Source: Beane, T.P., and Ennis, D.M., (1987) "Market Segmentation: A Review", European Journal of Marketing, Vol. 21 Iss: 5, pp.20 - 42.
Abstract: It is important to remain creative when conducting segmentation research, as many different ways to segment a market can exist. Five main bases are discussed: geographic, demographic, psychographic, behaviouristic and image. This is followed by an overview of the main techniques used to establish and verify segments, including automatic interaction detector, conjoint analysis, multidimensional scaling and canonical analysis.
Insight: This article provides a useful insight into the main bases for market segmentation and the strengths and weaknesses of the key statistical methods we use to analyse customer data to develop segmentation models. The article suggests there are many ways to segment a market, and it is important to exercise creativity when doing so.