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What is a common application of clustering in marketing?
What is a common application of clustering in marketing?
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What is a common application of clustering in marketing?
Predicting customer behavior
Segmenting customers into distinct groups
Optimizing supply chain logistics
Forecasting sales trends
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Clustering is often used in marketing to segment customers into distinct groups based on purchasing behavior or demographics.
Questions & Step-by-step Solutions
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Q: What is a common application of clustering in marketing?
Solution:
Clustering is often used in marketing to segment customers into distinct groups based on purchasing behavior or demographics.
Steps: 6
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Step 1: Understand what clustering means. Clustering is a method used to group similar items together.
Step 2: In marketing, businesses want to know more about their customers.
Step 3: Clustering helps businesses divide their customers into different groups.
Step 4: These groups can be based on things like how much they buy, what they buy, or their age and location.
Step 5: By knowing these groups, businesses can create targeted marketing strategies for each group.
Step 6: This means they can send the right messages to the right people, making their marketing more effective.
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