Prof Cox asked the trio what the output they desired from the segmentation exercise was. They said that it would be best if the data provided the clue. "Fair enough point", said the professor. Segmentation is a discovery exercise rather than a prediction exercise. She asked her question in a different way. Of the following, what is it that you wish to achieve?
- Understanding how many different types of Vogue customer exist
- How these customer types are different from each another
- This segmentation of both existing and past customers
- Clustering based on a combination of demographic, psychographic, and transactional behavior
- A manageable number of clusters that don't leave the business with too few or too many clusters
The trio replied in the affirmative to all the preceding objectives. Prof Cox said that she hoped...