Definition
The concept cluster analysis includes a number algorithms and methods for grouping objects of similar kind into respective categories. From a general question it could face many areas of inquiry and how to organize observed data into meaningful structures. (TIBCO, 2018) . In other words, cluster analysis is an organizational method, which helps to perform and sort a pattern in between the data. It also allows you to find the connection between two objects distinct from each other or their same characteristics.
Approaches to cluster analysis
Analysis cluster is divided in the following methods in research market: hierarchical methods, partitioning methods (as known as k-means), and two-step clustering.
Hierarchical Clustering
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Centroid Method: Calculates the distance between two clusters as the total of distances between their means for all of the variables. (J. Norušis, 2012)
e. Ward´s method: Analyze the variances of data points in order to determine the distance between clusters. For each cluster, the means for all variables are calculate, As well as the squared Euclidean distance to the cluster means. (J. Norušis, 2012)
b) Divisive clustering: starts with all data in one cluster and ends up with each in individual clusters. Moreover, this could be also proved with another method, if does not satisfies the model. (J. Norušis, 2012)
Hierarchical Clustering Analysis Statistics
a) Agglomeration Schedule: Displays the cases or clusters combined at some stage, in which the distances between the data or clusters are combined, and the last cluster level at which a case (or variable) joined the cluster. (IBM Knowledge Center)
b) Proximity matrix: Show us the distances or similarities between the items.
c) Cluster Membership: Displays the cluster to which each data is assigned at one or more stages in the combination of clusters. This is recommendable between minimums of 2 and maximum of 6 clusters. (IBM Knowledge Center)
Hierarchichal Cluster Analysis
Marketing Analytics is another concept that is very essential for your business or company. It comprises of all the technologies and process that would allow you to evaluate the performance of your marketing campaigns and initiatives.
Departmentalization – The foundation for determining the way jobs will be grouped, which can include: function, process, geography, product, or customer.
The first law of geography states that “Everything is related to everything else but near things are more related than distant things” (Tobler, 1970 p236). In statistics, we call this phenomenon as spatial autocorrelation. In general sense, we can define the spatial autocorrelation as the extent to which objects or activities in the geographical proximity are related to other objects or activities on the surface of earth. In spatial analysis, we are dealing with information that is quite distinct. On one hand, we are taking into consideration the attributes of spatial aspects such as climate, altitude, temperature, road material, road surface conditions, drainage gullies, traffic load, curvature etc. but also the aspects that are location
Market segmenting is the process of dividing the market into dissimilar, distinctive groups of people who have similar needs to be satisfied, alike wants and behavior, or who might want same products & services. The process of segmentation is supposed to be performed by each company being interested in creating and successfully implementing marketing mix, which implies product development, placement, promotion and choice of appropriate pricing strategy.
Principal Component Analysis (PCA) is a multivariate analysis performed in purpose of reducing the dimensionality of a multivariate data set in order to recognize the shape or pattern of that data set. In other words, PCA is a powerful technique for pattern recognition that attempts to explain the variance of a large set of inter-correlated variables. It indicates the association between variables, thus, reducing the dimensionality of the data set. (Helena et al, 2000; Wunderlin et al, 2001; Singh et al, 2004)
Using this option, users have an access to organized data (number of visits from each country) for the past 30 days. Small businesses mostly do not operate internationally, however, it can help mangers of small businesses as it can be considered an opportunity for future activities in potential location where they get a large number of visitors. For instance, if a small business provides services or products mainly in Korea and less Japan but they see high traffic of their page is coming from japan, they can conclude that their advertising method or product they are selling is working well in japan. As a result, they can start or improvise their business through higher investment and target based advertisements regarding needs of customers in that location. Going deeper in geographical based report, managers can get detailed data of which area (cities) they are getting higher number of visitors. This information allows managers of small businesses to increase their understanding of potential areas so that they can manage their investments
Data is collected and the patterns are recognized, in order to understand the physical properties, and further to visualize the data as
Use appropriate tools that support data gathering (e.g. affinity diagram, brainstorming, fishbone, flowchart, force field, how-how, interrelationship digraph)
Following the next chapter describes the research methodology. This methodology divided into five stage process followed by main objective; theoretical study, model development, design prototype, develop prototype and model evaluate. Each stage will be briefly described in the next chapter.
Research is systematic way to find out facts and knowledge as Kothari (2006) has analyzed that research is the pursuit of truth with the help of study, observation, comparison and experiment; the search for knowledge through objective and systematic method of finding solutions to a problem. However there are two types of researches one is by Purpose and other is by method. The type by purpose falls into three categorize such as Basic, Applied and Action Research.
According to Kotler et al 2013 market segmentation is defined as dividing a market into smaller segments of buyers with distinct needs, characteristics or behaviours that might require separate marketing strategies or mixes. As per the industry data which we were operating we used different theories to segment the market one of them is STP process. In this method whole market is sub divided into different segments based on three activities these are segmentation, targeting and positioning. From the market information in case study we identified similar groups of consumer under market segmentation activity. For example market E had consumers travelling between mini hub to medium city that had a new and growing market. While targeting the market we identified which group of consumers to aim for instance market D had major university and service sectors. Lastly in the product and brand positioning we created a concept so as to appeal the target market by running as discount airline. One of the approaches for market segmentation according to Kotler et...
Analytics means using data and performing statistical analysis on it, applying quantitative and predictive models, in order to arrive at a certain decision. Analytics can be the first step in a process or can rather be an intermediate step as well. Analysis can be done using different set of tools that are available in the market or it can done manually using different concept and formulas. Business intelligence firms like Cognos, SAS and BusinessObjects have developed different tools that are readily available in market that assist in analysis and decision making. Analytics is used in order to find solutions to the problems and the solutions provided enables us to be successful and in the business world allow us to compete with our contenders.
Research methodology should be understood as a whole, consisting of tools, methods of collecting, interpreting and analysing the data collected. These include:
Datasets of retails, bars, schools, churches, and recreational areas were also used to determine the likelihood of a robbery to take place. For the crime data, since robberies were the focus, the robberies were highlighted and exported as points on the map with the rest of the crime data removed to only show robberies. For hotel data sets, first the addresses of all hotels were listed on a spreadsheet followed by each hotels’ coordinates within the city. Then the spreadsheet was added to the map as a data set and turned into a shapefile that appears on the map. The techniques used to establish the spatial relationship between hotels and robberies was through the spatial analysis tools. This would be done using Euclidean Distancing to determine the distance correlation on how far robberies occur just around hotels and beyond the path its’ occupants and employees take. It is then broken up into 5 classes with class 1 being in proximity to the hotels and class 5 being the
Striating from the research idea to the culmination of the findings, the research process entails many segments, all of which are imperative. By choosing the research methodology, the researchers can formulate the path to be used in conducting the study and reporting the findings. The methodology helps in the search of literature, development of research questions and the creation of the most suitable study design. It also assists in the interpretation of the results and the publication of the findings in journals.