.......................application of cluster analysis is in customer segmentation and estimation of its sizesa.marketingb.sellingc.buyingd.forcasting

Understanding Cluster Analysis in Customer Segmentation

Cluster analysis is a statistical technique used to group similar objects into clusters. In the context of marketing, customer segmentation can help businesses understand their target audience better by categorizing customers based on shared characteristics.

1. Application in Marketing:

   • In marketing, companies use cluster analysis to identify distinct groups within their customer base. This allows them to tailor their marketing strategies, products, and services to meet the specific needs and preferences of different segments.

2. Estimation of Sizes:

   • By analyzing the clusters formed through cluster analysis, businesses can estimate the sizes of various market segments. This information is critical for allocating resources and formulating effective marketing strategies.

Conclusion

Given the options presented, the most appropriate answer is:

a. marketing

Cluster analysis primarily aids in customer segmentation within the marketing field, enabling companies to effectively categorize and target their customer base.