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Cluster Analysis in Marketing Research


  1. Describe cluster research with 2 good examples related to marketing research?


Cluster Analysis: It is the activity of grouping a couple of objects so that objects in the same group tend to be similar to one another than to the people in other groupings.

Example 1: Kind of customers choose the restaurant

Family, Entertainers, Singles etc

Example 2: Kind of customers that choose the restaurant based on their food choice.

Vegetarian/Non vegetarian

Mexican, Indian, South Indian, Fast food etc

  1. What are three characteristics of your good quality clustering examination?


The reason behind asking question "Q: Type of customers that choose the restaurant based on their food choice. (Vegetarian/Non vegetarian)"

  1. Collection process of data things.

It helps me to understand the of customer's food choice.

  1. Analysis of similarities between data objects

Based on the data we can assess which kind of customers on their food choice "veg/non veg".

Veg is one group and non-veg is another.

  1. Can come up with good implementation of evaluation (e. g. problem resolving)

Answer to the Survey can help us to understand the marketplace demand and we can offer the similar food at the restaurant predicated on data gathered.


Q6. Describe Qualitative and quantitative research methods with one benefit and disadvantage of each.


Qualitative research:

The information collected is non-numerical and might include responses to an open ended study question, dialogue from a target group, the response to an essay question, a term paper, or ideas brainstormed by a group.

Qualitative data is not limited to words, however, and may include the articles of an art or design collection.

Qualitative research uses observation as the info collection method. Observation is the choice and tracking of behaviors of people in their environment. Observation is useful for making in-depth information of organizations or happenings, for obtaining information that is normally inaccessible, and then for doing research when other methods are limited.

Example: Why you like our restaurant, express?

Advantage of Qualitative research:

Respondents are absolve to answer in any manner they would like comment/answer.

One good thing about the qualitative way is that contextual information is collected when the data is collected. In other words, "why" is automatically solved/provided in the data.

Qualitative research is useful on early stage when we aren't sure about what to review.

Disadvantage of Qualitative research:

It is expensive and time consuming. It can take quite a while to acquire and analyze the data.

For Interviews it would take 10+ hours to obtain hour long interviews with around 10 people and that will not include the time had a need to schedule the interviews.

Time taken for 1 interview = time considered for interview + time taken up to plan interview + time to analyze data (recordings and records etc).

Quantitative research

All of the info gathered would be counted or quantified.


Someone's age, income, elevation or weight would be quantitative data

Number of visits on a website

The volume of correct responses on the driving test

The range of minutes per week

Car gasoline efficiency in KM.

Advantage of Quantitative research:

It is less expensive and a competent method for gathering information especially for large groups of people.

Online research are easy way to collect data from large groups of people.

  1. In restaurant we've large databases of users through data collection.

It is not hard and inexpensive to send and accumulate feedback through online surveys.

  1. The USA authorities collects Census information every 10 years.

The authorities doesn't try to interview everyone in america instead they email out studies to be completed a very effective form of data collection.

Disadvantage of Quantitative research

It generally does not include an explanation of 'why. '

For example, respondents are asked to "Rate the quality of staff services at the restaurant" using the following scale: "Excellent", "Good", "Fine", "Fair", or "Poor. "

That question would create quantitative data because we could count the number of men and women who selected each one of the four response options. But knowing how many people found an excellent of personnel as "Excellent" will not provide any insights into why it is great.

Also respondents are limited to set of options to reply and they may well not feel that any of the options best identifies their experience.

Q7: Qualitative research.

a) Depth Interview: Interviewing is a way ofqualitative researchin which the researcher asks open-ended questions orally and files the respondent's answers.


Face to face / telephonic Job Interviews can be depth interviews.

Interviewer starts off with greeting by requesting familiar set of standard questions to create comfort level for interviewee/respondent.

  1. Q: How are you?
  2. Q: Where are you from?
  3. Q: Can you please describe yourself?


  • Accurate results.
  • Better rapport.
  • More effective asCompared with non-response among target group members
  • Flexible and continuous


  • It is costly and time consuming.
  • Less organised.

b) Focus Organizations: Itis an application ofqualitative researchin which an organization of men and women are asked about their perceptions, ideas, beliefs, and behaviour towards a product, service, concept, advertising campaign, idea, or presentation.

One emphasis group pieces another concentration group and talks about the observed connections and realization.


It pays to in marketing as important tool to acquiringfeedback regarding product/services.

In social knowledge it can help Interviewers to review people in a more natural conversation style than typically occurs in a one-to-one interview.


  • The face to face involvement of any moderator can ensure things on track.
  • As everyone is under observation, so it is straightforward to make everyone fully engage even during free time.


  • Can be Biased [debate can be dominated by some individuals. ]
  • Group conversations can be difficult to steer and control.

c) Projective Techniques:

Originally developed to use in psychology.

The use of obscure, ambiguous, unstructured stimulus objects or situations where the subject "projects" his / her personality, attitude, views and self-concept to provide the problem some framework.


A personality test.

Photo language Test. (using pictures).


  • Personality test is cost effective. (Only use newspaper and can be scored yourself or utilizing a machine, can be studied home and went back later)
  • Personality test is Objectivity (questions are usually true/wrong).


Ї Sheer period.

  • Untruth (e. g: With personality test purpose, there's always opportunity that test taker never tell the reality. )

d) Random likelihood sampling:




Q8: Quantitative research.

a) Face to Face interview: In person interaction between two or more persons.

Face to face interviews are characterised by synchronous communication in time and place.


Surveys of product and services.

Job Interviews are largely face to face.

Interviewer starts with greeting and then asks familiar set of general questions to create comfort and ease for interviewee/respondent.

[Sample group of questions for review]

  1. Q: hi Mam/Sir, How are you? [Greeting question]
  2. Q: Where are you from? [Greeting question]
  3. Q: How will you like our restaurant food? [Directed Question]


  • High responsive, there is no significant time delay between question and answerЇјthe interviewer and interviewee can straight react on what the other says or does indeed.
  • The answer of the interviewee/respondent is more spontaneous.
  • Interviewer can formulate questions depending upon response from interviewee.
  • Recorded, can be used later if required.


  • Time Consuming.
  • Expensive.
  • Difficult to locate respondent.

b) Telephone interview:

Telephonic interviews are characterised by asynchronous communication for place.


Surveys & Job Interviews.

Telephone interviewsare often conducted by employers in the initial interview round of thehiring process.

Starts with greeting then main set of questions related to product/service etc.

[Sample set of questions for review]

  1. Q: Am I talking with Ajit?
  2. Q: Could it be right time to speak?
  3. Q: I have few questions about Chawala's Indian restaurant?
  4. Q: How do you like our restaurant personnel?


  • It is a cost-effective.
  • Saves time.
  • Extendedaccess to participants
  • The phone interview allows both interviewee/respondent and interviewer to maintain a morerelaxed state in comparison with face to face.
  • Wide geographical gain access to.
  • It enables analysts to contact populations that might be difficult to utilize on an face to face basis for example moms aware of small children, move workers, computer lovers and folks with disabilities.


  • Difficult to find person.
  • Difficult to start to see the reaction of the interviewee/respondent.
  • No take on the situation in which the interviewee can be found.
  • Disconnection due to technology issues.

c) Computer Assisted Personal Interviewing: It really is an interviewing technique where the respondent or interviewer uses a computer to answer the questions.



Job interviews.

Psychometric assessments.

[Sample set of questions for review]

  1. Q: What's your actual age?
  2. Q: Male or female?

Q: Rate of restaurant personnel services? [Rate from 1[lower] to 5[higher]]


  • Cost effective and time keeping.
  • Respondents have the ability to fill in the questionnaires themselves
  • Attractinga worldwide audience.


  • Surveysare limited to computer savvy people. (Potential bias to the review)
  • Quality is lacking (a question that should be interpreted in a specific way, but could also be interpreted in different ways)
  • People have no idea or dislike typing. [Leave subjective questions unanswered]

d) Online Questionnaire: AWeb-based surveyis the assortment of data through the self administered electronic digital set of questions on the Web


Many companies use review monkey to get responses because of their product.

Survey monkey is one of the websites which help in creating web based questionnaire. (https://www. surveymonkey. com/)

[Sample set of questions for study]

  1. Q: How old are you?
  2. Q: Will you be male or female?
  3. Q: Do you like our restaurant?


  • It is affordable and time saving.
  • Large group of replies can be handled easily.
  • Easy to create/manage (sites are self explanatory, eg: survery monkey).


  • Resources might not exactly be accessible to everyone (computer, mobile, internet etc)
  • Not everybody knows technology.
  • People don't know or dislike typing. [Leave subjective questions unanswered]
  • Formulation of questions required lot of your energy, know-how and knowledge.


  1. How will you apply measurement solution to this example?

A variable measured on a "nominal" scale is a adjustable that does not really have any evaluative difference.


Would you want to recommend the restaurant to your friends? Yes/No

The answer to the question has no evaluative distinction.

  1. How might you apply scaling solutions to this example?

By using ordinal way of measuring scaling solution to scale the problem.

Ordinal: The ordinal range gets the property of both personal information and magnitude

Example: How do you rate the quality/flavour in our food and beverages? (Rate from 1 - 5)

1 (Really Bad)

2 (While)

3 (Average)

4 (Good)

5 (Excellent)

By requesting this question I'd be able to know the quality of the food provided at the restaurant.


Primary Scales of dimension that that are being used in Statistical analysis

  1. Nominal
  2. Ordinal
  3. Interval
  4. Ratio scales

Nominal: The nominal size of measurement only satisfies the identity property of measurement

Example: What's your country of citizenship?

The Country that someone was created in has no inherent order so that it can only be a nominal scale.

Ordinal: The ordinal size has the property of both id and magnitude.

Example: Identify the size of dimension for the next: Information Technology

Company Organisation Game titles - (1) CEO, (2) Administrator, (3) Project Business lead and (4) Team Lead.

The size is ordinal. There is an inherent ordering in that a CEO is greater than a Supervisor, which is greater than a Project Business lead, which is higher than Team Business lead.

CEO > Supervisor > Project Business lead > Team Lead

Designation has Rank orders.


The interval level of measurement gets the properties of individuality, magnitude, and identical intervals.


Question: Time of the day.

























The difference between 4 and 5is equal to the difference between 18 and 19.

Ratio Scales:

The ratio size of measurement satisfies all of the properties of way of measuring: id, magnitude, similar intervals, and a minimum value of zero.


What is Income acquired last year?

It has identical intervals each week, biweekly and monthly etc.

Salary can be zero. (For unemployed)

Q4:Difference between comparative scaling rather than comparative scaling techniques in the marketing research.

Comparative Scaling: The items are directly compared with one another.

Paired contrast:

It is sometimes the truth that marketing research workers desire to find out which can be the most important factors in determining the demand for a product

Example: Which restaurant/Food do you like?

  1. Dominos or Pizza hut
  2. Italian pizza or Cheese Pizza

By asking this question first I would be able to analyze the decision of user. First the type of restaurant than the type of pizza.

By asking this in a position to analyze the demand of product.

Dollar Metric Comparisons

This type of scale is an extension of the paired comparison method for the reason that it needs respondents to indicate both their inclination and exactly how much they are willing to pay for his or her preference

The Unity-sum-gain technique

A universal problem with launching services is one of reaching a decision in regards to what options, and just how many options one offers


Rate the mobile products (from 1 to 5):

(1 is lower and 5 is higher)






By this I'd be able to know which company is most preferred by an individual with what lever and help us is launching new product.

Non Comparative scaling techniques:

Each item is scaled independently of others.

Continuous ranking scales:

The respondents are asked to provide a rating by inserting a mark at the appropriate position on a continuing line.

How would be rate our personnel services?

1 (Really Bad)

2 (While)

3 (Average)

4 (Good)

5 (Excellent)

By asking this question I'd be able to understand receive the score on quality from 1 to 5. 1 is lower and 5 is higher.

Line marking scale

Itemised rating scales :

With an itemised range, respondents are given with a range having statistics and/or brief descriptions associated with each category and are asked to select one of the limited variety of categories, purchased in terms of size position, that best identifies the product, brand, company or product attribute being analyzed.

Example: How might you rate the price of foods in the menu ?

  1. Very Expensive
  2. Expensive
  3. Very good
  4. Good
  5. Cheap

By requesting this question to customer of the restaurant I'd have the ability to analyze the pace of food shown in the menu.

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