Market Segmentation Analysis

Overview


Once a set of customer segments have been identified, the data can be analyzed using standard statistical methods.

Of primary interest is estimating customer demand based on the identified segments. This is typically done by computing an average demand for each segment, as well as some of the other statistical moments present in the data.

Statistical Inference


After calculating an average demand for each segment, it is natural to ask whether the demand in any two segments, or any group of segments, is statistically different from the others. That is, does the segmentation profide informative groupings as far as customer demand is concerned.

These questions are answered using the tools of statistical inference and in particular:

  • Comparing two Samples
  • Analysis of Variance