Extending dynamic segmentation with lead generation: A latent class Markov analysis of financial product portfolios
AbstractA recent development in marketing research concerns the incorporation of dynamics in consumer segmentation.This paper extends the latent class Markov model, a suitable technique for conducting dynamic segmentation, in order to facilitate lead generation.We demonstrate the application of the latent Markov model for these purposes using a database containing information on the ownership of twelve financial products and demographics for explaining (changes in) consumer product portfolios.Data were collected in four bi-yearly measurement waves in which a total of 7676 households participated.The proposed latent class Markov model defines dynamic segments on the basis of consumer product portfolios and shows the relationship between the dynamic segments and demographics.The paper demonstrates that the dynamic segmentation resulting from the latent class Markov model is applicable for lead generation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2004-1.
Date of creation: 2004
Date of revision:
Contact details of provider:
Web page: http://center.uvt.nl
market segmentation; Markov chains; marketing; demography; measurement;
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Francesca Bassi, 2007. "Latent class factor models for market segmentation: an application to pharmaceuticals," Statistical Methods and Applications, Springer, vol. 16(2), pages 279-287, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Richard Broekman).
If references are entirely missing, you can add them using this form.