Segmentation
Markets are heterogeneous. Customers differ in their values needs, wants, constraints, beliefs and incentives to act. Products compete to satisfy the needs and wants of customers. By segmenting their markets, firms can better understand their customers and target their marketing efforts efficiently and effectively (Lilien, 2007). As Lilien suggests the raw data has been segmented below.

Size / Cluster | Overall | Cluster 1 | Cluster 2 | Cluster 3 | Number of observations | 317 | 182 | 70 | 65 | Proportion | 1 | 0.574 | 0.221 | 0.205 |
Fig. 1
After exploring with different amount of clusters, it was clear that there are 3 well defined clusters. As Lilien (2007) approves for a segmentation study to be useful, it should result in a manageable number of target segments (often between three and eight), each of a substantial size. Therefore this representation of the market is appropriate and the analysis can continue to describe each segment. Below are the results from the data collected. Segmentation variable / Cluster | Overall | Cluster 1 | Cluster 2 | Cluster 3 | Rich full-bodied | 4.77 | 4.91 | 2.3 | 7.03 | Light beer | 3.72 | 3.35 | 3.67 | 4.82 | No aftertaste | 4.56 | 4.37 | 3.46 | 6.29 | Refreshing | 5.02 | 5.42 | 2 | 7.17 | Goes down easily | 5.17 | 5.35 | 2.91 | 7.09 | Gives a "buzz" | 3.39 | 3.16 | 2.63 | 4.88 | Good taste | 3 | 2.37 | 0.443 | 7.51 | Low price | 3.91 | 3.8 | 3.13 | 5.06 | Good value | 4.65 | 4.43 | 3.26 | 6.77 | From country with brewing tradition | 3.82 | 3.8 | 2.54 | 5.25 | Attractive bottle | 3 | 2.57 | 2.77 | 4.45 | Prestigious brand | 3.2 | 2.93 | 2.27 | 4.94 | High quality | 4.48 | 4.69 | 1.53 | 7.06 | Drink at picnics | 4.56 | 4.95 | 2.49 | 5.74 | Masculine | 2.67 | 2.16 | 2.13 | 4.68 | For young people | 2.49 | 2.02 | 2.29 | 4.03 | Drink with friends | 4.7 | 5.5 | 1.36 | 6.05