TY - JOUR
AU - Morrison, Donald G.
AB - Virtually all of the empirical studies on market segmentation can be characterized as unsuccessful in terms of R2. That is, the set of independent variables used have not explained much of the variance in purchasing behavior. R2's of 0.01 and 0,02 are not uncommon. In this article we show that R2 is an inappropriate statistic to use in evaluating most of these studies. We show that good models with good sets of variables can yield low (and even zero!) R2's. In this context good variables are ones that explain the average purchasing behavior of a family. The previous studies on market segmentation should be re-evaluated in light of the results presented here.
TI - Evaluating Market Segmentation Studies: The Properties of R2
JF - Management Science
DO - 10.1287/mnsc.19.11.1213
DA - 1973-07-01
UR - https://www.deepdyve.com/lp/informs/evaluating-market-segmentation-studies-the-properties-of-r2-Pc7yjniKC1
SP - 1213
EP - 1221
VL - 19
IS - 11
DP - DeepDyve
ER -