Week 4: Customer Segmentation and Targeting II (Cluster Analysis)

Question 1

Cluster Analysis

Answer 1

Cluster Analysis is a number of techniques used to classify objects or cases into relatively homogenous groups called clusters.

Question 2

Cluster analysis : Aim

Answer 2

Pooling of similar objects in groups.

Question 3

Applications of Cluster Analysis in Marketing

Answer 3

Market Segmentation
Identify new product opportunities
Understanding buyer behaviour

Question 4

Types of Clustering Methods

Answer 4

Non-overlapping vs. overlapping
Hierarchical vs.partitioning clustering
Agglomerative vs. divisive
Exhaustive vs. non-exhaustive