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Needs-Based Segmentation

Many strategic business decisions are based on segmenting the market and determining how to reach target segments effectively. Good target segments are those that are substantial (large enough size), stable, and that reflect a good match in terms of needs/desires for the firm’s offering. Sawtooth Software offers a variety of tools that may be applied in needs-based segmentation:

MaxDiff (analyzed using our Latent Class software)
Conjoint Analysis (analyzed using CCA or Latent Class)
CCA (Convergent Cluster Analysis)

Please see the following article for how MaxDiff may be used for needs-based segmentation:

• Maximum Difference Scaling: Improved Measures of Importance and Preference for Segmentation

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