Cluster+Analysis+Slide+Deck

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Enugu State University of Science and Technology**We aren't endorsed by this school

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ECN 121

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Law

Date

Dec 21, 2024

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Uploaded by MagistrateScorpion15874

Cluster Analysisogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

7 Types of Starbucks Customersogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

Segmentation at Sticks Kebobogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

ogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

Location Population MedianageMedianincomeConsumerspend perhouseholdMajor customerprofilesA 29,32139.1$92,700 $62,404 Blue Blood Estates;Brite Lites, Li’l City;Executive Suites;Upward Bound;Winner’s CircleB 34,18332.5$31,900 $36,720 City Startups; FamilyThrifts; HometownRetired; NewBeginnings; SunsetCity BluesC 42,91332.5$55,700 $46,828 Brite Lites, Li’l City;Family Thrifts; Upand-Comers; UpwardBound; White PicketFencesD 57,50934.8$75,500 $57,880 Brite Lites, Li’l City;Country Squires; Upand-Comers; UpwardBound; White PicketFencesogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

https://claritas360.claritas.com/mybestsegments/#zipLookupogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

Multi-Attribute Segmentation•The PRIZM®Methodology: Neighborhood Lifestyle Segmentation“Birds of a feather flock together”“People with similar cultural backgrounds, needs, and perspectives naturally… chose to live in neighborhoods that offer affordable advantages and compatible lifestyles.”“These neighborhoods can be grouped into ‘clusters’ that exhibit similar demographic and behavioral characteristics. These neighborhood clusters can then be used to identify and locate marketing targets.”•http://tiny.cc/ClaritasPrizmogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

PRIZM®by ClaritasLanded GentryCountryFamiliesHeartlandersExurbanBluesRusticLivingWorkingTowns2nd CitySociety2nd CityCentersEliteSuburbsThe AffluentialsInnerSuburbs2nd City BluesUrbanUptownUrbanMidscaleUrban CoresT1R1R2R3C1T2T3C3U3C2S1S2S3U2U15.8mm HHs5.5mm HHs3.4mm HHs8.8mm HHs5.5mm HHs6.3mm HHs6.8mm HHs6.9mm HHs5.2mm HHs7.8mm HHs7.3mm HHs5.8mm HHs5.2mm HHs6.2mm HHs5.4mm HHsSocioeconomic StatusLowHighMediumUrbanizationRuralTown2nd CityMetro SuburbMetro Urbanogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

Identifying Segments: Possible Bases for Segmenting Consumers and CustomersDemographicsPurchase Behaviorand Product UseDesiredBenefits/NeedsPsychographicsogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

Cluster Analysis•Deriving Clusters and Assessing Overall FitDecide on Clustering Algorithm−Many algorithms are available−More coming all the time•Main goal: maximize differences betweenclusters relative to variation within clustersogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

012345678910012345678910012345678910012345678910012345678910012345678910012345678910012345678910012345678910012345678910K=2Arbitrarily choose K object as initial cluster centerAssign each objects to most similar centerUpdate the cluster meansUpdate the cluster meansReassignReassignK-Means Clusteringogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

Criteria for Effective SegmentationIdentifiable?Sustainable?Accessible?Actionable?Responsive?ogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

ogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

https://www.mckinsey.com/featured-insights/asia-pacific/understanding-indias-economic-geographyogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

When Segmentation Fails•Using same segmentation scheme for different business objectivesDifferent advertising or different products?•Too much focus on techniques•Using only psychographic or demographic variables•Not focusing on differences in customer needs•Static segmentation schemes•Lack of senior management buy-inogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

Steps to Implement•Identify Demographic, Psychographic Variables•Choose the variables to cluster•Describe behavior using clusters•Merge with Demographic variables to operationalizeogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

Customer Centricity at Best BuyBarryJillHelen and CharlieCarrieRayAffluent Tech EnthusiastBusy SuburbanMomEmptyNestersYoung SingleWomanPrice-Conscious Family GuyImage CreditSteve Jurvetsonhttps://www.flickr.com/photos/jurvetson/8200336388/Image CreditBill & Vicki Thttps://www.flickr.com/photos/iluvcocacola/15582114874/Image CreditAdrien Pârishttps://www.flickr.com/photos/25146904@N06/3411097311/ogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

A Few Bumps in the Road at Best Buy•Fortune Magazine, March 2006…the first few dozen stores it segmented, where same-store sales grew at three times the rate of regular stores, Best Buy stepped on the accelerator…it then tinkered ceaselessly to get the mix of products and employees just right […] Anderson and his executives assumed subsequent stores could just flip a switch and convert to centricity.“When we gave the operating manual to the stores for the fall,” he says ruefully, “it was four inches thick.” Adds executive vice president John Walden, Anderson's point man for centricity: “The way we deployed was too confusing.”Instead of jumping as it had in previous quarters, same-store sales growth at the renovated stores was only slightly better than the chainwide average (5.4 percent vs. 3.3 percent). The poor results persuaded him to freeze centricity rollouts for the fourth quarter. (They resumed in March.)ogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

30ogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

You are what you buy…but not everyone understands that yetModelYou are what you earnYou are where you liveYou are what you say you areYou are what you doAKAUsed byReal ConsumerDemographics / Social classMass market media buyersI spend very differently from my “peer.”Geodemo-graphics“Targeted” marketing industryI can’t eat at Jane’s house:No organics!Lifestyle questionnairesMany CPGs and research firmsI try to tell the truth … as best I recall it.Behavior-based targetingSome leading retailers and CPGsOK … now you’ve got me!To deliver on this, we look at billions of transactions from 200 million households worldwide…something no one else can doogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

Each consumer’s DNA is different•Each dimension describes a particular element of a customer’s needs and wants•Each customer has a different degree of involvement with each of these dimensions – which we capture with a dimension score-4-3-2-140123E x a m p le C u s to m e r D a taD im e n s io n sScores1 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 0 3 1 3 2D e fin in g d im e n s io n sDimension examples: High price, Low price, Asian, Baby, Big Box, Bulk, Canned, Cat, Dog, Diet, Elderly, Ethnic, Fresh, Frozen, Gourmet, Healthy, Hispanic, Home Baking, Home Cooking, Kosher, Low Carb, Meat, No time, Organic, Snackingogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

When you understand what your shopper is doing and why, it is much easier to connectI know 50m+ people as well as I know her…a busy young lady…looks after her health…loves fresh produce…shops on Saturday mornings…reads People Magazine…has a cat …doesn’t particularly care about price…but does look out for promotions…pays by credit card…only occasionally uses self-scanningThis is a friend I know, she is….ogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

2 Groups of People – Toy BuysSource: https://boraberan.wordpress.com/2016/07/19/understanding-clustering-in-tableau-10/ogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

2 Groups of PeopleToy BuysSource: https://boraberan.wordpress.com/2016/07/19/understanding-clustering-in-tableau-10/ogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

Customer PreferencesCustomerDesignSpeed1512733444745456557858369471038Preference on a 10-point scale, 10 most preferred and 1 least preferred for Design and Speed of a laptopogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.

Customer Preferences012345678910012345678910SpeedDesignogodalex@gmail.comHY97I5ORUKThis file is meant for personal use by ogodalex@gmail.com only.Sharing or publishing the contents in part or full is liable for legal action.