The application of factor cluster composite analysis in market segmentation research

Starting from the diversity that different elements influence the satisfaction, this paper applies factor analysis and cluster analysis to study market segmentation. First, the basic theories and study methods of market segmentation are summarized. Second, this paper takes newspaper retail industry as empirical research object and carries on sample survey to readers through the design of Likert five-category attitude scale so as to understand the readers´ preferences and satisfaction to the newspaper. This paper uses factor analysis to descend dimension of multiple observation variables, extracts and explains the public factors, and make cluster and market segmentation of the sample according to factor scores using K-Means cluster analysis, which puts forward advice for selecting target market of newspaper issuing and drawing marketing strategies.