Re. Bucklin et al., A BRANDS EYE VIEW OF RESPONSE SEGMENTATION IN CONSUMER BRAND CHOICE BEHAVIOR, Journal of marketing research, 32(1), 1995, pp. 66-74
The authors develop an approach to reveal segmentation in response to
marketing variables at a brand-level perspective. In the proposed proc
edure, response segmentation is analyzed separately for each brand ins
tead of jointly across all brands. This yields a segmentation picture
oriented toward the potential targeting objectives of the brand manage
r. Using the multinomial logit and probabilistic mixture models, the p
rocedure first calibrates consumer response in the brand choice decisi
on. Individual-level measures of response for a given marketing variab
le (e.g., price) are then computed, and brand-level segments are obtai
ned by clustering brand-specific response. Using scanner panel data, t
he approach is applied to price response segmentation for brands that
compete in the ground coffee category. The results illustrate a series
of implications for brand strategy, particularly the potential for ta
rgeting marketing activity to different response segments.