ANALYTICS
Q. What is cluster analysis?
A. Cluster analysis – also known as market segmentation – is a technique that is used to measure market composition
Q. When would you use it?
A. To provide an alternative, more focused profile to what would be possible using basic socio-demographics, or other single-dimensional measures
Q. What are the advantages?
A. It provides a classification that primarily describes the make-up of the market in attitudinal or behavioural terms
Q. Any disadvantages?
A. While members of each cluster group share the same characteristics, each member is not all necessarily identical to every other member
