STEP 3: PLOT MEANS IN SPATIAL DIAGRAM

Each household is represented

by a data point (a square) in 3-
dimensional proportion space.

Households form a 2-
dimensional triangle.

Each square might represent

several customers.

INSTITUTE OF MANAGEMENT TECHNOLOGY, HYDERABAD

HOUSEHOLD GROUPING

Three proportions:
P1 (unknown)
P2 (non-adopters)
P3 (adopters)

Different color reflect clusters

Cluster 1 (Non-Adopters)
Cluster 2 (Adopters)
Cluster 3 (Adopters and Non-Adopters)
Cluster 4 (Non-Adopters and Unknown)
Cluster 5 (Uncertain)
Cluster 6 (Adopters and Unknown)

INSTITUTE OF MANAGEMENT TECHNOLOGY, HYDERABAD

 STEP 4: IDENTIFY SUB-CLUSTERS
# of HH Likelihood of # of HH in
Cluster in Cluster Cluster Profile Adoption Segmentation Rule Sub-Cluster
1 1,463 Non-Adopters Low All households in cluster 1,463
High Likely to adopt > 60% 1,874
2 3,915 Adopters Medium The Rest 2,041

Mixed households with adopters Medium Likely/Unlikely >= 40% 401

3 474 and non-adopters Low The rest 73

Mixed households with non-

4 537 adopters and unknowns Low All households in cluster 537
5 1,097 Unknowns Unknown All households in cluster 1,097
High Likely to adopt > 60% 378
Households with adopters and Medium Likely/Unlikely >= 40% 723
6 1,201 unknowns Unknown The rest 100

INSTITUTE OF MANAGEMENT TECHNOLOGY, HYDERABAD

STEP 5: PREDICT BEHAVIOR

High Likely to Medium Low Likely to Unlikely to

Adopt Chances Adopt Adopt
INSTITUTE OF MANAGEMENT TECHNOLOGY, HYDERABAD