NATIONAL INSTITUTE OF FASHION TECHNOLOGY,

BHUBANESWAR
BIG DATA ANALYSIS

Cluster Analysis
SUBMITTED BY:
LIPSA MOHAPATRA
LAKSHMI SIRIPURAPU
DEVIKA MEHROTRA
KUMARI MUSKAN
 What is Cluster
Analysis?
It is a statistical technique for classifying related items into distinct groups is
cluster analysis. Other names for it include clustering, taxonomy analysis, and
segmentation analysis.

The purpose of cluster analysis is to categorize different items or data points so

that the degree of association between two things is high if they belong to the
same group and low if they belong to different groupings.

For example, when cluster analysis is used in market research, specific groupings
can be recognized within a population. The study of these groupings can then be
used to determine the likelihood of a population cluster purchasing goods or
services. If these groupings are well identified, a marketing team can target
different clusters with specialized, targeted messages.
 Different kinds of Cluster
0
Analysis 0
03
1 2
Hierarchical Cluster K-means Cluster Two Step Cluster
Hierarchical clustering is a This approach is useful for This method employs a
popular method that creates rapidly clustering huge cluster algorithm to find
models with cluster solutions datasets. Before doing the groupings by first performing
from 1 (all cases in one actual study, researchers pre-clustering and then
cluster) to n (each case in its define the number of applying hierarchical
own cluster). It can also clusters. This method is methods. Two-step clustering
group variables, similar to excellent for testing several is ideal for managing huge
factor analysis. models with varying datasets that would
estimated cluster counts. otherwise take too long to
calculate using strictly
hierarchical approaches.
 Case study
Problem:

A consumer durable goods company seeks to understand the key

features and services valued by consumers when purchasing through
catalogs. The goal is to identify how different aspects of catalog
marketing—such as convenience, risk-reduction, and service quality—
are perceived and grouped by customers.

To achieve this, a set of 10 statements was developed to measure

consumer perception. Respondents were asked to rate their agreement
using a 5-point Likert scale :

● 1 = Strongly Agree
● 2 = Agree
● 3 = Neither Agree nor Disagree
● 4 = Disagree
● 5 = Strongly Disagree
Statements :

● The company should provide toll-free numbers.

● The reputation of the company should be good.
● They should offer discount schemes based on quantity.
● The company should provide a product guarantee.
● A trial period should be offered by the company.
● The sales catalog should be attractive and eye-catching.
● The company should ensure on-time delivery.
● The number of years in business is an important factor.
● Advertisements play a key role in decision-making.
● The company should allow goods to be returned if not satisfied.
 Case Study Analysis : K-
mean cluster

The dataset includes responses to 10 key perception statements related to catalog shopping.
These variables capture consumer expectations around service quality (e.g., toll-free
numbers, guarantees, return policies), trust factors (e.g., company reputation, years in
business), promotional aspects (e.g., discounts, advertisements), and convenience features
(e.g., attractive catalog, on-time delivery, trial periods).
Data view in SPSS
 INTERPRETATION

Objective:
To segment catalog shoppers based on their perception of 10 key service and marketing features.

Clusters Identified:
Two distinct clusters (Cluster 1: 13 respondents, Cluster 2: 9 respondents)

Cluster 1 : Value-Conscious Traditionalists

Prefer discounts, trust long-standing brands, and value company reputation.

Cluster 2 : Convenience-Oriented Modern Buyers

Focus more on return policies, timely delivery, and flexible service.

This table shows the starting point
of the clustering process.

● Cluster 1: Respondents
strongly agreed (lower scores)
with product trial, attractive
catalog, reputation, etc.

● Cluster 2: Respondents
disagreed or were neutral
(higher scores) on those same
points.

● These were the assumed

centers before actual
calculations began.
This shows how much the cluster
centers changed over three
iterations:

The cluster groups changed a lot in

the beginning, but by the third step,
they stopped changing. This means
the groups were final. At the start,
the two groups were very different
from each other.The initial distance
between both clusters was 9.381 in
the start.
This table shows which case
(respondent) belongs to which
cluster and how close they are to
the center of that cluster:

● For eg : Case 1 is in Cluster 1,

and is 3.582 units away from
its center.
This table shows the average
response of each group (Cluster 1
and Cluster 2) for all 10 questions
after clustering is complete.

This table helps compare the

preferences and attitudes of the two
clusters based on the final grouped
responses.
● Both clusters showed a neutral opinion toward the importance of providing toll-free
numbers.

● A good company reputation was slightly more important to Cluster 1 than Cluster 2.

● Cluster 1 showed a stronger preference for discount schemes based on quantity.

● Both clusters equally valued the need for a product guarantee.

● Cluster 2 placed slightly more importance on having a trial period for the product.

● An attractive and eye-catching catalog was more important to Cluster 1.

● Cluster 2 gave higher importance to on-time delivery compared to Cluster 1.

● Cluster 1 valued the company’s years in business more than Cluster 2.

● Advertisements had a slightly higher influence on Cluster 2’s decision-making.

● Cluster 2 showed a stronger preference for having a return facility for unsatisfactory
goods.
Three factors significantly influenced the clustering :

On-time delivery (VAR00007) – Most important difference between clusters.

Years in business (VAR00008) – Strongly separates customers who value brand

experience.

Discount schemes (VAR00003) – Influential in differentiating price-sensitive shoppers.

These variables had low p-values (less than 0.05), meaning the difference in responses
between the two groups was statistically meaningful.

The remaining seven variables (like product guarantee, trial period, return facility, etc.)
did not show significant differences, meaning both clusters had similar opinions on those
features.
Maybe you need to divide the
content

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Mercury is the closest Venus has a beautiful
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Mercury Venus
Mercury is the closest Venus has a beautiful
planet to the Sun name and it’s hot

Jupiter Mars
It’s a gas giant and the Despite being red, Mars
biggest planet is actually a cold place
A picture is worth
a thousand
words
A picture is
worth a
thousand
words
145,245
Big numbers catch your audience’s attention
795,32
Big numbers catch your audience’s attention

1
Schedule

Phase 10:0 11:0 12:0

9:00
1 0 0 0
Task 1

Task 2
Phase
2
Task 1

Task 2
 Schedule

Wednesd Thursda
Monday Tuesday Friday
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08:15 Task 1 Meeting Idea Project Test

10:20 Meeting Idea Task 3 Chat Task 4

12:15 Proposal Meeting Meeting Idea Idea

14:30 Test Task 2 Project Test Meeting

02
Company

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1,254 It’s a gas giant and Jupiter
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 More graphs

35% 20% Mars

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biggest planet
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place, not hot

10% Venus 35%

Venus has a
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Mercury
Mercury is the
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Target
Gender Age
30 50 20
% % %

18 - 26 -
70% 30% +36
25 35
Target
Gender Most selled products
● Write the best-selling products
60% ● Write the best-selling products
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Saturn is a gas giant and has rings ● Write the best-selling products
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40% Annual expenses

Mercury is the closest planet to the Avg. expense: $5000
Sun
Age
25-38 39-50
A picture
always
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Images reveal large amounts
of data, so remember: use and
image instead of long texts
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always
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Images reveal large amounts
of data, so remember: use and
image instead of long texts
Your can use three columns

Mars Venus Mercury

Mars is actually a Venus is the second Mercury is the
cold place. It’s full of planet from the Sun. closest planet to the
iron oxide dust It’s really hot Sun and the smallest
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It’s the closest planet It’s a planet with Mars is actually a
to the Sun very high very cold place
temperatures

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Jupiter is the biggest It’s composed of It’s the farthest
planet of them all hydrogen and helium planet from the Sun
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01 02 03 04
Mercury Neptune
Mercury is the Neptune is far
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 How the company generates income

Mercury Mars Saturn

Mercury is a Mars is actually Saturn is a gas
small planet very cold giant with rings

Jupiter Neptune
Jupiter is the Neptune is far
biggest planet away from Earth
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Descriptio Jupiter is the Mercury a Saturn has Neptune is far
n biggest planet small planet several rings away from us

Year 2019 2020 2021 2022

Duration Three months Two weeks Six months Four months

Percentages

20 40 60
% % %
Mars Venus Mercury
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 Percentages

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Neptune is far away Jupiter is the Saturn is a gas
from Earth biggest planet giant with several
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Despite being red, Mercury is the Jupiter is the
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Neptune is far away Saturn is a gas
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It’s a gas giant and Venus has a
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Mars Mercury
Mars is a cold Mercury is the
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Venus has a Mercury is the
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Neptune Jupiter
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01 02 03

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Neptune is far away Mars is actually a Jupiter is the
from Earth cold place biggest planet
This is an infographic

Mars Venus
Mars is a cold
place, not hot
01 02 Venus has a
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Jupiter Saturn
Jupiter is the
biggest planet
03 04 Saturn is a gas
giant with rings
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Mercury
Mercury is the closest
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Venus
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Despite being red, Mars is
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Monthly data

125K 250K 540K

January June November
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 Percentages

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40% 15%
Mars Neptune
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Our goals

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Neptune Jupiter
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 Our goals
Neptune
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Venus
Venus has a
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Jupiter
Jupiter is the
biggest planet
Statistics

Phase 1 Phase 2 Phase 3

Mercury 1,254 9,145 8,145

Mars 5,214 6,541 3,214

Saturn 3,418 3,214 5,415

 Statistics
2019 2020 2021 2022

Avg. spen $15,225 $40,000 $45,000 $65,000

Descriptio Mercury is Venus has a Jupiter is the Mars is a cold

n very small nice name biggest planet place, not hot

Customer 12,000 20,000 19,000 40,000

s
9h 55m 23s
Jupiter’s rotation period

333,000
The Sun’s mass compared to Earth’s

386,000 km
Distance between Earth and the Moon
35 Mars
Despite being red, Mars is

4 actually a cold place

78 Mercury
Mercury is the smallest

9 planet of them all

91 Neptune
Neptune is the farthest

2 planet from the Sun

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