Question

As part of the quarterly reviews, the manager of a retail store analyzes the quality of customer service based on the periodic customer satisfaction ratings (on a scale of 1 to 10 with 1 = Poor and 10 = Excellent). To understand the level of service quality, which includes the waiting times of the customers in the checkout section, he collected data on 100 customers who visited the store; see the attached Excel file: ServiceQuality.

1. Using Data Mining > Cluster, apply K-Means Clustering with the following Selected Variables: Wait Time (min), Purchase Amount ($), Customer Age, and Customer Satisfaction Rating. In Step 2 of the k-Means Clustering procedure, normalize(standardize) input data, assume k= 5 clusters, 50 iterations, and Fixed start with the default Centroid Initialization seed of 12345. In Step 3, select the checkboxes “Show data summary” and “Show distances from each cluster center”.
   1. What is the most homogenous cluster? What is the number of customers in this cluster? For this cluster, what is the average standardized Euclidean distance between its observations and its centroid (center)? What is the centroid of this cluster (expressed in standardized data)?Using the cluster centroids, how would you characterize the customers in the most homogenous cluster in comparison with the customers in the remaining clusters?
   2. Which two clusters are most distinct and why? Using their centroids, how would you compare the customers of the two clusters?
2. Using Data Mining > Cluster, apply Hierarchical Clustering with the following Selected Variables: Wait Time (min), Purchase Amount ($), Customer Age, and Customer Satisfaction Rating. In Step 2 of the Hierarchical Clustering procedure, normalize(standardize) input data and apply Ward’s clustering method, while in Step 3, select the checkboxes “Show dendrogram”, “Show Cluster Membership”, and assume k= 5 clusters.
   1. Show the obtained dendrogram.
   2. What are the sizes of the created clusters?
   3. What are the centroids of the created clusters expressed in original data.

Customer Number	Wait Time (min)	Purchase Amount ($)	Customer Age	Customer Satisfaction Rating
1	2.3	436	42	7
2	2.8	408	33	6
3	3.2	432	38	5
4	3.4	431	40	5
5	3.4	456	29	6
6	4.2	537	46	4
7	3.2	456	42	5
8	1.4	430	40	8
9	6.4	663	24	3
10	7.8	839	37	4
11	6.5	659	52	5
12	9.8	836	43	2
13	5	543	56	4
14	1.8	419	35	8
15	6.1	700	39	6
16	3.4	432	44	7
17	7.8	845	33	5
18	2.8	467	42	6
19	1.2	425	46	8
20	9.5	848	50	4
21	8.2	808	55	3
22	7.6	674	35	3
23	5.4	547	52	4
24	6.7	691	38	5
25	9.6	847	53	4
26	11.4	826	48	2
27	2.1	426	52	7
28	5.6	535	32	7
29	3.7	521	43	8
30	4.9	513	44	6
31	6.4	645	53	5
32	9.3	846	52	4
33	10.6	730	51	3
34	6.5	786	53	3
35	5.4	523	46	5
36	7.6	654	36	6
37	3.2	443	48	7
38	2.4	409	54	8
39	1	400	39	6
40	0.2	418	51	7
41	2.4	498	30	6
42	5.7	532	32	5
43	6.4	663	44	7
44	6	681	39	8
45	3.7	543	54	5
46	8.7	800	51	5
47	6.9	673	45	5
48	9.8	856	43	4
49	10	756	44	4
50	9.5	854	43	6
51	6.3	672	50	6
52	7.4	698	47	7
53	2.3	434	43	7
54	4.6	544	40	4
55	4.9	523	53	6
56	5.7	546	55	6
57	7.4	676	42	8
58	6.8	662	36	6
59	9.6	1000	40	5
60	6.4	678	46	5
61	7.2	655	32	4
62	5.6	535	36	5
63	9.7	833	35	3
64	2.3	498	30	7
65	4.3	508	41	6
66	5.7	542	49	6
67	2.4	435	39	8
68	6.7	665	41	5
69	2.4	387	54	9
70	9.8	845	34	7
71	4.5	532	40	6
72	6.7	687	30	5
73	7.2	643	33	4
74	3.5	424	49	7
75	8.9	836	47	5
76	9.7	876	31	4
77	3.5	456	47	7
78	4.7	523	49	6
79	8.5	818	35	5
80	9.7	845	54	4
81	2.7	401	55	7
82	5.7	554	43	6
83	7.6	648	51	7
84	4.4	540	31	6
85	7.8	839	45	5
86	9.4	845	48	4
87	4.9	534	36	5
88	7.1	693	44	4
89	5.4	512	39	3
90	6.7	665	49	5
91	8.6	825	36	5
92	4.5	548	30	7
93	6.1	704	31	5
94	5.3	509	31	6
95	6.7	672	35	5
96	8.1	824	36	4
97	6.3	632	30	4
98	7.4	689	35	2
99	8.8	839	50	4
100	9.6	847	35	2

Answer 1