The topic which I would be covering from today’s classes would be Cluster Analysis. It’s the first time that we have had such an interesting evaluation component i.e. blogging J So here goes my very first blog ever!!!!
Clustering is the process of grouping observations of similar kinds into smaller groups within the larger population. It has widespread application in business analytics. Clustering really helps in solving a big issue which business are facing today i.e. organising large amount of heterogeneous data into smaller homogenous groups. The degree of association of the objects in such groups is maximal. There is non-hierarchical clustering and hierarchical clustering. K-means is a type of non-hierarchical technique and one of the most common one. It is the most commonly used technique in business analytics. Clustering is primarily used for segmentation. It is also used in various fields like machine learning, data mining, pattern recognition, image analysis, information retrieval, and bioinformatics.
Since I am a marketing student, let’s see how clustering can be used in marketing J
Cluster analysis is widely used in market research when working with multivariate data from surveys and test panels. Market researchers use cluster analysis to partition the general population of consumers into market segments and to better understand the relationships between different groups of consumers/potential customers.
· Segmenting the market and determining target markets
· Product positioning
· New product development
· Selecting test markets
Submitted by: Gargi Koyande
Marketing - Group 2