Cluster analysis is a statistical technique used to group similar items or data points based on their characteristics. By identifying patterns and relationships within the data, it helps researchers and analysts categorize information into distinct clusters, making it easier to understand and interpret. This method is widely used in various fields, including marketing, biology, and social sciences. For example, businesses can use cluster analysis to segment customers into groups based on purchasing behavior, allowing for targeted marketing strategies that cater to specific needs and preferences.