Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

Evaluating the Appropriateness of Market Segmentation Solutions Using Artificial Neural Networks and the Membership Clustering Criterion

Derrick S. Boone and Michelle Roehm
Marketing Letters
Vol. 13, No. 4 (Nov., 2002), pp. 317-333
Published by: Springer
Stable URL: http://www.jstor.org/stable/40216480
Page Count: 17
  • Download ($43.95)
  • Cite this Item
Evaluating the Appropriateness of Market Segmentation Solutions Using Artificial Neural Networks and the Membership Clustering Criterion
Preview not available

Abstract

The "appropriateness" of a given segmentation solution is a key consideration in all marketing segmentation studies. By appropriate, it is meant that not only has the optimal segmentation solution been identified, but also that the proper number of segments to market to has been correctly specified. This research focuses on the second, and more fundamental, issue of determining the appropriate number of segments in a marketplace. If the appropriate number of segments is over-specified, marketers may over-segment the market and treat audience segments separately that could effectively be treated inclusively. Conversely, if the appropriate number of segments is under-specified, marketers may under-segment the market and fail to identify distinct, viable segments that should be marketed to separately. The issue of market under- and over-segmentation may be addressed with the membership clustering criterion (MCC), an analytical technique based on fuzzy sets derived from artificial neural networks (mathematical models of animal nervous systems). Using artificial and real world data sets, we empirically test the MCC, compare it to existing methods for determining the number of segments in a market, and demonstrate its advantages in evaluating the appropriateness of marketing to different numbers of market segments.

Page Thumbnails

  • Thumbnail: Page 
[317]
    [317]
  • Thumbnail: Page 
318
    318
  • Thumbnail: Page 
319
    319
  • Thumbnail: Page 
320
    320
  • Thumbnail: Page 
321
    321
  • Thumbnail: Page 
322
    322
  • Thumbnail: Page 
323
    323
  • Thumbnail: Page 
324
    324
  • Thumbnail: Page 
325
    325
  • Thumbnail: Page 
326
    326
  • Thumbnail: Page 
327
    327
  • Thumbnail: Page 
328
    328
  • Thumbnail: Page 
329
    329
  • Thumbnail: Page 
330
    330
  • Thumbnail: Page 
331
    331
  • Thumbnail: Page 
332
    332
  • Thumbnail: Page 
333
    333