Response Analysis

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Response Analysis
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Example Opening of Cinema/ Childrens
Park/Exhibition Center

• To find consumer responses to opening of Cinema,
  Childrens park or Exhibition
• 903 respondents were asked to rate each
  alternative on a 5 point scale 1(v.low) to 5
  (v.high)
• The analyst also collected demographic data on
  the respondents

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Example Opening of Cinema/ Childrens
Park/Exhibition Center

• Dependent var - of positive responses
• Indep variables (with coding in parenthesis)
• Gender Male (1), Female (2)
• Age 16-20 (1)
• 21-24 (2)
• 25-34 (3)
• 35-44 (4)
• 45-54 (5)
• 55-64 (6)
• 65 (7)
• Socio-economic group had 6 categoriesA(1),
  B(2), C1(3), C2(4) etc

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Response Analysis Chi-Squared Automatic
Interaction Detection(CHAID)

• CHAID is a dependence method.
• For given dependent variable we want technique
  that can
• 1. Indicate independent variable that most
  affects dependent variable
• 2. Identify market segments that differ most
  on these important indep. var.

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General procedure for CHAID

• 1. First select independent variable whose
  subgroups differ most w.r.t dependent variable
• 2. Each subgroup of this variable is further
  divided into subgroups on remaining variables
• 3. These subgroups are tested for differences
  on dependent variable
• 4. Variable with greatest difference is
  selected next
• 5. Continue until subgroups are too small

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Multiple Discriminant Analysis and Logistic
Regression(MDA LR)

• Appropriate when dep. var. is categorical and
  indep. var. are metric
• MDA derives variate that best distinguishes
  between a priori groups
• MDA sets variates weights to maximize
  between-group variance relative to within-group
  variance