Download
1 / 8
180 likes | 385 Views
Chapter_20 Cluster Analysis. Cluster analysis is a class of techniques used to classify objects or cases into relatively homogeneous groups called clusters. Objects in each cluster tend to be similar to each other and dissimilar to objects in the other clusters. Areas of cluster Analysis:
E N D
Chapter_20 Cluster Analysis Cluster analysis is a class of techniques used to classify objects or cases into relatively homogeneous groups called clusters. Objects in each cluster tend to be similar to each other and dissimilar to objects in the other clusters. Areas of cluster Analysis: • Segmenting the market • Understanding buyer behavior • Identifying new product opportunities • Selecting test markets • Reducing data Naresh K. Malhotra Marketing Research-an applied orientation, 4th ed.
Conducting Cluster Analysis It is a six-step process- Formulate the problem Select a distance measure Select a clustering procedure Decide on the number of clusters Interpret and profile clusters Assess the validity of clustering
