Step 1. Classify each variable in the Chipotle dataset as the following:
• Demographic segmentation
• Psychographic segmentation
• Behavioral segmentation
• Outcome
• Marketing mix
Step 2. Choose five variables you think are best for segmentation amongst the demographic, psychographic or behavioral variables and copy to “cluster analysis” tab in current worksheet
Use the “Lab Assignment #4_Chp 7 Data file 2.xlsx” to run a cluster analysis using the K-means method. Refer to the YouTube video on cluster analysis - please click here for video
Step 3. Complete the instructions for the cluster analysis report (at least 20 people per cluster).
Step 4. Investigate the clusters quantitatively using the means (e.g., Cluster 1 the age mean was 34; it was 74% female and income was high at 3.4 on a four point scale).
Step 5. Profile each cluster qualitatively based on the data from Step 3 (e.g., Cluster 1 is “middle-age, wealthy cluster,” etc.)
Step 6. Which cluster would you recommend as a primary target, and why?
Run means analyses for variables you classified as marketing mix variables above.
• What would you recommend for the marketing mix (e.g., product, place, promotion and price strategy) for the primary target, in terms of your creative input?
• Present a segmented bar charts (see example below).
A. How to Load the Solver Add-in in Excel
- In Excel 2010 and later, go to File > Options. …
- Click Add-Ins, and then in the Manage box, select Excel Add-ins.
- Click Go.
- In the Add-Ins available box, select the Solver Add-in check box, and then click OK. …
- After you load the Solver Add-in, the Solver command is available in the Analysis group on the Data tab.
B. Microsoft instructions for adding the "Solver" function to Excel https://support.microsoft.com/en-us/office/load-th…