A SEGMENTATION MODEL FOR THE TARGETED MARKETING OF CONSUMER DURABLES

The authors use finite mixture distribution theory to develop a segmen tation model for targeting potential consumer durable buyers. The mode l enables them to identify simultaneously durable replacer segments on the basis of household characteristics and product ages and determine which of the household characteristics are significant predictors of segment membership. Using household data for five home appliances, the authors present an empirical application of the model. They also disc uss managerial implications and uses of this approach.