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Journal of Hospitality & Tourism Research, Vol. 23, No. 3, 268-283 (1999)
DOI: 10.1177/109634809902300303
© 1999 ICHRIE

The Use of Logit Analysis to Enhance Market Segmentation Methodology

Joseph S. Chen

Virginia Polytechnic Institute and State University, joechen{at}vt.edu

Cathy H. C. Hsu

Kansas State University, cathyhsu{at}humec.ksu.edu

Due to the deficiencies of data analysis techniques used in market segmentation research, this study was an attempt to introduce two data analysis techniques—logistic regression and logit analysis—to provide an alternative approach to assess the uniqueness of each market segment. In this study, Korean outbound travelers were selected as a study population to demonstrate the enhancement of current market segmentation methodology. Destination choice preferences were used as the criteria for segmentation. The results from a cluster analysis revealed two mutually exclusive groups: frugal excursionists and privileged travelers. The characteristics of each group were discussed. The advantages of using logit analysis were reviewed in the conclusion section. For future studies, the refinement of the scale measuring destination choice preferences was advocated.

Key Words: market segmentation • methodology • Korean travelers • logistic regression • logit analysis


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J. S. Chen
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