Social and Behavioral Sciences Commons^™

Biclustering: Overcoming Data Dimensionality Problems In Market Segmentation, Sara Dolnicar, Sebastian Kaiser, Katie Lazarevski, Friedrich Leisch

Faculty of Commerce - Papers (Archive)

Data-driven market segmentation is a popular and widely used segmentation method in tourism. It aims to identify market segments among tourists who are similar to each other, thus allowing a targeted marketing mix to be developed. Typically data used to segment tourists are characterized by small numbers of respondents and large numbers of survey questions. Small samples and numerous questions cause serious methodological problems that have typically been addressed by using factorcluster analysis to reduce the dimensionality of data. Recently, factor-cluster analysis has been shown as an unacceptable solution to the problem of high data dimensionality in segmentation. In this …