Author Question: Explain how cluster analysis can identify market segments.[br][br][b][color=red]Question ... (Read 109 times)

cartlidgeashley · **on:** Jun 28, 2018

Explain how cluster analysis can identify market segments.

Question 2

The grounded theory technique (GTT) presents subjects with an ambiguous picture in which consumers and products are the center of attention.

Indicate whether the statement is true or false

hanadaa · **Reply #1 on:** Jun 28, 2018

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

F
A thematic apperception test (TAT) presents subjects with an ambiguous picture in which consumers and products are the center of attention.