Market Segmentation and Cluster Analysis
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Questions and Answers

What is the primary challenge in using a dendrogram to identify clusters?

  • Handling missing values in the dataset
  • Determining the correct distance metric
  • Selecting the optimal number of clusters (correct)
  • Dealing with high-dimensional data

Which type of data can be used with hierarchical clustering?

  • Only standardized data
  • Only categorical data
  • Only numerical data
  • A mixed set of categorical and numerical data (correct)

Why is it important to standardize data before performing hierarchical clustering?

  • To improve the accuracy of the clustering algorithm
  • To reduce the impact of outliers
  • To reduce the dimensionality of the data
  • To ensure that all variables are on the same scale (correct)

What is the primary goal of the case study on online perfume and cosmetic sales?

<p>To analyze customer behavior and segment the market (A)</p> Signup and view all the answers

How many customer segments were identified in the case study?

<p>Four (D)</p> Signup and view all the answers

What is the annual revenue of the online perfume and cosmetic industry?

<p>$16.2 billion (B)</p> Signup and view all the answers

What programming language was used to explore the data in the case study?

<p>Python (A)</p> Signup and view all the answers

What is the primary benefit of using cluster analysis in the case study?

<p>To more effectively engage customers in marketing campaigns (C)</p> Signup and view all the answers

What is the expected outcome of the market analysis in the case study?

<p>Increased revenue growth (D)</p> Signup and view all the answers

What is the role of the Chief Marketing Officer in the case study?

<p>To understand customer behavior (B)</p> Signup and view all the answers

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