Title page for ETD etd-05082006-140753

Type of Document

Dissertation

Author

Voorhees, Clay Michael

Author's Email Address

voorhees@bus.msu.edu

URN

etd-05082006-140753

Title

A Customer Equity-Based Segmentation of Service Consumers: An Application of Multicriterion Clusterwise Regression for Joint Segmentation Settings

Degree

Doctor of Philosophy

Department

Marketing, Department of

Advisory Committee

Advisor Name	Title
J. Joseph Cronin, Jr.	Committee Chair
Larry Giunipero	Committee Member
Michael Brady	Committee Member
Michael Brusco	Committee Member
William Christiansen	Committee Member

Keywords

Logistic Regression
Customer Equity
Cluster Analysis
Loyalty
Clusterwise Regression
Segmentation
Services

Date of Defense

2006-04-28

Availability

unrestricted

Abstract

The current research is undertaken to demonstrate the efficacy of segmenting consumer markets. In doing so, the current research reveals that the understanding of consumer behavior is greatly improved when service markets are segmented using clustering procedures. The effectiveness of these clustering procedures is tested across three studies and eight industries. In the first study, the prediction of overall service quality is improved by applying a bicriterion clusterwise regression to the data. In the second study, a multicriterion procedure is used to optimize the ability of eighteen customer equity drivers to predict a series of customer outcomes. Finally, in the third study, a bicriterion clusterwise logistic regression application is developed and is used to test the efficacy of the customer equity drivers in predicting actual customer behavior.

The results of each study suggest that managers and researchers must acknowledge that consumer markets are heterogeneous and by modeling this heterogeneity prediction in outcome behaviors can be greatly improved. Moreover, the current research develops a new methodological technique for predicting binomial outcomes in a clustering framework.

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