Nobody downloaded yet

Segmenting markets - Essay Example

Comments (0) Cite this document
Factor Analysis is a statistical tool that helps in understanding variables, or factors among the correlated and observed variables. It is mostly used to determine the variations in a larger number of groups by identifying the small number of factors within the large number of a particular group …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97% of users find it useful
Segmenting markets
Read TextPreview

Extract of sample
"Segmenting markets"

Download file to see previous pages Factor Analysis is a statistical tool that helps in understanding variables, or factors among the correlated and observed variables. It is mostly used to determine the variations in a larger number of groups by identifying the small number of factors within the large number of a particular group The first step is to select a method for factor analysis. There are two methods while conducting a factor analysis which are known as exploratory factor analysis and confirmatory factor analysis. Exploratory factor analysis is a technique for factor analysis which is often used for a larger set of variable. If the goal of a researcher is to identify the relationship with the measured variable then he should opt for the exploratory factor analysis. This method would help a researcher if no prior assumption or theory is made on the relation of the factors. However, in confirmatory factor analysis the variables are determined with the relation of prior assumptions or theory which aims to see if it meets the expectation as it was predicted. This method is selected when a social research is conducted. The simplification of a factor analysis is often interpreted by a method known as rotation which makes the output more understandable for the researcher. Rotation is the next step involved in factor analysis. The pattern of loadings in rotation works differently on each variable, the loading of each variable that has extracted factors are maximized while it minimizes the loading for other factors. There are five methods of rotation in which varimax, equamax and quartimax are orthogonal rotations whereas promax and direct oblimin are oblique rotations. The rotation of a particular variable mostly depends on a person if he thinks that the factors that are underlined should be related or not. If factors are considered to be independent then the author suggests that a person should use orthogonal rotation methods whereas if factors have chances to correlate then it is required to adopt direct oblimin which is an oblique rotation (Gorsuch, 1983). Labeling a factor is the next step which is an art of segmentation in which a factor is named which best describes the particular factor. The most common and appropriate technique is to name the highly ranked or the top one or two factors on the list. It is labeled on the basis of its characteristics, for example factor one can be labeled as price conscious whereas factor two can be labeled as quality conscious (Rummel, 1970). In the final step, interpretation is been made to assess the validity of factors outlines previously. In this step, four types of validity methods are used namely, content validity, concurrent validity, predictive validity, and construct validity. Content validity intends to measure the intended or the desired area which is associated with the theme of the research. Construct validity intends to assess the factors which involve the testing of hypothesis to which the researcher was trying to measure. Concurrent validity is the method in which scores are correlated with some other variables and then it is justified. In predictive validity method, a test is used to determine or justifying the theoretical outcomes which were expected. These steps are used for the purpose of finding a correlation between variables (Gorsuch, 1983). 2. Cluster Analysis: Cluster analysis is a statistical technique which helps in assorting of ‘mountain’ of information into neat files by forming a cluster or a group in which variables are similar to one another. It helps in creating subgroups which becomes more manageable than previously dealing with the individual variable. Similar to factor analysis, it is used to determine the relationship of variables between other variables. The first step involved in cluster analysis is the assigning of similar variables to their respective ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Segmenting markets Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Segmenting markets Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from
(Segmenting Markets Essay Example | Topics and Well Written Essays - 1250 Words)
Segmenting Markets Essay Example | Topics and Well Written Essays - 1250 Words.
“Segmenting Markets Essay Example | Topics and Well Written Essays - 1250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Demographically speaking, those that do not want to be a target market are an excellent target market. Remember there are wolves out here. There is always a predator lurking in your shadow, waiting for you to relax, looking for the most opportune moment to pounce.
3 Pages(750 words)Essay
Macro and Micro economics research
Macro environment Macro environment factors are also external to the firm and cannot be controlled. These factors hardly have any effect the marketing capability but affect the decisions of marketing within the company. Macro environmental factors may include the following:
4 Pages(1000 words)Essay
Security Bank Customer Service
The author states that the business aims to develop sustainable methods of managing organizational resources in order to ensure its availability for the next five years. He points out that the natural resource economics should understand the significant roles that natural resources and its availability play in the economy.
4 Pages(1000 words)Essay
Creation and distribution of goods and services
One would be the Aldus professional series that would include professional versions of PageMaker, Aldus snapshot, Aldus freehand, and additional products aimed at creative graphics markets. The other was the Aldus executive series that included persuasion, PageMaker, and other products aimed at the business market.
10 Pages(2500 words)Essay
Segmentation, targeting and positioning eg insurance example
These market segments possess different reactions to market products, hence, need to be divided2 into distinct portions. In insurance, after segmenting markets, the next step is to choose your targets. The main methods of
1 Pages(250 words)Essay
W6 597A Leveraging a Generic Strategy
To qualify and delineate one from the other, the cost leadership strategy was specifically described as “gaining competitive advantage due to the lowest cost of production of a product or service” (Definition of
3 Pages(750 words)Essay
Foundations of Marketing
In case of the chocolate industry producers have dynamically utilising the marketing mix to gain market dominance in some or most segments in the market. This is one of the reasons why chocolate firms produce a variety of products that caters to the diverse preferences, budget, and geographic location of their buyers.
5 Pages(1250 words)Essay
1-3). Before qualifying to present a critique on the topic of market segmentation, it is but important to establish a working definition of market segmentation which will be adhered to for the purpose of this analysis. Market
4 Pages(1000 words)Essay
See attachment
Business organisations that employ segmentation have an opportunity to address the customers' diverse needs, in the market. While using segmentation, the business organisation may decide to target a certain segment in the market, which it has not reached.
6 Pages(1500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Segmenting markets for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us