Also referred to as “Classification analysis” – classifying the varied cases or objects into more simplistic groups as per their common similarities. Cluster analysis is applied by marketers mainly to determine marketing segments and consumer targets efficiently. It is also used to position products, develop new ones, determine test markets, interpret statistical data/ consumer behaviors, etc. For example, a cluster analysis research would identify distinct drinker types, such as the sociable, the status-minded, the introverted… others. Unlike factor analysis which is focused on the number of variables that are being examined, Cluster analysis diminishes them along with other cases and/ or observations in order to form simple sets of relatively homogeneous groups.