Clustering is based on the premise that consumers in the same neighborhood tend to engage in similar consumption behavior.

Question

Quizplus · Accepted Answer

Clustering is the process of grouping consumers who have similar characteristics and behavior. It is based on the assumption that consumers living in the same neighborhood tend to have similar income, education, lifestyle, and consumption patterns. Therefore, clustering is an effective marketing strategy to target specific groups of customers who are likely to have similar needs and preferences.

Clustering Is Based on the Premise That Consumers in the Same