Question: 5. How is factor analysis and cluster analysis used to segment a database? What are the advantages and limitations of the technique? 6. Discuss some

 5. How is factor analysis and cluster analysis used to segment

5. How is factor analysis and cluster analysis used to segment a database? What are the advantages and limitations of the technique? 6. Discuss some of the potential problems with the application of segmentation methods to database marketing. 1. Additional information on these methods is available in a paper published by Hughes at www.dbmarketing.com/articles/Art160.htm (address is case-sensitive)

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