I want to group green consumers in different clusters on the basis of their demographic and psychological variables. So, can I use hierarchical techniques for the same? If not then which will be the best technique for profiling of consumers on the basis of demographic and psychological variables.
Dear Mohd Danish,
Hierarchical techniques is used for leveling case. for your case, I think it's better to deploy multiple groups. I think you intend to evaluate the difference based on demographic and psychological variables, am I correct?
For categorical data, the use of Two-Step cluster analysis is recommended.
For further information, see:
1. Kaimakoudi E, Polymeros K, Schinaraki M, and Batzios Ch. (2013). Consumers’ attitudes towards fisheries products. Procedia Technology. Volume 8, pp. 90 – 96,
DOI: http://dx.doi.org/10.1016/j.protcy.2013.11.013
2. Polymeros K., Kaimakoudi E., Mitsoura A., Nikouli E. and Mente E. (2014). The determinants of consumption for organic aquaculture products – evidence from Greece. Aquaculture Economics and Management. Volume 18, Issue: 01, pp. 45 – 59. DOI: http://dx.doi.org/10.1080/13657305.2014.855954
Dear Hotniar Siringoringo Mam,
My basic objective is to identify distinct market segment of the green consumers based on their demographic and psychological variables....
Thanks Eleni Kaimakoudi for the response. The papers you have provided in the link will help me in applying the Two- Step Custering and identify the segments.
@ Eleni, Very good link...
@ Danish, Hierarchical clustering used to understand the membership of customer and the distances between opinion of clusters.
If you have a combination of categorical and continuous variables then you should go with two-step clustering.
I suggest you read the article: http://www.researchgate.net/publication/278403191_Numerical_Coding_of_Nominal_Data
Article Numerical Coding of Nominal Data
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