Marketing Analytic

Table of Contents
1.

Gap Analysis .................................................................................................................................... 1

2.

Multidimensional Scaling ................................................................................................................ 6

3.

Perceptual Mapping(Correspondence Analysis) ........................................................................... 10

4.

Optimal Scaling Steps.................................................................................................................... 13

5.

Logistic Regression ........................................................................................................................ 14

6.

RFM Analysis ................................................................................................................................. 18

7.

Structure Equation Modelling ....................................................................................................... 36

1. Gap Analysis
1.1. Software Used: MS Excel
1.2. Definition: To determine attributes which are significantly important to determine where
we are and where we want to be?

1.3. Carrying out GAP Analysis: Quantifying importance levels and satisfaction levels.
1.4. Example and Steps:

File: gap=smartphone=class
Steps:
Step1: Find Importance of Each Attributes
EXCELL STEP: Data->Data Analysis->Descriptive Statistics->

Input Range: Select

Select Labels in first row

Select: Output Range- Any sell in spread sheet
Select: Summary Statistics

Press: OK
You will get result.
Rearrange the Outputs like this
Note: You have to calculate t-value using this formula
t-value = (mean-3)/standard Error
[In this exam 3, because median is 3. It may vary with other examples]

If t-value > 1.645, that attributes has significance importance as shown in above figure.
Step2: Find Satisfaction level of each brands corresponding to each attributes
EXCEL STEPS: Repeat above steps for each brand BR1, BR2 and BR3 and calculate t-value.
You will get below results respectively.

Step3: Take means of all tables above, and create a table like below

Note: Add all means of importance, you will get total mean = 33.27778
Imp Index: Importance Mean/total mean

Step4: Create Below Diagram

EXCEL STEPS:
- Select All

-Insert ->Other Charts->Radar(First Option)

aftersales

camera

battery
4
3.5
3
2.5
2
1.5
1
0.5
0

operating

speed

Importance
BR1Sat
BR2Sat
BR3Sat

apps

screen

aesthtics

weight
sound

Imp Index

2. Multidimensional Scaling
Example 1:
File: chestnut=mds=with New Town(There are other files also)
Method: Attribute Based
Reading: reading combined : Page 10
(Chestnut Ridge Country club (C )Studying competition. Exercise in Perceptual Mapping)

SPSS Steps:
Step 1: Go to analyse->scale->multidimensional scaling ALSCAL

Step2: Select All variables and drag into variables:

Step 3: Options->group plots only

Step4: For ordinal variables change the distances to create distances from data Euclidean
distances

Step5: Analyse Result:

Check Stress: Stress must be < 10%, otherwise not a good model.

Step6: See the results and look up into data, you will be able to get dimenstion details
Dimension 1 Dining (Top-High, Bottom-Low)
Dimension2 - Prestige (Left High, Right-Low).

Example 2:
File: mds=toothpaste
Method: Attribute Free

Aply above steps and analyse the results.

Check stress - Stress must be < 10%, otherwise not a good model.

Here you will get to know that which brand/variable is close to each other and differentiated.

3. Perceptual Mapping(Correspondence Analysis)

Example
File: chestnut optimal

SPSS Steps:
Step1: Analyze->Dimension Reduction -> Correspondence Analysis

Step2:

Step3: Select values into rows and columns as per your preference (Here feature in row and club
in column). Define Range (1-5) in this example.
Step4: Go to statistics and only select correspondence table and deselect others

Step5: Go to Plots and select Biplot only and deselect other options

Step5: Analyze result

Here : chestnut is good in golf and alden is worst in golf

Alden<chalet<New Town < Lancaster<chestnut

4. Optimal Scaling Steps

File: chestnut optimal
This is similar to previous one(Correspondence analysis). Steps are different. Please refer
below steps(From Shubhadeep Doc)
1.
2.
3.
4.
5.
6.

Go to Analyse----- Dimension Reduction------optimal scaling

Define----All variables to analysis variables------go to variable tab
Take all variables into joint category plot and uncheck display plot
Go object tab----uncheck object points
Go to output tab-------- uncheck discriminant measure
Run the model

7.

5. Logistic Regression
File: : Arjunfull3.sav
SPSS Steps
1. Analyze->Regression->Binary Logistic
2. Identify the dichotomous variable (Binary in this case) in the dataset
Here q10 is the dichotomous
3. Put q10 in dependent
4. Put other variables except serial, predicted probability[PRE_1, PRE_2 ..),
preferredcustomer if present in the dataset in covariates. Better delete PRE_1, PRE_2,
.. and preferredcustomer variables if present in dataset.
5. Select method forward LR
6. Go to save and select probabilities
7. Go to options and select classification plots
8. Select OK
Result Interpretation
Check below result

Variables in the Equation

B
Step 1

q9.17

Step 2

df

Sig.

Exp(B)

1.023

18.567

.000

82.227

-13.005

3.021

18.529

.000

.000

q9.7

2.646

.989

7.155

.007

14.105

q9.17

5.955

2.038

8.539

.003

385.839

-23.486

7.745

9.197

.002

.000

q9.7

2.698

1.451

3.456

.063

14.843

q9.17

7.106

3.335

4.539

.033

1218.908

incmgrp

2.470

1.218

4.114

.043

11.821

-33.416

14.220

5.522

.019

.000

Constant

Step 3

Wald

4.409

Constant
b

S.E.

Constant

a. Variable(s) entered on step 1: q9.17.

b. Variable(s) entered on step 2: q9.7.
c. Variable(s) entered on step 3: incmgrp.

Last step is important:

Here in Step 3(Last Step) you will find that three variables q9.7 , q9.17, incmgrp are significant.
Z = -33.416 + 2.698 * q9.7 + 7.106 * q9.17 + 2.470 * incmgrp

Next Steps
1. Check data set You will find a variable PRE_1 which was automatically created after above
steps.
2. Go to Analyz->Decriptive Statistics -> Frequencies
3. Put predicted probability(PRE_1) in Variable(s)
4. Go to Statistics and select Cut points for and set it to 5(In this case)
5. Deselect frequency tables
6. You will find below table in output
Statistics
Predicted probability
Valid

100

N
Missing

20

.0000095

40

.0001406

60

.4289523

80

.9999938

Percentiles

7. Go to transform ->Recode into Different Variables

8. Select predicted probability(PRE_1) in Numeric_Variable->Ouptput Variables

9. Output Variable (Any name). Better take preferred customer

10. Click Change

11.
12. Goto Old and New Variables
Statistics
Predicted probability
Valid

100

N
Missing

20

.0000095

40

.0001406

60

.4289523

80

.9999938

Percentiles

13.
14. Recode based on above table
Lowest through .0000095 -> 5
.0000095 - .0001406 -> 4
.0001406 - .4289523 -> 3
.4289523 - .9999938 -> 2
.9999938 and above -> 1

1. Run a one way anova with category as the factor variable and demographic variables like
income, age, education etc. in the dependent list. Select preffered
Go to Analyze->Compare Means->One-Way Anova
Dependent List: All demographic variables like income, age, education etc
Factor: preferredcustomer

Go to Option and select Descriptive and Means Plot

Analyze the result

Check for the significant variables which effect the dichotomous variable most

6. RFM Analysis
R-Recency
F-Frequency
M-Monetary

file: harit5=class.sav
Page: 105 of Book
SPSS Steps:
Step1: Identify the Recency, Frequency and Monetary variables from the dataset
Recency[monthlas] - R, amtspent[total amt spent on all ayurvedic] - M,
purchcum[total no purchased last 5 years] - F
Step2: Ensure Frequency and Monetary variables have the same time frame
Step3: Create cutoff points for R, F and M variables. R variable will have the best rating of 1
for the smallest values, whereas F and M variables will have the best rating of 1 for the
highest values.
See below image for R variable

You will get below table

Statistics
Recency
Valid

506

N
Missing

71

20

2.0440

40

3.1740

60

5.4000

80

8.6960

Percentiles

20 Most Preferred
80 Least Prefered
Define cut-off points based on above table and define a new variable recency.
Follow below steps

Same repeat for F and M variables (Highest value -> 1, Lowest ->5)
Recode F to frequency
Recode M to monetary
Step 4: Select tanuleen in dependent list and R, F, and M variable as factor one by one and chek for
variable significance through on way anova and means plot.

Follow below steps

-

For recency

ANOVA
tanuleen
Sum of Squares

df

Mean Square

Between Groups

23.698

7.899

Within Groups

83.433

502

.166

107.130

505

Total

F
47.528

Sig.
.000

Step for frequency

ANOVA
tanuleen
Sum of Squares
Between Groups

df

Mean Square

3.631

.908

Within Groups

103.499

501

.207

Total

107.130

505

F
4.394

Sig.
.002

Steps for monetary

ANOVA
tanuleen
Sum of Squares
Between Groups

df

Mean Square

3.044

.761

Within Groups

104.087

501

.208

Total

107.130

505

F
3.663

Sig.
.006

Step 6: RFM Analysis

Create a new variable RFM Category through compute variable using the formula
RFM = 100*R + 10*F +M

111 mean good RFM (Best in recency, Best in Frequency, Best in Monetary)

Follow below steps for further analysis

Result

Statistics
RFM
Valid

506

N
Missing

71

20

177.4000

40

299.8000

60

353.2000

80

431.6000

Percentiles

0-20: Best Prefered

20-40: Next preferred

ANOVA

Factor : rfmcategory
Dependent Variables:
Age Category
Income
Education
Gender
Recency
Frequency
monetary

Monetary is less significance

Again apply ANOVA

7. Structure Equation Modelling