2K Latent Class Analysis
Allan McCutcheon, University of Nebraska at Lincoln
22 July - 2 August (two week course / 35 hrs)
This course provides participants with a practical, working knowledge of one of the major approaches to categorical data analysis and market segmentation research: latent class analysis. The latent class model (LCM) provides one of the most important approaches for understanding relationships among a wide variety of respondents and consumer attitudes and behaviour. The LCM facilitates the construction and testing of models of respondent types (e.g., market segments), and helps in characterizing the nature of complex groups. In addition to the basic LCM, attention is given to modelling longitudinal data, as well as to the inclusion of predictor and outcome variables related to the segments. We examine the conceptual and methodological foundations of market segmentation, with several specific applications of the latent class and related models to a variety of data types.
The course introduces participants to the conceptual and methodological foundations of the latent class model and its linkages to market segmentation, as well as its application to a variety of related social and political science problems. The expectation is that, at the end of the course, participants will be able successfully to conduct research using latent class analysis, as well as be prepared to pursue self-directed study in the area.
Participants should have some understanding of basic probability and contingency tables (cross-tabulation), as well as basic algebra. A solid understanding of the logic of causality, such as found in regression and factor analysis, is also necessary. The mathematics/statistics underlying the logic of regression and factor analysis are useful, but not essential.
Davis, J. A. 1986. The Logic of Causal Order. Sage. QASS No.55.
Representative Background Reading
McCutcheon, A., and Mills, C. 1998. ‘Categorical data analysis: Log-linear and latent class models’, in E.Scarbrough and E. Tanenbaum (Eds.), Research Strategies in the Social Sciences. Oxford University Press.
McCutcheon, A. 2002. ‘Basic Concepts and Procedures in Single- and Multiple-Group Latent Class Analysis’, in J. Hagenaars and A. McCutcheon (Eds.), Applied Latent Class Analysis. Cambridge University Press.