Question: II. Customer Segmentation & Profiling (17 points) (*Note: Although Q1 and Q2 are both Waze scenario related, please treat these two questions separately. We don't


II. Customer Segmentation \& Profiling (17 points) (*Note: Although Q1 and Q2 are both Waze scenario related, please treat these two questions separately. We don't need to rely on any information from the previous question, while answering this question.) Scenario: Waze managers want to understand customer's diverse preferences towards two important mobile map features ("Route Alternative and Map Layout") as well as customer's attitude towards subscription plan. To that end, they conducted a two-step cluster analysis using three different predictors (route alternative, map layout, and subscription fee) and segment customers into two groups. The key indicators reflecting the overall quality of the segmentation (e.g., cluster quality, ratio of sizes, and predictor importance) are attached below: 1) How would you describe the overall quality of the segmentation, in a couple of sentences? (*Hint: please use the diagrams and the information provided in cluster quality, ratio of sizes and predictor importance). 2) Next, managers want to use the detailed cluster information to identify their potential customer segment. The clusters as well as the detailed coding information are provided below: Given the empirical results, please answer the following questions: a. Which customer segment is more demanding, when it comes to "route alternative" feature? Please simply explain the reason. b. Combining cluster 1 and 2, how many customers preferred the "1-3 routes" option? c. Which customer segment is more price- sensitive? Please simply explain the reason. d. In your opinion, which customer segment could be more preferred by Waze? Please simply explain the reason
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