Q1 Based on only the Cluster analysis data which preference related variables are most useful for segmentation

identification and evaluation? Which variables are least useful? Answer : Any good segmenting variable would ensure homogeneity within the cluster and heterogeneity between the cluster ,i.e., maximum gap between the clusters. Hence we have looked at the variance in the scores for each factor/Question across the 6 clusters . We would say that Q2,Q4,Q5,Q7,Q8,Q13 are most important .Below is the list of important parameters; Table 1:Factors important for segmentation and their releavance Ease of transferring photos Quality of photos Taken Ability to send photos by e-mail Ability to share photos on facebook Ability to send photos to desktop Monthly Fee Would encourage the customer to take more photos and also increase his willingness to replace his digital camera These three features are highly valued by customers The amount they are feeling to pay as a monthly fee for using this product

While there are some variables which have not been shown significant variance over different segments and hence they are of little relevance for the purpose of segmentation and evaluation, these would the Q1,Q10,Q12 i.e. factors like easy setup and best price are of least significance as all the clusters have more or less the same response levels for these factors. Q2 Keeping in mind what you know about each cluster before you look at Exhibit 3 and Exhibit 4, create descriptive profiles for each customer segment represented by each cluster. Lable each segment with a title that best describes that cluster.To what extent does this new information reinforce or challenge your previous assumptions about the segments in this market? Answer : Every cluster comprises of a group of people that have similar likes or dislikes towards a particular feature or value proposition that is within a cluster people tend to assign the same level of importance to lets say attributes like ease of photo transfer and their affinity towards a particular value in the product differs markedly from the affinity of people towards the same value ,in other clusters. Hence we have descriptively profiled each cluster on in an attempt to characterize the unique preferences of the members of each cluster.

Clusters 1 Characterstics Feel it is easy to upload phone photos Would take more photos if its easy to transfer Would take more photos if better quality Replace Digital camera if easy to transfer Replace Digital camera if better quality Value- saving photos on phone Value-E-mailing photos Value-Desktop photos Value-Sharing on facebook Value Easy Setup Early adopters Best price Willingness to pay high fees 2 3 4 $ 5.75 5 6

$ 6.64 $ 7.93 $ 3.90 $ 8.31 $ 1.67