Explain how cluster analysis can identify market ...

[vHAUNG6011]

Explain how cluster analysis can identify market segments.

Question 2

Which of the following analyses is the process in which certain factors are identified that may have an impact on the size and geographic distribution of the market?
 a. competitive c. internal
  b. environmental d. portfolio

[cloud]

Answer to Question 1

Cluster analysis is a multivariate approach for identifying objects or individuals that are similar to one another in some respect. It classifies individuals or objects into a small number of mutually exclusive and exhaustive groups. Objects or individuals are assigned to groups so that there is great similarity within groups and much less similarity between groups. The cluster should have high internal (within-cluster) homogeneity and external (between-cluster) heterogeneity. Cluster analysis facilitates market segmentation by identifying subjects or individuals who have similar needs, lifestyles, or responses to marketing mixes.

Answer to Question 2

B
Definition of environmental analysis

[vHAUNG6011]

Thanks for the timely response, appreciate it

[atrochim]

Excellent