Clustering Techniques Applied to Segmenting Markets

question 163

Multiple Choice

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.

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Definitions:

Formal

Pertains to actions, processes, or structures that are officially recognized and enforced by an organization or institution, often characterized by written rules and regulations.

Unobservable Components

Elements or factors within a system or process that cannot be directly seen or measured but influence outcomes.

Culture

The collective social behavior, norms, knowledge, beliefs, arts, laws, customs, capabilities, and habits of the people in these societies.

Expectations

The beliefs or forecasts people have about the future or about the outcomes of specific actions.