What is a common application of clustering in real-world scenarios?
Correct Answer: Customer segmentation
- Step 1: Understand what clustering means. Clustering is a way to group similar items together.
- Step 2: Think about businesses and their customers. Businesses want to know more about their customers.
- Step 3: Realize that customers can be different based on what they buy or their age, gender, etc. This is called purchasing behavior or demographics.
- Step 4: Know that businesses use clustering to group customers who have similar buying habits or characteristics.
- Step 5: This grouping helps businesses create targeted marketing strategies, improve customer service, and increase sales.
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