NAME:S.

JAYAGOKUL
REGNO:22MBA0168
BUSINESS ANALYTICS AND INTELLIGENCE
LAB ASSIGNMENT 4

Write a case study on Cluster Analysis, Analyse and Interpret the data

PROBLEM
Panasonic wants to know various features and services the consumers perceive when
purchasing through Catalogues. The purpose is to determine how the various features of
catalogue marketing go together in terms of its convenience features, risk-reducing features,
and so on.10 statements are made in order to measure the variables of perception. The 10
statements are given below.

The respondents must agree or disagree (1 = strongly agree, 2 = agree, 3 = neither agree nor
disagree, 4 = disagree, 5 = strongly disagree) with each statement.

Variables:

1. The company should provide toll-free numbers.

2. The reputation of the company should be good.

3. They should have discount schemes based on quantity.

4. The company should provide guarantee for the product.

5. The company should give a trial period.

6. The sales catalogue should be attractive and eye-catchy.

7. The company should make on-time delivery.

8. Number of years in business is an important factor.

9. Advertisements play an important role in decision-making.

10. It should have the facility to return the goods, if not satisfied.
NAME:S.JAYAGOKUL
REGNO:22MBA0168
DATASET

Var01 Var02 Var03 Var04 Var05 Var06 Var07 Var08 Var09 Var10
1 3 5 1 3 5 3 2 3 2
2 3 2 3 4 4 3 2 2 2
3 2 3 4 3 5 3 3 4 2
3 4 4 2 2 4 3 4 5 4
2 2 4 2 2 5 3 3 4 4
2 4 3 3 5 4 4 2 3 4
1 3 2 4 4 1 2 4 2 5
4 5 1 1 5 4 5 1 1 5
2 1 5 3 4 4 2 1 2 1
5 2 4 3 2 5 1 5 3 2
4 3 3 2 1 2 1 5 2 2
3 4 4 4 3 2 5 1 5 3
4 3 2 2 3 3 4 2 2 3
1 3 2 4 2 5 1 3 5 4
2 2 4 1 5 4 2 4 4 5

OUTPUT

1. HEIRARCHICAL CLUSTER

Agglomeration Schedule
Stag Cluster Combined Coefficients Stage Cluster First Appears Next
e Cluster 1 Cluster 2 Cluster 1 Cluster 2 Stage

1 4 5 8.000 0 0 4
2 2 13 9.000 0 0 3
3 2 6 11.500 2 0 9
4 3 4 14.000 0 1 7
5 10 11 15.000 0 0 12
6 1 9 15.000 0 0 11
7 3 14 16.667 4 0 8
8 3 15 22.000 7 0 10
9 2 12 22.333 3 0 10
10 2 3 25.450 9 8 11
11 1 2 26.944 6 10 12
12 1 10 35.682 11 5 13
13 1 7 37.077 12 0 14
14 1 8 50.714 13 0 0
NAME:S.JAYAGOKUL
REGNO:22MBA0168

2. K-MEANS CLUSTER

Final Cluster Centers

Cluster
1 2 3 4 5
Var01 2 4 5 3 1

Var02 3 4 3 4 3

Var03 4 2 4 4 2

Var04 3 2 3 4 4

Var05 3 4 2 4 4

Var06 5 4 4 3 1

Var07 3 5 1 5 2

Var08 3 2 5 2 4

Var09 4 2 3 4 2

Var10 3 4 2 4 5
NAME:S.JAYAGOKUL
REGNO:22MBA0168

Transpose of Final Cluster Centers (created in excel)

Cluster Var01 Var02 Var03 Var04 Var05 Var06 Var07 Var08 Var09 Var10

1 2 3 4 3 3 5 3 3 4 3

2 4 4 2 2 4 4 5 2 2 4

3 5 3 4 3 2 4 1 5 3 2

4 3 4 4 4 4 3 5 2 4 4

5 1 3 2 4 4 1 2 4 2 5

INTERPRETATION

➢ The number of clusters which can be depicted from Agglomeration schedule and
dendrogram obtained after Hierarchical cluster analysis is 5.
➢ In cluster 1:
▪ The customers agree with company should provide toll-free numbers (Var 1)
▪ The customers are neutral with the reputation of the company should be good (Var 2),
The company should provide guarantee for the product (Var 4), the company should
give a trial period (Var 5), the company should make on-time delivery (Var 7), Number
of years in business is an important factor (Var 8), the facility to return the goods, if
not satisfied (Var 10)
▪ The customers disagree with company should have discount schemes based on quantity
(Var 3), Advertisements play an important role in decision-making (Var 9)
▪ The customers strongly disagree with sales catalogue should be attractive and eye-
catchy (Var 6)
➢ In cluster 2:
▪ The customers agree that they should have discount schemes based on quantity (Var
3), the company should provide guarantee for the product (Var 4), Number of years in
business is an important factor (Var 8), Advertisements play an important role in
decision-making (Var 9)
▪ The customers disagree with the company should provide toll-free numbers (Var 1),
the reputation of the company should be good (Var 2), the company should give a trial
period (Var 5), the sales catalogue should be attractive and eye-catchy (Var 6), the
facility to return the goods, if not satisfied (Var 10)
▪ The customers strongly disagree with company should make on-time delivery (Var 7)
NAME:S.JAYAGOKUL
REGNO:22MBA0168
➢ In cluster 3:
▪ The customers strongly agree that the company should make on-time delivery (Var 7)
▪ The customers agree with the company should give a trial period (Var 5), the facility
to return the goods, if not satisfied (Var 10)
▪ The customers are neutral with the reputation of the company should be good (Var 2),
the company should provide guarantee for the product (Var 4), Advertisements play
an important role in decision-making (Var 9)
▪ The customers disagree with company should have discount schemes based on quantity
(Var 3), the sales catalogue should be attractive and eye-catchy (Var 6)
▪ The customers strongly disagree with company should provide toll-free numbers (Var
1), Number of years in business is an important factor (Var 8)
➢ In cluster 4:
▪ The customers agree with number of years in business is an important factor (Var 8)
▪ The customers are neutral with the company should provide toll-free numbers (Var 1),
the sales catalogue should be attractive and eye-catchy (Var 6)
▪ The customers disagree with the reputation of the company should be good (Var 2),
they should have discount schemes based on quantity (Var 3), the company should
provide guarantee for the product (Var 4), the company should give a trial period (Var
5), Advertisements play an important role in decision-making (Var 9), the facility to
return the goods, if not satisfied (Var 10)
▪ The customers strongly disagree with company should make on-time delivery (Var 7)
➢ In cluster 5:
▪ The customers strongly agree with the company should provide toll-free numbers (Var
1), the sales catalogue should be attractive and eye-catchy (Var 6)
▪ The customers agree with company should have discount schemes based on quantity
(Var 3), the company should make on-time delivery (Var 7), Advertisements play an
important role in decision-making (Var 9)
▪ The customers are neutral with the reputation of the company should be good (Var 2)
▪ The customers disagree with company should provide guarantee for the product (Var
4), the company should give a trial period (Var 5), number of years in business is an
important factor (Var 8)
▪ The customers strongly disagree with the facility to return the goods, if not satisfied
(Var 10)