Evaluating Market Segmentation Studies: The Properties of <i>R</i>²

Virtually all of the empirical studies on market segmentation can be characterized as unsuccessful in terms of R 2 . That is, the set of independent variables used have not explained much of the variance in purchasing behavior. R 2 's of 0.01 and 0,02 are not uncommon. In this article we show that R 2 is an inappropriate statistic to use in evaluating most of these studies. We show that good models with good sets of variables can yield low (and even zero!) R 2 's. In this context “good” variables are ones that explain the average purchasing behavior of a family. The previous studies on market segmentation should be re-evaluated in light of the results presented here.

• 저널Management Science · 19(11) · 1213–1221
• 토픽Consumer Market Behavior and Pricing · Marketing
• DOI10.1287/mnsc.19.11.1213
• 저자Donald G. Morrison