_____ analysis begins with the whole market--then determines what segmentation pattern best trades off parsimony and the ability to explain behavior.
A) Tabular
B) Regression
C) Cluster
D) Latent class
E) Column

Question

Quizplus · Accepted Answer

Latent class analysis is the correct answer because it is a statistical method used for finding subtypes of cases (like customers, patients, or respondents) within a population by identifying individuals who share similar patterns of responses. This method is particularly useful for market segmentation because it starts with the overall market and then identifies segments within it that best balance simplicity (parsimony) and the ability to explain variations in behavior.

_____ Analysis Begins with the Whole Market--Then Determines What Segmentation