BUSINESS RESEARCH METHODS

PROJECT-1
MULTI-DIMENSIONAL AND CONJOINT
ANALYSIS

GROUP MEMBERS-
ANIKETA SARKAR
URVASHI JHA
LAURINE AMELOT
CLAIRE BONNIEZ
Report Business Research Part 1 : Multidimensional Scaling

Objective
To find out the various Brands preferred brands on the basis of Preferences and
social status of the consumers by using Multi-Dimensional Scaling. The map can be
built with one, two or more dimensions. Through this map, we will be able to analyse
how consumers perceive the brand compared.
In this we have compared 6 brands- Louis Vuitton, Burberry, Gucci, Hermes,
Balenciaga and Dior.

Questionnaire –
For this we have prepared a questionnaire which was circulated to people via
Google form and the respondents were asked to mark against the each of the
questions as per their knowledge, experience or the criteria on how similar and
dissimilar the various brands are, this was marked on the Likert scale of 1 to 7, 1
being not at all important and 7 being very important some of the questionnaire are
as follows-

Q1. How prestigious is Louis Vuitton compared to Burberry?

1 2 3 4 5 6 7
Q2. How Prestigious is Burberry Compared to Gucci?
1 2 3 4 5 6 7
Q3. How prestigious is Gucci compared to Hermes?
1 2 3 4 5 6 7

Q4. How prestigious is Hermes compared to Balenciaga?

1 2 3 4 5 6 7

Q5.  How prestigious is Balenciaga compared to Louis Vuitton?

1 2 3 4 5 6 7

Q6. How prestigious is Burberry compared to Louis Vuitton?

1 2 3 4 5 6 7

Q7. How prestigious is Dior compared to Louis Vuitton?

1 2 3 4 5 6 7
Q8. Compared to Burberry is Gucci more Classy or trendy?

1 2 3 4 5 6 7

Q9. Compared to Gucci is Hermes more Classy or trendy?

1 2 3 4 5 6 7

Q10.  Compared to Hermes is Balenciaga more Classy or trendy?

1 2 3 4 5 6 7

RESULTS-

ON THE BASIS OF PREFERENCES

Final Coordinates

Dimension

1 2

Dior .341 .202

Gucci .051 -.415
Hermes -.692 .053
Louis_Vuitton -.169 .737
Balenciaga -.329 -.510
Burberry .797 -.068
INTERPRETATION-
On the basis of preferences-
 Louis Vuitton and Hermes being most preferred brands, lying on the first quadrant.
According to the respondents they hold the same preference value. They both lie on
the same quadrant but on an extreme end.
 Dior on the second quadrant preferred by some of the consumer and feel that it is
more prestigious than Balenciaga, Gucci and Burberry.
 Balenciaga being least preferred by the consumers and not similar with other brands.
 Burberry position very near to second quadrant in the perceptual brand shows that it
is somewhat similar to Dior, but maybe because of certain variable it is not that
preferred by the consumer.
 Gucci positioned same quadrant as Burberry shows that they are similar to each other
and the preference rate is also low.

ON THE BASIS OF SOCIAL STATUS

Final Coordinates

Dimension

1 2

Dior .031 .707

Gucci .605 .249
 Hermes .512 -.402
Louis_Vuitton -.316 .057
Balenciaga -.129 -.658
Burberry -.702 .048

INTERPRETATION
 On the basis of social status Louis Vuitton and Burberry are similar and the consumer
feel that they come first when it comes to social status.
 On the second quadrant of the perceptual map lies Dior and Gucci. Dior being very
close to the line of fist quadrant of the perceptual map. That means Dior is also
consider somewhat similar to Dior and Gucci.
 Hermes and Balenciaga lies on the third and fourth quadrant of the perceptual map
and the consumer do not consider Hermes as more socially acceptable than rest other.
 PART-2

CONJOINT ANALYSIS
OBJECTIVE-
The objective is to study the preferences of the consumer taking different attributes into
consideration- Price, Discounts, Customer Preferences. These attributes will reflect whether
the forecast the acceptance of the combination within the attribute of the products.

ANALYSIS
Conjoint analysis is used to find the most important attribute- Price. Discounts and customers
preference.

ATTRIBUTE NUMBER LEVEL

CUSTOMER 3 TOPS
PREFERENCE 2 SKIRTS
1 DRESSES
DISCOUNTS (%) 3 0-20
2 21-40
1 41-60
PRICE 3 AED 30-50
2 AED 51-70
1 AED 71-100

Attribute Dummy Variable

Attribute Attribute Dummy
number Variable

1 Consumer 3 TOPS
Preference
X2 2 SKIRTS

X1 1 DRESSES

2 DISCOUNTS 3 0-20
 X4 2 21-40

X3 1 41-60

3 PRICE 3 AED 30-50

X6 2 AED 51-70

X5 1 AED 71-100

Where,
Xj =1 if the jth level of the ith attribute is present
= 0 otherwise
X1, X2 = dummy variables representing Consumer Preference
X3, X4 = dummy variables representing Discount
X5, X6 = dummy variables representing Price

ATTRIBUTES

PROFILE SOLE UPPER PRICE PREF. NO

NO.
1 1 1 1 9
2 1 2 2 7
3 1 3 3 5
4 2 1 1 6
5 2 2 2 5
6 2 3 3 6
7 3 1 1 5
8 3 2 2 7
9 3 3 3 6

Levels of attribute Coded-

b0 = 4.222
b1 = 1.000
b2 = -0.333
b3 = 1.000
b4 = 0.667
b5 = 2.333
b6 =1.333

Taking level 3 as our base variable-

 a11-a13 = b1
a12-a13 = b2,

Solving the first attribute, Sole-

a11-a13=1.000 (a11-a13=b1)
a12-a13= -.0333 (a12-a13= b2)
a11+a12+a13=0

Solving the equation-

a11 = 0.778
a12 = -0.556
a13 = -0.222

Solving Second attribute, Upper-

a21+a23 =b3
a22-a23 = b4
a24+a22+a23 = 0
a21= 0.445
a22= 0.111
a23= -0.556
Solving Third Attribute, Price
a31-a33 = b5
a32-a33 = b6
a31+a32+a33= 0
a31=1.111
a32=0.111
a33=1.222

Sum of range of part-worth=

Sr. Utility Value

No.
1 α11 0.788
2 α12 -0.556
 3 α13 -0.222
4 α21 -0.445
5 α22 0.111
6 α23 0.556
7 α31 -1.111
8 α32 0.111
9 α33 -1.222

Sum of range of part-worth= (0.788-(-0.556)) +(0.445-(-0.556))+(1.111-(-1.222)) =4.668

Relative importance of Sole = 1.334/4.688 =0.286
Relative importance of Upper =1.000/4.688 =0.214
Relative importance of Price =2.333/4.688 = 0.500

ATTRIBUTE NUMBER LEVEL UTILITY IMPORTANCE

CUSTOMER 3 TOPS 0.788
PREFERENCE 2 SKIRTS -0.556 0.286
1 DRESSES -0.222
DISCOUNTS 3 0-20 -0.445
(%) 2 21-40 0.111 0.214
1 41-60 0.556
PRICE 3 AED 30-50 -1.111
2 AED 51-70 0.111 0.500
1 AED 71-100 -1.222

Conclusion-
 Consumer Prefer tops (0.788) along with Discounts of 21% to 40% along with the
price range of AED 51-70
 For consumer preference of good quality cloth is very important than discount and
price.