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What is a common application of K-means clustering in marketing?
What is a common application of K-means clustering in marketing?
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What is a common application of K-means clustering in marketing?
Predicting customer behavior
Segmenting customers into distinct groups
Optimizing supply chain logistics
Analyzing financial trends
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K-means clustering is commonly used to segment customers into distinct groups for targeted marketing.
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Q: What is a common application of K-means clustering in marketing?
Solution:
K-means clustering is commonly used to segment customers into distinct groups for targeted marketing.
Steps: 5
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Step 1: Understand that K-means clustering is a method used to group similar items together.
Step 2: In marketing, businesses want to understand their customers better.
Step 3: K-means clustering helps to divide customers into different groups based on their behaviors or preferences.
Step 4: Each group can be targeted with specific marketing strategies that appeal to them.
Step 5: This targeted approach can lead to better customer engagement and increased sales.
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