Chipotle Cluster Analysis Assignment

1. Open Chipotle.xlsx in Excel. The detail of the variable labels is provided in the Chipotle questionnaire document.
2. Classify each variable in the Chipotle dataset as the following (or none):
   1. Demographic segmentation
   2. Psychographic segmentation
   3. Behavioral segmentation
   4. Outcome
   5. Marketing mix
      1. Product
      2. Place
      3. Price
      4. Promotion
   6. Not to be used
3. Decide on a distinct number of clusters (3 or 4), discussing whether there is a marketing reason for this number of clusters.
4. Open Chipotle.xlsx in RStudio to run a cluster analysis (see notes below about the script file Chipotle.R that can help you with the following steps; if the version of RStudio doesnt allow for opening Excel files, save the xlsx file as Chipotle.txt, a text-delimited file).
5. Segment the data using the K-means method (K refers to the number of clusters). Choose whatever variables you think are best for segmentation: demographic, psychographic or behavioral variables. State which you chose and why.
6. Save cluster membership in the data. Do this once for each of the following:
7. Check to see the number of people assigned to each cluster.
8. Repeat Steps 5-7 until you have created clusters that you like (each of the clusters should have at least 20 people per cluster). I recommend just running your top two clusters but let me at least know how many clusters you think should be created based on the data.
9. Investigate the clusters quantitatively using means (e.g., Cluster 1 the age mean was 34; it was 74% female and income was high at 3.4 on a four-point scale).
10. Profile each cluster qualitatively based on the data from Step 8 (e.g., Cluster 1 is middle-age, wealthy cluster, etc.)
11. Which cluster would you recommend as a primary target, and why?

• Demographic segmentation clustering consumers based on human population characteristics (age, gender, income)
• Behavioral segmentation clustering consumers based on actions they have taken in the past, especially those related to marketing
• Psychographic segmentation clustering consumers based on their personality, values, opinions, attitudes, interests, and lifestyles.

PLEASE SHOW ME WHAT TO DO WITH THE EXCEL SHEET AS WELL AS WHAT TO DO IN R STUDIO

Chipotle Data Key (use this for excel sheet)

In 2016, management sought to understand consumers attitudes toward Chipotle. They designed a digital survey and asked 500 people in a single citys central park to complete it using an iPad in exchange for a $5 generic gift card. Over 350 people completed the survey. This is a key to understanding the survey results.

Q1. What quick-service restaurant have you visited most in the last six month? _______

Variable name: top1

Description: Participants typed text responses; therefore, some words may be misspelled.

Q2. How did you first hear about Chipotle? Check one or more boxes.

1. Word of mouth
2. Social media
3. Walked by
4. Billboard

Variable names: wom, sm, walk, billboard

Description: participants could choose any of these options by checking a box, including the option to check none. A data column was created for each possible response (wom = word of mouth, sm = social media, walk = walked by), so that 1 meant the participant had checked the box and 0 meant the participant had not checked it.

Q3. How many times have you eaten at Chipotle in the past three months? ___

Variable name: patronage

Description: participants entered a number from 0 to 10.

Q4. What is important to you when you visit a restaurant? Rate the following items as unimportant or important.

	Very Unimportant	Unimportant	Neutral	Important	Very Important
Convenient location
Variety of food options
good prices
healthy menu options
Food Taste
pleasant ambiance

Variable names: importantconvenience, importantvariety, importantprice, importancehealthy, importanttaste, importantambience (corresponding to the items above in order)

Description: The participants rated the response to each item and the responses were recorded in the data set using a scale from 1 = very unimportant to 5 = very important. Each item could only have 1 response. Some participants chose to skip some items ratings and the data are blank.

Q5. How well does Chipotle perform on each of the items below? Rate Chipotle on each item as poor or good.

	very poor	poor	neutral	good	very good
Convenient location
variety of food options
good prices
healthy menu options
food taste
pleasant ambiance

Variable names: chipotleconvenience, chipotlevariety, chipotleprice, importancehealthy, chipotletaste, chipotleambience (corresponding to the items above in order)

Description: The participants rated the response to each item and the responses were recorded in the data set using a scale from 1 = very poor to 5 = very good. Each item could only have 1 response. Some participants chose to skip some item ratings and the data are blank.

Q6. What is your gender?

• Male

• Female

Variable name: female

Description: The participants rated their own gender as male or female (note that this team did not include an other option). The data are recorded as 1 = female and 0 = male.

Q7. What is your age? ___

Variable name: age

Description: The participants entered a number that was verified to be between 18 and 115.

Q8. What is your gross annual income in dollars? ___

Variable name: income

Description: The participants entered a number that was verified to be between 0 and 1000000.

Q9. Please agree or disagree with the following statements about yourself.

	strongly disagree	disagree	neither agree or disagree	agree	strongly agree
I plan things carefully
I have trouble controlling my spending
i like to buy local
eating healthy is important

Variable names: plan, spending, buylocal, healthyimportanttome (corresponding to the items above in order)

Description: The participants rated the response to each item and the responses were recorded in the data set using a scale from 1 = strongly disagree to 5 = strongly agree. Each item could only have 1 response. Some participants chose to skip some item ratings and the data are blank.

Now I will Attach screenshots of the excel file so you can help complete this assignment, please zoom in on the file to see all of the data. This assignment uses R studio so please attach all work. The first part of the assignment I believe needs to be formulas in excel so please attach all work on how to complete this.