To facilitate market segmentation by identifying subjects or individuals who have similar needs, lifestyles or responses to marketing strategies, which of the following statistical procedures would be appropriate?
A) Multidimensional scaling
B) Discriminant analysis
C) Cluster analysis
D) Factor analysis

Question

Quizplus · Accepted Answer

Cluster analysis is an appropriate statistical procedure for facilitating market segmentation as it identifies similar groups of individuals or subjects based on their characteristics and behaviors, allowing for more targeted marketing strategies. Multidimensional scaling is used to map perceptual data, discriminant analysis is used to determine which variables discriminate between groups, and factor analysis is used to identify underlying factors that explain the variation in a set of variables. While all of these procedures may be useful in market research, cluster analysis is the most appropriate for identifying market segments.

To Facilitate Market Segmentation by Identifying Subjects or Individuals Who