Segmenting Markets by Bagged Clustering

Authors

Sara Dolnicar, University of WollongongFollow
Friedrich Leisch, Vienna University of Technology, Austria

RIS ID

10182

Publication Details

This article was originally published as: Dolnicar, S & Leisch, F, Segmenting Markets by Bagged Clustering, Australasian Marketing Journal, 2004, 12(1), 51-65.

Abstract

We introduce bagged clustering as a new approach in the field of post hoc market segmentation research and illustrate the managerial advantages over both hierarchical and partitioning algorithms, especially with large binary data sets. The most important improvements are enhanced stability and interpretability of segments based on binary data. One of the main goals of the procedure is to complement more traditional techniques as an exploratory segment analysis tool. The merits of the approach are illustrated using a tourism marketing application.