There are three major flaws of segmentation modeling that is practiced by many current marketing researchers.
1. There is an over-reliance on rating scales to derive segments.
2. Analyzing data in silos discards important information.
3. Factor Analysis followed by Cluster Analysis should be totally abandoned.
These flaws have been discussed and exposed over and over, and yet some research companies are still pushing these approaches to the detriment of delivering to client flawless results.
i4i Co-founder and Partner Steven Cohen shares his POV on the approach to market segmentation that will not die.
