Marketing Engineering-segmentation-Cluster Example

1. Cluster Example
A B C D E F G
A 0.0
B 2.0 0.0
C 3.7 4.0 0.0
D 1.5 2.5 4.0 0.0
E 2.5 1.5 4.1 3.2 0.0
F 3.7 3.9 1.8 3.8 4.0 0.0
G 5.4 5.6 5.3 5.8 5.9 6.0 0.0

2. Cluster Example
A B C D E F G
A 0.0
B 2.0 0.0
C 3.7 4.0 0.0
D 1.5 2.5 4.0 0.0
E 2.5 1.5 4.1 3.2 0.0
F 3.7 3.9 1.8 3.8 4.0 0.0
G 5.4 5.6 5.3 5.8 5.9 6.0 0.0
A
D
B
E
C
F
G
1 2 3 4 5 6

3. A
D
B
E
C
F
G
1 2 3 4 5 6
Cluster Example
A B C D E F G
A 0.0
B 2.0 0.0
C 3.7 4.0 0.0
D 1.5 2.5 4.0 0.0
E 2.5 1.5 4.1 3.2 0.0
F 3.7 3.9 1.8 3.8 4.0 0.0
G 5.4 5.6 5.3 5.8 5.9 6.0 0.0

4. A
D
B
E
C
F
G
1 2 3 4 5 6
Cluster Example
A B C D E F G
A 0.0
B 2.0 0.0
C 3.7 4.0 0.0
D 1.5 2.5 4.0 0.0
E 2.5 1.5 4.1 3.2 0.0
F 3.7 3.9 1.8 3.8 4.0 0.0
G 5.4 5.6 5.3 5.8 5.9 6.0 0.0

5. A
D
B
E
C
F
G
1 2 3 4 5 6
Cluster Example
A B C D E F G
A 0.0
B 2.0 0.0
C 3.7 4.0 0.0
D 1.5 2.5 4.0 0.0
E 2.5 1.5 4.1 3.2 0.0
F 3.7 3.9 1.8 3.8 4.0 0.0
G 5.4 5.6 5.3 5.8 5.9 6.0 0.0

6. A
D
B
E
C
F
G
1 2 3 4 5 6
Cluster Example
A B C D E F G
A 0.0
B 2.0 0.0
C 3.7 4.0 0.0
D 1.5 2.5 4.0 0.0
E 2.5 1.5 4.1 3.2 0.0
F 3.7 3.9 1.8 3.8 4.0 0.0
G 5.4 5.6 5.3 5.8 5.9 6.0 0.0

7. A
D
B
E
C
F
G
1 2 3 4 5 6
Cluster Example
A B C D E F G
A 0.0
B 2.0 0.0
C 3.7 4.0 0.0
D 1.5 2.5 4.0 0.0
E 2.5 1.5 4.1 3.2 0.0
F 3.7 3.9 1.8 3.8 4.0 0.0
G 5.4 5.6 5.3 5.8 5.9 6.0 0.0

8. A
D
B
E
C
F
G
1 2 3 4 5 6
Cluster Example
A B C D E F G
A 0.0
B 2.0 0.0
C 3.7 4.0 0.0
D 1.5 2.5 4.0 0.0
E 2.5 1.5 4.1 3.2 0.0
F 3.7 3.9 1.8 3.8 4.0 0.0
G 5.4 5.6 5.3 5.8 5.9 6.0 0.0

9. A
D
B
E
C
F
G
1 2 3 4 5 6
Cluster Example
A B C D E F G
A 0.0
B 2.0 0.0
C 3.7 4.0 0.0
D 1.5 2.5 4.0 0.0
E 2.5 1.5 4.1 3.2 0.0
F 3.7 3.9 1.8 3.8 4.0 0.0
G 5.4 5.6 5.3 5.8 5.9 6.0 0.0

10. A
D
B
E
C
F
G
1 2 3 4 5 6
Cluster Example
A B C D E F G
A 0.0
B 2.0 0.0
C 3.7 4.0 0.0
D 1.5 2.5 4.0 0.0
E 2.5 1.5 4.1 3.2 0.0
F 3.7 3.9 1.8 3.8 4.0 0.0
G 5.4 5.6 5.3 5.8 5.9 6.0 0.0

11. A
D
B
E
C
F
G
1 2 3 4 5 6
Cluster Example
A B C D E F G
A 0.0
B 2.0 0.0
C 3.7 4.0 0.0
D 1.5 2.5 4.0 0.0
E 2.5 1.5 4.1 3.2 0.0
F 3.7 3.9 1.8 3.8 4.0 0.0
G 5.4 5.6 5.3 5.8 5.9 6.0 0.0

12. A
D
B
E
C
F
G
1 2 3 4 5 6
Cluster Example
A B C D E F G
A 0.0
B 2.0 0.0
C 3.7 4.0 0.0
D 1.5 2.5 4.0 0.0
E 2.5 1.5 4.1 3.2 0.0
F 3.7 3.9 1.8 3.8 4.0 0.0
G 5.4 5.6 5.3 5.8 5.9 6.0 0.0

13. Ward’s Clustering Procedure
First Stage: A = 2 B = 5 C = 9 D = 10 E = 15
Second Stage: AB = 4.5 BD = 12.5
AC = 24.5 BE = 50.0
AD = 32.0 CD = 0.5
AE = 84.5 CE = 18.0
BC = 8.0 DE = 12.5
Third Stage: CDA = 38.0 CDB = 14.0 CDE = 20.66 AB = 5.0
AE = 85.0 BE = 50.5
Fourth Stage: ABCD = 41.0 ABE= 93.17 CDE = 25.18
Fifth Stage: ABCDE = 98.8

14. A
98.80
Ward’s Minimum Variance
Agglomerative Clustering Procedure
B C D E
25.18
5.00
0.50