Finite Mixture Models

Gensler Sonja


Abstract
Finite Mixture models are a state-of-the-art technique of segmentation. Next to segmenting consumers or objects based on multiple different variables, Finite Mixture models can be used in conjunction with multivariate methods of analysis. Unlike approaches combining multivariate methods of analysis and cluster analysis, which require a two-step approach, the parameters are then directly estimated at the segment level. This also allows for inferential statistical analysis. This book chapter explains the basic idea of Finite Mixture models and describes some popular applications of Finite Mixture models in market research.

Keywords
Finite Mixture models; Latent class analysis; Segmentation; Maximum likelihood estimation; Multivariate methods



Publication type
Chapter in Book

Peer reviewed
Yes

Publication status
Published

Year
2022

Book title
Handbook of Market Research

Editor
Homburg Christian, Klarmann Martin, Vomberg Arnd

Pages range
251-264

Edition
1

Publisher
Springer, Cham

ISBN
978-3-319-57412-7

DOI