Data Intelligence, Business Analytics
I've never heard the name 'Latent Class Analysis', but from this discussion, it seems to me that it is a Structural Equation Model. Am I right?
Anyway, there are a lot of distance measures for categorical data, just like Simon said. You can surely use it, just make sure to take a look at some of them before using as they vary depending on your final objectives and might need (most likely WILL need) some data recoding.
for treating categorical varible in segmentation. Do first canonical discriminant analysis. After gettin " Can " result through ncan in SAS. Do final cluster for segmentation