Cluster Analysis

Salient Features

• Gr. of multivariate techniques
• Purpose is to group the respondents on the basis of characteristics they posses
• Homogeneity within the group, hetrogeneity across the groups
• Use as a tool to help decide on the target group
• It's not a statistical tool, rather a geometrical tool
• Based on the concept of Euclidean distance
• Dendogram helps to categorise the respondents in different clusters

Drawbacks

• Descriptive, theoritical and non-inferential
• No statistical basis

Customer Profiling

• Is done by taking the mean of the responses of the respondents in a cluster

Conjoint Analysis

• Attribute-based pricing
• Uses ranking data