Segmentation and Clustering Customer Profile

A local Burger restaurant has created a data file of 1,000 customers. Burger1000.sav, you can find a copy in the Tophat Project folder.  They have hired a market research firm to help them create customer segments for various marketing projects.

Please create a composite segmentation model,

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1) use at least 3 different predictor variables, describe how you selected the variables and how you create subsegments.

2) Describe how the segments differ in terms of demographics,

3)  Describe how the segments differ in terms of sales.

4)  Based on your results, are there any segments that are so similar in terms of descriptions and sales that you would combine them?

5)  What would be the final set of subsegments?  How many would there be?

6)  Which segments would you choose as your target segments?  Why?

7)  Using the same data file, create a number of clusters equal to the number of segments that you used in questions 1-6.  If your final composite segmentation model has 11 segments then create 11 clusters.

8) Demonstrate how the clusters vary from each other 9) Describe the clusters demographically?

10) Describe the clusters in terms of sales?

11)  Which clusters would you select as your target segments?

12)  Describe how the clusters perform relative to the composite segments?  Which model, the composite segments or clusters, would you describe as superior?  Why?

When you write up your report, be sure to clearly indicate 1) – 12) which question you are answering.



For example, question 8

Cluster Profile

Cluster code Sales Age Income TV hrs/wk
1 $37.5 68.4 $33,000 25
2 $64.5 62.7 $83,500 40
3 $83.0 33.4 $55,300 45
4 $120.4 39.4 $60,000 60
5 $50.5 24.6 $42,000 30
6 $20.6 78.0 $40,000 30
Average $61.4 59.3 $52,100 38

Shades indicate a higher amount than average

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