I started learning cluster analysis (using SPSS) and I need some help in a practical problem.
Given the following variables:
The respondents were asked to indicate the importance of the following factors when buying products and services using a 5-point scale (1=not at all important, 5=very important)
Saving time (x1)
Getting bargains (x2)
Getting products that aren’t on the high street (x3)
Trying new things (x4)
Being aware of what companies have to offer (x5)
Gender (0=Female; 1=Male)
1) Given the levels of measurement, which clustering method would you prefer? Carry out a cluster analysis using this procedure.
As I understand there are both categorical and continuous (income) variables - so the right method is two-step clustering. And we cannot use hierarchical method, correct?