Question

what is cluster analysis in taxonomy?

Answer 1

Cluster analysis is a class of techniques that are used to classify objects or cases into relative groups called clusters.  Cluster analysis is also called classification analysis or numerical taxonomy.  In cluster analysis, there is no prior information about the group or cluster membership for any of the objects.

Cluster Analysis has been used in marketing for various purposes.  Segmentation of consumers in cluster analysis is used on the basis of benefits sought from the purchase of the product.  It can be used to identify homogeneous groups of buyers.

Cluster analysis involves formulating a problem, selecting a distance measure, selecting a clustering procedure, deciding the number of clusters, interpreting the profile clusters and finally, assessing the validity of clustering.