When you have selected the data, segments should be deduced. Two types or approaches of segmentation exist:
1. Forward Segmentation (also called A Priori Segmentation): customers are first classified on personal characteristics. Then differences between groups in terms of product and (brand)characteristics are examined.
2. Backward Segmentation: starts with groups of customers that have different behaviour in relation to the product or brand for example by wanting different benefits. Then the general (personal) characteristics that can be used to describe each group are examined.
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