Exercise 2: Practice Cluster Example

Run k-means cluster analysis using all the variables to identify 2 segments. Interpret and report the outcome of the analysis.

Run k-means cluster analysis using all the variables to identify 3 segments. Interpret and report the outcome of the analysis.

Compare the two analyses and which one would you prefer? Why?

Exercise 3: Chipotle Survey Data

Classify Each Variable Into The Following:

Demographic

Psychographic

Behavioral

Marketing mix

Not to be used

Run cluster analysis for demographic variables, using k-means method, and investigate the segments quantitatively and qualitatively.

Run cluster analysis for psychographic variables, using k-means method, and investigate the segments quantitatively and qualitatively.

Run cluster analysis for behavioral variables, using k-means method, and investigate the segments quantitatively and qualitatively.

Which cluster would you recommend as a primary target, and why? Conduct means analysis to support your choice for all three segmentation procedures.