TABLE OF CONTENTS
HYPOTHESIS FORMULATION 2
RESEARCH METHODOLOGY 3
RESEARCH PROCEDURE 5
DATA COLLECTION 7
SAMPLE SIZE 8
RATIONALE BEHIND THE VARIABLES USED 9
QUESTIONNAIRE 10
CONCLUSION 14
REFERENCES 16
ANNEXURES
SPSS OUTPUT 17
PROFILING 31
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Interim Report
HYPOTHESIS FORMULATION
To find the profile of the respondents within the clusters on the basis of various
factors/parameters based on which they make their car purchasing decision.
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RESEARCH METHODOLOGY
Cluster Analysis
Cluster Analysis is a technique used for combining observations into groups or clusters such
that:
• Observations in each group are similar to each other.

• Observations of one group should be different from the observations of other groups.
The objective of cluster analysis is to group observations into clusters such that each cluster is as
homogenous as possible with respect to the clustering variables.
There are two types of analytical clustering techniques:
• Hierarchical
• Non-hierarchical clustering
Hierarchical Clustering: There are two types of hierarchical clustering techniques:
1) Divisive
2) Agglomerative
The agglomerative hierarchical clustering techniques are used most commonly. The
agglomerative techniques require distance between all objects that are to be clustered as the
main input. The basic difference between various agglomerative techniques is the way in which
the inter-cluster distance is calculated. Some of the popular methods are:
• Centroid Method
• Nearest –neighbor or single-linkage method
• Farthest neighbor or complete linkage method
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• Average linkage method
• Ward’s method
Centroid method: In this method the Euclidean distance is measured between the clusters. The
distance between the 2 clusters is the distance between their centroid(means for all variables)
Wards’ method: In this method the distances are not measured between the clusters. Rather it
uses analysis of variance approach to evaluate the distances between clusters. It seeks to choose
the successive clustering steps so as to minimize the increase in error sum of squares at each
step.
Average Linkage method: The distance between 2 clusters is defined as the average distances
between all the pairs of object, where one member of the pair is from each of the clusters.
Analysis of Variance (ANOVA): Analysis of variance is used for examining the difference in
the mean values of the dependent variable associated with the effect of controlled independent
variables, after taking into account the influence of uncontrolled independent variable.
Essentially, ANOVA is used as a test of means for 2 or more populations. The null hypothesis,
typically, is that all means are equal.
In its simplest form, ANOVA must have a dependent variable & there must also be one or more
independent variable.
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RESEARCH PROCEDURE
The following steps are used in our Research:
• Data Collection and Entry

• Running Cluster Analysis
• ANOVA Testing
• Sorting data in MS Excel.
• Profiling
Data Collection and Entry
The data was collected online (Google Docs). The Questionnaire was sent to friends and
relatives residing in various regions of the country. These respondents were from various age
groups having salary in different ranges. The sample size taken was 219.
Running Cluster Analysis
The data collected in the Excel Sheet of Google Docs was imported into the SPSS and clustering
of all the respondents was done on different distance measures-mainly squared Euclidean
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distance and Euclidean distance and the various methods of clustering like Average Linkage,
Centroid method and Ward’s method.
The common outliers were removed with the help of the table given below:
Outliers Average Linkage Centriod method Ward’s method
Squared Euclidean 211-218 216-218 217-218
Distance
Euclidean distance 213-218 216-218 217-218
Two outliers were found to be common in all the methods and removed. These were respondent
number 217 and 218.
After removing the above mentioned outliers the clustering was done again and the drastic
change in the coefficient was determined by exporting the coefficient data into the Excel Sheet
and accordingly 3 clusters were determined.
We again ran the cluster analysis and this time we clicked the Save option. When asked about
the number of clusters we mentioned 3 as given above and ran the cluster analysis again. This
time each respondent was clubbed in its respective cluster which was apparent in the data sheet
wherein a new variable named CLU3_2 was created specifying the cluster in which each
respondent falls.
ANOVA Testing
Once we defined our clusters, we ran ANOVA test to find out whether the clustering variables
are statistically significant across the clusters. The results showed us that 3 variables viz. Engine
Power, Resale Value and Affordability do not differ significantly amongst the 3 clusters.
Sorting data in MS Excel
The data was sorted in Excel according to the cluster number (CLU3_2) so that it becomes
convenient for us to have an overlook of the spreadsheet.
Profiling
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With the help of sorted data the respondents were profiled with respect to their demographic
variables which include:
• Age
• Gender
• Region
• Occupation
• Income Slab
• Family Size
• Preference for Indian/Foreign car
DATA COLLECTION
Primary data collection in the form of questionnaire is planned as a part of the study to
generate the data required in the process. In order to find out the profiles of respondents, we
designed the questionnaire keeping in mind the profiling and clustering variables that included
the 22 variables based on our literature review.
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The analysis has been done to throw light on the following areas:
1. Profiling variables included the following variables:

• Age
• Sex
• Region of the country
• Income Slab
• Family Size
• Occupation
• Indian/Foreign brand
1. Clustering variables included following variables:

• Vicinity of the service center
• Mileage of car
• Engine Power
• Price of a car
• Speed of the car
• Promotional Activities
• Comfort
• Appearance
• Longevity
• Financing Option
• After Sales Services
• Resale Value
• Affordability
• Sportiness
• Distinctiveness
Both Qualitative and Quantitative data was collected for the study. In qualitative data we
included the variables like gender, occupation, region to which the respondent belongs. And in
quantitative data we included the variables like price, engine power, mileage, safety and
promotional activities etc.
SAMPLE SIZE
Sample size requires taking care in eliciting scientific objectives and in obtaining suitable
quantitative information prior to the study.
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Determining sample size is very important from economic point of view because samples that
are too large may waste time, resources and money, while samples that are too small may lead to
inaccurate results. In many cases, we can easily determine the minimum sample size needed to
estimate a process parameter.
The sample size was selected from across the country as the survey done was online and the
questionnaire was submitted by the respondents from various states. The rationale behind the
sample size of 219 is the formula of 10 *N
Where N is the number of variables used in our project.
The best way to avoid a biased or unrepresentative sample is to select a random sample, also
known as a probability sample which we have kept in mind while performing the study
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RATIONALE BEHIND THE VARIABLES USED
Rationale for including the variables in our study was based on our literature review. .A major
study undertaken by Thakor M & Pacheco B 1(1997) with sample size of 200 provides an
insight with regards to effect of “Company Origin on Consumer Perception” regarding a
particular car, also called as Country of Origin Effects. It is seen that this views differ from
country to country.
The reason behind choosing variables like mileage, engine power, safety in the study is the
findings in the literature review by Neelam Kinra 2(Professor, IIM Lucknow, 2006) who
administered face to face interviews in the city of Lucknow. From her findings, it appeared that
consumers give a lot of importance to technology and quality of car.
The reason for including Promotional Activities is that consumer purchasing decision is
affected by this variable. The preferences change as they tend to associate themselves to the
advertised brand.
Financing options plays a major role in the purchasing decision of a consumer. The population
of India is largely middle class, which means the disposable income is relatively low compared
to our western counterparts. Through this variable we can get to know, people in which income
slab opts for financing options. And we can get to know whether people who are going for
foreign car goes for financing options or they can independently buy a foreign brand car.
Another important criterion which a consumer looks for is the After Sales Services. Company
like Aiwa which entered India with a bang had to close down due to the poor after Sales
Services. Easy availability of service stations plays a major role here. Maruti which has its
service stations all over the country is India’s largest car company. So the After Sales Service
forms an important part of a consumer’s decision while buying a car. This is the reason for
including this variable in our research method.
Price perhaps is one of the most criteria as it is known that the average Indian consumer is price
sensitive. This was the finding of the Shyamala Mathan Sankar 3(2006). This is one of the
reasons why the volumes of small cars sold is much higher than the medium & luxury car
segment. The respondents preferring luxury cars will be less sensitive to price as they would like
to have the best features for which they are willing to spend. As foreign cars have a higher price
as compared to Indian cars, it is one of the most important variable a consumer has in his mind
while buying a car.
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Distinctiveness as criteria while purchasing a car is mainly the characteristic of the affluent
class. As the economy is booming there has been an increase in the disposable income of people
& thus a section of people looking for products which portrays unique style & distinctiveness.
These foreign brand cars give the owner’s a form of self expression.
QUESTIONNAIRE
Questionnaire that we have used for our primary survey is as given below:
What affects your purchasing decision while purchasing a new

car??
Top of Form
Sex
• Male
• Female
Your Age
• Below 20
• 20 - 30
• 30 -40
• 40 and above
The region of the country you belong to *
• Northen region
• Southern region
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• Western region
• Eastern region
• Central region
Your position in an organisation / occupation * Specify if other
• Private sector
• Government sector
• Banking sector
• Self employed
• Other:
Please tick the income slab under which you fall? * If you are a student then give your parents income slab
• Below 2 lakhs
• 2-5 lakhs
• 5-7 lakhs
• 7-10 lakhs
• Above 10 lakhs
What is your Family size ? *
• Single
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• Two
• 3-4
• 5 and above
How important is the vicinity of a service centre while making a purchasing decision *
1 2 3 4 5
Not important Essential
How important is the mileage of a car to you *
1 2 3 4 5
How important is the engine power of a car to you *
1 2 3 4 5
How important is comfort to you *
1 2 3 4 5
How important is cost/price of a car to you *
1 2 3 4 5
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How important is safety to you *
1 2 3 4 5
How important is appearance to you *
1 2 3 4 5
How important is longevity of the car to you * Life of a car
1 2 3 4 5
How important is various financing options available while purchasing a car * Plz take into consideration the income slab
1 2 3 4 5
How important is the after sales service to you *
1 2 3 4 5
How important is resale value of a car to you *
1 2 3 4 5
While purchasing you look for affordability *
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1 2 3 4 5
Strongly disagree Strongly agree
While purchasing you look for sportiness *
1 2 3 4 5
While purchasing you look for Distinctiveness *
1 2 3 4 5
How important is acceleration/speed of a car to you *
1 2 3 4 5
How important is promotional activities (Advertising) undertaken by the company to you *
1 2 3 4 5
Would you prefer an INDIAN or a FOREIGN car brand * Please take into consideration the income slab in which you fall
in
• INDIAN CAR BRAND
• FOREIGN CAR BRAND
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CONCLUSION
Our study has revealed significant insights of consumer purchasing preference while making
decisions to buy a car.
In ANOVA test, 3 variables viz. Engine Power, resale value and affordability were not found to
have a significant impact between the clusters.
The other 13 variables had significant difference among the clusters.

• Vicinity of the car service centre
• Car mileage
• Comfort
• Cost /price
• Safety
• Appearance
• Longevity
• Availability of financing options
• After sales service
• Sportiness
• Distinctiveness
• Speed
• Promotional activities/Advertising
CLUSTER 1: 110 Respondents
Age: The respondents belonging to the age group 20-30 is most prevalent depicting a 79.09% of
the total cluster population.
Gender: Out of the total cluster population, 67.27% of the population is male.
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Region: The Northern region shows the maximum of 53.63% profile of the total cluster
population.
Occupation: The maximum profile is been showed by the private sector (47.27%) followed by
student profile (30.91%).
Income Slab: The slab of 2-5 Lacks shows the highest profile of 29.09%, followed by 5-7 Lacks
(25.45), then followed by 7-10 Lacks (24.54%).
Family Size: The 3-4 family size shows the maximum profile of 57.27% of the cluster
population.
Indian/Foreign Brand: 61.81% of the total population shows the preference for Indian brand, &
the foreign brand is been shown by 38.18% of the total cluster population.
Gender: Out of the total cluster population, 76.19 % of the population is male.
population.
Income Slab: The slab of 2-5 Lacks shows the highest profile of 46.03% which is followed by 5-
7 Lacks (30.15%)
population.
the foreign brand is been shown by 26.98 % of the total cluster population.
Gender: Out of the total cluster population, 65.90% of the population is male.
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population.
Income Slab: The slab of 5-7 Lacks shows the highest profile of 36.36%, followed by above
Lacks (27.27), then followed by 2-5 Lacks (25%).
population.
the foreign brand is been shown by 29.45% of the total cluster population.
REFRENCES
1. Thakor, M Pacheco, B. (1997), “Foreign Branding and its effects on product perceptions
& attitudes: a replication and extension in a multi-cultural setting” Journal of marketing
Theory and Practice, Vol. 5 No. 1,pp. 15-30
2. “The Effect of Country of Origin on Foreign Brand Names in the Indian Market”:
Neelam Kinra, (Professor, IIM, Lucknow,2006)
3. Consumer Perception of Global vs. Local Brands: The Indian Car Industry by Shyamala
Mathan Sankar(2006)
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OUTPUT OF SPSS AFTER REMOVAL OF OUTLIERS
Case Processing Summary(a, b)
Cases
Valid Missing Total
N Percent N Percent N Percent
217 100.0 0 .0 217 100.0
a Squared Euclidean Distance used
b Ward Linkage
Agglomeration Schedule
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Stage Cluster First
Cluster Combined Appears
Coefficien Next
Stage Cluster 1 Cluster 2 ts Cluster 1 Cluster 2 Stage
1 27 28 .000 0 0 129
2 13 14 .000 0 0 102
3 4 30 1.500 0 0 16
4 50 75 3.500 0 0 17
5 39 65 5.500 0 0 11
6 16 33 7.500 0 0 49
7 92 93 10.000 0 0 55
8 17 78 12.500 0 0 81
9 40 54 15.000 0 0 37
10 3 52 17.500 0 0 24
11 39 47 20.167 5 0 25
12 53 152 23.167 0 0 86
13 38 88 26.167 0 0 84
14 76 86 29.167 0 0 113
15 37 60 32.167 0 0 25
16 4 22 35.333 3 0 31
17 50 82 38.667 4 0 120
18 20 162 42.167 0 0 145
19 116 134 45.667 0 0 108
20 1 119 49.167 0 0 95
21 29 95 52.667 0 0 147
22 15 73 56.167 0 0 48
23 36 43 59.667 0 0 123
24 3 31 63.167 10 0 95
25 37 39 67.100 15 11 96
26 66 185 71.100 0 0 79
27 41 147 75.100 0 0 50
28 64 113 79.100 0 0 37
29 90 98 83.100 0 0 36
30 9 10 87.100 0 0 145
31 4 55 91.433 16 0 82
32 148 213 95.933 0 0 175
33 161 212 100.433 0 0 93
34 129 149 104.933 0 0 162
35 105 127 109.433 0 0 144
36 90 110 114.100 29 0 139
37 40 64 118.850 9 28 60
38 125 204 123.850 0 0 142
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39 154 199 128.850 0 0 46
40 111 197 133.850 0 0 106
41 101 196 138.850 0 0 85
42 181 186 143.850 0 0 131
43 8 183 148.850 0 0 69
44 100 172 153.850 0 0 136
45 137 169 158.850 0 0 141
46 99 154 163.850 0 39 135
47 32 48 168.850 0 0 151
48 15 57 174.017 22 0 82
49 16 192 179.350 6 0 90
50 41 165 184.683 27 0 156
51 96 216 190.183 0 0 119
52 145 215 195.683 0 0 155
53 115 206 201.183 0 0 124
54 142 198 206.683 0 0 133
55 92 182 212.183 7 0 66
56 74 157 217.683 0 0 169
57 118 156 223.183 0 0 132
58 80 123 228.683 0 0 106
59 12 70 234.183 0 0 122
60 34 40 239.733 0 37 156
61 139 214 245.733 0 0 157
62 146 200 251.733 0 0 171
63 163 184 257.733 0 0 174
64 42 171 263.733 0 0 88
65 94 97 269.733 0 0 104
66 59 92 275.733 0 55 70
67 24 67 281.733 0 0 113
68 49 51 287.733 0 0 89
69 8 26 294.067 43 0 122
70 59 91 300.467 66 0 148
71 122 202 306.967 0 0 169
72 62 195 313.467 0 0 154
73 120 188 319.967 0 0 155
74 135 175 326.467 0 0 140
75 124 168 332.967 0 0 105
76 79 160 339.467 0 0 141
77 46 140 345.967 0 0 80
78 19 104 352.467 0 0 144
79 66 103 359.133 26 0 81
80 46 106 365.967 77 0 161
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81 17 66 372.800 8 79 187
82 4 15 379.705 31 48 118
83 176 187 386.705 0 0 181
84 38 170 393.705 13 0 160
85 101 166 400.705 41 0 190
86 53 114 407.705 12 0 178
87 58 68 414.705 0 0 151
88 42 174 422.038 64 0 126
89 6 49 429.371 0 68 165
90 16 18 436.788 49 0 158
91 189 203 444.288 0 0 127
92 126 180 451.788 0 0 166
93 133 161 459.288 0 33 134
94 35 63 466.788 0 0 167
95 1 3 474.488 20 24 158
96 37 132 482.388 25 0 164
97 173 209 490.388 0 0 136
98 155 193 498.388 0 0 128
99 131 191 506.388 0 0 185
100 167 178 514.388 0 0 161
101 102 128 522.388 0 0 138
102 13 117 530.388 2 0 146
103 61 112 538.388 0 0 162
104 89 94 546.388 0 65 143
105 23 124 554.555 0 75 154
106 80 111 562.805 58 40 159
107 77 217 571.305 0 0 139
108 116 210 579.805 19 0 135
109 107 179 588.305 0 0 130
110 109 151 596.805 0 0 149
111 7 150 605.305 0 0 174
112 56 136 613.805 0 0 153
113 24 76 622.305 67 14 180
114 11 44 630.805 0 0 150
115 201 211 639.805 0 0 157
116 87 108 648.805 0 0 166
117 71 85 657.805 0 0 152
118 2 4 666.858 0 82 172
119 96 159 676.025 51 0 153
120 50 121 685.192 17 0 159
121 138 208 694.692 0 0 143
122 8 12 704.258 69 59 150
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123 36 164 714.092 23 0 142
124 69 115 723.925 0 53 182
125 143 158 733.925 0 0 168
126 42 84 744.092 88 0 179
127 141 189 754.592 0 91 168
128 153 155 765.258 0 98 176
129 27 81 775.925 1 0 179
130 107 205 786.758 109 0 175
131 181 190 797.758 42 0 149
132 118 207 808.925 57 0 173
133 142 177 820.092 54 0 188
134 25 133 831.342 0 93 146
135 99 116 842.675 46 108 160
136 100 173 854.175 44 97 173
137 5 144 865.675 0 0 183
138 102 194 877.675 101 0 181
139 77 90 889.708 107 36 163
140 130 135 901.875 0 74 177
141 79 137 914.125 76 45 170
142 36 125 926.592 123 38 165
143 89 138 939.092 104 121 183
144 19 105 951.592 78 35 191
145 9 20 964.342 30 18 187
146 13 25 977.377 102 134 203
147 29 83 990.544 21 0 148
148 29 59 1004.102 147 70 193
149 109 181 1018.002 110 131 199
150 8 11 1031.960 122 114 195
151 32 58 1045.960 47 87 172
152 71 72 1060.293 117 0 167
153 56 96 1074.726 112 119 192
154 23 62 1089.160 105 72 186
155 120 145 1103.660 73 52 182
156 34 41 1118.651 60 50 164
157 139 201 1133.651 61 115 176
158 1 16 1148.812 95 90 171
159 50 80 1164.187 120 106 180
160 38 99 1179.965 84 135 185
161 46 167 1195.832 80 100 190
162 61 129 1212.082 103 34 184
163 45 77 1229.048 0 139 191
164 34 37 1246.423 156 96 178
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165 6 36 1264.040 89 142 201
166 87 126 1281.790 116 92 196
167 35 71 1299.757 94 152 208
168 141 143 1317.757 127 125 177
169 74 122 1335.757 56 71 189
170 21 79 1354.007 0 141 198
171 1 146 1372.532 158 62 211
172 2 32 1391.324 118 151 204
173 100 118 1411.014 136 132 197
174 7 163 1430.764 111 63 184
175 107 148 1450.931 130 32 189
176 139 153 1471.693 157 128 200
177 130 141 1492.776 140 168 188
178 34 53 1513.953 164 86 186
179 27 42 1535.500 129 126 205
180 24 50 1557.292 113 159 194
181 102 176 1579.092 138 83 193
182 69 120 1600.973 124 155 192
183 5 89 1623.758 137 143 195
184 7 61 1646.758 174 162 199
185 38 131 1669.829 160 99 202
186 23 34 1693.644 154 178 204
187 9 17 1718.505 145 81 194
188 130 142 1745.724 177 133 203
189 74 107 1773.058 169 175 209
190 46 101 1800.608 161 85 202
191 19 45 1828.441 144 163 198
192 56 69 1860.627 153 182 197
193 29 102 1893.356 148 181 196
194 9 24 1928.328 187 180 200
195 5 8 1963.328 183 150 201
196 29 87 1998.806 193 166 205
197 56 100 2036.028 192 173 209
198 19 21 2078.928 191 170 210
199 7 109 2123.913 184 149 206
200 9 139 2171.163 194 176 213
201 5 6 2219.088 195 165 206
202 38 46 2267.419 185 190 207
203 13 130 2316.164 146 188 207
204 2 23 2367.039 172 186 211
205 27 29 2418.026 179 196 208
206 5 7 2475.794 201 199 212
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207 13 38 2535.324 203 202 214
208 27 35 2596.285 205 167 210
209 56 74 2665.587 197 189 212
210 19 27 2735.138 198 208 215
211 1 2 2806.597 171 204 213
212 5 56 2904.681 206 209 215
213 1 9 3016.422 211 200 214
214 1 13 3181.174 213 207 216
215 5 19 3351.983 212 210 216
216 1 5 3659.954 214 215 0
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DENDROGRAM
******HIERARCHICAL CLUSTER ANALYSIS******
Dendrogram using Ward Method
Rescaled Distance Cluster Combine
CASE 0 5 10 15 20 25
Label Num +---------+---------+---------+---------+---------+
27 
28 
81  
42  
171   
174  
84  
126  
180   
87   
108   
92   
93  
182   
59   
91   
29   
95     
83    
176    
187    
102    
128   
194   
35   
63   
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71   
85    
72   
137   
169   
79    
160     
21    
105   
127    
19    
104    
90   
98   
110   
77   

* * * * * * H I E R A R C H I C A L C L U S T E R A N A L Y S I S * * * *
* *
C A S E 0 5 10 15 20 25
Label Num +---------+---------+---------+---------+---------+
217   
45  
109  
151   
181    
186   
190  

129     
149      
61     
112     
163    
184     
7    
150    
49     
51     
6      
125      
204       
36       
43      
27 | P a g e
164     
11     
44      
12       
70      
8      
183     
26     
5   

144     
94    
97   
89    
138   
208   
74   
157    
122    
202    
148     
213     
107     
179    

* *
C A S E 0 5 10 15 20 25
Label Num +---------+---------+---------+---------+---------+
205    
118   
156   
207    
100     
172    
173    
209   
56   
136    
96     
216    
159   
115   
206   
28 | P a g e
69   
145  
215   
120  
188  
131  
191   
38   
88   
170    
154    
199    
99   
116   
134    
210    
101    
196    
166     
46    
140    
106   

167    
178    
13    
14    
117     
161     
212      
133     

* *
C A S E 0 5 10 15 20 25
Label Num +---------+---------+---------+---------+---------+
25    
142    
198    
177     
135    
175    
130    
143   
29 | P a g e
158    
189    
203   
141   
155   
193 

153   
139   
214    
201   
211   
76   
86   
24    
67     
111     
197     
80      
123      
50      
75     
82    
121    
17    
78   
66    
185    
103    
20   
162   
9  
10  
146  
200   
16   
33    
192   

* *
C A S E 0 5 10 15 20 25
Label Num +---------+---------+---------+---------+---------+
18    
30 | P a g e
1    
119   
3   
52   
31   
4   
30  
22  
55  
15  
73  
57   
2   
32   
48    
58   
68   
62  
195   
124   
168  
23   
53  
152 
114  
39  
65  
47  
37 
60  
132  
41  
147 
165  
40  
54  
64 
113 
34 
ANOVA
Sum of
Squares DF Mean Square F Sig.
VAR00001 Between Groups 17.765 2 8.882 9.203 .000
Within Groups 206.549 214 .965
Total 224.313 216
31 | P a g e
Total 114.562 216
Total 147.539 216
Total 140.028 216
Within Groups 277.770 214 1.298
Total 329.078 216
Total 147.124 216
Total 143.346 216
Within Groups 262.967 214 1.229
Total 270.839 216
Within Groups 253.386 214 1.184
Total 344.120 216
Within Groups 252.164 214 1.178
Total 261.484 216
VAR00011 Between Groups .361 2 .180 .196 .822
Total 196.968 216
Within Groups 218.006 214 1.019
Total 222.313 216
Total 375.097 216
Within Groups 279.729 214 1.307
Total 312.157 216
Total 165.705 216
32 | P a g e
Within Groups 242.829 214 1.135
Total 265.281 216
33 | P a g e

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RATIONALE BEHIND THE VARIABLES USED 9

• Observations in each group are similar to each other.

There are two types of analytical clustering techniques:

Hierarchical Clustering: There are two types of hierarchical clustering techniques:

• Data Collection and Entry

Data Collection and Entry

Running Cluster Analysis

1. Profiling variables included the following variables:

1. Clustering variables included following variables:

Where N is the number of variables used in our project.

What affects your purchasing decision while purchasing a new

The region of the country you belong to *

Your position in an organisation / occupation * Specify if other

What is your Family size ? *

Not important Essential

How important is the mileage of a car to you *

Not important Essential

How important is the engine power of a car to you *

Not important Essential

How important is comfort to you *

Not important Essential

How important is cost/price of a car to you *

Not important Essential

Not important Essential

How important is appearance to you *

Not important Essential

How important is longevity of the car to you * Life of a car

Not important Essential

Not important Essential

How important is the after sales service to you *

Not important Essential

How important is resale value of a car to you *

Not important Essential

While purchasing you look for affordability *

Strongly disagree Strongly agree

While purchasing you look for sportiness *

Strongly disagree Strongly agree

While purchasing you look for Distinctiveness *

Strongly disagree Strongly agree

How important is acceleration/speed of a car to you *

Not important Essential

How important is promotional activities (Advertising) undertaken by the company to you *

Not important Essential

• INDIAN CAR BRAND

• FOREIGN CAR BRAND

The other 13 variables had significant difference among the clusters.

CLUSTER 1: 110 Respondents

Case Processing Summary(a, b)

******HIERARCHICAL CLUSTER ANALYSIS******

Dendrogram using Ward Method

Rescaled Distance Cluster Combine

Label Num +---------+---------+---------+---------+---------+

Label Num +---------+---------+---------+---------+---------+

Label Num +---------+---------+---------+---------+---------+

Label Num +---------+---------+---------+---------+---------+

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HIERARCHICAL CLUSTER ANALYSIS