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2012 Handout 7 - Discriminant Analysis

2012 Handout 7 - Discriminant Analysis

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Published by Priya Bhat

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Published by: Priya Bhat on Jul 05, 2012
Copyright:Attribution Non-commercial


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Discriminant Analysis
Identifying key variables 
How can you answer thesequestions?
In product management,
1.What makes consumers choose differentbrands?2.What consumer/product attributes make myconsumers need post-purchase services?3.What consumer attributes are important forsuccessful new product introduction?4.etc.
In promotion management,
1.What are key success factors in choosingmedia vehicles?2.What makes difference between successfuland inefficient sales reps?3.What attributes are important in consumers’adoption of coupons?4.What makes difference between efficient andinefficient messages?5.What attributes are important to create asuccessful display?6.etc.
In supply channel management,
1.What makes big difference between retailers(wholesalers)?2.What attributes are important in choosingsales territories?3.What attributes do I have to consider inchoosing channel members?4.etc.
Discriminant Analysis
technique for analyzing marketing research datawhen the dependent variable iscategoricaland theindependent variables aremetricin nature. Itdevelops a set of criteria that can be used toseparate objects into groups such thateach objectis more like other objects in its group than likeobjects outside the group. Objects can be eithervariables or observations.
a)development of linear combinations of theindependent variables, which willbestdiscriminate between the categoriesof thedependent variable (groups);b)examination of whether significant differencesexist among the groups, in terms of theindependent variables;

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