Research Topics:

Data Analysis

Content Type:

Glossary

Dendrogram Definition

A diagram that shows a hierarchy and the relation of subsets in a structure. It branches like a tree and is usually read downwards from the main trunk.

A dendrogram is a diagram that illustrates hierarchical relationships between data points or clusters in a structure. It's commonly used to illustrate the results of clustering analysis, which groups similar data points together on certain attributes. The indent of the diagram is to present complex data relationships in a form that’s easier to interpret and act upon. The diagram looks like a tree and usually reads downward from the main trunk. In marketing research, a dendrogram can illustrate how customer or market segments are related to each other based on various characteristics. Dendrograms can uncover segments that might have been overlooked, prompting businesses to seek niche opportunities.

Who relies on dendrograms?

Marketing analysts, researchers and strategists use dendrograms to learn insights about customer behavior, preferences and segmentation in an easy-to-decipher format. By seeing the connections among segments, marketing professionals can make informed decisions about targeting specific groups.

Why should I care about dendrograms?

Dendrograms provide a roadmap for marketing professionals to see how customer segments are related, thus allowing them to fine-tune their efforts. Relationships mapped in the diagram could uncover hidden patterns that might not be apparent through other analytical methods. Insights from the diagram can enhance decision making processes of marketing professionals and can contribute to the success of marketing initiatives.