IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v19y1973i11p1213-1221.html
   My bibliography  Save this article

Evaluating Market Segmentation Studies: The Properties of R 2

Author

Listed:
  • Donald G. Morrison

    (Columbia University)

Abstract

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.

Suggested Citation

  • Donald G. Morrison, 1973. "Evaluating Market Segmentation Studies: The Properties of R 2," Management Science, INFORMS, vol. 19(11), pages 1213-1221, July.
    • Handle: RePEc:inm:ormnsc:v:19:y:1973:i:11:p:1213-1221
    DOI: 10.1287/mnsc.19.11.1213
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.19.11.1213
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.19.11.1213?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:19:y:1973:i:11:p:1213-1221. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.