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On Using Demographic Variables to Determine Segment Membership in Logit Mixture Models

Sachin Gupta and Pradeep K. Chintagunta
Journal of Marketing Research
Vol. 31, No. 1 (Feb., 1994), pp. 128-136
DOI: 10.2307/3151952
Stable URL: http://www.jstor.org/stable/3151952
Page Count: 9
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On Using Demographic Variables to Determine Segment Membership in Logit Mixture Models
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Abstract

The authors propose an extension of the logit-mixture model that defines prior segment membership probabilities as functions of concomitant (demographic) variables. Using this approach it is possible to describe how membership in each of the segments, segments being characterized by a specific profile of brand preferences and marketing variable sensitivities, is related to household demographic characteristics. An empirical application of the methodology is provided using A.C. Nielsen scanner panel data on catsup. The authors provide a comparison with the results obtained using the extant methodology in estimation and validation samples of households.

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