Case: Predictive Segmentation: FMCG

An FMCG company desires to segment their potential customers based on their

Attitudes and Perceptions. For this purpose, they have conducted a suitable Research. Initially,
a preliminary research was carried out and the variables that could have some impac t on
Consumer preferences were identified. These variables were converted into a Questionnaire in
the form of statements. Respondents were asked to provide their responses to each statement
on a 5-point Likert scale in which 1 stood for Strongly Agree and 5 stood for Strongly Disagree.
A part of the Questionnaire is provided below for your ready reference. Respondents were also
asked to provide their demographic details on Age, Gender and Education (highest
qualification).
A data extract is provided in the data file for your analysis.

Case Questions

Q.1. Identify the number of clusters / segments from the data provided.

Q.2. Determine which respondent belongs to which segment.

Q.3. Identify the variables that distinguish the segments at 90% confidence level.
Q.4. Create segment profiles for each cluster based on their scores on the distinguishing
variables.

Q.5. Label / Name each segment based on their dominant distinguishing characteristics.

Q.6. Create a predictive model to enable the firm to segment future customers into segments
as above based on the variables considered in this analysis

Justify your answers.

 Case: Predictive Segmentation: FMCG

Questionnaire

1. I prefer email to letters.

2. I feel that quality comes at a price.

3. I think twice before I buy anything.

4. T.V is a major source of entertainment for me & my family.

5. A car is a necessity, not a luxury.

6. I prefer fast food and ready to use products.

7. People are more health conscious today than they were in the earlier generation.

8. Entry of foreign companies has increased the efficiency of Indian Companies.

9. Women are active participants in my purchase decisions.

10. I believe politicians can play a positive role in our lives.

11. I enjoy watching movies in a theatre.

12. If I get a chance I would like to settle abroad.

13. I always buy branded products.

14. I frequently go out on weekends.

15. I prefer to pay by credit card rather than by cash.

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