Uncovering and Treating Unobserved Heterogeneity with FIMIX-PLS: Which Model Selection Criterion Provides an Appropriate Number of Segments?

@article{Sarstedt2011UncoveringAT,
  title={Uncovering and Treating Unobserved Heterogeneity with FIMIX-PLS: Which Model Selection Criterion Provides an Appropriate Number of Segments?},
  author={Marko Sarstedt and Jan-Michael Becker and Christian M. Ringle and Manfred Schwaiger},
  journal={Schmalenbach Business Review},
  year={2011},
  volume={63},
  pages={34-62}
}
Since its first introduction in the Schmalenbach Business Review, Hahn et al.’s (2002) finite mixture partial least squares (FIMIX-PLS) approach to response-based segmentation in variance-based structural equation modeling has received much attention from the marketing and management disciplines. When applying FIMIX-PLS to uncover unobserved heterogeneity, the actual number of segments is usually unknown. As in any clustering procedure, retaining a suitable number of segments is crucial, since… 
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