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Cluster analysis (in marketing)
'''Cluster analysis''' is a class of [[statistics|statistical]] techniques that can be applied to data that exhibits &#8220;natural&#8221; groupings. Cluster analysis sorts through the raw data and groups them into clusters. A '''cluster''' is a group of relatively homogeneous cases or observations. Objects in a cluster are similar to each other. They are also dissimilar to objects outside the cluster, particularly objects in other clusters(contracted; show full)
# Assess [[reliability (psychometric)|reliability]] and [[validity (psychometric)|validity]] - various methods:
#*repeat analysis but use different distance measure
#*repeat analysis but use different clustering technique
#*split the data randomly into two halves and analyze each part separately
#*repeat analysis several times, deleting one variable each time
#*repeat analysis several times, using a different order each time

== Clustering 
Pprocedures ==
There are several types of clustering methods:
*'''Non-Hierarchical clustering''' (also called k-means clustering)
**first determine a cluster center, then group all objects that are within a certain distance
**examples:
***'''Sequential Threshold method''' - first determine a cluster center, then group all objects that are within a predetermined threshold from the center - one cluster is created at a time
(contracted; show full)


''See also : [[marketing]], [[marketing research]], [[factor analysis]], [[multi dimensional scaling (in marketing)|multi dimensional scaling]], [[quantitative marketing research]], [[positioning (marketing)|positioning]], [[perceptual mapping]]''

[[Category:Psychometrics]]
[[Category:Marketing]]
[[Category:Marketing research]]
[[category:Product management]]