After the recent border problem with China, common consumers prefer non-Chinese brands. As Chinese companies have a stronghold in the Indian consumer durable segment, many Indian companies want to enter this market. For doing so, one of the company wants to explore different consumer segments for a new product based on ten attributes.

Identify the optimal number of clusters. Explain how you reach the decision of identifying the optimal number of clusters.

Agglomeration Schedule Stage Cluster First Cluster Combined Coefficient Appears Stage Cluster 1 Cluster 2 S Cluster 1 Cluster 2 Next Stage 7 16 7.000 0 8 2 10 11 7.000 0 10 3 4 5 8.000 0 6\f\f