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CORRESPONDENCE ANALYSIS | Interpretation

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 CORRESPONDENCE ANALYSIS
Interpretation
AXIS ECONOMETRIC DOCUMENTATION

Copyright by Axis Research JSC All rights reserved • 7 | 2022

2 OVERVIEW

CORRESPONDENCE ANALYSIS reveals the relative relationships between and within two groups of
variables, based on data given in a contingency table.

→ helps measure similarities between brands and the strength of brands in terms of their relationships with
different attributes.

Correspondence analysis helps measure similarities between brands and the strength of brands in terms of their
relationships with different attributes.

Understanding the relative relationships allows brand owners to pinpoint the effects of previous actions on
different brand related attributes, and decide on next steps to take.

(Jeffreyh, 2019a; Jeffreyh, 2019b )

CORRESPONDENCE ANALYSIS HELP CUSTOMERS ANSWER THESE QUESTIONS

Could the business What attributes do the

Are there gaps in the
market that could be filled
by this business?
Is the brand positioning
differentiate itself from the competitors own, or,
correct?
competition? alternatively, do this
business own?

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3 NORMALIZATION METHOD

WHY IS THE NORMALIZATION METHOD SO IMPORTANT?

The normalization method used in CA determines
• the similarity of the row categories (brands)
• the similarity of the column categories (attributes)
• the relationship (association) between the row and column
(Bock, 2020a)

HOW WE APPLY THE NORMALIZATION METHOD?

Recommend for exploring
NORMALIZATION INTERPRETAION the association between
the brands and attributes
Differnces between rows (brands) and columns
SYMMETRICAL
(attributes)
Differnces between catergories of rows (brands)
PRINCIPAL
( respectively for columns - attributes)
ROW PRINCIPAL Differnces between catergories of rows (brands)
COLUMN Recommend for finding out
Differnces between catergories of columns (attributes)
PRINCIPAL
brand positioning
(IBM, 2021)

Please take note of one really important issue: there is no commonly-agreed upon meaning of the word "symmetric(al)".
Different apps and authors use it to mean completely different things. (Bock, 2020a)

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4 THE SIMILARITY OF THE ROW/ COLUMN CATEGORIES

PROXIMITY BETWEEN ROW/ COLUMN LABELS PROBABLY INDICATES SIMILARITY

(IF PROPERLY NORMALIZED)

We can gauge the similarity of row/ column labels based on their distance on the map:
• Dog and Cat are most similar.
• The next most similar is Dog and Wallaby. Then comes Rat.
• Last, the Cockroach is least like the Dog. (Bock, 2020b)
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5 THE RELATIONSHIP (ASSOCIATION) BETWEEN THE ROW AND COLUMN

THE CLOSER THINGS ARE TO ORIGIN, THE LESS DISTINCT THEY PROBABLY ARE
& THE FURTHER THINGS ARE FROM THE ORIGIN, THE MORE DISCRIMINATING THEY ARE

• If you look at the table below,

you can see that the Wallaby
is pretty average on all the
variables being measured.
(Bock, 2020c)
• Similarly, Lucky does not
differentiate, so it is also near
the center. (Bock, 2020c)

Big Athletic Friendly Trainable Resourceful Animal Lucky Std. Dev

Dog 80 20 90 90 5 100 40 36.61

Cat 50 40 40 70 10 100 40 30.59
Rat 10 70 20 90 80 99 40 30.51

Cockroach 0 80 2 20 95 20 40 32.13

Wallaby 35 52 38 47 48 80 40 15.20
Std. Dev 28.64 21.33 29.42 26.87 36.13 30.86 0
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6 THE RELATIONSHIP (ASSOCIATION) BETWEEN THE ROW AND COLUMN

THE LEVEL OF ASSOCIATION DEPENDS ON:

෣
|𝑂𝐴|. |𝑂𝐵|.cosine(𝑂𝐴, 𝑂𝐵)
• The length of the line connecting the row label to the origin (
• The length of the label connecting the column label to the origin
• The angle formed between these two lines
( less than 90 degree: positive association, greater than 90 degree: negative
association, equal to 90: no relationship)
(Bock, 2020b)
➔IT’S EQUAL TO THE DOT PRODUCT .
➔ In biplot, a dot product is the result of multiplying the individual
Wallaby: x= 0.0 and y= -0.1
numerical values in two vectors (Nykamp, 2020)
Dog: x= -0.6 and y= -0.1
Friendly: x= -0.6 and y= -0.2

30o ➔DOT PRODUCT (Wallaby & Friendly)

0.0*(-0.6)+ (-0.1)*(-0.2)= 0.02
➔DOT PRODUCT (Dog & Friendly)
(-0.6)*(-0.6)+ (-0.1)*(-0.2)=0.38

DOG IS MORE ASSOCIATED WITH FRIENDLY THAN

Wallaby: x=0.0 and y= -0.1 Lucky: x=0.1 and y= -0.1
WALLABY
➔ DOT PRODUCT: 0.0*0.1+ (-0.1)*(-0.1)= 0.01
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7 THE RELATIONSHIP (ASSOCIATION) BETWEEN THE ROW AND COLUMN

QUICK
INTERPRETATION

THE LEVEL OF ASSOCIATION

DEPENDS ON:
෣
|𝑂𝐴|. |𝑂𝐵|.cosine(𝑂𝐴, 𝑂𝐵)

According to the dot product formula, we can interpret the association between row and column by projecting a vector on
another. For example, Google is more associated with Easy-to-use than Innovative, because Easy-to-use projection ( on Google)
is longer than the Innovative one.

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8 THE RELATIONSHIP (ASSOCIATION) BETWEEN THE ROW AND COLUMN

CORRESPONDENCE ANALYSIS WILL REMOVE THE BRAND SIZE

IS GOOGLE MORE FUN THAN YAHOO?
- Yes, of course if you look at the raw data it
shows that Google is much more fun than
Yahoo (54% versus 28%)
HOWEVER, YAHOO IS MORE ASSOCIATED
WITH FUN THAN GOOGLE.
“The reason that Yahoo has stronger
association with Fun is that it is its second
best performing attribute (with 29% for Easy-
to-use). By contrast, while Google is twice as
fun as Yahoo, it scores three times as high on
High quality, and High performance, which are
on the opposite side of the map, and this is
what drags Google away from Yahoo.” (Bock,
2020c)

% Fun Innovative Good CS Stylish Easy-to-use High quality High performance

Google 54% (3rd) 55% (2nd) 17%** 17%* 60% (1st) 27%* 31%*

Yahoo 28% (2nd ) 17%** 7%** 6%* 29% (1st) 10%* 10%*
*negative; **no relationship; (Bock, 2020c)
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9 THE RELATIONSHIP (ASSOCIATION) BETWEEN THE ROW AND COLUMN

THE MORE VARIANCE EXPLAINED, THE FEWER INSIGHTS WILL BE MISSED (BOCK, 2020c)

We get 17.6% in the first dimension, and 72% in the second one.
If we sum up the proportion of variance explained by horizontal and vertical dimensions (shown in the axis labels), we see that
visualization displays 89.6% of the variance in the data. ➔ The result is acceptable because almost of the data is displayed

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10 REFERENCES

• Bock, T. (2020a). Normalization and scaling in correspondence analysis. Displayr. Retrieved on 22th July, 2022 from
https://www.displayr.com/normalization-correspondence-analysis/

• Bock, T. (2020b). How correspondence analysis works (A simple explanation). Displayr. Retrieved on 22th July, 2022 from
https://www.displayr.com/how-correspondence-analysis-works/.

• Bock, T. (2020c). How to Interpret Correspondence Analysis Plots (It Probably Isn’t the Way You Think). Retrieved on 22th
July, 2022 from https://www.displayr.com/interpret-correspondence-analysis-plots-probably-isnt-way-think/

• Nykamp, D. (2020). The dot product. Math Insight. Retrieved on July 22th, 2022 from https://mathinsight.org/dot_product.

• Jeffreyh (2019a). Correspondence analysis: What is it, and how can I use it to measure my brand? (Part 1 of 2). Stacks &
Q's. Retrieved on July 22th, 2022 from https://www.qualtrics.com/eng/correspondence-analysis-what-is-it-and-how-can-i-
use-it-to-measure-my-brand-part-1-of-2.

• Jeffreyh (2019b). Correspondence analysis: What is it, and how can I use it to measure my brand? (Part 2 of 2). Stacks &
Q's. Retrieved on July 22th, 2022 from https://www.qualtrics.com/eng/correspondence-analysis-what-is-it-and-how-can-i-
use-it-to-measure-my-brand-part-2-of-2.
• IBM (2021). IBM SPSS Categories 28. US.

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