Description
THIS ASSIGNMENT (Question 1-4) MUST BE DONE IN R OR SPSS. WHAT EVER YOU ARE BETTER WITH!!! The purpose of this assignment is to perform cluster analysis and analyze clusters in a data set to determine whether or not the information generated can be used to address a specific business problem.
For this assignment, you will use the "Wholesale Customers" data set from the Topic Materials. Most data categories are self-explanatory. Clarifying notes are as follows.
- Fresh: Annual spending (in $1000s) on fresh products
- Milk: Annual spending (in $1000s) on milk products
- Grocery: Annual spending (in $1000s) on grocery products
- Frozen: Annual spending (in $1000s) on frozen products
- Detergents_Paper: Annual spending (in $1000s) on detergents and paper products
- Delicatessen: Annual spending (in $1000s) on delicatessen products
- Client_Type: Type of client – either HoReCa (Hotel/Restaurant/Café) or Retail
- Region: Region of client – either Lisbon, Oporto, or Other
A wholesale distributor wants to understand the purchasing profiles of its clients. If a finite set of distinct profiles were defined, then a marketing strategy could be designed specifically for each set of similar clients. The company has compiled a data set that includes annual client spending on diverse product categories. You have been tasked with analyzing the data to determine what patterns emerge and how these patterns can be used to create specific client marketing profiles.
Use k-means clustering to explore and analyze the data set by using only the quantitative variables to cluster the clients.
Question 1: Explain the process you used to define the clusters such as the number of clusters formed, the specific variables used, etc. Include the "Cluster Sizes" and "Predictor Importance" outputs when submitting the answer.
Question 2: Interpret the clusters with respect to the quantitative variables that were used in forming the clusters. Include the "Clusters" output when submitting the answer.
Question 3: Discuss whether there is a pattern in the clusters with respect to the qualitative variables (i.e., Client_Type or Region). Include the charts illustrating these patterns when submitting the answer.
Question 4: Provide an appropriate name for each cluster using any or all of the variables in the data set.
Question 5: Based upon your analysis, what patterns emerged and how can these patterns be used to create specific client marketing profiles? Include discussion of the characteristics for each profile. Present your finding in the form of a 250-word executive summary that includes relevant data, charts, and tables.
General Requirements:
Submit the answers to Questions 1-4 and the executive summary as Word documents.
APA format is not required, but solid academic writing is expected.
Question 6( This question can be done in Word... needs one citation. )
There is a web advertising company that collects users' data every time they click on a website, post a message on a social app, send an e-mail, or do any online searching. This data is then sold to companies so that they can use it to send customized advertisements to potential customers.
The exercise equipment company you work for is given access to this data, and you are asked to create association rules to identify future customers who are likely to buy the company's new exercise product.
After performing association rules analysis, you discover certain patterns that are very accurate in predicting the likelihood that a customer will buy the new exercise equipment. This discovery is likely to make your company a lot of money and also make you an analysis superstar at your company. At the same time, you realize the web advertising company has been collecting its data using inappropriate, albeit not illegal, means. Even though most consumers realize their online activities are tracked without their express permission, do you consider this ethical? Does the fact that the product the exercise company wants to sell is one that can benefit the customer? Justify your opinions with specific business examples. Question 7(Can be done in Word with one citation. )Explain why having a solid understanding of support and confidence is critically important when evaluating association rules. What can happen if the level of support is low? What are the benefits of having a higher levels of support and confidence when forming association rules? Illustrate your ideas with specific business-related examples.
Unformatted Attachment Preview
Purchase answer to see full attachment
Explanation & Answer
Attached.
1: Explain the process you used to define the clusters such as the number of clusters
formed, the specific variables used, etc. Include the "Cluster Sizes" and "Predictor
Importance" outputs when submitting the answer.
I fisrt standardized the data to get z-score for all the quantitative variables. I then grouped the data
into two clusters using all the quantitative variables, That is, Fresh, Milk, Grocery, Frozen,
Detergents paper and delicassen.
The first cluster size is 406 and the second has 31.
Generally, from the final cluster centers tables, cluster 2 has more of most of the quantitative data
categories than cluster 1. , for example, cluster 2 has more fresh than cluster 1. Cluster 2 only has
more of frozen than cluster 1 from all the 6 data categories
From the ANOVA table, all the 6 data categories were all important in forming the cluster groups.
Frozen and Fresh had the lowest importance.
2: Interpret the clusters with respect to the quantitative variables that were used in forming
the clusters. Include the "Clusters" o...