cluster analysis

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Respondents Statement A Statement B 1 1 5 2 4 3 D- 1,2 = (4-1) + (3-5) Chebyshev Method [(3) + (- 2)] D- 1,2 = [Absolute value of (4-1) + (3-5)] Minkowski Method [(3) + (2)] D- 1,2 = Square root of {[4-1] 2 + [3-5] 2 } Euclidian Distance [(3) + (-2)] D- 1,2 = {[4-1] 2 + [3-5] 2 } Squared Euclidian Distance – Most utilised method used to calculate the distance between people. [(9) + (4)] 59.222-40.667 = 18.555 40.667-11.80 = 28.867 The difference suddenly increased from 18.555 to 28.867. So we have to stop the calculations & the no of clusters for the data is 2 (Bottom up approach). Hence a 2 cluster table. Hierarchical Cluster – To find no of segments.

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Page 1: Cluster Analysis

Respondents Statement A Statement B1 1 52 4 3

D- 1,2 = (4-1) + (3-5) Chebyshev Method [(3) + (-2)]

D- 1,2 = [Absolute value of (4-1) + (3-5)] Minkowski Method [(3) + (2)]

D- 1,2 = Square root of {[4-1]2 + [3-5]2 } Euclidian Distance [(3) + (-2)]

D- 1,2 = {[4-1]2 + [3-5]2} Squared Euclidian Distance – Most utilised method used to calculate the distance between people. [(9) + (4)]

59.222-40.667 = 18.555

40.667-11.80 = 28.867

The difference suddenly increased from 18.555 to 28.867. So we have to stop the calculations & the no of clusters for the data is 2 (Bottom up approach).

Hence a 2 cluster table. Hierarchical Cluster – To find no of segments.

Page 2: Cluster Analysis

Cluster Membership

Case Number age Cluster Distance

1 41-50 1 2.575

2 41-50 1 2.647

3 41-50 1 1.906

4 41-50 1 2.808

5 31-40 1 3.792

6 41-50 1 4.032

7 41-50 1 2.476

8 41-50 1 3.743

Page 3: Cluster Analysis

9 41-50 1 2.600

10 31-40 1 2.181

11 31-40 1 2.808

12 31-40 1 3.675

13 41-50 1 4.048

14 41-50 1 3.938

15 31-40 1 4.665

16 31-40 1 4.624

17 21-30 2 2.015

18 21-30 2 .916

19 21-30 2 1.652

20 31-40 2 2.015

21 21-30 2 .916

22 21-30 2 1.652

23 31-40 2 1.083

24 21-30 2 .916

25 21-30 2 1.083

Final Cluster CentersCluster

1 2

Indian Technlogy high order

4 2

Buy Made in India 4 2Value for money 3 1Convenience over style 3 2Don't do waste full expenditure

3 1

No compromise on safety

3 1

saver not spender 3 1try new things 1 5be part of a changing world

1 4

Number of Cases in each

Cluster

Cluster1 16.000

2 9.000

Valid 25.000

Missing .000

Page 4: Cluster Analysis

K Means Cluster analysis

Cluster no 1 becomes a very important cluster (16 out of 25 people) in which they give least

importance to Try new things & being part of a changing world (Rating being 1) & give most importance to Indian technology & buy made in India (rating being 4).

Also we can see that the cluster contains people in the age category of 41 – 50 (from cluster membership table)

Mention for each statement which cluster is giving more importance. (Observe the rating & decide accordingly).

1. Create a new product (PEN). 3 Main features of a Pen. (Conjoint Analysis)

Ink – Blue, Black, Red

Grip – Rubber, Plastic

Price – 2, 5, 10

Make the 18 combinations using the data above & get ranking of the combinations (best being 1 & the least being 18) from atleast 5 respondents (write the combinations & the average rank).

Page 5: Cluster Analysis

2. A new product (Soap) Lux, Liril, Lifebuoy, Hamam, Pears, Dove, Medimix (Multi-dimensional scaling)Make 21 combinations (7*6/2) & rank each of the combinations by the following method: (1= highly similar, 2 = similar, 3=neutral, 4= dissimilar, 5= highly dissimilar)Get the ranking of each combination from atleast 5 respondents & get the combination along with the average rank.