Latent Class Analysis
A technique used to identify subgroups within a population that share similar characteristics, often used in segmentation studies.
Implications
A statistical method used to identify subgroups within a population based on patterns in categorical data, often used in market research, psychology, and social sciences to uncover hidden segments or classes that share similar characteristics, behaviors, or preferences.
Example
Example: A market research firm uses Latent Class Analysis to segment a large customer base into distinct groups based on purchasing behaviors, allowing the company to tailor its marketing strategies to each group�s specific needs and preferences.
Related Terms
Different from cluster analysis, which typically uses continuous data, Latent Class Analysis is specifically designed for categorical data and is often used to reveal hidden or unobserved groupings within a population.
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