Cluster analysis is based on the principle that:
A) social class has a negligible impact on consumer behavior.
B) consumers in the same neighborhood tend to buy the same products and services.
C) ethnicity exerts a weak influence on the shopping behavior of consumers for products and services.
D) gender plays a major role in influencing the shopping behavior of consumers.
E) boomer parents and their adult children share many common characteristics.

Question

Quizplus · Accepted Answer

Cluster analysis assumes that consumers in the same neighborhood have similar buying patterns due to factors such as demographic similarities, proximity to retail locations, and exposure to common marketing stimuli. While social class, ethnicity, gender, and generational differences may also affect consumer behavior, they are not the primary basis for cluster analysis. Therefore, Option B is the best choice as it describes the underlying assumption of this method.

Cluster Analysis Is Based on the Principle That