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Questions and Answers
What is the primary purpose of standardizing the age and income variables in the K-Means clustering approach?
What is the primary purpose of standardizing the age and income variables in the K-Means clustering approach?
- To ensure the variables are on the same scale for comparison (correct)
- To increase the number of segments in the final clustering model
- To reduce the impact of outliers on the clustering results
- To identify the most important variables in the customer profile
What is the optimal number of segments identified in the K-Means clustering model?
What is the optimal number of segments identified in the K-Means clustering model?
- 2 segments (correct)
- 5 segments
- 3 segments
- 4 segments
What is the purpose of customer profiling in market segmentation?
What is the purpose of customer profiling in market segmentation?
- To create targeted marketing campaigns
- To develop a comprehensive understanding of customer characteristics and behaviors (correct)
- To compare the demographics of different customer groups
- To identify the most profitable customers
What is the benefit of using standardized variables in statistical modeling?
What is the benefit of using standardized variables in statistical modeling?
What is the primary goal of market segmentation?
What is the primary goal of market segmentation?
What is a major limitation of cluster analysis methods?
What is a major limitation of cluster analysis methods?
What type of variables are required for segmentation?
What type of variables are required for segmentation?
What is a common issue with managerial situations?
What is a common issue with managerial situations?
What type of clusters are often encountered in practice?
What type of clusters are often encountered in practice?
What is a challenge in identifying customer segments?
What is a challenge in identifying customer segments?
What is the primary purpose of standardizing variables in the segmentation basis set?
What is the primary purpose of standardizing variables in the segmentation basis set?
What type of clustering method is used when the variables are not interval-scaled?
What type of clustering method is used when the variables are not interval-scaled?
What is the purpose of the profiling set in market segmentation?
What is the purpose of the profiling set in market segmentation?
What is the segmentation basis set in market segmentation?
What is the segmentation basis set in market segmentation?
Why is it necessary to group variables into sets before clustering?
Why is it necessary to group variables into sets before clustering?
What is the primary consideration for achieving a beneficial segmentation?
What is the primary consideration for achieving a beneficial segmentation?
What is the key requirement for variables used in the K-Means procedure?
What is the key requirement for variables used in the K-Means procedure?
What is the purpose of characterizing a segment in market segmentation?
What is the purpose of characterizing a segment in market segmentation?
What is the primary benefit of segmenting a market?
What is the primary benefit of segmenting a market?
What is the requirement for a segment to be considered stable?
What is the requirement for a segment to be considered stable?
