ON USING DEMOGRAPHIC-VARIABLES TO DETERMINE SEGMENT MEMBERSHIP IN LOGIT MIXTURE-MODELS

The authors propose an extension of the logit-mixture model that defin es prior segment membership probabilities as functions of concomitant (demographic) variables. Using this approach it is possible to describ e how membership in each of the segments, segments being characterized by a specific profile of brand preferences and marketing variable sen sitivities, is related to household demographic characteristics. An em pirical application of the methodology is provided using A.C. Nielsen scanner panel data on catsup. The authors provide a comparison with th e results obtained using the extant methodology in estimation and vali dation samples of households.