Question

Which of the following are good opportunities to use clustering? (Select all that apply) a. An airline would like to use customer demographic data to predict which customers are likely to “no-show” for its flights, i.e., buy a ticket but not actually show up to the airport. b. After running a survey asking customers what services they would like to see, an insurance company wants to design 4-5 personalized products to market to new customers. c. A marketing consulting firm would like to segment consumers into a small number of groups to help its clients understand consumer needs. d. A university would like to identify small number of metrics to track to ensure they are progressing towards their strategic goals.

Answer 1

Answer: the correct answer is c. A marketing consulting firm would like to segment consumers into a small number of groups to help its clients understand consumer needs.

Step-by-step explanation:

Cluster analysis is an exploratory analysis that tries to identify structures within the data. Cluster analysis is also called segmentation analysis or taxonomy analysis. More specifically, it tries to identify homogenous groups of cases if the grouping is not previously known.