RFM- know customer loyality

Survival analysis- Know customer churn

Factor Analysis- which factors influence

MDS- positioning of brand in mind of customer

Analytic Hierarchy Process

Why AHP is important ? Is also called expert opinion method.

We identify factors.

We already know what customer wants.

AHP helps us to prioritise the factors and thus decide our strategy.

AHP is solved using paired comparison method.

Step 1a: Selection of variables

Step 1: Selection of expert ( min 5, max 10). ( who is the expert- Manager, customer, salesperson)

Step 2:- Develop a questionnaire using Saatys 9 point scale.

Step 3:- How to collate the feedback.

Step 3 A: Develop a matrix for the feedback.

If the value is on the right hand side then put number as reciprocal.

If the value is on the left hand side is

CR (Consistency Ratio) should be less than 10%.

So once we find out the priority, we need to focus on rank 1 and 2.

8 steps to calculate AHP

Step 1: Find Initial Matrix ( Average value of all experts)

Step 2: find the standardised Matrix ( Value / Sum of values)

Finf the prority matrix ( avarge

Find Reachability Matrix

Find whether the weights are consistent or not.

So we calculate CR ratio. CR= CI/ RI

Consistency ratio = Conditional Index/ Random Index

Multiply main matrix with priority weights.

Calculate the Eigen Vector= Weighted vector/ Priority Vector

Calculate average Eigen.

Average Eign-1 /(n-1)

RI= Random Index

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DEMATEL: to know the cause and effect of our decisions.

Decision making trial and evaluation laboratory

It helps us find out the cause and effect of the laboratory

We make a network relationship map.

The effect.

The sign of the effect:-

0- No influence
1- Low influence
2- Moderate Influence
3- High Influence
4- Very High Influence

Step 1: Selection of Variable

Step 2: Design the questionnaire on a 5 point scale ( 0 to 4)

Step 3:- Select Expert 5-10.

Step 4:- Collect the information.

Calculation: Section B

Step 1: Calculate the Average Matrix

Step 2: Calculate mormalised Matrix D= M * Average Matrix

Where M is a scalar.

M= Minimum of( 1/ (Max of row total) , (1/max of column total))

Multiply M with Average Matrix.

This new Matrix is D

Calculate T:- Total Influence Matrix

T= D * (I-D)

Calculate Average of T = Alpha

Alpha = Critical Value

IF element of T is greater than Alpha

If element is greater than alpha value give star.

Conjoint Analysis

What are the attributes of the product which should be campaigned to purchase buying behaviour ?

Our aim is to calculate the utility and the Importance of each attribute of a product. So we choose
those attributes with max utility .

The limitation- Select max 8 attributes.

So we need to find if we need the same strategy for all brand or a different strategy for each brand.

Steps:-

Problem:- Select attributes and for each 3 sub attributes are selected

Collect trade off data

Create model

Check reliability

Calculate the relative importance of attributes.

B1= u11- u13 (first utility – 3rd utility)

B2=u12 – u13

Sum of all utility should be 0.

Calculate R= Maximum utlity – minimum utility of attributes.

Importance of attribute 1 = R1+ R2 + R3