Predictive segmentation in action - using CHAID to segment loyalty card holders
Laura GalgueraUniversity of Oviedo
David LunaBaruch College
M. Paz MéndezUniversity of Oviedo
INTRODUCTION
To build competitive advantage both in the short term and in the longer term, companies need to segment the market. Market segmentation can aid in better achieving both strategic and tactical objectives. For strategic purposes, market segmentation results can be used to prioritise market segment opportunities. Kotler (1989) has called this the 'four Ps' of strategic marketing (which are additional to the four Ps of tactical marketing): probing, partitioning,...