Hierarchical Cluster Analysis

HIERARCHICAL CLUSTER ANALYSIS is used to create decision trees and/or consumer-based market structure.

The technique groups products or brands together on the basis of similarity. The clustering process begins with a search for the two most similar products. Once these have been linked together, a new candidate can be joined to this group on the basis of similarity to this group. The clustering process continues until all of the products have been joined into one large group.