Abstract Among clustering techniques latent class (LC) models have gained recognition as a method of segmentation with several advantages over traditional methods. The LC approach is innovative and flexible and can provide suitable solutions to several problems regarding the development of marketing strategies, because it takes into account specific features of the collected data, such as their scale of measurement, hierarchical structure and longitudinal component. Dynamic segmentation is of key importance in many markets where it is unrealistic to assume stationary segments due to the dynamics in consumers’ needs and product choices. We estimate a LC Markov model to dynamically segment Italian households with reference to financial products. Studying portfolio compositions of households gives valuable information about different management styles. We show that different groups of households exhibit different financial strategies and that they are not stable over time since ownership varies between stages of the product life cycle and between households characteristics.

Italian households' financial product ownershipover time: a latent class Markov model for dynamic segmentation

BASSI, FRANCESCA
2013

Abstract

Abstract Among clustering techniques latent class (LC) models have gained recognition as a method of segmentation with several advantages over traditional methods. The LC approach is innovative and flexible and can provide suitable solutions to several problems regarding the development of marketing strategies, because it takes into account specific features of the collected data, such as their scale of measurement, hierarchical structure and longitudinal component. Dynamic segmentation is of key importance in many markets where it is unrealistic to assume stationary segments due to the dynamics in consumers’ needs and product choices. We estimate a LC Markov model to dynamically segment Italian households with reference to financial products. Studying portfolio compositions of households gives valuable information about different management styles. We show that different groups of households exhibit different financial strategies and that they are not stable over time since ownership varies between stages of the product life cycle and between households characteristics.
2013
Advances in Latent Variables
9788834325568
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11577/2684116
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