly Hills: Sage Publications.
3. Allenby, G., Fennell, G., Bemmaor, A., Bhargava, V., Christen, F., Dawley, J., Dickson, P., Edwards, Y., Garratt, M., Ginter, J., Sawyer, A., Staelin R. & Yang, S. (2002) Market segmentation research: beyond within and across group differences. Marketing Letters, 13, 3, pp. 233-243.
4. Andrews, R.L. & Currim, I.S. (2003a) A comparison of segment retention criteria for finite mixture logit models. Journal of Marketing Research, 40, 2, pp. 235-243.
5. Andrews, R.L. & Currim, I.S. (2003b) Retention of latent segments in regression-based marketing models. International Journal of Research in Marketing, 20, 4, pp. 315-321.
6. Andrews, R.L., Currim, I.S., Leeflang, P. & Lim, J. (2008) Estimating the SCAN*PRO model of store sales: HB, FM or just OLS? International Journal of Research in Marketing, 25, 1, pp. 22-33.
7. Arabie, P. & Hubert, L. (1994) Cluster analysis in marketing research. In R.P. Bagozzi (ed.) Advanced Methods of Marketing Research. Oxford: Blackwell Business, pp. 160-189.
8. Bloom, J.Z. (2005) Market segmentation: a neural network application. Annals of Tourism Research, 32, 1, pp. 93-111.
9. Boone, D.S. & Roehm, M. (2002) Evaluating the appropriateness of market segmentation solutions using artificial neural networks and the membership clustering criterion. Marketing Letters, 13, 4, pp. 317-333.
10. Bozdogan, H. (1987) Model selection and Akaike's Information Criterion (AIC): the general theory and its analytical extensions. Psychometrika, 52, 3, pp. 345-370.
11. Bozdogan, H. (1994) Mixture model cluster analysis using selection criteria and a new informational measure of complexity. In H. Bozdogan (ed.) Multivariate Statistical Modelling. Dordrecht: Kluwer Academic Publishers, 2, pp. 69-113.
12. Brun, M., Sima, C., Hua, J., Lowey, J., Carroll, B., Suh, E. & Dougherty, E.R. (2007) Model-based evaluation of clustering validation measures. Pattern Recognition, 40, pp. 807-824.
13. Brusco, M.J. & Cradit, J.D. (2001) A variable-selection heuristic for k-means clustering. Psychometrika, 66, 2, pp. 249-270.
14. Calinski, R.B. & Harabasz, J. (1974) A dendrite method for cluster analysis. Communications in Statistics, 3, pp. 1-27.
15. Decker, R. (2006) A growing self-organized neural network for lifestyle segmentation. Journal of Data Science, 4, pp. 147-168.
16. Decker, R. & Scholz, S.W. (2007) Unsupervised topic detection in document collections: an application in marketing and business journals. International Journal of Business Intelligence and Data Mining, 2, 3, pp. 347-364.
17. Decker, R., Holsing, C. & Lerke, S. (2006) Generating normally distributed clusters by means of a self-organizing growing neural network - an application to market segmentation. International Journal of Computer Science, 1, 2, pp. 138-144.
18. Decker, R., Wagner, R. & Scholz, S.W. (2005) Growing clustering algorithms in market segmentation: defining target groups and related marketing communication. In H.-H. Bock, W. Gaul & M. Vicki (eds) Data Analysis, Classification and the Forward Search. Berlin: Springer, pp. 23-30.
19. Dibb, S. (2009) Bridging the segmentation theory/practice divide. Journal of Marketing Management, 25, 3-4, pp. 219-225.
20. Dimitriadou, E., Dolničar, S. & Weingessel, A. (2002) An examination of the number of indexes for determining the number of clusters in binary data sets. Psychometrika, 67, 2, pp. 137-160.
21. Dolničar, S. (2003) Using cluster analysis for market segmentation - typical misconceptions, established methodological weaknesses and some recommendations for improvement. Australasian Journal of Market Research, 11, 2, pp. 5-12.
22. Dolničar, S. & Grün, B. (2008) Challenging factor-cluster segmentation. Journal of Travel Research, 47, 1, pp. 63-71.
23. Dolničar, S. & Lazarevski, K. (2009) Methodological reasons for the theory/practice divide in market segmentation. Journal of Marketing Management, 25, 3-4, pp. 357-373.
24. Dolničar, S. & Leisch, F. (2004) Segmenting markets by bagged clustering. Australasian Marketing Journal, 12, 2, pp. 51-65.
25. Duda, R.O. & Hart, P.E. (1973) Pattern Classification and Scene Analysis. New York: Wiley.
26. Elrod, T., Russell, G.J., Shocker, A.D., Andrews, R.L, Bacon, L., Bayus, B., Carroll, J.D., Johnson, R.M., Kamakura, W.A., Lenk, P., Mazanec, J.A., Rao, V.R. & Shankar, V. (2002) Inferring market structure from customer response to competing and complementary products. Marketing Letters, 13, 3, pp. 219-230.
27. Everitt, B.S., Landau, S. & Leese, M. (2001) Cluster Analysis (4th edn). London: Arnold.
28. Fennell, G., Allenby, G.M., Yang, S. & Edwards, Y. (2003) The effectiveness of demographic and psychographic variables for explaining brand and product category use. Quantitative Marketing and Economics, 1, 2, pp. 223-244.
29. Formann, A.K. (1984) Die Latent-Class-Analysis: Eine Einführung in der Theorie und Anwendung. Weinheim: Beltz.
30. Franke, N., Reisinger, H. & Hoppe, D. (2009) Remaining within-cluster heterogeneity: a meta-analysis of the 'dark side' of clustering methods. Journal of Marketing Management, 25, 3-4, pp. 273-293.
31. Fritzke, B. (1997) Some competitive learning methods. Online at: www.neuroinformatik.ruhr-uni-bochum.de/ini/VDM/research/gsn/JavaPaper (accessed 20 March 2011).
32. Hahn, C., Johnson, M.D., Hermann, A. & Huber, F. (2002) Capturing consumer heterogeneity using a finite mixture PLS approach. Schmalenbach Business Review, 54, 3, pp. 243-269.
33. Haimerl, E. & Ohnemus, R. (2005) Was läuft falsch bei Marktsegmentationen? [What goes wrong with market segmentations?] Jahrbuch der Absatz- und Verbrauchsforschung, 51, pp. 242-265.
34. Hair, J.F., Anderson, R.E., Tatham, R.L. & Black, W.C. (1998) Multivariate Data Analysis (5th edn). New Jersey: Prentice Hall.
35. Hair, J.F., Black, W.C., Babin, B.J., Anderson, R.E. & Tatham, R.L. (2007) Multivariate Data Analysis (6th edn). New Jersey: Prentice Hall.
36. Harzing, A.-W. (2007) Journal Quality List, University of Melbourne. Online at: www.harzing.com (accessed 15 September 2007).
37. Jedidi, K., Jagpal, H.S. & DeSarbo, W.S. (1997) Finite-mixture structural equation models for response-based segmentation and unobserved heterogeneity. Marketing Science, 16, 1, pp. 39-59.
38. Kaufmann, L. & Rousseeuw, P. (1990) Finding Groups in Data: An Introduction to Cluster Analysis. New York: Wiley.
39. Ketchen, D.J. & Shook, C.L. (1996) The application of cluster analysis in strategic management research: an analysis and critique. Strategic Management Journal, 17, 6, pp. 441-458.
40. Larson, J., Bradlow, E. & Fader, P. (2005) An exploratory look in supermarket shopping paths. International Journal of Research in Marketing, 22, 4, pp. 395-414.
41. Magidson, J. & Vermunt, J.K. (2002) Latent class models for clustering: a comparison with k-means. Canadian Journal of Marketing Research, 20, pp. 37-44.
42. Mazanec, J. (2001) Neural market structure analysis: novel-topology sensitive methodology. European Journal of Marketing, 35, 7/8, pp. 894-914.
43. Milligan, G.W. & Cooper, M.C. (1985) An examination of procedures for determining the number of clusters in a dataset. Psychometrika, 50, pp. 159-179.
44. Myers, J.H. (1996) Segmentation and Positioning for Strategic Marketing Decisions. Chicago, IL: American Marketing Association.
45. Punj, G. & Stewart, D.W. (1983) Cluster analysis in marketing research: review and suggestions for application. Journal of Marketing Research, 20, 2, pp. 134-148.
46. Quinn, L., Hines, T. & Bennison, D. (2007) Making sense of market segmentation: an apparel retailing case. European Journal of Marketing, 41, 5-6, pp. 439-465.
47. Ratkowsky, D.A. & Lance, G.N. (1978) A criterion for determining the number of groups in a classification. Australian Computer Journal, 10, pp. 115-117.
48. Reutterer, T. & Natter, M. (2000) Segmentation-based competitive analysis with MULTICLUS and topology representing network. Computers & Operations Research, 27, pp. 1227-1247.
49. Sarle, W.S. (1983) Cubic Clustering Criterion (Tech. Rep. A-108). Cary, North Carolina: SAS Institute.
50. Sarstedt, M. (2008) A review of recent approaches for capturing heterogeneity in partial least squares path modeling. Journal of Modelling in Management, 3, 2, pp. 140-161.
51. Sarstedt, M. & Schwaiger, M. (2008) Model selection in mixture regression analysis - a Monte Carlo simulation study. In C. Preisach, H. Burkhardt, L. Schmidt-Thieme & R. Decker (eds) Data Analysis, Machine Learning, and Applications. Berlin: Springer, pp. 61-68.
52. Schwarz, G. (1978) Estimating the dimension of a model. Annals of Statistics, 6, 2, pp. 461-464.
53. Steinley, D. & Brusco, M.J. (2008a) A new variable weighting and selection procedure for k-means cluster analysis. Multivariate Behavioural Research, 43, 1, pp. 77-108.
54. Steinley, D. & Brusco, M.J. (2008b) Selection of variables in cluster analysis: an empirical comparison of eight procedures. Psychometrika, 73, 1, pp. 125-144.
55. Tonks, D.G. (2009) Validity and the design of market segments. Journal of Marketing Management, 25, 3-4, pp. 341-356.
56. Vermunt, J.K. & Magidson, J. (2000) Latent GOLD User's Guide. Belmont: Statistical Innovations, Inc.
57. Wagner, R., Scholz, S.W. & Decker, R. (2005) The number of clusters in market segmentation. In D. Baier, R. Decker & L. Schmidt-Thieme (eds) Data Analysis and Decision Support. Heidelberg: Springer, pp. 157-176.
58. Wedel, M. & Kamakura, W.A. (2000) Market Segmentation: Conceptual and Methodological Foundations (2nd edn). Dordrecht: Kluwer.
59. Wedel, M. & Kamakura, W.A. (2002) Introduction to the special issue on market segmentation. International Journal of Research in Marketing, 19, pp. 181-183.
60. Xu, L. (1997) Bayesian ying-yang machine, clustering and the number of clusters. Pattern Recognition Letters, 18, pp. 1167-1178.
61. Yankelovic, D. & Meer, D. (2006) Rediscovering market segmentation. Harvard Business Review, 84, 2, pp. 122-132.