This paper introduces bagged clustering as a new exploratory approach in the field of market segmentation research which offers a few major advantages over both hierarchical and partitioning algorithms, especially when dealing with large binary data sets.

The field of strategic marketing has long been identified as fruitful ground for gaining competitive advantage. Ever since the market segmentation concept was introduced in the late sixties, research interest steadily increased, covering issues as e.g. which fundamental segmentation strategy is...