SPSS Guide Xavier

BY
M J XAVIER
PREFACE
This practical guide on data analysis has been prepared specifically for the business
students majoring in marketing who have an aversion for numbers and statistical
methods. The simple step-by-step approach used in the guide should enable students to
gain insight into statistical tools and help them develop their skills in interpreting and
making meaning out of numbers.
The entire range of statistical tools has all been explained using a single data set from a
questionnaire on tooth-paste market. The tools covered range from simple frequencies,
mean, median etc. to multivariate techniques like factor, cluster and discriminant
analysis.
The questionnaire, the code sheet and the final report are all given in the appendix. The
first chapter on simple analytical methods start with SPSS data preparation and go on to
explain the use of descriptive statistics to prepare summary results for each question in
the survey data. It also highlights the use of charts for displaying data. The second
chapter goes into the use of brand rating data for making snake charts, and positioning of
brand using factor analysis. The third chapter introduces the concept of correlation
coefficient and its sue for getting derived importance weights used for construction of
Kano diagram.
Chapter 4 uses the importance scores for benefits to do benefit segmentation using cluster
analysis. Chapter 5 introduces Correspondence analysis and its use for mapping brand-
personality association data.
Use of regression analysis in marketing research is explained in Chapter 6. The problem

of multicollinearity and talking the same using factor analysis is also explained in the
same. Chapter 7 describes the use of discriminant analysis to find out brand drivers for
different brands. Chapter 9 explains the use of multi-dimensional scaling for brand
positioning.
The data files referred to in the text are all available in the attached 3½” disk.
I am grateful to the Graduate and undergraduate students who enrolled for the marketing
research course during the Fall 2003 term for their co-operation in developing the
questionnaire and collection of data. I am grateful to Dr. R Krishnan, Director Graduate
Program and Dr. Norm Borin, Marketing Area Chair for their support and
encouragement for this project.
M J Xavier
December 2003
1
CONTENTS
Chapter Topic Page No.

1. Introduction and Simple Analytical methods 3
2. Snake Chart, Factor Analysis and Brand Positioning 14
3. Kano Model 27
4. Cluster Analysis and Benefit Segmentation 32
5. Correspondence Analysis 38
6. Regression Analysis 45
7. Discriminant Analysis 52
8. Multidimensional Scaling 60
APPENDIX
Toothpaste Questionnaire 72
Code-sheet 78
Power Point Slides 89
2
Chapter 1
INTRODUCTION AND SIMPLE ANALYTICAL METHODS
SESSION OBJECTIVES:
1. To understand Data view and Variable view in SPSS data file.

2. To understand the difference between String and Numeric variables
3. To get familiar with Labels and Value labels
4. To learn how to get frequencies of variables and get Pie or Bar charts of those
frequencies.
5. To learn how to create a transformed variable and understand the difference
between raw variable and the transformed variable.
6. To learn how to calculate the mean, standard deviation and variance of a variable
using SPSS
7. To understand how to make a cross tabulation of two nominal variables and use
chi-square test to see whether the relationship between the two variables is
significant or not.
8. To learn to use the compare means command and learn about independent t-test
DATA VIEW VS VARIABLE VIEW:
Open the file `descriptives.sav’
At the bottom left hand corner you will see TWO BUTTONS:
DATA VIEW AND VARIABLE VIEW
Click on the variable view. You will see the complete definition of each variable.
Data View- variable View
3
STRING VS NUMERIC VARIABLES
Study the variable definitions.
Note that Nickname is a `STRING VARIABLE’
All others are `NUMERIC VARIABLES’
Go to Data View and see that String variables are made up of letters or letters and
numbers (alpha numeric) while the numeric variables are made up of numbers only.
LABELS AND VALUE LABELS
Go to variable view again and study the columns LABEL and VALUES.
Click at the right hand corner of VALUES corresponding to the VARIABLE `class’
A small window shown below will open.
These are the codes used for the variable class.
Now shift to Data view and then click:
VIEW
VALUE LABEL
You will notice that labels corresponding to the numerical codes appear on the data sheet.
4
FREQUENCIES AND CHARTS:
Let us first of try to understand the profile of respondents.
Let us start with the age profile. Run the following SPSS Commands to get the
distribution of respondents by age.
ANALYZE
DESCRIPTIVE STATAISTICS
FREQUENCIES
Drag variable Àge[q12a]’ on to the VARIABLE(S) Box
CHART
PIE CHARTS
PERCENTAGES
CONTINUE
OK
Check if you get the following table and the Pie chart from in a new window.
Age
Cumulative
Frequency Percent Valid Percent Percent
Valid Under 18
58 82.9 82.9 82.9
years
18-24 years 12 17.1 17.1 100.0
Total 70 100.0 100.0
5
Age
18-24 years
17.1%
Under 18 years
82.9%
Now repeat the analysis with other demographic variables, namely Household Income,
Gender, and Race. You can drag all three variables to the variables box and have the
charts made simultaneously.
Now do the frequencies with other variables, awareness of Brands and also with trial of
brands.
Now go the variable Current Brand and change the chart from PIE to Bar and see if you
get the following chart.
6
Current Brand
40
30
20
10
Percent
0
Aqua-Fresh Crest Arm & Hammer
Colgate Mentadent Others
Current Brand
RAW VARIABLE VS TRANSFORMED VARIABLES:
Suppose we want to know on an average how many brands a person is aware of , we

cannot get it directly from the data. We need to create a new variable from the existing
ones.
Try the following commands to create a new variable called aware which is derived from
other variables.
TRANSFORM
COMPUTE
Type àware’ in the TARGET VARIABLE Box
Move variable `q01a’ into the NUMERIC EXPRESSION Box
Click on +
Move variable `q01b’ into the NUMERIC EXPRESSION Box
Click on +
Move variable `q01c’ into the NUMERIC EXPRESSION Box
Click on +
Move variable `q01d’ into the NUMERIC EXPRESSION Box
Click on +
Move variable `q01e’ into the NUMERIC EXPRESSION Box
Click on +
Move variable `q01f’ into the NUMERIC EXPRESSION Box
Click on +
7
Move variable `q01g’ into the NUMERIC EXPRESSION Box
Click on +
OK
Note that we are forming a numeric expression
Aware = q01a + q01b + q01c + q01c + q01d + q01e + q01f + q01g
Notice that a new column has been created by SPSS called àware’. While the original
variables are called raw variables, the new one formed out of raw varaiables is called a
transformed variable.
Go to variable view and type `No. Of Brands Aware’ in the LABEL column
corresponding to the variable àware’
Now perform a Frequency analysis on the new variable àware’ and get a bar chart as
shown below.
No. Of Brands Aware
Cumulative
Valid 2.00 1 1.4 1.4 1.4
3.00 4 5.7 5.7 7.1
4.00 30 42.9 42.9 50.0
5.00 28 40.0 40.0 90.0
6.00 6 8.6 8.6 98.6
7.00 1 1.4 1.4 100.0
Total 70 100.0 100.0
8
No. Of Brands Aware
50
40
30
20
10
Percent
0
2.00 3.00 4.00 5.00 6.00 7.00
No. Of Brands Aware
In the same way create a new variable called trial (no. Of brands tried by each person)
using the following expression.
trial = q02a + q02b + q02c + q02d + q02e + q02f + q02g
And find the frequency distribution of the number of brands tried.
MEAN, STANDARD DEVIATION AND VARIANCE:
Note that the two new transformed variables, namely, aware and trial are different from
the other variables we have seen earlier. These are ratio scaled variables whereas the
other variables are only nominally scaled.
We shall see how to calculate mean, standard deviation and variance for a ratio scaled
data.
Try the following SPSS Commands.
ANALYZE
DESCRIPTIVE STATISTICS
DESCRIPTIVES
drag the variable àware’ to VARAIABLES Box
OPTIONS
9
VARIANCE
CONTINUE
OK
You will get the following output
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation Variance

No. Of Brands Aware 70 2.00 7.00 4.5286 .84650 .717
Valid N (listwise) 70
This shows that on an average a respondent is aware of 4.53 brands and the standard
deviation of the same variable is 0.85.
CROSSTABS AND CHI-SQUARE TEST:
Suppose we want to know whether the use of a particular brand depends on whether the
person is a male or female, we need to use the type of analysis called cross-tabulation.
Crosstabs is used to explore the relationship between two nominal or categorical
variables.
Try the following SPSS Commands
ANALYZE
DESCRIPTIVE STATITICS
CROSSTABS
Drag Gender to ROW(S)
Drag Current Brand to COLUMN(S)
CELLS
ROW
CONTINUE
STATISTICS
CHI-SQUARE
OK
10
Gender * Current Brand Crosstabulation
Current Brand
Aqua- Mentade Arm &
Fresh Colgate Crest nt Hammer Others Total
Gender Male Count 7 9 8 3 3 5 35
% within
20.0% 25.7% 22.9% 8.6% 8.6% 14.3% 100.0%
Gender
Female Count 3 11 17 3 0 1 35
% within
8.6% 31.4% 48.6% 8.6% .0% 2.9% 100.0%
Gender
Total Count 10 20 25 6 3 6 70
% within
14.3% 28.6% 35.7% 8.6% 4.3% 8.6% 100.0%
Gender
It is a convention to keep the independent variable in the row, dependent variable in the
column and get row percentages in the cells. In this case, we are trying to explore
whether gender has an impact on brand choice.
To interpret the Table always look column wise and see if the percentages vary
drastically. In the Aquafresh column, there is a larger percentage of males. Colgate has
marginally large percentages of females. Crest has substantially large percentage of
females compared to males. Mentadent has equal following among males and females.
Arm & Hammer appears to be an exclusive male brand.
There appear to be some relationship between gender and brand used. To check whether
the relationship is significant or not, we need to look at the chi-square value.
Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 10.707(a) 5 .058
Likelihood Ratio 12.230 5 .032
Linear-by-Linear
1.452 1 .228
Association
N of Valid Cases
70
a 6 cells (50.0%) have expected count less than 5. The minimum expected count is 1.50.
ch-square value of 10.707 at 5 degrees of freedom is significant at 0.058, i.e. at a

confidence level of 94.2. Normally we look for a confidence level of 95% or more. As it
is close to 95%, and also given the fact that some of the cells have values less than 5, we
can take this as a significant relationship.
Note that the cell frequencies should be 5 or more for chi-square test. However SPSS
applies a correction factor to take care of this deficiency and makes it all the more
difficult to attain significance.
11
The same rule for the significance level of 0.05 or less applies to all the tests that we are
going to learn, be it t-test, f-test or any other test.
Degrees of freedom = (no. of rows -1) x (no. of columns – 1)
The same way construct cross tabs for age, income, and race against Current Brand and
check if the relationships are significant using chi-square values.
COMPARE MEANS
Suppose we want to know whether the mean number of brands aware across males and
females, we could use the following commands.
ANALYZE
COMPARE MEANS
MEANS
Drag variable àware’ to DEPENDENT LIST
gender to INDEPENDENT LIST
OK
The following output will be obtained.
Report
No. Of Brands Aware

Gender Mean N Std. Deviation
Male 4.6286 35 1.00252
Female 4.4286 35 .65465
Total 4.5286 70 .84650
4.6 and 4.2 are very close values. The difference between Male and Female appears to be
very marginal.
Now do the analysis with other classification variables, race, income, age and class.
INDEPENDENT t-TEST:
Suppose we want to know whether the difference of 0.4 in the number of brand aware of
between male and female populations is statistically significant, we need to conduct a t-
test.
12
Run the following SPSS Commands
ANALYZE
COMPARE MEANS
INDEPENDENT SAMPLES t-TEST
Drag variable aware to the TEST VARIABLE(S)
Drag variable q12c to GROUPING VARIABLE
DEFINE GROUPS
GROUP 1 (Type 1)
GROUP 2 (Type 2)
CONTINUE
OK
Independent Samples Test
Levene's Test
for Equality of
Variances t-test for Equality of Means
95%
Confidence
Std. Interval of the
Mean Error Difference
Sig. (2- Differe Differe
F Sig. t df tailed) nce nce Lower Upper
No. Of Equal -
.6038
Brands variances 3.608 .062 .988 68 .327 .2000 .20239 .2038
6
Aware assumed 6
Equal
-
variances 58.53 .6050
.988 .327 .2000 .20239 .2050
not 5 4
4
assumed
Our Null Hypothesis is that the means for males and females are the same. The alternate
Hypothesis is that the means are significantly different. As we do not know which one
should be greater we use a 2-tailled significance test.
Notice that the t-value of 0.988 at 68 degrees of freedom has significance of only 0.327.
The corresponding confidence level is 67.3% which is too low. Unless the significance
level is less than 0.05 the mean values are not significantly different.
Note that the degrees of freedom in this case are No. of observations minus two.
Conduct the t-test for other variables – age, race and income to see whether the mean
brands aware of vary by any of these categories.
13
Chapter - 2
Snake Chart, Factor Analysis and Brand Positioning
Objectives:
To understand how to compute mean ratings of brands and to construct snake charts
To learn how to run factor analysis and understand the following concepts
- variance explained
- factor loading
- eigen value
- communality
- rotation
- factor score
Use factor Analysis for Brand positioning
Data Structure:
Open the file factor.sav
Study the file structure. This new file has been created out of the master data file by re-
arranging the variables q06a01 to q06d11 as indicated below.
q06a01 …... q06a11 q06b01 …... q06b11 q06c01 …... q06c11 q06d01 …... q06d11
1. 1. 1. 1.
2. 2. 2. 2.
. . . .
. . . .
. . . .
. . . .
. . . .
70 70 70 70
Original Data
14
Brand q06a01 …... q06a11
Code
Data
q06b01 …... q06b11

Data
q06c01 …... q06c11

Data
q06d01 …... q06d11

Data
Rearranged Data for further Analysis
Note that blank rows have been deleted in the new file and a new variable brand code has
been created.
Snake Chart:
We need to calculate the mean ratings of brands, before we can construct the snake chart.
Use the following commands to obtain the mean ratings.
ANALYZE
COMPARE MEANS
MEANS
Highlight and Drag `q06_01…q06_10’ to DEPENDENT LIST
Highlight `brand’ and drag to INDEPENDENT LIST
OPTIONS
Uncheck NUMBER OF CASES
Uncheck STANDARAD DEVIATION
CONTINUE
OK
15
Fighting Whitening Cleaning Good Likeable Freshening Brand Attractive Innovative
Brand Cavities Teeth Stains Taste Flavor Breath Image Color Packaging features
Aqua-Fresh 7.2 6.1 6.7 6.8 6.9 7.4 6.6 7.0 7.1 6.4
Colgate 8.1 6.9 7.5 6.9 7.0 7.7 7.9 7.0 7.0 6.8
Crest 8.4 7.6 7.9 8.2 8.0 8.3 8.7 7.8 7.8 7.4
Mentadent 9.3 8.1 8.9 9.3 9.6 9.6 7.9 8.7 8.3 7.4
Arm &
Hammer 9.0 8.3 8.3 6.0 5.0 8.7 7.3 7.7 7.3 8.0
Others 8.6 6.2 6.8 9.0 8.8 9.4 5.8 7.2 6.0 8.4
Mean Ratings for Brands
Right click on the table, copy and paste onto an excel worksheet.
Highlight the relevant portions and click Chart Wizard. Choose Line, press Next and
Finish to get the following snake chart.
12.0
10.0
8.0
6.0
4.0 Aqua-Fresh
2.0 Colgate
0.0 Crest
Mentadent
s
ng vor
h
s
at Pac lor
h
e
r
nt
rta
itie
et
st
ag
at
in
Arm & Hammer

ie
Co
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Ta
Br Br e
Te
e s kag
a
Im
av
ed
Fl
/T
Li o d
ng n g
W gC
gr
ns
e s ble
Others
an
/In
o
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ai
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G
te
St
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ive
he
gh
hi
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Fi
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Fr
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ea
At
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Cl
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In
This chart can be used to study the relative positioning of brands on different attributes.
We can see that Mentadent and Arm&Hammer are rated highly on selected attributes
while Crest scores consistently higher rating on all the attributes. Aquafresh has lower
rating and Colgate is stuck in the middle.
Here the points are very cluttered and it is difficult to see finer distinctions. Factor
analysis will help us do sharper positioning.
16
Factor Analysis
Factor analysis is used to understand the underlying dimensions of a set of variables

having high correlation among them. Execute the following commands to get the factor
analysis output.
ANALYZE
DATA REDUCTION
FACTOR
Highlight and Drag `q06_01…q06_10’ to VARIABLES
DESCRIPTIVES
Check COEFFICIENTS
CONTINUE
EXTRACTION
SCREE PLOT
CONTINUE
ROTATION
VARIMAX
CONTINUE
SCORES
SAVE VARIABLES
CONTINUE
OPTIONS
SORTED BY SIZE
CONTINUE
OK
Take a look at the Correlation Matrix and notice that the variables are correlated among
themselves. For example the correlation between good taste and likeable flavor is as high
as 0.928. The correlations are sufficient for conducting a factor analysis is confirmed by
Bartlett’s Test of Sphericity which is significant.
17
Correlation Matrix
Attracti
Likeabl ve
Fighting Whitening Cleaning Good e Freshenin Brand Packag Innovativ
Cavities Teeth Stains Taste Flavor g Breath Image Color ing e features
Fighting
Cavities
1.000 .385 .610 .221 .203 .450 .367 .142 .210 .228
Whitening
Teeth
.385 1.000 .613 .278 .223 .403 .354 .198 .249 .501
Cleaning
Stains/Tartar
.610 .613 1.000 .218 .161 .470 .461 .188 .314 .488
Good Taste .221 .278 .218 1.000 .928 .475 .313 .436 .303 .366
Likeable
Flavor
.203 .223 .161 .928 1.000 .481 .276 .436 .300 .318
Freshening
Breath
.450 .403 .470 .475 .481 1.000 .384 .349 .358 .390
Brand Image .367 .354 .461 .313 .276 .384 1.000 .576 .624 .373
Color .142 .198 .188 .436 .436 .349 .576 1.000 .650 .419
Attractive
Packaging
.210 .249 .314 .303 .300 .358 .624 .650 1.000 .413
Innovative
features .228 .501 .488 .366 .318 .390 .373 .419 .413 1.000
Now take a look at the variance explained matrix.

Total Variance Explained
Component Initial Eigen values Rotation Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %
1 4.438 44.378 44.378 2.651 26.512 26.512
2 1.577 15.773 60.152 2.392 23.915 50.428
3 1.239 12.391 72.543 2.211 22.115 72.543
4 .804 8.043 80.585
5 .500 5.004 85.590
6 .440 4.399 89.989
7 .343 3.432 93.421
8 .329 3.291 96.711
9 .261 2.613 99.324
10 .068 .676 100.000
Read Component as Factors in the Table. Technically the 10 original variables can be
converted into 10 new factors which are orthogonal to each other (i.e. will have zero
correlation among them). The first such factor will account for 44.378 percent variance in
the original data, second one will account for 15.773 percent and so on. In statistics
variance is information. As 72.543 percent of information (variance) is summarized by
three variables, it is enough to work with three factors.
We shall see what does the eigen value and rotation mean later.
18
Now go to the data view in the SPSS data file. You will notice that three new variables,
namely, fact1_1, fact2_1 and fact3_1 have been added by the system. The values that
these variables take are called factor scores. Basically the original 10 inter-correlated
variables have been converted to 3 new factors which are orthogonal to each other. To
check the orthogonality do the following analysis.
ANALYSE
CORRELATE
BIVARIATE
Highlight and drag `fact1_1, fact2_1 and fact3_1’ to VARIABLES
OK
You will get the following output which shows that the factors have zero correlation between them.
Correlations
REGR factor REGR factor REGR factor

score 1 for score 2 for score 3 for
analysis 1 analysis 1 analysis 1
REGR factor score Pearson Correlation 1 .000 .000
1 for analysis 1 Sig. (2-tailed) . 1.000 1.000
N 199 199 199
REGR factor score Pearson Correlation .000 1 .000
2 for analysis 1 Sig. (2-tailed) 1.000 . 1.000
N 199 199 199
REGR factor score Pearson Correlation .000 .000 1
3 for analysis 1 Sig. (2-tailed) 1.000 1.000 .
N
199 199 199
Now the problem is to find out what these factors mean. Obviously the three new factors
summarize the information present in the original ten variables. We need to establish
which variables go into which factor.
Look at the rotated component matrix
19
Rotated Component Matrix(a)
Component
1 2 3
Cleaning Stains/Tartar .878 .203 .014
Fighting Cavities .763 .051 .103
Whitening Teeth .758 .150 .126
Freshening Breath .550 .220 .484
Innovative
features/Ingredients .482 .437 .234
Attractive Packaging .154 .867 .115
Color .013 .830 .323
Brand Image .364 .757 .077
Likeable Flavor .098 .183 .950
Good Taste .152 .195 .933
The cells contain factor loadings, i.e. correlation coefficients of original variables with
the new factors. Conduct the following analysis to confirm the above statement.
Conduct a correlational Analysis of the first variable Cleaning of Stains/Tartar with the
three new factors (fact1_1, fact2_1 and fact3_1) to get the first row in the rotated
component matrix.
The variable `cleaning stains/tartar has correlation coefficient of 0.878 with the first
factor, 0.203 with the second factor and 0.014 with factor 3. What it means is that the
variable `cleaning stains/tartar’ belongs to first factor. The same way the variables
highlighted in the column corresponding to factor 1 belong to the same factor. For the
moment ignore the variable ìnnovative features/Ingredients’ as it is highlighted in two
columns.
Looking at the variables that go into each factor we can name them as Dental Hygiene,
Visibility and Sensory Benefits.
Factor -1 Factor - 2 Factor - 3

Cleaning Stains/Tartar Attractive Packaging Likeable Flavor
Fighting Cavities Color Good Taste
Whitening Teeth Brand Image
Freshening breath
Dental Hygiene Visibility Sensory Benefits
The variable Ìnnovative features/ingredients’ has a high correlation with Dental Hygiene
as well as visibility. Suppose a brand claims in its advertisements that it has a new
ingredient that whitens the teeth, it contributes to Dental Hygiene as well the visibility of
the brand. That is how it features in two factors.
20
Now take a look at the communalities matrix.
Communalities
Initial Extraction
Fighting Cavities 1.000 .596
Whitening Teeth 1.000 .613
Cleaning Stains/Tartar 1.000 .812
Good Taste 1.000 .931
Likeable Flavor 1.000 .945
Freshening Breath 1.000 .585
Brand Image 1.000 .712
Color 1.000 .794
Attractive Packaging 1.000 .789
Innovative
features/Ingredients 1.000 .478
Communalities refer to the amount of information that has been extracted from each
variable. Notice that more than 90 percent of information (variance) has been extracted
from variables Good taste and Likeable Flavor whereas less than 50% is extracted from
Innovative features/Ingredients. If we work with large number of variables, say more
than 20, it may be a good idea to leave out variables with low communality while naming
factors.
In the same way the Eigen values are directly proportional to the amount of variance
explained by each factor. The sum of all Eigen values always equals the total number of
variables. Hence the proportion of variance explained by each factor can be calculated by
dviding the corresponding eigen value by the total number of variables. Now take a look
at the variance explained table to verify the same. As the first eigen value is 4.438, the
variance explained by the first factor can be calculated by diving 4.438 by 10 (total
number of variables) and multiplying bv 100.
Now take a look at the Scree Plot
21
Scree Plot
5
2
Eigenvalue
0
1 2 3 4 5 6 7 8 9 10
Component Number
Scree plot gives an idea as to how many factors to extract. The rule normally applied is to
stop at where the arm bends. In this case it is three factors. After three factors the curve
gets flat indicating that the gain will be marginal if we go beyond three factors. The
default in SPSS is that it stops when the eigen value gets less than one.
To understand the concept of rotation, take a look at the unrotated component matrix. If
we plot factor2 and factor3 we get the graph shown below.
22
.6
Likeable Flavor
.4 Good Taste
Freshening Breath
Fighting Cavities
.2 Whitening Teeth
Cleaning Stains/Tart
FACTOR3
-.0
Innovative features/
-.2
-.4 Color Brand Image
Attractive Packaging
-.6
-.6 -.4 -.2 -.0 . .4 .6 .8
FACTOR2
It is difficult to interpret this type of data as we find that the cluster of variables likeable
flavor and good taste are mid-way between factor 2 and factor 3. If we rotate the y-axis
so as to pass through the cluster we can interpret the y-axis as `sensory benefits. Same
way the x-axis can be rotated to pass through the cluster that corresponds to Dental
Hygiene. Rotation is done to make it easy to interpret the output.
Note that the angle between X and Y axis in our rotation is more than 90 degrees. If the
angle is maintained at 90o it is called an orthogonal rotation otherwise it is known as
oblique rotation. Note that we used Varimax rotation which is an orthogonal rotation
method.
What we have achieved by conducting a factor analysis is that we have converted the
original ten variables into 3 new factors. Now we can use these three new variables to do
brand positioning.
We can bring both the variables and the brands on to the same map.
23
Brand Positioning Using Factor Scores:
We shall now find out the mean ratings of brands for the three new factors. First of all go
to the variables view and label those new factors as:
1. Dental Hygiene
2. Visibility
3. Sensory Benefits
Then compute mean ratings by executing the following commands.
ANALYZE
COMPARE MEANS
MEANS
Highlight and Drag `Dental Hygiene’, `visibility’, and òral sensation’ to
DEPENDENT LIST
Drag `brand’ to INDEPENDENT LIST
OPTIONS
Highlight `number of case’ and `standard deviation’ and send back to STATISTICS
CONTINUE
OK
You will get the following output.
Dental Sensory
Brand Hygiene Visibility Benefits
Aqua-Fresh -.5622039 -.1069474 -.1044542
Colgate .0723164 -.0603488 -.2591244
Crest .3170127 .2179352 .2061569
Mentadent .7780827 .0560046 .9165143
Arm & Hammer .9514446 .0165516 -.9228734
Others .0827401 -.8240165 1.1187287
Total .0000000 .0000000 .0000000
We already have the co-ordinates of the variables in the rotated components matrix.
Create combined table, which has the co-ordinates of both the brands and attributes as
below.
24
Dental Sensory
Brand/Attribute Hygiene Visibility Benefits
Aqua-Fresh -0.56 -0.11 -0.1
Colgate 0.07 -0.06 -0.26
Crest 0.32 0.22 0.21
Mentadent 0.78 0.06 0.92
Arm & Hammer 0.95 0.02 -0.92
Others 0.08 -0.82 1.12
Cleaning Stains/Tartar 0.88 0.2 0.01
Fighting Cavities 0.76 0.05 0.1
Whitening Teeth 0.76 0.15 0.13
Freshening Breath 0.55 0.22 0.48
Innovative
features/Ingredient 0.48 0.44 0.23
Attractive Packaging 0.15 0.87 0.12
Color 0.01 0.83 0.32
Brand Image 0.36 0.76 0.08
Likeable Flavor 0.1 0.18 0.95
Good Taste 0.15 0.2 0.93
Using this data create a new SPSS file – factor1.sav
To get the positioning map of the first two factors use the following commands.
GRAPHS
SCATTER
SIMPLE
DEFINE
Drag `Dental Hygiene’ to X-AXIS
Drag `Visibility’ to Y-AXIS
Drag `Brand/Attribute’ to LABEL CASES BY
OPTIONS
Check DISPLAY CHART WITH CASE LABELS
OK
The resulting plot can be taken to Power point to have it annotated as shown below. Note
that the attributes are represented as vectors and brands as points.
25
1.0
Attractive Packaging
Colo Brand Image
.5 Innovative
Good Freshening Cleaning Stains

Crest
Visibility
Likeable Whitening Teeth

Mentadent Fighting Cavities
0.0
Colgate Arm & Hammer
Aqua-Fresh
-.5
Others
-1.0
-.6 -.4 -.2 -.0 .2 .4 .6 .8 1.0
Dental Hygiene
While Arm & Hammer and Mentadent are seen as better in Dental Hygiene, Crest score
better on Visibility.
In the same way get the other two plots, namely, Dental Hygiene Vs Sensory Benefits
and Visibility Vs Sensory Benefits.
26
Chapter 3
KANO Model
Objectives:
To understand the basics of Kano Model
To learn how to calculate derived Importance weights for attributes
To learn how to plot the Kano Model and interpret the same
Data Files:
We will be using two different data files for this analysis.
1. cluster.sav
2. factor.sav
Stated Importance:
This will be the mean importance rating given to attributes by the respondents. To
calculate the means, open the file cluster.sav and run the following commands.
ANALYZE
DESCRIPTIVES
Highlight and drag variables `q05a….q05j’
OPTIONS
Check DESCENDING MEANS
CONTINUE
OK
27
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation

Freshening Breadth 70 4.00 7.00 6.3000 .76802
Fighting Cavities 70 1.00 7.00 6.1143 1.44004
Cleaning Stains/Tartar 70 1.00 7.00 5.6714 1.34834
Whitening Teeth 70 1.00 7.00 5.6429 1.41458
Good Taste 70 1.00 7.00 5.3429 1.50252
Likeable Flavor 70 1.00 7.00 5.1714 1.52250
American Dental
Association 70 1.00 7.00 4.4857 1.88620
Recommendation
Innovative Feature/new
ingredient 70 1.00 7.00 4.0714 1.36543
High Prestige Brand 70 1.00 7.00 3.4714 1.50093
Attractive Packaging 70 1.00 7.00 3.4286 1.68171
Valid N (listwise) 70
You find that Freshening Breath is the most important attribute with a mean rating of 6.3
on a 1-7 scale. Attractive Packaging is the least important attribute. To convert the means
into importance weights, we need to normalize the means.
Take the above table to Excel and find the sum of means. Then calculate:
Importance Weight = (Mean/Sum of Means)*100
Develop the following Stated Importance weights table.
Importance
Attribute Mean Weight
Freshening Breadth 6.30 12.68
Fighting Cavities 6.11 12.30
Cleaning Stains/Tartar 5.67 11.41
Whitening Teeth 5.64 11.35
Good Taste 5.34 10.75
Likeable Flavor 5.17 10.41
American Dental Association
Recommendation 4.49 9.03
Innovative Feature/new ingredient 4.07 8.19
High Prestige Brand 3.47 6.98
Attractive Packaging 3.43 6.90
Sum 49.70 100.00
Stated Importance
28
Derived Importance:
In order to obtain the derived importance we are going to use the file factor.sav. By
correlating rating of attributes with the overall rating we get the derived importance of
attributes.
Use the following commands.
ANALYZE
CORRELATE
BIVARIATE
Highlight variables q06_01 to q06_11 and drag to VARIABLES
OK
You will get a 11 by 11 matrix of correlations. We are interested in the last column only
which has the correlation of individual attributes with the overall rating.
As correlations can range from -1 to +1, take the r2 value for derived importance. Once
again these values can be normalized by taking the sum of all the r2 values. The resultant
table is given below.
Importance
Attribute r r2 Weights
Freshening Breath 0.65 0.43 13.26
Good Taste 0.63 0.39 12.22
Brand Image 0.59 0.35 10.81
Innovative
features/Ingredients 0.57 0.33 10.22
Color 0.57 0.32 9.96
Cleaning Stains/Tartar 0.54 0.29 9.04
Sum 3.21 100.00
Derived Importance Weights
Bring stated and derived importance to a common table as shown below. Now plot
derived Stated Importance against Derived importance to develop the Kano Model.
29
Stated Derived
Attribute Importance Importance
Attractive Packaging 6.90 6.41
Cleaning Stains/Tartar 11.41 9.04
Fighting Cavities 12.30 8.46
Freshening Breadth 12.68 13.26
Good Taste 10.75 12.22
High Prestige Brand 6.98 10.81
ingredient 8.19 10.22
Likeable Flavor 10.41 10.84
Whitening Teeth 11.35 8.77
Stated Vs Derived Importance
Use the commands:
GRAPH
SCATTER
Drag stated importance to X-AXIS
Drag derived importance to Y-AXIS
Drag attribute to LABEL CASES BY
OPTIONS
CONTINUE
OK
On the graph use 10 as a cut off for High and Low values of importance and illustrate by
taking it to PowerPoint.
30
1
Freshening breath
1 Delight
High
Attributes
Good Taste
1
Derived Importance
1 High Prestige brand

Likeable flavor
Innovative Ingredients
1
Cleaning Stains/Tartar
9
Whitening teeth
Fighting cavities
8
Low Minimum
7 Expected
Attractive packaging
Attributes
6
6 7 8 9 1 1 1 1
Low High
Stated Importance
KANO’s Model
According to Kano’s model attributes that have a high stated and low derived importance are Minimum
expected attributes. Attributes like whitening teeth, fighting cavities , cleaning stains are minimum expected
in a tooth paste.
Attributes with low stated and high derived importance are called Delight attributes. The marketers should
concentrate on these attributes. In this study the innovative ingredients and brand image emerge as the
delight attributes.
Others are linear attributes. If they are important then pay attention. The most important attribute is
freshening breath, as the stated and derived importance are high. If they have low importance one should
not do over engineering of those attributes. In this case spending too much on packaging may not produce
commensurate returns.
31
Chapter 4
Cluster Analysis and Benefit Segmentation
Objectives:
• To learn how cluster analysis can be used for grouping of subjects
• To understand the difference between Hierarchical clustering and k-means

clustering
• To use SPSS to perform cluster analysis and interpret the results.
• To learn how to use cluster analysis for Benefit segmentation
CLUSTER ANALYSIS:
We shall use the cluster.sav file for this session.
Let us first calculate the descriptives. Execute the following commands.
ANALYZE
DESCRIPTIVES
Drag variables q05a to q05j to VARIABLES
OK
If you sort the output according to descending values of Standard deviation you will get
this output.
Std.
Attribute N Mean Deviation
Recommendation 70 4.49 1.89
Attractive Packaging 70 3.43 1.68
Likeable Flavor 70 5.17 1.52
Good Taste 70 5.34 1.50
High Prestige Brand 70 3.47 1.50
Fighting Cavities 70 6.11 1.44
Whitening Teeth 70 5.64 1.41
Innovative Feature/new ingredient 70 4.07 1.37
Cleaning Stains/Tartar 70 5.67 1.35
Freshening Breadth 70 6.30 0.77
Mean rating of Benefits Sought
32
From the output, it is clear that the five variables with high standard deviation are:
• American dental Association recommendation
• Attractive Packaging
• Likeable Flavor
• Good Taste
• High Prestige Brand
• Fighting Cavities
• Whitening Teeth
These are the attributes where the opinion of the respondents vary much. Hence for
clustering and segmentation we shall use only these seven variables.
Hierarchical Clustering:
Let us start with Hierarchical clustering. Execute the following commands.
ANALYZE
CLASSIFY
HIERARCHICAL CLUSTER
Highlight and drag the seven variables to VARIABLE(S)
Drag nickname to LABEL CASES BY
PLOTS
Check DENDROGRAM
Check NONE
CONTINUE
If you look at the output you will find a tree structure. If you leave out three cases 38
bearing the Nick name `Warden’, 2 (Bud) and 9 (Hank) there are three major branches.
That gives us some idea about how many clusters to ask for when we go to K-means
clustering.
K-Means Clustering:
In this method the respondents will get allocated to different clusters based on the number
of clusters the researcher asks for. Based on the results of the hierarchical cluster we
have decided to ask for three clusters.
ANALAYZE
CLASSIFY
K-MEANS CLUSTER
Highlight and drag the five variables to VARIABLES box
Drag `nickname’ to LABEL CASES BY
NUMBER OF CLUSTERS change from 2 to 3
SAVE
CLUSTER MEMEBERSHIP
CONTINUE
33
OPTION
CLUSTER INFORMATION FOR EACH CASE
Look at FINAL CLUSTER CENTERS.
Attribute Cluster 1 Cluster 2 Cluster 3

Recommendation 4.63 2.08 5.24
Good Taste 3.53 6.00 6.03
High Prestige Brand 2.63 3.08 4.03
Yellow filling indicates rank one across the row and green indicates rank 2.
Benefit Segmentation:
Cluster 1 members are primarily concerned with fighting cavities and are also interested
in American Dental Association recommendation. So the benefit sought is `Medically
proven cavity fighter.
Cluster 2 is primarily interested in Whitening teeth. They have also given relatively high
rating for likeable flavor and good taste. Though they get the second rank on attractive
packaging and high prestige brand, the ratings themselves are low in absolute terms. the
benefit sought by this group is white teeth plus good taste and flavor.
Cluster 3 wants everything; they look for a balanced paste that provides dental care and
sensory benefits (taste & flavor).
So the Benefit segments that we have devised are as follows:

1. Proven cavity fighter
2. Tasty flavorful paste for white teeth
3. Balanced paste which provides dental care as well as has good taste and flavor
From the table on number of cases in each cluster we find that 19 are in cluster 1, 13 are
in cluster 2 and 38 are in cluster 3. Majority (54%) of the people wants a balanced paste,
27% want a cavity fighter and 19% are for white teeth.
34
Number of Cases in each Cluster
Cluster 1 19.000
2 13.000
3 38.000
Valid 70.000
Missing .000
Now take a look at the cluster membership table. This gives the information about the
cluster membership of each individual. The same information is also stored in the SPSS
data file as a new variable crated qcl_1.
Insert label values for the new variable as given below:

1. Cavity Fighter
2. White Teeth
3. Balanced Paste
Cross Classification with Demographic variables:
Cross tabulation of the new variable qcl_1 Vs race will produce the following table.
Crosstab
Race/Ethicity
White Others Total
Cluster Number of Cavity fighter Count 16 3 19
Case % within Cluster
Number of Case 84.2% 15.8% 100.0%
White teeth Count 9 4 13
% within Cluster
Number of Case 69.2% 30.8% 100.0%
Balanced Paste Count 30 8 38
% within Cluster
Number of Case 78.9% 21.1% 100.0%
Total Count 55 15 70
% within Cluster
Number of Case 78.6% 21.4% 100.0%
While cavity fighting is important for more proportion of whites, white teeth seems to be
of more importance to non-whites. However the chi-square does not show a significant
relationship between benefits segments and race.
35
Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Linear-by-Linear
.097 1 .755
Association
N of Valid Cases
70
Same kind of analysis can be done with age, income, and gender.
The benefit segments Vs current brand produced the following table.
Crosstab
Current Brand
Aqua-
Fresh Colgate Crest Others Total
Cluster Cavity fighter Count 4 5 6 4 19
Number of % within
Case Cluster
21.1% 26.3% 31.6% 21.1% 100.0%
Number of
Case
White teeth Count 1 7 2 3 13
% within
Cluster
7.7% 53.8% 15.4% 23.1% 100.0%
Number of
Case
Balanced Count 5 8 17 8 38
Paste % within
Cluster
13.2% 21.1% 44.7% 21.1% 100.0%
Number of
Case
Total Count 10 20 25 15 70
% within
Cluster
14.3% 28.6% 35.7% 21.4% 100.0%
Number of
Case
Aqua Fresh has large proportion of cavity fighters; Colgate has a large proportion of
White teeth seekers; And Crest ahs a large proportion of Balanced paste segment. Once
again the chi-square is not significant. We need to take these results with a pinch of salt.
36
Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Linear-by-Linear
.674 1 .412
Association
N of Valid Cases
70
37
Chapter 5
Correspondence Analysis
Objectives:
• To understand the basic nature of correspondence analysis
• To conduct Correspondence analysis using SPSS and interpret the results.
What is correspondence Analysis?
Correspondence analysis is typically used to get a graphical representation of

contingency tables. Suppose we did a sample study in which we obtained the income
level and the brand used by 36 respondents. The following table summarizes the
responses.
Brand
Brand A Brand B Brand C Brand D Total
Income Less than
5 2 1 1 9
$1000
$1000 to
2 4 1 2 9
$3000
$3001 to
2 2 4 1 9
$5000
Above $5000 2 1 1 5 9
Total 11 9 7 9 36
Data Preparation:
To get a better insight on the relationship between income and brand used, we could use
correspondence analysis. To run correspondence analysis using SPSS we need to have
the data organized in the following format.
Income Income Brand Brand Frequency

Code Code
Less Than $1000 1 Brand A 1 5
Less Than $1000 1 Brand B 2 2
Less Than $1000 1 Brand C 3 1
Less Than $1000 1 Brand D 4 1
$1000 to $ 3000 2 Brand A 1 2
$1000 to $ 3000 2 Brand B 2 4
$1000 to $ 3000 2 Brand C 3 1
$1000 to $ 3000 2 Brand D 4 2
$3001 to $5000 3 Brand A 1 2
38
$3001 to $5000 3 Brand B 2 2
$3001 to $5000 3 Brand C 3 4
$3001 to $5000 3 Brand D 4 1
Above $5000 4 Brand A 1 2
Above $5000 4 Brand B 2 1
Above $5000 4 Brand C 3 1
Above $5000 4 Brand D 4 5
SPSS Commands:
The same data has been used to create a data file corres1.sav. Use the following SPSS
commands to run correspondence analysis.
DATA
WEIGHT CASES
WEIGHT CASES BY
Drag `freq’ to FREQUENCY VARIABLE
OK
ANALYZE
DATA REDUCTION
CORRESPONDENCE ANALYSIS
Drag ìncome’ to ROW VARIABLE
DEFINE RANGE
MINIMUM VALUE `1’
MAXIMUM VALUE `4’
UPDATE
CONTINUE
Drag `brand’ to COLUMN VARIABLE
DEFINE RANGE
MINIMUM VALUE `1’
MAXIMUM VALUE `4’
UPDATE
CONTINUE
OK
39
Interpretation of Results:
The data we used as input for the analysis is printed in the correspondence table.
Correspondence Table
BRAND
INCOME Brand A Brand B Brand C Brand D Active Margin
Less Than $1000 5 2 1 1 9
$1000 to $3000 2 4 1 2 9
$3001 to $ 5000 2 2 4 1 9
Above $5000 2 1 1 5 9
Active Margin 11 9 7 9 36
From the summary Table we can infer that the first two dimensions account for 81.4% of
inertia. This is pretty similar to the eigen values in factor analysis. It is enough to work
with two dimensions.
Summary
Dimen Singular Chi

sion Value Inertia Square Sig. Proportion of Inertia
Accounted Cumulati
for ve
1 .427 .182 .497 .497

2 .341 .116 .317 .814
3 .261 .068 .186 1.000
Total .367 13.201 .154(a) 1.000 1.000
a 9 degrees of freedom
Correspondence analysis decomposes the original matrix into row and column points.
Overview Row Points(a)
Score in
Dimension Contribution
Of Point to Inertia Of Dimension to Inertia of
of Dimension Point
INCOME Mass 1 2 Inertia 1 2 1 2 Total
Less Than
.250 .310 .801 .080 .056 .470 .128 .682 .810
$1000
$1000 to
.250 .020 .245 .053 .000 .044 .001 .096 .097
$3000
$3001 to $
.250 .717 -.764 .106 .301 .428 .518 .469 .987
5000
Above $5000 .250 -1.047 -.282 .127 .642 .058 .920 .053 .974
Active Total 1.000 .367 1.000 1.000
40
The score in Dimension gives the co-ordinates for the row variables in the joint plot. In
the same way you will find the co-ordinates for the column variables in the net matrix.
Overview Column Points(a)
Score in Dimension Contribution

Of Point to Inertia of
Dimension Of Dimension to Inertia of Point
BRAND Mass 1 2 Inertia 1 2 1 2 Total
Brand A .306 .198 .640 .068 .028 .367 .075 .627 .702
Brand B .250 .283 .251 .059 .047 .046 .146 .092 .238
Brand C .194 .720 -.960 .107 .236 .526 .402 .571 .972
Brand D .250 -1.085 -.287 .133 .689 .060 .947 .053 1.000
Active
1.000 .367 1.000 1.000
Total
Using the co-ordinates for the row and column co-ordinates the program produces a joint map which is given
below.
1.0
Less Than $1000
Brand A
.5
Brand B
$1000 to $3000
Dimension 2
0.0
Brand D
Above $5000
-.5
$3001 to $ 5000 BRAN
Brand C
-1.0 INCOM
-1.5 -1.0 -.5 0.0 .5 1.0
Dimension 1
41
From the chart it is very clear that there is a one-to-one relationship between brand used
and the income category. It also shows that Brand A and B are more close to each other
than the other brands.
Toothpaste Data:
Now let us turn our attention to the brand-personality association data collected in the
tooth-paste study. The data has been arranged in the file correspond.sav
Open file corresponds, study the way the data is arranged and run the following SPSS
Commands.
DATA
WEIGHT CASES
WEIGHT CASES BY
Drag `freq’ to FREQUENCY VARIABLE
OK
ANALYZE
DATA REDUCTION
CORRESPONDENCE ANALYSIS
Drag àttri’ to ROW VARIABLE
DEFINE RANGE
MINIMUM VALUE `1’
MAXIMUM VALUE `11’
UPDATE
CONTINUE
Drag `brand’ to COLUMN VARIABLE
DEFINE RANGE
MINIMUM VALUE `1’
MAXIMUM VALUE `3’
UPDATE
CONTINUE
OK
42
Notice that 100 percent inertia has been accounted for the first two dimensions. It is
enough to work with two dimensions.
Summary
Confidence Singular
Proportion of Inertia Value
Standar Correlati
d on
Dimensio Singular Chi Accounted Cumulati Deviatio
n Value Inertia Square Sig. for ve n 2
1 .286 .082 .793 .793 .035 .043
2 .146 .021 .207 1.000 .036
Total .103 72.795 .000(a) 1.000 1.000
a 20 degrees of freedom
The resulting correspondence Map can be taken to Powerpoint and annotated as given below.
.8 Hedonist
Masculine
.6
Aqua Fresh
.4
Fun Loving
Colgate
Overcautious
Dimension 2
.2
Outgoing Sensuous
Romantic
0.0 Feminine
Traditional
-.2
Crest
-.4
Ambitious
-.6 Brand
Achiever
-.8 Personality
-1.0 -.5 0.0 .5 1.0
Dimension 1
Crest is seen to be used by Ambitious Achiever

Colgate is seen to be used by Traditional, overcautious, masculine person
Aqua Fresh is seen as Fun-loving, Feminine and Outgoing.
There is no brand available for Romantic, sensuous types…Opportunity for new
product
43
Correspondence analysis is a powerful tool for visualization of data from contingency
tables. It has no restrictions on the sample size or on the scale used. Association between
any two categorical variables can be easily analyzed using this technique.
44
Chapter 6
Regression Analysis
Objectives:
• To understand the meaning of regression
• To conduct simple regression and interpret the results
• To conduct multiple regression and interpret the results.
• To understand the problem of multi-collinearity and a method to overcome the

same.
Simple Regression:
Open the file regression.sav
Study the file structure to understand that it is the same field which was used for factor
analysis along with three new variables corresponding to the factor scores that we created
using factor analysis.
Variables q06_01 to q06_10 refer to rating scores for different brands on different
attributes. Variable q06_11 correspond to overall rating given to different brands. We are
going to fit regression equations with overall rating as dependent variable and attribute
ratings as independent variables.
Linear regression refers to fitting of a linear mathematical model between one dependent
variable and one or more independent variables.
We shall first conduct a regression analysis using just two variables. Use the following
SPSS commands to fit a regression model with Fighting Cavities (q06_01) as
independent variable and Overall Rating (q06_11) as the dependent variable.
ANALYZE
REGRESSION
LINEAR
Drag Fighting Cavities (q06_01) to INDEPENDENT
Drag Overall Rating(q06_11) to DEPENDENT
OK
Take a look at the Coefficients table.
45
Coefficients(a)
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.

1 (Constant) 3.771 .477 7.905 .000
Fighting
.505 .059 .521 8.576 .000
Cavities
a Dependent Variable: Overall rating
The unstandardized coefficients give the linear mathematical model:
Y = 3.771 + 0.505 X
Y - Overall rating
X – Fighting Cavities
The strength of relationship between the independent and dependent variables is given by
the correlation coefficient R given in Model Summary Table.
Model Summary
Adjusted R Std. Error of

Model R R Square Square the Estimate
1 .521(a) .272 .268 1.21679
a Predictors: (Constant), Fighting Cavities
The value of R2 0.272 is somewhat low. Normally an R2 value of 0.7 and above is
supposed to signify a strong relationship. In the present case we cannot rule out that there
is no relationship between the two variables as the F value is significant in the ANOVA
Table and the t-value corresponding to the varaiable Figiting Cavities is significant in the
coefficients Table.
ANOVA(b)
Sum of
Model Squares df Mean Square F Sig.
1 Regressio
108.880 1 108.880 73.540 .000(a)
n
Residual 291.672 197 1.481
Total 400.553 198
a Predictors: (Constant), Fighting Cavities
b Dependent Variable: Overall rating
46
Coefficients(a)

1 (Constant) 3.771 .477 7.905 .000
Fighting
.505 .059 .521 8.576 .000
Cavities
Same way conduct simple regression of each rating variable with the dependent variable
and interpret the results.
Multiple Regression:
Now we shall conduct regression analysis with all the 10 attribute ratings as independent
variables.
ANALYZE
REGRESSION
LINEAR
Drag variables q06_01 to q06_10 to INDEPENDENT
OK
Note that the R2 value dramatically improves to 0.743
Model Summary

1 .862(a) .743 .730 .74117
a Predictors: (Constant), Innovative features/Ingredients, Fighting Cavities, Likeable Flavor, Attractive
Packaging, Whitening Teeth, Brand Image, Freshening Breath, Color, Cleaning Stains/Tartar, Good Taste
From the coefficients table, we can construct the following mathematical model to depict
the relationship between the 10 independent variables and the overall rating.
Y = 0.598 + 0.208X1 + 0.097X2 + 0.016X3 + 0.109X4 + 0.060X5 + 0.150X6 + 0.135X7 +

0.154X8 – 0.096X9 + 0.120X10
The negative sign for variable nine (Attractive Packaging) connotes that the same has a
negative relationship with overall rating. That is, the paste receiving higher rating on
attractive packaging has a diminishing effect on the overall rating.
47
Coefficients(a)

1 (Constant) .598 .349 1.716 .088
Fighting
.208 .048 .215 4.368 .000
Cavities
Whitening
.097 .037 .130 2.606 .010
Teeth
Cleaning
.016 .052 .018 .307 .759
Stains/Tartar
Good Taste .109 .072 .154 1.513 .132
Likeable Flavor .060 .071 .086 .844 .400
Freshening
.150 .045 .173 3.311 .001
Breath
Brand Image .135 .038 .195 3.582 .000
Color .154 .037 .238 4.187 .000
Attractive
-.096 .041 -.132 -2.361 .019
Packaging
Innovative
features/Ingredi .120 .033 .181 3.660 .000
ents
Now the question arises as to which variable is contributing more to the dependent
variable. This can be inferred by looking at the standardized coefficients. From the β
values we can see that the most important variable is Color (0.238) and the second
important variable is fighting cavities (0.215) and so on
From a statistical stand point also see which are the variables that are significant. The
significance of β is given by the t-values. Note that only the following variables are
significant at 95 percent confidence level.
• Fighting cavities (0.000)
• Freshening breath (0.001)
• Brand Image (0.000)
• Color (0.000) and
• Innovative features (0.000)
Other variables have significance values above 0.05. Can we conclude that other
variables are not important? We cannot say that unless we are sure that the independent
variables are not correlated among them.
48
Multi-collinearity:
When the independent variables are correlated among themselves, we call it a problem of
multi-collinearity. Consider the variables Good Taste and Likeable Flavor. They are
highly correlated among themselves.
ANALYZE
CORRELATE
BIVARIATE
Drag Good Taste and Likeable Flavor to VARIABLES
OK
You will get the following output.
Correlations
Likeable
Good Taste Flavor
Good Taste Pearson
1 .932(**)
Correlation
Sig. (2-tailed) . .000
N 202 201
Likeable Flavor Pearson
.932(**) 1
Correlation
Sig. (2-tailed) .000 .
N 201 201
** Correlation is significant at the 0.01 level (2-tailed).
The correlation coefficient between the two variables is as high as 0.932.
Now we shall use only these two variables as independent variable and conduct multiple
regressions.
ANALYZE
REGRESSION
LINEAR
Drag variables Good Taste and Likeable Flavor to INDEPENDENT
OK
The output indicates that only the variable good taste is significant (t = 3.762 and sig. =
0.000) and Likeable flavor is not significant (t = 0.431 and sig. = 0.667). Can we
conclude here that likeable flavor is not an important attribute?
No. Since the two variables are highly correlated, the β values get distorted. As these two
are highly correlated, only one of them attains significance.
Coefficients(a)
49

1 (Constant) 4.547 .301 15.086 .000
Good Taste .391 .104 .566 3.762 .000
Likeable
.044 .101 .065 .431 .667
Flavor
To get over the problem of multi-collinearity, we could factor analyze the independent
variables and work with the resulting new factors.
Using Factor Scores:
Refer to the module on factor analysis where we reduced the original ten variables to 10
new factors, which were named as Dental Hygiene, Visibility and Sensory benefits. The
resulting factor scores for these new variables have been saved in the regression.sav file.
We shall now conduct a multiple regression with these three new variables as
independent variables and overall rating as the dependent variable.
ANALYZE
REGRESSION
LINEAR
Drag variables Dental Hygiene, Visibility and Sensory Benefits to INDEPENDENT
OK
We get an R2 value of 0.710 which shows that the relationship is quite strong between
the three factors and the overall rating.
Model Summary

1 .842(a) .710 .705 .77397
a Predictors: (Constant), sensory benefits, visibility, dental hygiene
50
From the coefficients table we see that all three variables are significant. From the β
values we can conclude that dental hygiene is the most important attribute, followed by
sensory benefits and then visibility.
Coefficients(a)

1 (Constant) 7.803 .055 141.025 .000
dental
.774 .056 .538 13.824 .000
hygiene
visibility .612 .055 .429 11.028 .000
sensory
.684 .057 .465 11.937 .000
benefits
The resulting regression equation is:
Y = 7.803+ 0.774 (Dental Hygiene) + 0.612 (Visibility) + 0.684 (Sensory Benefits)
In this case we used Overall rating as the dependent variable. If we get respondents
Intention to buy score on rating scale, the same could also be used as dependent variable.
We could then build a regression equation model to predict intention to buy rating from
the attribute rating scores.
51
Chapter 7
DISCRIMINANT ANALYSIS
Objectives:
• To understand what is discriminate analysis
• To run discriminate analysis and interpret the results

- discriminate function
- discriminate score
- Wilke’s lambda
- Cannonical Correlation
- Structure matrix
- Standardized and unstandardized discriminant coefficients
- Cut-off point
- Confusion matrix
• To understand the use of discriminant analysis to identify Brand Drivers.
Basic Ideas:
We shall use disc_aquafresh.sav file to understand how to use dicriminant analysis.
Discriminant analysis is a dependent technique where the dependent variable is

categorical in nature.
The variables 1 – 10 in the file refer to attribute ratings for the brand Aquafresh. 11-13
are the factor scores obtained from earlier analysis (refer factor analysis). We need this
information as we may face the same problem of multi-collinearity as we experienced in
multiple regression (Refer to the section on Multiple regression).
We are going to use the first 10 variables as independent variables and later use 11-13,
the factor scores for the three new factors. The dependent variable is whether the
respondent is an user of Aquafresh or not. This is a transformed variable developed from
the current and previous brand variables in the master data file.
Note that the dependent variable is dichotomous and we are going to fit a model that will
help us predict whether someone is an user or non user of Aquafresh. Use the following
SPSS commands.
52
SPSS Commands:
ANALYZE
CLASSIFY
DISCRIMINANT
Drag usage to GROUPING VARIABLE
DEFINE RANGE
Type 1 MINIMUM VALUE
Type 2 MAXIMUM VALUE
CONTINUE
Drag Variables 1-10 to INDEPENDENTS
STATISTICS
MEANS
Check UNSTANDARDIZED COEFFICINETS
CONTINUE
CLASSIFY
Check COMPUTE FROM GROUP SIZES
Check SUMMARY TABLE
CONTINUE
SAVE
Check PREDICTED GROUP MEMBERSHIP
Check DISCRIMINANT SCORE
CONTINUE
OK
Attra- Inno-
Whit- Cleaning Fresh- ctive vative
Fighting ening Stains/ Good Likeable ening Brand Pack- feat-
Groups Cavities Teeth Tartar Taste Flavor Breath Image Color aging ures
Users 7.95 6.65 7.20 7.10 7.30 7.30 6.25 6.85 6.95 6.20
Non
Users 6.74 5.76 6.39 6.82 6.87 7.45 6.95 7.16 7.29 6.53
Overall 7.16 6.07 6.67 6.91 7.02 7.40 6.71 7.05 7.17 6.41
Notice the difference in the ratings given by users and non-users. In the first five
attributes, the users have given a higher rating for Aqua Fresh and in the last five
attributes non-users have given a marginally higher rating for Aquafresh.
Cannonical Correlation and Wilke’s lambda:
In the next Table find something called Canonical correlation. The interpretation of this
is similar to the R value we had in Regression analysis.
Eigenvalues
53
Canonical
Function Eigenvalue % of Variance Cumulative % Correlation
1 .662(a) 100.0 100.0 .631
a First 1 canonical discriminant functions were used in the analysis.
Next Table shows Wilke’s λ, which can be interpreted the same way as the F-test in the
Multiple regression output. The discriminate equation that has been constructed is
significant.
Wilks' Lambda
Wilks'
Test of Function(s) Lambda Chi-square df Sig.
1 .602 25.919 10 .004
Discriminat Function and Classification:
Now take a look at the Canonical Discriminant Function Coefficients (Unstandardized

coefficients). Using that we can form the discriminate function shown below.
D = - 3.041 + 0.702X1 + 0.324X2 + 0.081X3 + 0.056X4 + 0.167X5 - 0.427X6 -0.491X7 +

0.002X8 + 0.201X9 - 0.165X10
Canonical Discriminant Function Coefficients
Function
1
Fighting Cavities .702
Whitening Teeth .324
Cleaning Stains/Tartar .081
Good Taste .056
Likeable Flavor .167
Freshening Breath -.427
Brand Image -.491
Color .002
Attractive Packaging .201
Innovative
features/Ingredients -.165
(Constant) -3.041
Unstandardized coefficients
54
Using this kind of an equation, a discriminate score is calculated for each respondent and
the programme uses a cut-off point to classify respondents as users or non-users.
Now go to the data file and find two new variables added there – predicted group (dis_1)
and discriminant scores (dis1_1). Change to data view and find the discriminate scores.
To compute the cut-off point calculate the mean discriminant score for each group and
use the following formulae:
Cut-off point = (N2D1 + N1D2)/( N1 + N2)
where:
N1 = No. of Users
N2 = No. of Non Users
D1 = Average Discrimanat Score for Users
D2 = Average Discriminant Score for Non Users
These values are available in the output in the Table: Functions at group Centroids.
Functions at Group Centroids
Function
User of Aqua Fresh 1
user 1.102
Non-user -.580
Unstandardized canonical discriminant functions evaluated at group means
We know from the next Table that we have 20 users and 38 non-users.
User of Cases
Aqua Used in
Fresh Analysis
Prior Unweighted Weighted
user 0.345 20 20
Non-
user 0.655 38 38
Total 1 58 58
We can calculate the cut-off point as 0.522. Respondents with discriminate scores above
0.522 are classified as users and the others are classified as non-users.
55
Confusion Matrix:
If we cross tabulate the actual Vs predicted, we can get the extent of misclassficcation.
Classification Results(a)
Predicted Group
Membership
User of
Aqua Fresh user Non-user Total
Original Count user 14 6 20
Non-user 5 33 38
% user 70.0 30.0 100.0
Non-user 13.2 86.8 100.0
a 81.0% of original grouped cases correctly classified.
From the output we can see the that the classification accuracy is 81%. The above table is
also known as confusion matrix.
Structure matrix:
Now to determine which varaiables were effective in discriminating the users from non-
users, we could look at the Table of standardized canonical Discriminant coefficients.
These coefficients can be interpreted the same way as the β values were interpreted in
multiple regression. Fighting cavities appears to be the most important in predicting
whether a respondent is an Aquafresh user or not. The least important one seems to be
color. this has to be taken with a pinch of salt as the coefficients can get distorted if the
independent variables are correlated.
Standardized Canonical Discriminant Function Coefficients
Function
1
Good Taste .129
Brand Image -.903
Color .006
56
Attractive Packaging .405
Innovative
When the independent variables are correlated among themselves, it is safer to look at the
Structure matrix.
Structure Matrix
Function
1
Brand Image -.225
Attractive Packaging -.100
Innovative
Good Taste .073
Color -.068
Pooled within-groups correlations between discriminating variables and standardized canonical discriminant
functions Variables ordered by absolute size of correlation within function.
This values in the Structure matrix can be interpreted much the way as factor loadings in
factor analysis. For example, if you correlate `fighting cavities’ with discriminate score
you will get 0.514. The attributes are arranged in their order of importance.
The attributes that differentiate Aqua Fresh users from others are Fighting cavities and
Cleaning stains/Tartar. These are strong dental hygiene factors.
Using Factors Score in Discriminant Analysis:
However, it is better to run the analysis with factor scores, as we already have done factor
analysis. Use the following commands.
ANALYZE
CLASSIFY
DISCRIMINANT
Drag usage to GROUPING VARIABLE
DEFINE RANGE
Type 1 MINIMUM VALUE
Type 2 MAXIMUM VALUE
CONTINUE
Drag Variables 11-13 to INDEPENDENTS
57
STATISTICS
MEANS
Check UNSTANDARDIZED COEFFICINETS
CONTINUE
CLASSIFY
Check COMPUTE FROM GROUP SIZES
Check SUMMARY TABLE
CONTINUE
SAVE
Check PREDICTED GROUP MEMBERSHIP
Check DISCRIMINANT SCORE
CONTINUE
OK
The prediction accuracy is only 65.5.
Classification Results(a)
Predicted Group
Membership
User of
Aqua Fresh user Non-user Total
Original Count user 11 9 20
Non-user 11 27 38
% user 55.0 45.0 100.0
Non-user 28.9 71.1 100.0
a 65.5% of original grouped cases correctly classified.
Structure Matrix
Function
1
dental Hygiene .864
visibility -.620
sensory benefits .148
Pooled within-groups correlations between discriminating variables and standardized canonical discriminant
functions Variables ordered by absolute size of correlation within function.
Standardized Canonical Discriminant Function Coefficients
Function
1
dental Hygiene .773
visibility -.483
sensory benefits .223
58
In terms of importance of attributes, we find that `dental hygiene’ is the most discriminating attribute for
Aquafresh. Also find that there is no contradictory interpretataions arising from standardized discriminant
coefficients and the structure matrix.
Brand Drivers:
The implication for the brand is that dental hygiene is the driver attribute for Aquafresh. They should ensure
that the rating on the same attribute does not go down.
Conduct discrimant analysis for Colgate and Crest using files disc_colgate.sav and disc_crest.sav and
identify the brand drivers.
59
Chapter 8
Multi Dimensional Scaling
Objectives:
• To understand the basic concepts behind multidimensional scaling
• To learn how to conduct multidimensional scaling analysis using SPSS and interpret
the results.
- Meaning of Stress
- Stress decomposition
- Interpreting the dimensions
• To understand how to use multiple regression to fit vectors to the multi-dimensional

space.
Basic Concepts:
This is a techniques used to identify the underlying dimensions on which a set of stimuli
are differentiated based on the similarity-dissimilarity rating of the stimuli. The stimuli
could be brands or some other objects or people or even countries.
Suppose we get people to rate a set of six countries on a 0-10 scale of similarity-
dissimilarity with 0 when the countries are identical and 10 when they are diametrically
opposite to each other. The following is the matrix generated from a single respondent.
England USA France Germany India China

England 0 2 9 8 8 9
USA 2 0 8 9 9 8
France 9 8 0 1 8 8
Germany 8 9 1 0 8 9
India 8 9 8 8 0 1
China 9 8 8 1 9 0
The above data has been arranged in the form required for analysis in the
mds_sample.sav file. Open the same file and study the file structure. The rows and
columns are defined by row_id and col_id. The corresponding ratings are given under the
variable rating. Run the following SPSS commands and study the output.
60
ANALYZE
SCALE
MULTIDIMENSIONAL SCALING (PROXCAL)
Check THE PROXIMITIES ARE IN A SINGLE COLUMN
DEFINE
Drag variable rating to PROXIMITIES
Drag row_id to ROWS
Drag col_id to COLUMNS
MODEL
Check INTERVAL
CONTINUE
OUTPUT
Check INPUT DATA
Check ITERATION HISTORY
CONTINUE
OK
You will notice that the input data used by us has been reproduced in the Input data
matrix.
Proximities
England USA France Germany India China

England .
USA 2.000 .
France 9.000 8.000 .
Germany 8.000 9.000 1.000 .
India 8.000 9.000 8.000 8.000 .
China 9.000 8.000 8.000 9.000 1.000 .
The next table shows the improvement in stress value. Stress in MDS refers to the extent
of model misfit. It is through an iterative process that the program arrives at the
configuration that best fits the dissimilarity rating that we have input into the program.
Iteration History
Normalized
Iteration Raw Stress Improvement
0 .09053(a)
1 .00423 .08630
2 .00397 .00025
61
3 .00388 .00009(b)
a Stress of initial configuration: simplex start.
b The iteration process has stopped because Improvement has become less than the convergence
criterion.
Stress value of less than 0.01 is considered to be very good. Stress values upto 0.03 are
acceptable. The stress value of 0.00388 for the current data shows that the model has
given a good fit.
The program has found a solution in two dimensions and the co-ordinates of the stimuli
(countries) are given in the final coordinates matrix. The co-ordinates are plotted on a
graph too.
Final Coordinates
Dimension
1 2
England .656 -.057
USA .656 .057
France -.337 -.518
Germany -.319 -.572
India -.337 .518
China -.319 .572
A cursory look at the chart shows that the countries that are similar to each other are
placed together and the ones that are different from each other are placed apart from each
other. Notice that there are three clusters – USA & England, France & Germany and
India & China.
62
Object Points
Common Space
China
.6 India
.4
.2
USA
-.0 England
-.2
Dimension 2
-.4
France
Germany
-.6
-.4 -.2 0.0 .2 .4 .6 .8
Dimension 1
In order to interpret the chart we shall take this to Powerpoint. Draw lines passing
through the origin. Now the next task is to uncover the meaning of the underlying two
dimensions.
63
.6 China
India
.4
Dimension 2
.2
US
-.0
England
-.2
-.4
France
-.6 Germany
-.4 -.2 0.0 .2 .4 .6 .8
Dimension 1
In order to get better sense out of this graph, rotate the x-axis and y-axis as shown in the
next chart.
64
.6 China
India
.4
Dimension 2
.2
US
-.0
England
-.2
-.4
France
-.6 Germany
-.4 -.2 0.0 .2 .4 .6 .8
Dimension 1
Now you can clearly see that the x-axis refers to support for Iraq war and the y-axis refers
to economic development.
Here we used a judgmental approach to interpreting the dimensions. It is possible to use

multiple regression to fix attributes to the above chart which we shall see later.
It raises another question as to how many dimensions will be needed. In general MDS is
used mostly for a two dimensional solution. If the researcher has a priori knowledge that
more than two dimensions may be required then it has to be planned at the data collection
stage itself. If you need more dimensions you will need to get rating on more number of
stimuli. The rule is that for every dimension you need a minimum of three stimuli. If you
need a three dimensional solution you need to have at least 9 stimuli (in this case
countries) rated on a dissimilarity scale. However, if we have data collected from
multiple respondents we use the criteria of Stress. If the stress (measure of mis-fit) value
is more than 0.03 then go for more dimensions.
Here we had only one respondent rating the countries. In a survey typically we will have
several respondents rating the stimuli. In the case of tooth-paste survey, we had a total of
43 valid responses to the MDS question (i.e. question 8).
65
I have arranged those 43 responses in 43 columns in the data file md2.sav. Now open this
file and study the file structure.
ANALYZE
SCALE
Check MULTIPLE MATRIX SOURCES
DEFINE
Drag variables resp01 to resp69 to PROXIMITIES
Drag row_id to ROWS
MODEL
Check INTERVAL
CONTINUE
OUTPUT
Check INPUT DATA
Check STRESS DECOMPOSITION
CONTINUE
OK
This time we try to fit a model by taking into account the 43 responses. Note that a stress
value of 0.05555 has been achieved. The program has gone through 21 iterations to
arrive at the final configuration.
Iteration History
Normalized
Iteration Raw Stress Improvement
0 .12660(a)
1 .08510 .04150
2 .07399 .01111
3 .06833 .00566
4 .06493 .00340
5 .06273 .00220
6 .06126 .00147
7 .06024 .00102
8 .05949 .00075
9 .05891 .00059
10 .05841 .00050
11 .05797 .00044
12 .05756 .00041
13 .05719 .00037
14 .05686 .00034
66
15 .05656 .00030
16 .05630 .00026
17 .05608 .00022
18 .05591 .00018
19 .05576 .00014
20 .05565 .00012
21 .05555 .00009(b)
a Stress of initial configuration: simplex start.
b The iteration process has stopped because Improvement has become less than the convergence
criterion.
Stress value of 0.05555 is a little too high to make any meaningful interpretation.
You will notice another large table that gives the stress decomposed for every individual.
Notice that respondents 6,20,23,38,39,41,47,58 and 6y9nhave stress values above
0.07. If we leave out these respondents and run MDS analysis, we can possibly get a
solution with lowered stress values. Alternately, we may try for a solution with more
than two dimensions. Let us get a solution in three dimensions.
Repeat the above analysis using the following commands.
ANALYZE
SCALE
Check MULTIPLE MATRIX SOURCES
DEFINE
Drag variables resp01 to resp69 to PROXIMITIES
Drag row_id to ROWS
MODEL
Check INTERVAL
Check WEIGHTED EUCLIDIAN
Change 2 to 3 MINIMUM DIMENSIONS
Change 2 to 3 MAXIMUM DIMENSIONS
CONTINUE
OUTPUT
Check INPUT DATA
Check STRESS DECOMPOSITION
CONTINUE
OK
Note that we are now asking for 3 dimensions. We get a much lower stress value of
0.02319 which is an acceptable level of error in this type of analysis.
67
Stress and Fit Measures
Normalized Raw Stress .02319

Stress-I .15229(a)
Stress-II .98328(a)
S-Stress .09732(b)
Dispersion Accounted
For (D.A.F.) .97681
Tucker's Coefficient of
Congruence .98834
PROXSCAL minimizes Normalized Raw Stress.

a Optimal scaling factor = 1.024.
b Optimal scaling factor = .961.
We also get three sets of co-ordinates for the brands.
Final Coordinates
Dimension
1 2 3
Aquafresh -.399 .164 -.483
Crest .486 -.189 .360
Colgate .422 -.018 -.471
Mentadent -.482 .063 .408
Arm & Hammer .147 .595 .187
Pepsodent -.175 -.614 -.002
We could plot two at a time to study the relative positioning of brands. However we ‘ll
need to interpret the dimensions. We used a subjective method of interpretation in the
case of six countries. It will be difficult in the case of toothpaste brands as we have a
three dimensional solution.
We shall use regression method to fit attributes on to the same map where the brands are
positioned. Use file mds4.sav to get the co-ordinates for the attributes. Note that the mean
ratings of brands on different attributes and three factors are going to be used for this
analysis.
Perform a multiple regression analysis with the mean rating of attributes as dependent
variable and the co-ordinates for the brands as independent variables. The resulting β
values give the three co-ordinates for the attributes concerned.
ANALLYZE
REGRESION
LINEAR
68
Drag Fighting Cavities to DEPENDENT
Highlight and drag Dim1, dim2 and dim3 to INDEPENDENT
OK
The β values given in the coefficients table give the three co-ordinates for the variable
`fighting cavities’.
Coefficients(a)

1 (Constant) 8.297 .421 19.718 .032
Dimension
.144 .953 .078 .151 .905
1
Dimension
.701 1.470 .247 .477 .717
2
Dimension
1.562 .945 .831 1.652 .347
3
a Dependent Variable: Fighting Cavities
In the same way the co-ordinates for all the attributes are arrived at and a new data file
mds5.sav has been created. This new file contains the co-ordinates for all the brands and
attributes. Now we can plot and interpret the dimensions.
GRAPH
SCATTER
SIMPLE
DEFINE
Drag dim1 to X-AXIS
Drag dim2 to Y-AXIS
Drag attri to LABEL CASES BY
OPTIONS
CONTINUE
OK
You will get the scatter plot which will have the brands and attributes on the same space.
The same can be taken to a PowerPoint and draw vectors for the attributes as shown in
the chart below.
69
.8
Arm & Hammer
.6 A10
Dental Hygiene A1. Fighting cavities
.4 A2. Whitening Teeth
A A3. Cleaning Stains
A1
Aquafresh A4. Good Taste
.2 A3
A6 A5. Likeable Flavor
Mentadent
Colgate A6. Freshening Breath
.0 A7. Brand Image
A8 A8. Color
Crest
-.2 A9. Attractive Pack
Visibility A10. Innovations
A9
-.4
Pepsodent
Dimension 2
-.6 A7
A4
Sensory Benefits
-.8
A5
-1.0
-.8 -.6 -.4 -.2 0.0 .2 .4 .6
Dimension 1
Only the long vectors belong to this space. Attributes A3, A1, A6 etc. are too short and
need not be considered while interpreting the meaning of Dimensions 1 and 2. Also we
can rotate the axis as shown in the picture to get better meaning of the space.
You can see that Dimension 1 is basically attribute A7, namely Band Image and
Dimension 2 is comprised of attributes A4 and A5 (Good Taste and Likeable Flavor).
Crest and Colgate are seen to have a good brand Image. Pepsodent is high on Dimension
2, namely flavor and taste. This result is consistent with the earlier findings.
To name dimension 3, plot dim1 Vs dim3. From the plot notice that Dimension 3
comprises of A8 + A9 and A2 + A1 (Color + Attractive Packaging & Fighting cavities +
white teeth). Dimension 1 is clearly made up of A7 (brand image) only.
In the same way plot dim2 Vs dim3. Dimension 2 comes out as A4 and A5 (Taste and
flavor) and dim 3 remains as a combination of four attributes A1, A2, A8 and A9.
70
1.0
A8 A6 A2
A3 A1 A1
A9 Visibility
.8
Dental Hygiene
.6 A7 A1. Fighting cavities
A4
A2. Whitening Teeth
A3. Cleaning Stains
.4 Mentadent Crest
A5 A4. Good Taste
Sensory Benefits A5. Likeable Flavor
.2 Arm & Hammer A6. Freshening Breath
A7. Brand Image
Pepsodent A8. Color
-.0 A9. Attractive Pack
A10. Innovations
-.2
Dimension 3
-.4
Aquafresh Colgate
-.6
-.8 -.6 -.4 -.2 0.0 .2 .4 .6
Dimension 1
1.
A9 A8 A6 A3 A2
A1 A1
.8 Visibility
Dental Hygiene A1. Fighting cavities
A7 A2. Whitening Teeth
.6 A4 A3. Cleaning Stains
A4. Good Taste
Mentadent A5. Likeable Flavor
.4 A5 Sensory Benefits Crest
A6. Freshening Breath
A7. Brand Image
Arm & Hammer
.2 A8. Color
A9. Attractive Pack
Pepsodent A10. Innovations
-.0
-.2
Dimension 3
-.4 Colgate Aquafresh
-.6
-1.0 -.8 -.6 -.4 -.2 .0 .2 .4 .6 .8
Dimension 2
71
72
QUESTIONNAIRE ON TOOTH-PASTE BRANDS
This research study is conducted purely for academic purposes only. As the interest is on the collective
opinion of the group as a whole, individual identity will not be revealed. Please have the questionnaire
filled-in and returned to the instructor.
1. Which of the tooth paste brands listed in the table below question 4 are you aware of? (Please put ☑
marks in the appropriate boxes in the Table)
2. Which of these have you tried ever?
3. What brand of tooth paste are you currently using? (If you use more than one brand, please mark `M’
by the side of the most used brand)
4. What was the brand that you used immediately prior to this brand?
Brand Question 1 Question 2 Question 3 Question 4
Aqua-fresh ☐ ☐ ☐ ☐
Colgate ☐ ☐ ☐ ☐
Crest ☐ ☐ ☐ ☐
Mentadent ☐ ☐ ☐ ☐
Arm & Hammer ☐ ☐ ☐ ☐
Pepsodent ☐ ☐ ☐ ☐
Others1 ________________ ☐ ☐ ☐ ☐
Others2 ________________ ☐ ☐ ☐ ☐
5. Please indicate the relative importance of the following factors in terms of choosing a brand using a
seven-point rating scale. (Please circle the appropriate number to indicate the importance to you)
Factor Not Important Very Important
a. Fighting cavities 1 2 3 4 5 6 7
b. Whitening teeth 1 2 3 4 5 6 7
c. Cleaning Stains/Tartar 1 2 3 4 5 6 7
d. Good taste 1 2 3 4 5 6 7
e. Likeable Flavor 1 2 3 4 5 6 7
f. Freshening Breadth 1 2 3 4 5 6 7
g. High Prestige Brand 1 2 3 4 5 6 7
h. American Dental 1 2 3 4 5 6 7
Association Recommendation
i. Attractive Packaging 1 2 3 4 5 6 7
j. Innovative feature/new ingredient 1 2 3 4 5 6 7
73
6. Please rate Aqua-Fresh, Colgate and Crest on the following factors. If your `current brand’ is other
than these three please rate your current brand too. Use a 0-10 scale with 0 being poor and 10
being good on that attribute. Your response will be a number between 0 and 10 in the boxes below
- indicating the extent to which that attribute is present in the brand being rated. (If you have never
used any of these brands you may leave the corresponding column(s) blank.)
Attribute a. Aqua-fresh b. Colgate c. Crest d. Current Brand
1.Fighting Cavities
2. Whitening teeth
3. Cleaning stains/Tartar
4. Good Taste
5. Likeable Flavor
6. Freshening Breath
7. Brand Image
8. Color
9. Attractive Packaging
10. Innovative
features/Ingredients
11. Overall rating for
brands(out of 10)
7. Kindly put check-marks in the boxes to indicate the personality traits of users that match with the
three brands of tooth pastes mentioned in the following table. You may also check more than one
brand for a personality trait.
Personality Trait a. Aqua-fresh b. Colgate c. Crest
1.Outgoing
2. Sensuous
3. Hedonist
4. Fun loving
5. Achiever
6. Romantic
7. Traditional
8. Ambitious
9. Overcautious
10. Feminine
11. Masculine
74
8. Please rate the following pairs of toothpaste brands from most similar pair (1) to most dissimilar pair
(10). Circle the appropriate number. Please leave out the pairs containing brands that you are not aware
of.
Brand Pair Most Similar Most Dissimilar
a. Aqua Fresh - Crest 1 2 3 4 5 6 7 8 9 10

b. Aqua Fresh – Colgate 1 2 3 4 5 6 7 8 9 10
c. Aqua Fresh – Mentadent 1 2 3 4 5 6 7 8 9 10
d. Aqua Fresh – Arm & Hammer 1 2 3 4 5 6 7 8 9 10
e. Aqua Fresh – Pepsodent 1 2 3 4 5 6 7 8 9 10
f. Crest – Colgate 1 2 3 4 5 6 7 8 9 10
g. Crest – Mentadent 1 2 3 4 5 6 7 8 9 10
h. Crest – Arm & Hammer 1 2 3 4 5 6 7 8 9 10
i. Crest – Pepsodent 1 2 3 4 5 6 7 8 9 10
j. Colgate – Mentadent 1 2 3 4 5 6 7 8 9 10
k. Colgate – Arm & Hammer 1 2 3 4 5 6 7 8 9 10
l. Colgate – Pepsodent 1 2 3 4 5 6 7 8 9 10
m. Mentadent – Arm & Hammer 1 2 3 4 5 6 7 8 9 10
n. Mentadent – Pepsodent 1 2 3 4 5 6 7 8 9 10
o. Arm & Hammer – Pepsodent 1 2 3 4 5 6 7 8 9 10
9. Please indicate how likely are you to buy the following new toothpaste concepts by using a seven point
rating scale. Please circle the appropriate number that indicates your preference.
New Product Concept Definitely Not Buy Will definitely Buy
a. Tooth paste in a big jar (like styling gel) 1 2 3 4 5 6 7

b. Make your own tooth-paste kit (with whitener, 1 2 3 4 5 6 7
mouth wash, foaming agent, baking soda etc. in
different tubes)
c. Cafinated Tooth paste for a refreshing feeling 1 2 3 4 5 6 7
d. Toothpaste with weight-control formulae (make 1 2 3 4 5 6 7
you feel full after brushing)
e. Toothpaste containing multi-vitamin 1 2 3 4 5 6 7
f. Spicy toothpaste (clove and/or cinnamon) 1 2 3 4 5 6 7
g. Transparent tube to see how much is left inside 1 2 3 4 5 6 7
h. Toothpaste containing colored beads and flavor 1 2 3 4 5 6 7
crystals
i. Use and throw away paste-pre-applied tooth 1 2 3 4 5 6 7
brushes (Better Hygiene)
j. Tube fitted with dispenser for right amount 1 2 3 4 5 6 7
k. Male /Female toothpaste 1 2 3 4 5 6 7
l. Toothpaste that doubles as shaving cream 1 2 3 4 5 6 7
m. Night paste with sleep inducers 1 2 3 4 5 6 7
75
10. Please rank the following 15 toothpaste concepts from most preferred (1) to least preferred (15). (Enter
your preference ranks in the little eggs in every box) One easy strategy to make the ranking task easier
is to do it in two stages. First mark concepts as H (High preference), L (Low Preference) and M
(Medium preference) and then rank the cards within each category. It is also suggested that you assign
equal number of cards to each category.
Concept 1 Concept 2 Concept 3

Tube Transparent Tube Transparent Tube Transparent
Taste Mint Taste Spicy* Taste Cafinated
Color White Color Red Color Green
Brand Colgate Brand Aqua Fresh Brand Colgate
Price $2 Price $2 Price $4

Tube Transparent Tube Semi-transparent Tube Semi-transparent
Taste Mint Taste Mint Taste Spicy*
Color White Color Red Color White
Brand Crest Brand Crest Brand Colgate

Tube Semi-transparent Tube Semi-transparent Tube Non-transparent
Taste Cafinated Taste Mint Taste Mint
Color White Color Green Color Green
Brand Aqua Fresh Brand Colgate Brand Aqua Fresh

Tube Non-transparent Tube Non-transparent Tube Non-transparent
Taste Spicy* Taste Cafinated Taste Mint
Color White Color White Color Red
Brand Colgate Brand Crest Brand Colgate

Tube Transparent Tube Transparent Tube Transparent
Taste Spicy* Taste Cafinated Taste Mint
Color Green Color Red Color White
Brand Crest Brand Colgate Brand Aqua Fresh
* `spicy taste’ could be due to the addition of clove or cinnamon. They also have medicinal properties
apart from being natural ingredients (as opposed to chemicals).
76
11. Please indicate the extent of your agreement with the following statements using the Agree-Disagree
scale given below. Strongly Disagree- 1, Disagree- 2, Neither Agree Nor Disagree - 3, Agree - 4,
Strongly Agree-5.
Statement Strongly Strongly

Disagree Agree
a. I am very concerned about my looks 1 2 3 4 5
b. I am very inquisitive like a child. 1 2 3 4 5
c. I like to be different in whatever I do. 1 2 3 4 5
d. I love whatever work I do. 1 2 3 4 5
e. I am always playful 1 2 3 4 5
f. I keep thinking about my future. 1 2 3 4 5
g. I take a lot of care about the dress I wear 1 2 3 4 5

h. I like to try new and different things 1 2 3 4 5
i. I am sensitive to others feelings 1 2 3 4 5
j. I believe in keeping myself physically fit. 1 2 3 4 5
k. I dislike being left alone. 1 2 3 4 5
l. I'd say I'm rebelling against the way I was brought up 1 2 3 4 5
m. I try to understand deeply about anything that I study 1 2 3 4 5

n. I always worry about my past failures. 1 2 3 4 5
o. I like to follow what others do. 1 2 3 4 5
p. I am very sensitive to what others think about me. 1 2 3 4 5
q. My objective in life is to acquire wealth to the
maximum extent possible. 1 2 3 4 5
r. I am very organized 1 2 3 4 5
s. I'm a "spender" rather than a "saver." 1 2 3 4 5

t. Love and sex are great distractions to achieving ones
objectives. 1 2 3 4 5
u. I act on my hunches 1 2 3 4 5
v. I am more conventional than experimental 1 2 3 4 5
w. I am a little fickle minded 1 2 3 4 5
x. I love to have good food every day. 1 2 3 4 5
77
12. Please provide the following information about yourself.
a. Which of these age groups do you fall into?

☐ Below 25 Years
☐ 25 or More
☐ refused
b. What is your household yearly income?

(Remember, the survey is anonymous)
☐ $30,000 or Less
☐ $30,001 to $80,000
☐ $80,001 to $125,000
☐ Over $125,000
c. Gender:
☐ Male
☐ Female
d. Race/Ethnicity: (adopted from the census)

☐ White
☐ Others
☐ Refused
e. Your nickname: _________________________

(This name will appear in the data base and also you can see where you stand vis-à-vis others in your
class during analysis – Please do not give your real name.)
Thank You for Your Time
78
CODE SHEET FOR TOOTH PASTE SURVEY
Column Variable Variable Label Label Values

No. Name
1 no Respondent No.
2 class Close-up 1. GSB-573-02
2. MKT-347-01
3. MKT-347-02
3 q01a Aquafresh 0. Unaware
1. Aware
4 q01b Colgate 0. Unaware
1. Aware
5 q01c Crest 0. Unaware
1. Aware
6 q01d Mentadent 0. Unaware
1. Aware
7 q01e Arm & Hammer 0. Unaware
1. Aware
8 q01f Pepsodent 0. Unaware
1. Aware
9 q01g Others 0. Unaware
1. Aware
10 q02a Aquafresh 0. Never Used
1. Used
11 q02b Colgate 0. Never Used
1. Used
12 q0ac Crest 0. Never Used
1. Used
13 q02d Mentadent 0. Never Used
1. Used
14 q02e Arm & Hammer 0. Never Used
1. Used
15 q02f Pepsodent 0. Never Used
1. Used
16 q02g Others 0. Never Used
1. Used
17 q03a Current Brand 1 1. Aquafresh
2. Colgate
3. Crest
4. Mentadent
5. Arm & Hammer
6. Pepsodent
79
7. Others
18 q03b Current Brand 2 1. Aquafresh
2. Colgate
3. Crest
4. Mentadent
5. Arm & Hammer
6. Pepsodent
7. Others
8. No Second Brand
19 q04 Previous Brand 1. Aquafresh
2. Colgate
3. Crest
4. Mentadent
5. Arm & Hammer
6. Pepsodent
7. Others
20 q05a Fighting Cavities 1. Not Important
To
7. Very Important
21 q05b Whitening Teeth 1. Not Important
To
7. Very Important
22 q05c Cleaning Stains/Tartar 1. Not Important
To
7. Very Important
23 q05d Good Taste 1. Not Important
To
7. Very Important
24 q05e Likeable Flavor 1. Not Important
To
7. Very Important
25 q05f Freshening Breath 1. Not Important
To
7. Very Important
26 q05g High Prestige Brand 1. Not Important
To
7. Very Important
27 q05h American Dental Association 1. Not Important
Recommendation To
7. Very Important
28 q05i Attractive Packaging 1. Not Important
To
7. Very Important
29 q05j Innovative Features/new 1. Not Important
Ingredients To
7. Very Important
80
30 q06a01 Aquafresh - Fighting Cavities 0 – Poor
To
10 – Good
31 q06a02 Aquafresh - Whitening Teeth 0 – Poor
To
10 – Good
32 q06a03 Aquafresh - Cleaning 0 – Poor
Stains/Tartar To
10 – Good
33 q06a04 Aquafresh - Good Taste 0 – Poor
To
10 – Good
34 q06a05 Aquafresh - Likeable Flavor 0 – Poor
To
10 – Good
35 q06a06 Aquafresh - Freshening Breath 0 – Poor
To
10 – Good
36 q06a07 Aquafresh - High Prestige Brand 0 – Poor
To
10 – Good
37 q06a08 Aquafresh - Color 0 – Poor
To
10 – Good
38 q06a09 Aquafresh - Attractive 0 – Poor
Packaging To
10 – Good
39 q06a10 Aquafresh - Innovative 0 – Poor
Features/new Ingredients To
10 – Good
40 q06a11 Aquafresh - Overall Rating 0 – Poor
To
10 – Good
41 q06b01 Colgate - Fighting Cavities 0 – Poor
To
10 – Good
42 q06b02 Colgate - Whitening Teeth 0 – Poor
To
10 – Good
43 q06b03 Colgate - Cleaning Stains/Tartar 0 – Poor
To
10 – Good
44 q06b04 Colgate - Good Taste 0 – Poor
To
10 – Good
45 q06b05 Colgate - Likeable Flavor 0 – Poor
81
To
10 – Good
46 q06b06 Colgate - Freshening Breath 0 – Poor
To
10 – Good
47 q06b07 Colgate - High Prestige Brand 0 – Poor
To
10 – Good
48 q06b08 Colgate - Color 0 – Poor
To
10 – Good
49 q06b09 Colgate - Attractive Packaging 0 – Poor
To
10 – Good
50 q06b10 Colgate - Innovative 0 – Poor
10 – Good
51 q06b11 Colgate - Overall Rating 0 – Poor
To
10 – Good
52 q06c01 Crest - Fighting Cavities 0 – Poor
To
10 – Good
53 q06c02 Crest - Whitening Teeth 0 – Poor
To
10 – Good
54 q06c03 Crest - Cleaning Stains/Tartar 0 – Poor
To
10 – Good
55 q06c04 Crest - Good Taste 0 – Poor
To
10 – Good
56 q06c05 Crest - Likeable Flavor 0 – Poor
To
10 – Good
57 q06c06 Crest - Freshening Breath 0 – Poor
To
10 – Good
58 q06c07 Crest - High Prestige Brand 0 – Poor
To
10 – Good
59 q06c08 Crest - Color 0 – Poor
To
10 – Good
60 q06c09 Crest - Attractive Packaging 0 – Poor
To
82
10 – Good
61 q06c10 Crest - Innovative Features/new 0 – Poor
Ingredients To
10 – Good
62 q06c11 Crest - Overall Rating 0 – Poor
To
10 – Good
63 q06d01 Current Brand - Fighting 0 – Poor
Cavities To
10 – Good
64 q06d02 Current Brand - Whitening Teeth 0 – Poor
To
10 – Good
65 q06d03 Current Brand - Cleaning 0 – Poor
Stains/Tartar To
10 – Good
66 q06d04 Current Brand - Good Taste 0 – Poor
To
10 – Good
67 q06d05 Current Brand - Likeable Flavor 0 – Poor
To
10 – Good
68 q06d06 Current Brand - Freshening 0 – Poor
Breath To
10 – Good
69 q06d07 Current Brand - High Prestige 0 – Poor
Brand To
10 – Good
70 q06d08 Current Brand - Color 0 – Poor
To
10 – Good
71 q06d09 Current Brand - Attractive 0 – Poor
Packaging To
10 – Good
72 q06d10 Current Brand - Innovative 0 – Poor
10 – Good
73 q06d11 Current Brand - Overall Rating 0 – Poor
To
10 – Good
74 q07a01 Aquafresh - Outgoing `1’ If Marked
`0’ Otherwise
75 q07a02 Aquafresh - Sensuous `1’ If Marked
‘0’ Otherwise
76 q07a03 Aquafresh - Hedonist `1’ If Marked
‘0’ Otherwise
83
77 q07a04 Aquafresh - Fun Loving `1’ If Marked
‘0’ Otherwise
78 q07a05 Aquafresh - Achiever `1’ If Marked
‘0’ Otherwise
79 q07a06 Aquafresh - Romantic `1’ If Marked
‘0’ Otherwise
80 q07a07 Aquafresh - Traditional `1’ If Marked
‘0’ Otherwise
81 q07a08 Aquafresh - Ambitious `1’ If Marked
‘0’ Otherwise
82 q07a09 Aquafresh - Overcautious `1’ If Marked
‘0’ Otherwise
83 q07a10 Aquafresh - Feminine `1’ If Marked
‘0’ Otherwise
84 q07a11 Aquafresh - Masculine `1’ If Marked
‘0’ Otherwise
85 q07b01 Colgate - Outgoing `1’ If Marked
‘0’ Otherwise
86 q07b02 Colgate - Sensuous `1’ If Marked
‘0’ Otherwise
87 q07b03 Colgate - Hedonist `1’ If Marked
‘0’ Otherwise
88 q07b04 Colgate - Fun Loving `1’ If Marked
‘0’ Otherwise
89 q07b05 Colgate - Achiever `1’ If Marked
‘0’ Otherwise
90 q07b06 Colgate - Romantic `1’ If Marked
‘0’ Otherwise
91 q07b07 Colgate - Traditional `1’ If Marked
‘0’ Otherwise
92 q07b08 Colgate - Ambitious `1’ If Marked
‘0’ Otherwise
93 q07b09 Colgate - Overcautious `1’ If Marked
‘0’ Otherwise
94 q07b10 Colgate - Feminine `1’ If Marked
‘0’ Otherwise
95 q07b11 Colgate - Masculine `1’ If Marked
‘0’ Otherwise
96 q07c01 Crest - Outgoing `1’ If Marked
‘0’ Otherwise
97 q07c02 Crest - Sensuous `1’ If Marked
‘0’ Otherwise
98 q07c03 Crest - Hedonist `1’ If Marked
‘0’ Otherwise
99 q07c04 Crest - Fun Loving `1’ If Marked
‘0’ Otherwise
84
100 q07c05 Crest - Achiever `1’ If Marked
‘0’ Otherwise
101 q07c06 Crest - Romantic `1’ If Marked
‘0’ Otherwise
102 q07c07 Crest - Traditional `1’ If Marked
‘0’ Otherwise
103 q07c08 Crest - Ambitious `1’ If Marked
‘0’ Otherwise
104 q07c09 Crest - Overcautious `1’ If Marked
‘0’ Otherwise
105 q07c10 Crest - Feminine `1’ If Marked
‘0’ Otherwise
106 q07c11 Crest - Masculine `1’ If Marked
‘0’ Otherwise
107 q08a Aqua Fresh - Crest 1 – Most Similar
To
10 – Most Dissimilar
108 q08b Aqua Fresh – Colgate 1 – Most Similar
To
109 q08c Aqua Fresh – Mentadent 1 – Most Similar
To
110 q08d Aqua Fresh – Arm & Hammer 1 – Most Similar
To
111 q08e Aqua Fresh – Pepsodent 1 – Most Similar
To
112 q08f Crest – Colgate 1 – Most Similar
To
113 q08g Crest – Mentadent 1 – Most Similar
To
114 q08h Crest – Arm & Hammer 1 – Most Similar
To
115 q08i Crest – Pepsodent 1 – Most Similar
To
116 q08j Colgate – Mentadent 1 – Most Similar
To
117 q08k Colgate – Arm & Hammer 1 – Most Similar
To
85
118 q08l Colgate – Pepsodent 1 – Most Similar
To
119 q08m Mentadent – Arm & Hammer 1 – Most Similar
To
120 q08n Mentadent – Pepsodent 1 – Most Similar
To
121 q08o Arm & Hammer – Pepsodent 1 – Most Similar
To
122 q09a Tooth paste in a big jar (like 1 – Definitely Not Buy
styling gel) To
2 – Will Definitely Buy
123 q09b Make your own tooth-paste kit 1 – Definitely Not Buy
(with whitener, mouth wash, To
foaming agent, baking soda etc. 2 – Will Definitely Buy
in different tubes)
124 q09c Cafinated Tooth paste for a 1 – Definitely Not Buy
refreshing feeling To
125 q09d Toothpaste with weight-control 1 – Definitely Not Buy
formulae (make you feel full To
after brushing) 2 – Will Definitely Buy
126 q09e Toothpaste containing multi- 1 – Definitely Not Buy
vitamin To
127 q09f Spicy toothpaste (clove and/or 1 – Definitely Not Buy
cinnamon) To
128 q09g Transparent tube to see how 1 – Definitely Not Buy
much is left inside To
129 q09h Toothpaste containing colored 1 – Definitely Not Buy
beads and flavor crystals To
130 q09i Use and throw away paste-pre- 1 – Definitely Not Buy
applied tooth brushes (Better To
Hygiene) 2 – Will Definitely Buy
131 q09j Tube fitted with dispenser for 1 – Definitely Not Buy
right amount To
132 q09k Male /Female toothpaste 1 – Definitely Not Buy
To
86
134 q09l Toothpaste that doubles as 1 – Definitely Not Buy
shaving cream To
135 q09m Night paste with sleep inducers 1 – Definitely Not Buy
To
136 q10a Concept 1 Rank 1 To 15
137 q10b Concept 2 Rank 1 To 15
138 q10c Concept 3 Rank 1 To 15
139 q10d Concept 4 Rank 1 To 15
140 q10e Concept 5 Rank 1 To 15
141 q10f Concept 6 Rank 1 To 15
142 q10g Concept 7 Rank 1 To 15
143 q10h Concept 8 Rank 1 To 15
144 q10i Concept 9 Rank 1 To 15
145 q10j Concept 10 Rank 1 To 15
146 q10k Concept 11 Rank 1 To 15
147 q10l Concept 12 Rank 1 To 15
148 q10m Concept 13 Rank 1 To 15
149 q10n Concept 14 Rank 1 To 15
150 q10o Concept 15 Rank 1 To 15
151 q11a I am very concerned about my 1 – Strongly Disagree
looks To
5 – Strongly Agree
152 q11b I am very inquisitive like a child. 1 – Strongly Disagree
To
153 q11c I like to be different in whatever 1 – Strongly Disagree
I do. To
154 q11d I love whatever work I do. 1 – Strongly Disagree
To
155 q11e I am always playful 1 – Strongly Disagree
To
156 q11f I keep thinking about my future. 1 – Strongly Disagree
To
157 q11g I take a lot of care about the 1 – Strongly Disagree
dress I wear To
158 q11h I like to try new and different 1 – Strongly Disagree
things To
87
159 q11i I am sensitive to others feelings 1 – Strongly Disagree
To
160 q11j I believe in keeping myself 1 – Strongly Disagree
physically fit. To
161 q11k I dislike being left alone. 1 – Strongly Disagree
To
162 q11l I'd say I'm rebelling against the 1 – Strongly Disagree
way I was brought up To
163 q11m I try to understand deeply about 1 – Strongly Disagree
anything that I study To
164 q11n I always worry about my past 1 – Strongly Disagree
failures. To
165 q11o I like to follow what others do. 1 – Strongly Disagree
To
166 q11p I am very sensitive to what 1 – Strongly Disagree
others think about me. To
167 q11q My objective in life is to acquire 1 – Strongly Disagree
wealth to the maximum extent To
possible. 5 – Strongly Agree
168 q11r I am very organized 1 – Strongly Disagree
To
169 q11s I'm a "spender" rather than a 1 – Strongly Disagree
"saver." To
170 q11t Love and sex are great 1 – Strongly Disagree
distractions to achieving ones To
objectives. 5 – Strongly Agree
171 q11u I act on my hunches 1 – Strongly Disagree
To
172 q11v I am more conventional than 1 – Strongly Disagree
experimental To
173 q11w I am a little fickle minded 1 – Strongly Disagree
To
88
173 q11x I love to have good food every 1 – Strongly Disagree
day. To
174 q12a Age 1. Less Than 25
2. 25 and Above
175 q12b Household Income 1. $30,000 or less
2. $30,001 to $80,000
3. $80,001 to $125,000
4. Above $125,000
176 q12c Gender 1. Male
2. Female
177 q12d Race/Ethnicity 1. White
2. Others
178 q12e Nickname Enter as given
179 aware Number of Brands Aware
180 trial Number of Brands Tried
181 qcl_1 Benefit Clusters 1. Dental Care
2. Sensory benefits
3. a la carte
182 fact1_1 External Locus of Control
183 fact2_1 Internal Locus of Control
184 fact3_1 Creative
185 fact4_1 Unique
186 fact5_1 Goal Oriented
187 fact6_1 Fun Loving
188 fact7_1 Rule Bound
189 fact8_1 Rebel
190 qcl_2 Psychographic Clusters 1. Middle of the Road
2. Creative/unique
3. Goal directed rebels
4. Systematic Achiever
5. Inner Directed
Individual
Variables 2 & 178 are string variables
Variables 179 and 180 are computed by the researcher from variables defined already.
These are called transformed variables.
Variables 181-190 are SPSS System created variables and labels given by the researcher.
89
Slide 1
A Market Survey of Toothpaste Brands

Among University Students
BY
Prof. M J Xavier
Slide 2
Contents
• Executive Summary - 3
• Profile of Respondents - 8
• Awareness, Trial and Usage - 15
• Benefits Sought and Benefit Segmentation - 28
• Competitive Positioning of Brands - 37
• Evaluation of New Product Ideas - 48
• Psycho-graphic Segmentation - 65
90
Slide 3
Executive Summary
• A study on toothpaste market was carried out among the university
students during September-November, 2003 to asses the
preferences and to evaluate new product ideas.
• The study was done in two phases. The qualitative phase used
focus groups to understand the nature of the market and to come up
with a number of new product ideas. In the quantitative phase, a
questionnaire was developed and administered to 70 students.
• Respondent Profile
– The sample comprised of 15 Graduate Students and 55 undergraduate
students from Orfalea College of Business.
– 35 were males and 35 were female students.
– 58 of them were below the age of 25
– The sample had a wide income distribution
– In terms of ethnicity 80% were whites
Slide 4
Executive Summary - Continued

• Awareness Trial and Usage:
– Major Brands – Colgate, Aqua-fresh and Crest have close to 100
percent awareness while others have low levels of awareness
– On an average each respondent is aware of 4 to 5 brands.
– The three major brands – Aqua-fresh, Colgate and Crest have close to
95% trial
– Every person has tried 4 brands on an average
– Crest has a larger share (35.7%) compared to the other two major
brands Colgate (28.6%)and Aqua-fresh (14.3%) though they match
Crest in terms of awareness and trial. The niche brands Mentadent and
Arm&Hammer have reasonable shares.
– 5 out of 70 respondents have two current brands
– Current Brand Vs previous brand analysis shows that there is very low
level of Brand Loyalty is seen. Crest has the highest retention figure of
37.5%. People seek variety. This offers great opportunity for
manufacturers to offer variety through innovative ingredients.
91
Slide 5

• Benefits Sought and Benefit Segmentation
– The most Important benefit is `Freshening of Breath’ with an average score
of 6.3 on a 1 to 7 Importance scale and the least Important attribute is
Àttractive Packaging’ with a score of 3.4. The high Standard Deviation
(Above 1.3) for all the attributes except `Freshening Breath’ indicates that
there are segments that seek differing benefits.
– The derived importance of benefits obtained by correlating rating of brands
on attributes with overall rating showed a different pattern.
– The stated importance was plotted against derived importance and
interpreted using Kano model. The delight attributes are brand image and
innovative features which have low stated and high derived importance.
Cleaning stains/tartar is a minimum expected attribute.
– Cluster analysis of the Importance ratings yielded the following three
benefit segments.
• Cluster 1 has 12 respondents and the attributes that they look for are – fighting
cavities, whitening teeth and American Dental Association Recommendation –
This can be named as the `dental care’ segment.
• Cluster 2 with 16 respondents is interested in `sensory benefits’ – good taste,
likeable flavor and white teeth.
• Cluster 3 with 42 respondents want a bit of everything – we shall call this a la
carte cluster.
– 50% of cluster 2 members use Colgate which clearly indicates that
Colgate is perceived to be high on Oral sensory benefits. 42.9% of a la
carte cluster uses Crest which indicates that Crest is seen as a balanced
tooth paste offering dental care as well as sensory benefits.
5
Slide 6

• Competitive Positioning of Brands
– Crest scores over the other two competitors on all attributes. Colgate scores over
Aqua Fresh on all attributes except Attractive Packaging.
– Correspondence Map of Brand-Personality Profile Indicates the following
• Crest is seen to be used by Ambitious Achiever
• Colgate is seen to be used by Traditional, overcautious, masculine person
• Aqua Fresh is seen as Fun-loving, Feminine and Outgoing.
• There is no brand available for Romantic, sensuous types…Opportunity for new product
– MDS based positioning indicates the following:
• Crest and Colgate are seen as very similar.
• Mentadent, Arm&Hammer and Pepsodent are seen to be of a different category.
• Aqua Fresh stands out as a unique category.
– Factor analysis of brand ratings resulted in the three factors listed below and
positioning was done on those three factors.
• The first factor can be named as `Dental Hygiene’ as it comprises of Cleaning Stains/Tartar,
Fighting Cavities, Whitening Teeth and Freshening Breath. The variable Innovative
features/Ingredients are seen as offering dental hygiene as well as contributing to the second
factor on Visibility/Brand Image.
• The Second Factor is `visibility’ in the store and in the media comprising of Attractive
Packaging, Color and Brand Image
• The third variable refers to `sensory benefits’ – Flavor and Taste
92
Slide 7

• Evaluation of New Product Ideas
– 13 new product ideas were rated for intention to buy and the following four got short-
listed as best ideas.
o Transparent tube to see how much is left inside
o Toothpaste containing multi-vitamin
o Tube fitted with dispenser for right amount
o Toothpaste containing colored beads and flavor crystals
• More males prefer Night-paste with sleep inducers more females prefer Toothpaste
with weight control formulae
• Members of the oral sensation cluster have a higher preference for a paste with
weight-control formulae
• Conjoint analysis indicates that taste and price are the two most important attributes
• Transparent tube appears to be the preferred choice of majority of respondents
• Psycho-graphic Segmentation
– Factor analysis of the ratings of 24 statements yielded eight factors.
– These eight factor scores were clustered to arrive at the following five segments
• Cluster 1 - Middle of the Road
• Cluster 2 - Creative /Unique
• Cluster 3 - Goal Directed Rebels
• Cluster 4 - Systematic Achiever
• Cluster 5 - Inner Directed individual
– The relationship between brand used and the psycho graphic segments is not statistically
significant. Large sample sizes will be needed to establish firm relationships.
Slide 8
Profile of Respondents
93
Slide 9
Class
Valid Cumulative MKT-347-02
Frequency Percent Percent
45.7%
GBS-573-02 15 21.4 21.4 GBS-573-02
MKT-347-01 23 32.9 54.3 21.4%
MKT-347-02 32 45.7 100.0
Total 70 100.0
MKT-347-01
32.9%
The sample comprised of 15 Graduate

Students and 55 undergraduate students
from Orfalea College of Business, Calpoly.
Slide 10
Age Profile
Frequ- Valid Cumulative 30-34 years
Age ency Percent Percentage 1.4%
18-24
years 58 83 83
25-29 years
25-29
15.7%
years 11 16 99
30-34
years 1 1 100
18-24 years
Total 70 100
82.9%
More than 80% of respondents are in the less

than 25 age group
10
94
Slide 11
Gender
Cumulative
Valid Male 35 50.0 50.0 50.0
Female 35 50.0 50.0 100.0
Total 70 100.0 100.0
Male
Female 50.0%
Gender has a perfect
50:50 split 50.0%
11
Slide 12
Income Distribution
Cumulative
Valid Less than $30,000 35 50.0 50.0 50.0
$30,000 to $80,000 10 14.3 14.3 64.3
$80,001 to $125,000 11 15.7 15.7 80.0
Above $125,000 14 20.0 20.0 100.0
Total 70 100.0 100.0
Above $125,000
20.0%
Income distribution is Less than $30,000

fairly representative of $80,001 to $125,000 50.0%
15.7%
the population
$30,000 to $80,000
14.3%
12
95
Slide 13
Race/Ethnicity
Cumulative
Frequency Percent Percent
Asian/Pacific Islander 6 8.6 8.6
Hispanic 3 4.3 12.9
White 55 78.6 91.4
Multi-racial 3 4.3 95.7
Refused 3 4.3 100.0
Total 70 100.0
Refused Asian/Pacific Islander

4.3%
8.6%
Multi-racial
Close to 80% respondents 4.3% Hispanic
are whites 4.3%
White
78.6%
13
Slide 14
Respondents Profile - Summary

• The sample comprised of 15 Graduate Students
and 55 undergraduate students from Oracle
College of Business.
• 35 were males and 35 were female students.
• 58 of them were below the age of 25
• The sample had a wide income distribution
• In terms of ethnicity 80% were whites
14
96
Slide 15
Awareness, Trial and Usage
15
Slide 16
Brand Awareness
Aqua-fresh Aware
Pepsodent Colgate
7.1%
Unaware
1.4%
Aware Unaware Aware

100.0% 92.9% 98.6%
Mentadent Arm & Hammer

Crest
Unaware Aware
Unaware 25.7%
11.4%
4.3%
Unaware
Aware Aware 74.3%
95.7% 88.6%
Major Brands – Colgate, Aqua-fresh and Crest have close to 100 percent
awareness while others have low levels of awareness 16
97
Slide 17
Number of Brands Aware

50
47.1%
40 37.1%
30
Percent
20
10 8.6%
5.7%
1.4%
0
2.00 3.00 4.00 5.00 6.00
AWARE
On an average each respondent is aware of 4 to 5 brands.
17
Slide 18
Number of Brands Aware By

Demographic Characteristics
AWARE * INCOME
Mean
AWARE * RACE
INCOME AWARE
Less than $30,000 4.4857 Mean
$30,000 to $80,000 4.4000 RACE AWARE
$80,001 to $125,000 4.4545 White 4.4727
Above $125,000 4.4286 Others 4.4000
Total 4.4571
Total 4.4571
AWARE * Gender AWARE * Age

Mean Mean
Gender AWARE
Age AWARE
Male 4.5143 18-24 years 4.4828
Female 4.4000 25-29 years 4.3333
Total 4.4571 Total 4.4571
There is no variation in awareness across different demographic groups

18
98
Slide 19
Usage/Trial
Aqua-fresh Colgate Crest
Never Used
Never Used 5.7% Never Used
2.9% 5.7%
Used
Used 94.3% Used
97.1%
94.3%
Pepsodent
Mentadent Arm & Hammer
Used Used
2.9%
21.4%
Never Used
44.3%
Used
55.7%
Never Used
78.6% Never Used
97.1%
The three major brands – Aqua-fresh, Colgate and Crest have close to 95% trial
19
Slide 20
Number of Brands Tried

60
50
40
Percent
30
20
10
0
1.00 2.00 3.00 4.00 5.00 6.00 7.00
TRIAL
Every person has tried 4 brands on an average 20
99
Slide 21
Number of Brands Tried by

Demographic Groups
TRIAL * INCOME
TRIAL * RACE
Mean
INCOME TRIAL Mean
Less than $30,000 3.9143 RACE TRIAL
$30,000 to $80,000 3.8000 White 3.9273
$80,001 to $125,000 4.0909 Others 3.8667
Above $125,000 3.8571 Total 3.9143
Total 3.9143
TRIAL * Gender TRIAL * Age

Mean Mean
Gender TRIAL Age TRIAL
Male 3.8571 18-24 years 3.9655
Female 3.9714 25-29 years 3.6667
Total 3.9143 Total 3.9143
There is no variation in the number of brands tried across different

demographic categories
21
Slide 22
Current Brand
40
35.7%
28.6%
30
Percent
20
14.3%
8.6% 8.6%
10
4.3%
Base - 70
0
Current Brand
Crest has a larger share compared to the other two major brands Colgate and
Aqua-fresh though they match Crest in terms of awareness and trial. The niche
22
brands Mentadent and Arm&Hammer have reasonable shares.
100
Slide 23
Current Brand Vs Gender

CURRENT
Aqua-Fresh Colgate Crest Others Total
Gender Male Count 7 9 8 11 35
% within Gender 20.0% 25.7% 22.9% 31.4% 100.0%
Female Count 3 11 17 4 35
% within Gender 8.6% 31.4% 48.6% 11.4% 100.0%
Total Count 10 20 25 15 70
% within Gender 14.3% 28.6% 35.7% 21.4% 100.0%
Chi-square value of 8.3 at 3 degrees of freedom is significant at

96% confidence level.
While Crest is popular among Females, Aqua-fresh and other
brands are favored more by males than females
Other demographic variables – Income, Race and Age – have no
significant affect on Current Brand 23
Slide 24
Use of Two Brands

Two Brand Usage
7.1%
No Second Brand
92.9%
5 out of 70 respondents have two current brands
24
101
Slide 25
Previous Brand
Previous Brand
50
45.7%
40
Percent
30
22.9%
21.4%
20
10 7.1%
1.4% 1.4%
0 Base - 70
Previous Brand
The pattern is more or less the same as the current Brand shares
25
Slide 26
Current Brand Vs Previous Brand

(Brand Loyalty)
Current Brand
Arm &
Aqua-Fresh Colgate Crest Mentadent Hammer Others Total
Previous Aqua-Fresh Count 3 4 6 1 0 1 15
Brand % within Previous Brand 20.0% 26.7% 40.0% 6.7% .0% 6.7% 100.0%
Colgate Count 2 3 6 1 1 3 16
% within Previous Brand 12.5% 18.8% 37.5% 6.3% 6.3% 18.8% 100.0%
Crest Count 4 11 12 3 1 1 32
Mentadent Count 1 2 0 1 1 0 5
% within Previous Brand 20.0% 40.0% .0% 20.0% 20.0% .0% 100.0%
Arm & Hammer Count 0 0 1 0 0 0 1
% within Previous Brand .0% .0% 100.0% .0% .0% .0% 100.0%
Others Count 0 0 0 0 0 1 1
% within Previous Brand .0% .0% .0% .0% .0% 100.0% 100.0%
Total Count 10 20 25 6 3 6 70
Very low level of Brand Loyalty is seen. Crest has the highest retention
figure of 37.5%. People seek variety. This offers great opportunity for
26
102
Slide 27
Awareness, Trial and Usage -

Summary
• Major Brands – Colgate, Aqua-fresh and Crest have close to 100
percent awareness while others have low levels of awareness
• On an average each respondent is aware of 4 to 5 brands.
• The three major brands – Aqua-fresh, Colgate and Crest have close
to 95% trial
• Every person has tried 4 brands on an average
• Crest has a larger share (35.7%) compared to the other two major
brands Colgate (28.6%)and Aqua-fresh (14.3%) though they match
Crest in terms of awareness and trial. The niche brands Mentadent
and Arm&Hammer have reasonable shares.
• 5 out of 70 respondents have two current brands
• Current Brand Vs previous brand analysis shows that there is very
low level of Brand Loyalty is seen. Crest has the highest retention
figure of 37.5%. People seek variety. This offers great opportunity for
27
Slide 28
Benefits Sought
& Benefit Segmentation
28
103
Slide 29
Relative Importance of Benefits

Sought (Direct Method)
N Minimum Maximum Mean Std. Deviation
Freshening Breadth 70 4.00 7.00 6.3000 .76802
Fighting Cavities 70 1.00 7.00 6.1143 1.44004
Cleaning Stains/Tartar 70 1.00 7.00 5.6714 1.34834
Whitening Teeth 70 1.00 7.00 5.6429 1.41458
Good Taste 70 1.00 7.00 5.3429 1.50252
Likeable Flavor 70 1.00 7.00 5.1714 1.52250
American Dental
Association 70 1.00 7.00 4.4857 1.88620
Recommendation
70 1.00 7.00 4.0714 1.36543
ingredient
High Prestige Brand 70 1.00 7.00 3.4714 1.50093
Attractive Packaging 70 1.00 7.00 3.4286 1.68171
Valid N (Base) 70
The most Important benefit is `Freshening of Breath’ with an average score of

6.3 on a 1 to 7 Importance scale and the least Important attribute is Àttractive
Packaging’ with a score of 3.4. The high Standard Deviation (Above 1.3) for all
the attributes except `Freshening Breath’ indicates that there are segments 29
that seek differing benefits.
Slide 30
Benefits Sought By Different

Demographic Segments
No. Mean St. Deviation t-value d.f. sig.
Male 35 5.17 1.56 -3.32 68 0.001
Female 35 6.17 0.86
Whitening Teeth
18-24 years 58 5.79 1.18 1.995 68 0.05
25-29 years 12 4.92 2.15
18-24 years 58 5.84 1.20 2.45 68 0.017
25-29 years 12 4.83 1.75
High Prestige Brand
Less than $30,000 35 3.77 1.42 2.091 47 0.042
Above $125,000 14 2.86 1.29
The differences on other benefits were not statistically significant
30
104
Slide 31
Indirect Method of deriving

Importance Scores of Benefits
• Conduct a multiple regression of ratings of
brands on different attributes with the overall
rating for corresponding brands.
• The standardized ß coefficients give the relative
importance of attributes.
• The data for this analysis is available in the data
file paste_final_data2.sav
31
Slide 32
Relative Importance of Benefits

Sought (Indirect Method)
Coefficientsa
Un-standardized Standardized
1 (Constant) .598 .349 1.716 .088
Fighting Cavities .208 .048 .215 4.368 .000
Whitening Teeth .097 .037 .130 2.606 .010
Cleaning Stains/Tartar .016 .052 .018 .307 .759
Good Taste .109 .072 .154 1.513 .132
Likeable Flavor .060 .071 .086 .844 .400
Freshening Breath .150 .045 .173 3.311 .001
Brand Image .135 .038 .195 3.582 .000
Color .154 .037 .238 4.187 .000
Attractive Packaging -.096 .041 -.132 -2.361 .019
Innovative
.120 .033 .181 3.660 .000
a. Dependent Variable: Overall rating
Though the most important and the least important attributes remain the
same, there are several changes that can be noticed in relation to the
Importance of attributes obtained using direct method. 32
105
Slide 33
Stated Vs Derived Importance of Benefits

(Kano’s Model)
16
Fighting Cavities
14 Brand Image
High Innovative features Freshening Breath
Good Taste
12 Delight Whitening Teeth
DERIVED IMPORTANCE
Attributes s Likeable Flavor
10 u te
ib
Attr Cleaning Stains/Tarter
8 r
n ea
6 Li
Minimum
4
Attractive Packaging Expected
Low
2
7 8 9 10 11 12 13 14
Low High
STATED IMPORTANCE
Toothpaste Manufacturers must concentrate on the delight attributes –

Brand Image and Innovative Features 33
Slide 34
Benefit Segmentation
Final Cluster Centers
Cluster
Number of Cases in each Cluster
1 2 3
Fighting Cavities 6.92 4.19 6.62 Cluster 1 12.000
Whitening Teeth 6.42 6.06 5.26 2 16.000
Good Taste 3.17 5.81 5.79 3 42.000
Likeable Flavor 3.17 5.63 5.57 Valid 70.000
American Dental Missing .000
Association 6.00 2.19 4.93
Recommendation
Cluster 1 has 12 respondents and the attributes that they look for are –
fighting cavities, whitening teeth and American Dental Association
Recommendation – We call this `dental care’ cluster
Cluster 2 with 16 respondents is interested in oral sensation – good taste,
likeable flavor and white teeth – We shall name it as `sensory benefits’
cluster
Cluster 3 with 42 respondents want a bit of everything – we shall call this
a la carte cluster. 34
106
Slide 35
Current Brand Vs Benefit Clusters

Current Brand
Arm &
Aqua-Fresh Colgate Crest Mentadent Hammer Others Total
Benefit Dental Care 2 3 4 1 2 0 12
Clusters 16.7% 25.0% 33.3% 8.3% 16.7% .0% 100.0%
Sensory Benefits 2 8 3 1 0 2 16
12.5% 50.0% 18.8% 6.3% .0% 12.5% 100.0%
A la carte 6 9 18 4 1 4 42
14.3% 21.4% 42.9% 9.5% 2.4% 9.5% 100.0%
Total 10 20 25 6 3 6 70
14.3% 28.6% 35.7% 8.6% 4.3% 8.6% 100.0%
50% of cluster 2 members use Colgate which clearly indicates that Colgate is perceived to be high on
Oral sensory benefits
42.9% of a la carte cluster uses Crest which indicates that Crest is seen as a balanced tooth paste
offering dental care as well as sensory benefits.
Though Arm Hammer has a large proportion of cluster 1 members (caution - the numbers are too low
to give any meaningful interpretation) there is no paste that has a clear positioning for `dental
hygiene’. It offers an opportunity for launching a new product with new ingredients like clove to fight
cavities and offer total `dental care’.
Aqua-fresh and Mentadent are stuck in the middle with no clear positioning. 35
Slide 36
Benefits Sought & Benefit

Segmentation - Summary
• The most Important benefit is `Freshening of Breath’ with an average score of
6.3 on a 1 to 7 Importance scale and the least Important attribute is Àttractive
Packaging’ with a score of 3.4. The high Standard Deviation (Above 1.3) for all
the attributes except `Freshening Breath’ indicates that there are segments that
seek differing benefits.
• The derived importance of benefits obtained by correlating rating of brands on
attributes with overall rating showed a different pattern.
• The stated importance was plotted against derived importance and interpreted
using Kano model. The delight attributes are brand image and innovative
features which have low stated and high derived importance. Cleaning
stains/tartar is a minimum expected attribute.
• Cluster analysis of the Importance ratings yielded the following three benefit
segments.
– Cluster 1 has 12 respondents and the attributes that they look for are – fighting
cavities, whitening teeth and American Dental Association Recommendation – This
can be named as the `dental care’ segment.
– Cluster 2 with 16 respondents is interested in `sensory benefits’ – good taste, likeable
flavor and white teeth.
– Cluster 3 with 42 respondents want a bit of everything – we shall call this a la carte
cluster.
• 50% of cluster 2 members use Colgate which clearly indicates that Colgate is
perceived to be high on Oral sensory benefits. 42.9% of a la carte cluster uses
Crest which indicates that Crest is seen as a balanced tooth paste offering
dental care as well as sensory benefits.
36
107
Slide 37
Competitive Positioning of
Brands
37
Slide 38
Comparative Rating of Brands

Innovative
Fighting Whitening Cleaning Likeable Freshening Attractive features/In
Brand Cavities Teeth Stains/Tartar Good Taste Flavor Breath Brand Image Color Packaging gredients
Aqua-Fresh Mean 7.1639 6.0984 6.6885 6.8361 6.9333 7.4000 6.6393 7.0000 7.1148 6.3934
N 61 61 61 61 60 60 61 61 61 61
Colgate Mean 8.0794 6.9206 7.4839 6.9048 6.9524 7.6508 7.8889 7.0159 7.0317 6.7619
N 63 63 62 63 63 63 63 63 63 63
Crest Mean 8.4127 7.5714 7.9206 8.1587 8.0476 8.3175 8.6984 7.7619 7.7937 7.4127
N 63 63 63 63 63 63 63 63 63 63
Arm & Hammer Mean 9.0000 8.3333 8.3333 6.0000 5.0000 8.6667 7.3333 7.6667 7.3333 8.0000
N 3 3 3 3 3 3 3 3 3 3
Total Mean 7.9105 6.8947 7.3862 7.2842 7.2804 7.8095 7.7474 7.2684 7.3158 6.8789
N 190 190 189 190 189 189 190 190 190 190
Crest has been consistently rated as high on almost all the attributes.
The high rating for Arm & Hammer on some of the attributes will have
to understood against the fact that only three respondents have rated
the same.
38
108
Slide 39
Competitive Positioning Map

10
9
Aqua-Fresh
8
Colgate
7
Crest
6
Arm & Hammer
5
4
g
th
or
e
es
s
oo tar
th
e
vo
in
nt
st
ag
ee
ea
ol
ag
iti
ar
ie
Ta
la
C
Im
T
av
Br
/T
ed
ck
ng
d
C
e
ns
Pa
gr
ng
l
an
ab
g
n i
ai
/ In
ni
G
in
te
ive
Br
St
ke
he
ht
es
hi
Li
ct
g
ng
W
es
ur
Fi
t ra
at
ni
Fr
At
a
fe
le
e
C
tiv
va
no
In
Crest scores over the other two competitors on all attributes. Colgate scores
over Aqua Fresh on all attributes except Attractive Packaging. 39
Slide 40
Brand-Personality Association Data

Brand
Aqua Fresh Colgate Crest Total
ATTRI Outgoing Count 32 18 33 83
% within ATTRI 38.6% 21.7% 39.8% 100.0%
Sensuous Count 13 15 18 46
% within ATTRI 28.3% 32.6% 39.1% 100.0%
Hedonist Count 12 14 9 35
% within ATTRI 34.3% 40.0% 25.7% 100.0%
Fun Loving Count 36 14 29 79
% within ATTRI 45.6% 17.7% 36.7% 100.0%
Achiever Count 9 24 34 67
% within ATTRI 13.4% 35.8% 50.7% 100.0%
Romantic Count 15 18 21 54
% within ATTRI 27.8% 33.3% 38.9% 100.0%
Traditional Count 13 37 33 83
% within ATTRI 15.7% 44.6% 39.8% 100.0%
Ambitious Count 16 17 31 64
% within ATTRI 25.0% 26.6% 48.4% 100.0%
Overcautious Count 12 29 21 62
% within ATTRI 19.4% 46.8% 33.9% 100.0%
Feminine Count 26 11 27 64
% within ATTRI 40.6% 17.2% 42.2% 100.0%
Masculine Count 13 39 17 69
% within ATTRI 18.8% 56.5% 24.6% 100.0%
Total Count 197 236 273 706
% within ATTRI 27.9% 33.4% 38.7% 100.0%
The chi-square value of 77.8 at 20 degrees of freedom is significant at 99.999

percent confidence indicating a strong relationship between brand and personality 40
109
Slide 41
Correspondence Map of Brand-

Personality Profile
.8 Hedonist
Masculine
.6
Aqua Fresh
.4
Fun Loving
Colgate
Overcautious
Dimension 2
.2
Outgoing Sensuous
Romantic
0.0 Feminine
Traditional
-.2
Crest
-.4
Ambitious
-.6 Brand
Achiever
-.8 Personality Trait
-1.0 -.5 0.0 .5 1.0
Dimension 1
Crest is seen to be used by Ambitious Achiever

Colgate is seen to be used by Traditional, overcautious, masculine person
Aqua Fresh is seen as Fun-loving, Feminine and Outgoing. 41
There is no brand available for Romantic, sensuous types…Opportunity for new product
Slide 42
Brand Positioning Using Multi-

Dimensional Scaling
1.0
Crest
.5 Arm&Hammer Colgate
Dimension 2
Mentadent
0.0
Pepsodent
-.5
-1.0
Aqua Fresh
-1.5
-2.0 -1.5 -1.0 -.5 0.0 .5 1.0 1.5 2.0
Dimension 1
Crest and Colgate are seen as very similar.

Mentadent, Arm&Hammer and Pepsodent are seen to be of a different
category.
Aqua Fresh stands out as a unique category.
42
110
Slide 43
Factor Analysis of Brand Rating

Scores
Rotated Component Matrix
a
Component
1 2 3
Cleaning Stains/Tartar .878 .203 .014
Fighting Cavities .763 .051 .103
Whitening Teeth .758 .150 .126
Freshening Breath .550 .220 .484
Innovative
.482 .437 .234
Attractive Packaging .154 .867 .115
Color .013 .830 .323
Brand Image .364 .757 .077
Likeable Flavor .098 .183 .950
Good Taste .152 .195 .933
The first factor can be named as `Dental Hygiene’ as it comprises of Cleaning

Stains/Tartar, Fighting Cavities, Whitening Teeth and Freshening Breath. The variable
Innovative features/Ingredients are seen as offering dental hygiene as well as
contributing to the second factor on Visibility/Brand Image.
The Second Factor is `visibility’ in the store and in the media comprising of Attractive
The third variable refers to `sensory benefits’ – Flavor and Taste 43
Slide 44
Factor Analysis Based Positioning-

Dental Hygiene Vs Visibility
.3
Crest
.2
Visibility
.1
Mentadent
Arm & Hammer

0.0
Colgate
-.1 Aqua-Fresh
-.2
-.6 -.4 -.2 -.0 .2 .4 .6 .8 1.0
Dental Hygiene
Mentadent and Arm&Hammer are seen to deliver high level of dental

hygiene while Crest is seen to have high visibility
44
111
Slide 45

Dental Hygiene Vs Sensory Benefits
1.0
Mentadent
.5
Sensory Benefits
Crest
0.0
Aqua-Fresh
Colgate
-.5
Arm & Hammer

-1.0
-.6 -.4 -.2 -.0 .2 .4 .6 .8 1.0
Dental Hygiene
Mentadent scores high on sensory benefits. Arm&Hammer scores low

on sensory benefits.
45
Slide 46

Visibility Vs Sensory Benefits
1.0
Mentadent
.5
Sensory Benefits
Crest
0.0
Aqua-Fresh
Colgate
-.5
Arm & Hammer

-1.0
-.2 -.1 0.0 .1 .2 .3
Visibility
Colgate and Aqua Fresh get lower rating on both sensory and
visibility factors
46
112
Slide 47
Competitive Positioning of Brands -

Summary
• Crest scores over the other two competitors on all attributes. Colgate scores
over Aqua Fresh on all attributes except Attractive Packaging.
• Correspondence Map of Brand-Personality Profile Indicates the following
– Crest is seen to be used by Ambitious Achiever
– Colgate is seen to be used by Traditional, overcautious, masculine person
– Aqua Fresh is seen as Fun-loving, Feminine and Outgoing.
– There is no brand available for Romantic, sensuous types…Opportunity for new
product
• MDS based positioning indicates the following:
– Crest and Colgate are seen as very similar.
– Mentadent, Arm&Hammer and Pepsodent are seen to be of a different category.
– Aqua Fresh stands out as a unique category.
• Factor analysis of brand ratings resulted in the three factors listed below and
positioning was done on those three factors.
– The first factor can be named as `Dental Hygiene’ as it comprises of Cleaning
Stains/Tartar, Fighting Cavities, Whitening Teeth and Freshening Breath. The variable
Innovative features/Ingredients are seen as offering dental hygiene as well as
contributing to the second factor on Visibility/Brand Image.
– The Second Factor is `visibility’ in the store and in the media comprising of Attractive
– The third variable refers to `sensory benefits’ – Flavor and Taste
47
Slide 48
Evaluation of New Product

Ideas
48
113
Slide 49
Ratings for New Product Ideas

Std.
New product Ideas N Mean Deviation
Transparent tube to see how much is left inside 70 5.01 1.49
Toothpaste containing multi-vitamin 68 4.75 1.74
Tube fitted with dispenser for right amount 70 4.30 1.76
Toothpaste containing colored beads and flavor crystals 70 3.59 1.77
Night paste with sleep inducers 70 3.40 2.29
Make your own tooth-paste kit 70 3.27 2.06
Toothpaste with weight-control formulae (make you feel full after
brushing) 70 3.23 2.24
Use and throw away paste-pre-applied tooth brushes (Better
Hygiene) 70 2.83 1.89
Spicy toothpaste (clove and/or cinnamon) 70 2.81 1.76
Male /Female toothpaste 70 2.80 1.53
Cafinated Tooth paste for a refreshing feeling 70 2.71 1.88
Tooth paste in a big jar (like styling gel) 70 1.79 1.36
Toothpaste that doubles as shaving cream 70 1.54 49
1.30
Slide 50
The best and Unacceptable Ideas

Best Ideas
Unacceptable Ideas
o Toothpaste that doubles as shaving cream
o Tooth paste in a big jar (like styling gel)
Ideas where the opinion varies (Ones with High
Standard Deviation)
o Night paste with sleep inducers
o Toothpaste with weight-control formulae (make you feel full after
brushing)
o Make your own tooth-paste kit (with whitener, mouth wash, foaming
agent, baking soda etc. in different tubes)
50
114
Slide 51
Preference for New Ideas-

Male Vs Female
Make your
own
tooth-paste kit
Toothpaste (with whitener,
with mouth wash,
weight-control foaming
formulae agent, baking
Night paste (make you soda etc. in
with sleep feel full after different
Gender inducers brushing) tubes)
Male Mean 3.6857 2.6571 3.3143
N 35 35 35
Std. Deviation 2.29797 1.98439 2.15258
Female Mean 3.1143 3.8000 3.2286
N 35 35 35
Std. Deviation 2.28514 2.36146 1.98651
Total Mean 3.4000 3.2286 3.2714
N 70 70 70
Std. Deviation 2.29303 2.24042 2.05660
While more males prefer Night-paste with sleep inducers more females
prefer Toothpaste with weight control formulae
51
Slide 52
Age-wise Preference for New Ideas

Make your
own
tooth-paste kit
with mouth wash,
Age inducers brushing) tubes)
18-24 years Mean 3.6034 3.4655 3.3793
N 58 58 58
Std. Deviation 2.34663 2.26503 2.05902
25 and above Mean 2.4167 2.0833 2.7500
N 12 12 12
Std. Deviation 1.78164 1.78164 2.05050
Total Mean 3.4000 3.2286 3.2714
N 70 70 70
Std. Deviation 2.29303 2.24042 2.05660
Younger people are more receptive to new ideas than mature students.
52
115
Slide 53
Benefit Clusters and New product Ideas

Make your
own
tooth-paste kit
with mouth wash,
Benefit Clusters inducers brushing) tubes)
Fight Cavities Mean 3.5833 2.9167 3.6667
N 12 12 12
Std. Deviation 2.60971 2.57464 2.67423
Oral Sensation Mean 3.7500 4.0625 3.3125
N 16 16 16
Std. Deviation 2.35230 2.11246 1.88746
A la carte Mean 3.2143 3.0000 3.1429
N 42 42 42
Std. Deviation 2.21454 2.16401 1.95774
Total Mean 3.4000 3.2286 3.2714
N 70 70 70
Std. Deviation 2.29303 2.24042 2.05660
Members of the oral sensation cluster have a higher preference for a paste
with weight-control formulae
53
Slide 54
Utilities – Derived through Conjoint Analysis

2.3% TUBE 37.5% TASTE
4.15
0.4 0.3167 5
4
0.3 3
0.2 2 -3.45 -0.7
-0.1583 -0.1583 1
0.1 0
0 -1
-2
-0.1 -3
-0.2 -4
Transparent Semi-transparentNon-Transparent Mint Spicy Cafinated
31.3% PRICE
Preferred Levels
3.4833
4 Transparent Tube
Taste and price 3
are the two 2
-0.6167 -2.8667
Mint Taste
1
most important 0
White Color
attributes -1 Crest Brand
-2
-3 Price - $2
2 Dollars 4 Dollars 6 Dollars
14.1% COLOR 14.8% BRAND

1.3417
1.4833
1.5 1.5
1 1 0.3167 -1.6583
0.5 -1.3667 -0.1167 0.5
0
0
-0.5
-0.5 -1
-1 -1.5
-1.5 -2 54
White Red Green Colgate Aqua Fresh Crest
116
Slide 55
Benefit Clusters - Tube

1.5
0.5
Non-Transparent
0
Fight Cavities
Transparent
-0.5 Oral sensation
A la carte
-1 Semi-Transparent
-1.5
-2
-2.5
Transparent Semi-Transparent Non-Transparent Importance

Fight Cavities 0.95 -0.475 -0.475 7.37
Oral sensation 1.1333 0.8083 -1.9417 14.14
A la carte 0.2667 0.1167 -0.3833 3.17
While the tube is immaterial for à la carte’ cluster, transparent tube is

most important for the Oral Sensation Cluster 55
Slide 56
Benefit Clusters - Taste

5
4
Cafinated
3
2
1
Spicy Fight Cavities
0
Mint Oral sensation
-1
A la carte
-2
-3
-4
-5
-6
Mint Spicy Cafinated Importance

Fight Cavities 4.45 -1.85 -2.6 36.48
Oral sensation 2.6333 -4.567 1.9333 33.10
A la carte 4.2667 -3.383 -0.8833 37.36
Oral sensation cluster has a positive preference for cafinated toothpaste
56
117
Slide 57
Benefit Clusters - Color

2.5
2
1.5
1 Green
0.5
Red Fight Cavities
0
Oral sensation
-0.5 White
A la carte
-1
-1.5
-2
-2.5
-3
White Red Green Importance

Fight Cavities 0.45 -0.1 -0.35 4.14
Oral sensation 1.8 -2.525 0.725 19.88
A la carte 1.6 -1.55 -0.05 15.38
While color is immaterial for `Fight Cavities’ cluster, Òral Sensation’ cluster
ahs a positive preference for green color. 57
Slide 58
Benefit Clusters - Brand

2.5
2
1.5
1
0.5
Aqua Fresh Fight Cavities
0
Oral sensation
-0.5 Colgate
Crest A la carte
-1
-1.5
-2
-2.5
-3
Colgate Aqua Fresh Crest Importance

Fight Cavities 0.6167 -2.3083 1.6917 20.70
Oral sensation 0.8 -0.525 -0.275 6.09
A la carte -0.2333 -1.7583 1.9917 18.32
Oral sensation cluster members have a positive preference for Colgate (this
is consistent with earlier results – see slide ) while the other two clusters
prefer Crest. 58
118
Slide 59
Benefit Clusters - Price

4
1
$6 Fight Cavities
0 Oral sensation
$2 A la carte
-1
$4
-2
-3
-4
$2 $4 $6 Importance
Fight Cavities 2.7833 0.4833 -3.2667 31.31
Oral sensation 3.1333 -0.4417 -2.6917 26.78
A la carte 3.1 -0.925 -2.175 25.76
Price is an important factor for all four clusters
59
Slide 60
Male-Female Differences in
Conjoint Utilities
Male -0.2667 0.7583 -0.4917 6.16
Female 0.58333 0.4583 -1.0417 8.02
Male 2.9 -2.7 -0.2 27.6
Female 4.4167 -3.8333 -0.5833 40.7
Male 1.0667 -0.9083 -0.1583 9.73
Female 2.0833 -2.1667 0.0833 20.99
Male 0.4 -1.825 1.425 16.01
Female -0.5833 -0.3333 0.9167 7.41
$2 $4 $6 Importance
Male 4.4 -0.575 -3.8250 40.52
Female 2.25 0.125 -2.375 22.84
While brand and price are more important for males, taste and color
are more important for females.
60
119
Slide 61
White –Nonwhite: Differences in

Conjoint Utilities
White -0.6667 0.0333 0.0333 3.27
Non White 1.0333 -0.0167 -0.0167 5.54
White 3.9333 -3.4667 -0.4667 34.6
Non White 4.3667 -2.9333 -1.4333 38.5
White 1.6 -1.55 -0.05 14.72
Non White 2.0333 -1.5167 -0.5167 18.73
White 0.2667 -2.13333 1.8667 18.69
Non White -0.3 -0.35 0.65 5.28
$2 $4 $6 Importance
White 3.2667 -0.3833 -2.8883 28.76
Non White 3.3667 -0.6833 -2.6833 31.93
Brand is more important for Whites
61
Slide 62
Age-wise Conjoint Utilities

Less Than 25 0.6333 -0.0667 -0.5667 5.77
25 and Above -0.05 0.025 0.025 0.42
Less Than 25 4.3 -3.9 -0.4 39.4
25 and Above 3.1167 -1.6833 -1.4333 26.7
Less Than 25 1.9667 -1.9833 0.0167 18.99
25 and Above 1.45 -1.85 0.4 18.36
Less Than 25 -0.0333 -1.2333 1.2667 12.02
25 and Above 0.2833 -1.1417 0.8583 11.13
$2 $4 $6 Importance
Less Than 25 2.6333 -0.3167 -2.3167 23.80
25 and Above 4.45 -1.1 -3.35 43.39
While taste is important for younger students, price is important for

mature students. 62
120
Slide 63
Income-wise Conjoint Utilities

Less Than $3000 0.85 -0.05 -0.8 7.51
$30,000 - $80,000 -0.7667 0.2583 0.5083 7.38
$80,001 - $125,000 1.35 -0.175 -1.175 11.90
Above $125,000 0.2 0.4 -0.6 5.55
Less Than $3000 4.1833 -3.4667 -1.4333 34.81
$30,000 - $80,000 3.0667 0.4667 -0.7167 21.89
$80,001 - $125,000 3.85 -4.05 -3.5333 37.22
Above $125,000 3.8667 -4.1833 0.2 44.66
Less Than $3000 2.35 -2.425 0.075 21.73
$30,000 - $80,000 -0.1 -0.825 0.925 10.13
$80,001 - $125,000 1.85 -1.3 -0.55 14.84
Above $125,000 1.2 -1.1 -0.1 12.76
Less Than $3000 0.0167 -1.2583 1.2417 11.38
$30,000 - $80,000 0.5667 -2.9083 2.3417 30.38
$80,001 - $125,000 0.0167 -1.0083 0.9917 9.42
Above $125,000 0.0333 -0.1417 0.1083 1.39
$2 $4 $6 Importance
Less Than $3000 2.85 -0.3 -2.5500 24.57
$30,000 - $80,000 3.2333 -1.2417 -1.9917 30.23
$80,001 - $125,000 3.1833 -0.7167 -2.4667 26.62
Above $125,000 2.7 1.025 -3.725 35.64
While the middle income is sensitive to brand, high income is taste and price sensitive.
Though they are willing to pay up to 4 dollars per tube, the utility drops drastically when the
63
price goes up to 6 dollars
Slide 64
Evaluation of New Product Ideas -

Summary
• 13 new product ideas were rated for intention to buy and
the following four got short-listed as best ideas.
• More males prefer Night-paste with sleep inducers more
females prefer Toothpaste with weight control formulae
• Members of the oral sensation cluster have a higher
preference for a paste with weight-control formulae
• Conjoint analysis indicates that taste and price are the
two most important attributes
• Transparent tube appears to be the preferred choice of
majority of respondents
64
121
Slide 65
Psycho-graphic Segmentation
65
Slide 66
Factor Analysis of Psychographics

Variables
Scree Plot
4
Component Rotation Sums of Squared Loadings 3

Total % of VariancCumulative %
1 2.41 10.06 10.06
2 2.41 10.03 20.09
2
3 2.15 8.94 29.03
4 1.99 8.27 37.30
5 1.92 7.99 45.29
6 1.89 7.88 53.17 1
Eigenvalue
7 1.37 5.71 58.88

8 1.23 5.13 64.00
0
1 3 5 7 9 11 13 15 17 19 21 23
Component Number
66
122
Slide 67
Factor Loading Matrix for Psychographics data

Variables 1 2 3 4 5 6 7 8
I am very sensitive to what others think about me. 0.82 0.14 -0.09 -0.07 0.12 -0.06 0.12 0.21
I always worry about my past failures. 0.75 0.03 -0.07 0.23 0.04 0.05 -0.08 -0.18
I like to follow what others do. 0.72 -0.16 0.02 -0.18 -0.07 0.03 -0.02 0.27
I am very concerned about my looks 0.06 0.81 -0.12 0.00 0.03 0.05 -0.10 0.26
I take a lot of care about the dress I wear -0.05 0.76 0.18 0.03 0.09 0.10 0.04 -0.15
I believe in keeping myself physically fit. 0.06 0.61 0.07 0.27 0.05 0.04 0.38 -0.20
I keep thinking about my future. 0.29 0.51 0.33 -0.07 0.13 -0.20 0.10 -0.31
I am more conventional than experimental 0.31 -0.47 -0.32 -0.03 0.02 0.02 0.04 -0.16
I am very inquisitive like a child. -0.02 0.13 0.75 0.05 -0.11 -0.16 0.08 0.17
I am always playful -0.06 0.17 0.65 0.22 0.30 -0.05 -0.03 -0.01
I like to try new and different things -0.26 0.03 0.58 0.08 -0.12 0.31 0.07 -0.19
I love whatever work I do. -0.02 -0.09 0.08 0.83 0.07 -0.05 -0.03 -0.02
I like to be different in whatever I do. -0.05 0.27 0.11 0.75 0.04 -0.11 0.04 0.05
Love and sex are great distractions to achieving ones objectives. 0.11 0.08 -0.08 0.06 0.72 0.29 0.13 -0.09
I dislike being left alone. -0.04 0.27 0.15 0.09 0.59 -0.27 0.06 0.29
I try to understand deeply about anything that I study 0.13 0.05 0.41 0.52 -0.55 0.03 0.19 -0.08
I act on my hunches 0.14 -0.06 0.46 0.06 0.52 0.20 -0.22 -0.20
I'm a "spender" rather than a "saver." 0.05 0.20 -0.03 0.01 0.22 0.71 -0.17 0.02
I am a little fickle minded 0.36 -0.13 -0.15 -0.08 -0.16 0.61 0.15 0.20
My objective in life is to acquire wealth to the maximum extent
possible. -0.09 0.02 -0.05 -0.32 0.30 0.53 0.05 0.21
I love to have good food every day. -0.34 -0.02 0.29 -0.05 -0.12 0.52 0.03 0.01
I am very organized -0.07 0.10 0.02 -0.09 -0.06 0.04 0.85 -0.01
I am sensitive to others feelings 0.23 -0.09 0.06 0.31 0.34 -0.16 0.54 67
0.07
I'd say I'm rebelling against the way I was brought up 0.21 -0.01 0.03 0.00 0.03 0.19 0.01 0.73
Slide 68
Factor Labeling
Factor – 1 (External Locus of Control) Factor – 5 (goal-oriented)
o I am very sensitive to what others think o Love and sex are great distractions to achieving
about me. ones objectives.
o I always worry about my past failures. o I dislike being left alone.
o I like to follow what others do. o I try to understand deeply about anything that I
study
o I act on my hunches
Factor - 2 (Internal Locus of Control)
o I am very concerned about my looks
o I take a lot of care about the dress I wear Factor 6 (Fun Loving)
o I believe in keeping myself physically fit. o I'm a "spender" rather than a "saver."
o I keep thinking about my future. o I am a little fickle minded
o I am more conventional than experimental o My objective in life is to acquire wealth to the
maximum extent possible.
o I love to have good food every day.
Factor – 3 (Creative)
o I am very inquisitive like a child.
Factor 7 (Rule Bound)
o I am always playful
o I am very organized
o I like to try new and different things
o I am sensitive to others feelings
Factor – 4 (Unique)
o I love whatever work I do. Factor8 (Rebel)
o I'd say I'm rebelling against the way I was
o I like to be different in whatever I do. brought up
68
123
Slide 69
Psychographics Segments Using

Factor Scores
1 2 3 4 5
External Locus of Control -0.171 0.371 0.079 -0.897 0.461
Internal Locus of Control -0.228 -0.030 -0.735 0.397 0.564
Creative -0.159 0.806 -0.516 -0.384 -0.267
Unique -0.695 0.544 0.074 1.027 -0.540
Goal oriented -0.707 0.323 0.707 -0.802 0.175
Fun Loving -0.057 -0.291 -0.411 -0.046 0.567
Rule Bound -0.437 -0.311 -0.214 0.527 0.481
Rebel -1.085 -0.333 1.018 0.234 0.459
Cluster 1 - Middle of the Road

Cluster 2 - Creative /Unique
Cluster 3 - Goal Directed Rebels
Cluster 4 - Systematic Achiever
Cluster 5 - Inner Directed individual 69
Slide 70
Age Vs Psycho-graphic Segments
Cluster Number of Case

Middle of Creative/ Goal Directed Systematic Inner Directed
the Road Unique Rebels Achiever Individual Total
Age 18-24 years Count 7 15 11 6 15 54
% within Age 13.0% 27.8% 20.4% 11.1% 27.8% 100.0%
25-29 years Count 5 2 0 3 1 11
% within Age 45.5% 18.2% .0% 27.3% 9.1% 100.0%
Total Count 12 17 11 9 16 65
% within Age 18.5% 26.2% 16.9% 13.8% 24.6% 100.0%
‫אּ‬2 value of 10.8 at 4 degrees of freedom has a significance level of 0.029
Close to half the mature student population falls in the middle of the road
category and also have a large representation in the systematic achiever
category.
The younger people are spread across other segments.
70
124
Slide 71
Income Vs Psycho-graphic
Segments
INCOME Less than $30,000 Count 4 11 5 5 9 34
% within INCOME 11.8% 32.4% 14.7% 14.7% 26.5% 100.0%
$30,000 to $80,000 Count 5 0 1 2 1 9
% within INCOME 55.6% .0% 11.1% 22.2% 11.1% 100.0%
$80,001 to $125,000 Count 1 4 1 1 3 10
% within INCOME 10.0% 40.0% 10.0% 10.0% 30.0% 100.0%
Above $125,000 Count 2 2 4 1 3 12
% within INCOME 16.7% 16.7% 33.3% 8.3% 25.0% 100.0%
Total Count 12 17 11 9 16 65
% within INCOME 18.5% 26.2% 16.9% 13.8% 24.6% 100.0%
More middle income people fall in the Middle of the Road category while
larger proportion of high income people fall in the goal directed rebels
category.
‫אּ‬2 value of 16 at
Due to the small sample size the level of significance of
12 degrees of freedom has only significance level of 0.187 71
Slide 72
Gender Vs Psycho-graphic
segments
Gender Male Count 9 7 6 3 8 33
% within Gender 27.3% 21.2% 18.2% 9.1% 24.2% 100.0%
Female Count 3 10 5 6 8 32
% within Gender 9.4% 31.3% 15.6% 18.8% 25.0% 100.0%
Total Count 12 17 11 9 16 65
% within Gender 18.5% 26.2% 16.9% 13.8% 24.6% 100.0%
‫אּ‬2 value of 4.6 at 4 degrees of freedom has significance level of 0.33
Thought the chi-square value is not significant some patterns are

evident.
The Middle of the Road category has a larger proportion of males and
the systematic achievers category has more females.
72
125
Slide 73
Brand Used Vs Psycho-graphic

Segments
CURRENT
Aqua-Fresh Colgate Crest Others Total
Cluster Middle of the Road Count 2 3 4 3 12
Number % within Cluster
of Case 16.7% 25.0% 33.3% 25.0% 100.0%
Number of Case
Creative/Unique Count 1 5 7 4 17
% within Cluster
5.9% 29.4% 41.2% 23.5% 100.0%
Number of Case
Goal Directed Rebels Count 3 1 4 3 11
% within Cluster
27.3% 9.1% 36.4% 27.3% 100.0%
Number of Case
Systematic Achiever Count 0 4 3 2 9
% within Cluster
.0% 44.4% 33.3% 22.2% 100.0%
Number of Case
Inner Directed Individual Count 3 5 6 2 16
% within Cluster
18.8% 31.3% 37.5% 12.5% 100.0%
Number of Case
Total Count 9 18 24 14 65
% within Cluster
13.8% 27.7% 36.9% 21.5% 100.0%
Number of Case
The relationship between brand used and the psycho graphic segments is not statistically
significant. Large sample sizes will be needed to establish firm relationships.
73
Slide 74
Psycho-graphic Segmentation -
Summary
• Factor analysis of the ratings of 24 statements yielded
eight factors.
• These eight factor scores were clustered to arrive at the
following five segments
– Cluster 1 - Middle of the Road
– Cluster 2 - Creative /Unique
– Cluster 3 - Goal Directed Rebels
– Cluster 4 - Systematic Achiever
– Cluster 5 - Inner Directed individual
• The relationship between brand used and the psycho graphic
segments is not statistically significant. Large sample sizes will be
needed to establish firm relationships.
74
126

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Use of regression analysis in marketing research is explained in Chapter 6. The problem

Chapter Topic Page No.

1. To understand Data view and Variable view in SPSS data file.

DATA VIEW VS VARIABLE VIEW:

Open the file `descriptives.sav’

Data View- variable View

Study the variable definitions.

Note that Nickname is a `STRING VARIABLE’

All others are `NUMERIC VARIABLES’

LABELS AND VALUE LABELS

These are the codes used for the variable class.

Now shift to Data view and then click:

Let us first of try to understand the profile of respondents.

RAW VARIABLE VS TRANSFORMED VARIABLES:

Suppose we want to know on an average how many brands a person is aware of , we

Note that we are forming a numeric expression

Aware = q01a + q01b + q01c + q01c + q01d + q01e + q01f + q01g

No. Of Brands Aware

No. Of Brands Aware

trial = q02a + q02b + q02c + q02d + q02e + q02f + q02g

And find the frequency distribution of the number of brands tried.

MEAN, STANDARD DEVIATION AND VARIANCE:

Try the following SPSS Commands.

You will get the following output

N Minimum Maximum Mean Std. Deviation Variance

CROSSTABS AND CHI-SQUARE TEST:

Try the following SPSS Commands

ch-square value of 10.707 at 5 degrees of freedom is significant at 0.058, i.e. at a

Degrees of freedom = (no. of rows -1) x (no. of columns – 1)

The following output will be obtained.

No. Of Brands Aware

Independent Samples Test

Use factor Analysis for Brand positioning

Open the file factor.sav

q06b01 …... q06b11

q06c01 …... q06c11

q06d01 …... q06d11

Rearranged Data for further Analysis

Mean Ratings for Brands

Arm & Hammer

Factor analysis is used to understand the underlying dimensions of a set of variables

Now take a look at the variance explained matrix.

Component Initial Eigen values Rotation Sums of Squared Loadings

REGR factor REGR factor REGR factor

Factor -1 Factor - 2 Factor - 3

Now take a look at the Scree Plot

-.4 Color Brand Image

Then compute mean ratings by executing the following commands.

You will get the following output.

Using this data create a new SPSS file – factor1.sav

Good Freshening Cleaning Stains

Likeable Whitening Teeth

To understand the basics of Kano Model

To learn how to calculate derived Importance weights for attributes

We will be using two different data files for this analysis.

N Minimum Maximum Mean Std. Deviation

Importance Weight = (Mean/Sum of Means)*100

Develop the following Stated Importance weights table.

Use the following commands.

Derived Importance Weights

Stated Vs Derived Importance

Crest is seen to be used by Ambitious Achiever