Cluster Analysis

Cluster analysis is a research tool suitable to determine natural groupings within a large group of observation. Cluster analysis segments the survey sample, for example users, customers or companies as survey respondents, on a smaller number of groups.

Respondents whose answers are very similar should be in the same cluster while respondents with significantly different answers should be in different clusters. Ideally, in each group should exist a very similar profile towards certain characteristics (for example, opinions and behaviour), while the profile of the respondents from different clusters should be different.

The main advantage of this analysis is that it may propose a grouping which couldn’t be easily visible, for example needs of specific groups or segments of the market.

Cluster analysis s often used in market research to describe and quantify consumer segments. This allows client to adapt their strategic approach to the specific needs of consumers rather than applying a general marketing approach.