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Segmentation analysis is used to identify complex relationships between one or more outcome measures and a large set of causal measures. MSA uses its proprietary MAID (Multivariate Automatic Interaction Detection) algorithm for segmentation analyses. MAID splits a total sample into sub groups by maximizing between group differences and minimizing within group differences.
MAID Strengths
- Hierarchical segmentation - allows conditional relationships
- Analysis of categorical factors - both ordered (e.g. < $100, $100-$200, > $200) and unordered (e.g. eastern region, southern region, etc.)
- Multiple dependent (outcome) variables - for example, segmentation based on both volume and share simultaneously
Typical applications include segmentation at the store or account level to create groups of stores that can follow similar promotional and pricing strategies. Segmentation is also done at the consumer level to create groups of consumers who can be marketed to using the same strategy.
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