I am running kmeans for a market research study, and I have a couple of questions:
Should I be standardizing my data, and if so, how? For example, one variable I have is product demand, which is measured on a seven point scale. On the other hand, I also have a variable on age, which is a very different scale. Should I be standardizing these, and how?
Can I use categorical variables in kmeans? Specifically, I would like to use gender and ethnicity. If it is possible, how would I prepare this data for the cluster analysis? I suppose I would assign numbers to them, but how would I standardize these with my other data?
I downloaded the open source software Cluster 3.0. Is this a good one to use?