Question

True or False: An advantage of using behavioral data as the basis of segmentation, as opposed to psychographic data, is that behavioral data generally has higher individual-level accessibility.

True

False

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Which of the following is NOT an appropriate way to decide the number of segments in a cluster analysis?

Choose the number of segments with the highest between_SS / total_SS percentage

Choose the number of segments at which the increase in the between_SS / total_SS percentage from adding one more segment is small

Choose the maximal number of segments such that the resulting segments are large and interpretable

Answer 1

Question :

An advantage of using behavioral data as the basis of segmentation, as opposed to psychographic data, is that behavioral data generally has higher individual-level accessibility. - False, pschographic data has higher individual - level accessibility. Psychographic data is based on individual personality characteristics such as introvert, extrovert, individual values, desires, hobbies habits, lifestyle, preferences, . These traits give a glimpse of each person's emotions and provide the hidden motives and urges behind their buying decisions. By using the psychographic data, consumer requirements are better understood and the products can be modified accordingly to increas company's sales. On the contrary, Behavior data is based on classifying the the consumers and grouping them on the bases of their behaviors. For example, comsider a gropu of chidren below 10 years of age, this group will exibit grater urge towards buying choclates and any type of new toys, the moment they find them. a group of middle class persons will exhibit same buying pattern on discounted products. Like how on occasions, a specific group is always waiting for discounts and shopping. A group of high class people will tend to buy luxuary items and the will copy each other's buying pattern to show off their wealth.So, behavioural data tend to focus on groups based on some homogeneous buying patterns suvh as loyalty, usage rate, user status, occasions,etc and not on individual customers. So, pshographic data has higher individual level accessibility.

Hence , the statement - "An advantage of using behavioral data as the basis of segmentation, as opposed to psychographic data, is that behavioral data generally has higher individual-level accessibility" is false.