Clustering techniques applied to segmenting markets
A) usually require computers to group people based on data from market research.
B) remove the need for managerial judgment.
C) eliminate the need for marketing managers to specify in advance what dimensions might be relevant for grouping consumers.
D) All of these alternatives about clustering techniques are true.

Question

Quizplus · Accepted Answer

Clustering techniques often rely on computers to analyze and group individuals based on data collected from market research. This is because clustering involves handling large datasets to identify patterns or groups within the data, which is efficiently done using computational methods. Choices B and C are incorrect because clustering does not remove the need for managerial judgment (managers still need to interpret and decide how to act on the clustering results) and does not eliminate the need for specifying relevant dimensions for grouping consumers (identifying relevant variables is a critical step in the clustering process).

Clustering Techniques Applied to Segmenting Markets