A survey of the challenges and pitfalls of cluster analysis application in market segmentation
Michael N. Tuma, Reinhold Decker and Sören W. Scholz
Bielefeld University
Introduction
Many people believe that market segmentation is the key strategic concept in marketing today. It has been understood as the attempt to distinguish ‘homogeneous groups of customers who can be targeted in the same manner because they have similar needs and preferences’ (Wedel & Kamakura 2002, p. 181). A good segmentation solution will result in segment members that are as similar as possible within the segment, and as dissimilar as...