QM Section 4

Cluster analysis has been used in marketing for all of the purposes below except ________.

• determining how strongly sales are related to advertising expenditures

• identifying new product opportunities by clustering brands and products so that competitive sets within the market can be determined

• segmenting the market based on benefits sought from the purchase of a product

• selecting test markets

A ________ is a lower-triangle matrix containing pairwise distances between objects or cases.

• distance coefficient mat

• classification matrix

• factor matrix

• correlation matrix

The most commonly used measure of (dis)similarity is the ________ or its square.

• Chebychev's distance

• Manhattan distance

• Euclidean distance

• City block distance

________ is a clustering procedure where each object starts out in a separate cluster.

• Non-hierarchical clustering

• Divisive clustering

• Agglomerative clustering

• Hierarchical clustering

________ is a clustering procedure where all objects start out in one giant cluster. Clusters are formed by dividing this cluster into smaller and smaller clusters.

• Divisive clustering

• Agglomerative clustering

• Hierarchical clustering

• Non-hierarchical clustering

The ________ method uses information on all pairs of distances, not merely the minimum or maximum distances.

• single linkage

• average linkage

• complete linkage

• medium linkage

Which of the following is a variance method of clustering?

• optimizing partitioning

• sequential threshold

• complete linkage

• Ward's method

________ involves examining the cluster centroids.

• Interpreting and profiling the clusters

• Deciding on the number of clusters

• Assessing reliability and validity

• Selecting a clustering procedure