Examples Of Cluster And Conjoint Analysis

953 Words4 Pages
This paper gives an overview of cluster and conjoint analysis and the comparison of these analyses. First, section 2.1 & 2.2 describes the definition, example, advantages, limitations, business application of cluster & conjoint analysis. Next section of 2.3 would discuss on the comparison of cluster and conjoint analysis. The last section of 3.0 describes the summary and conclusion of the review of both conjoint and cluster analysis.

2.0 Content
2.1 Cluster Analysis
Grouping similar customers and products has been used prominently in market segmentation and this is also the fundamental in marketing activity (E.Mooi and M.Sarstedt, 2011). This method is known as the cluster analysis and it is a multivariate method which classifies a sample
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This technology had been embedded in different products and also the company’s own special-purpose products. Dan woods (2010) quoted another example of a new company; WiseWindow had been applying this analysis into social media content. This analysis had helped the company to obtain clues to the future trends and allow WiseWindow to connect its engine to thousands of streams of social media and traking millions of comments a day. WiseWindow had found a way to examine the course of growth of clusters and turn this analysis into leading indicators (Dan woods, 2010).

2.1.2 Advantages of cluster analysis
- It is the easiest method for companies to collect data for analysis. As companies cannot connect with all their customers, they normally divide the market into different groups with similar needs and wants (E.Mooi and M.Sarstedt, 2011). Firms would then target each segment by positioning themselves in a unique segment such as Ferrari positioning in the high end sports car market.
- This analysis is also cost effective as it would only require a sample from the population.
- This method of analysis could also be used for special context. There are research and studies that uses this analysis to evaluate on special context, such as evaluating supermarket shopping paths (Larson et al. 2005) or obtaining employer’s branding strategies (Moroko & Uncles,
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