Data Analysis

May 14, 2011

Do data have structures?
Research data have underlying structures
Understanding structures makes the data
manageable, interesting and useful
Patterns and Exceptions
Patterns
Data may show, buyers of brand A are less
affluent than buyers of brand B
Younger consumers buy a brand more often
than older consumers
Exceptions
Brand A is bought mostly by women except in
Hyderabad where it is bought mostly by men
Example Two variables Bivariate Analysis
Ratings of a brand X on a 10-point scales

Men Women
Flavor 8.5 8.7
Taste 7.3 7.6
Color 6.4 6.1
Strength 7.7 7.5
Consistency 6.0 6.3
Package 6.1 3.2
Texture 4.6 5.9
Looking for Structures
STORES
Statement A B C D E Mean
Friendly staff 87 84 90 93 91 89
Knowledgeable
staff
82 81 88 89 86 85
Helpful staff 78 74 77 83 84 79
Variety of Items 82 78 85 85 83 83
Satisfied
Customers
87 80 89 92 94 88
Meets cust Expec 76 71 77 83 81 78
Deli v on
promises
80 76 82 90 87 83
Meets needs 81 75 83 88 88 83
Low credit int 72 65 66 75 79 71
Everyday Shopng 90 86 90 91 93 90
Specialty Prod 75 73 74 79 81 76
Convnt hrs 94 81 81 90 95 88
Conv Location 85 85 90 82 84 85
No wait Chkout 76 63 57 83 85 73
Attractive store 82 77 86 85 85 83
Mean 82 77 81 86 86 82
Questions
What is the relationship among stores?
Which stores seem to be similar?
Are there specific attributes on which some
stores are rated better than on others?
Are there groups of stores that are perceived
similarly?
Removing Attribute Effect [Column (Store) effect]
STORES
Statement A B C D E Mean
Friendly staff 5 7 9 7 5 7
Knowledgeable
staff
0 4 7 3 0 3
Helpful staff -4 -3 -4 -3 -2 -3
Variety of Items 0 1 4 -1 -3 1
Satisfies Cust 5 3 8 6 8 6
Meets cust Expec -6 -6 -4 -3 -5 -4
Deli v on
promises
-2 -1 1 4 1 1
Meets needs -1 -2 2 2 2 1
Low credit int -10 -12 -15 -11 -7 -11
Everyday Shopng 8 9 9 5 7 8
Specialty Prod -7 -4 -7 -7 -5 -6
Convnt hrs 12 4 0 4 9 6
Conv Location 3 8 9 -4 -2 3
No wait Chkout -6 -14 -24 -3 -1 9
Attractive store 0 0 5 -1 -1 1
Mean 0 0 0 0 0 0
Row Attribute and Column (Store) effect Removed
STORES
Statement A B C D E Mean
Friendly staff -2 0 2 0 -2 0
Knowledgeable
staff
-3 1 4 0 -3 0
Helpful staff -1 0 -1 0 1 0
Variety of Items -1 0 3 -2 -4 0
Satisfies Cust -1 -3 2 0 2 0
Meets cust Expec -2 -2 0 1 -1 0
Deli v on
promises
-3 -2 0 3 0 0
Meets needs -2 -3 1 1 1 0
Low credit int 1 -1 -4 0 4 0
Everyday Shopng 0 1 1 -3 -1 0
Specialty Prod -1 2 -1 -1 1 0
Convnt hrs 6 -2 -6 -2 3 0
Conv Location 0 5 6 -7 -5 0
No wait Chkout 3 -5 -15 6 8 0
Attractive store -1 -1 4 -2 -2 0
Mean 0 0 0 0 0 0
Store, Attribute and Random Noise effect Removed
STORES
Statement A B C D E Mean
Friendly staff - - - - - 0
Knowledgeable
staff
- - 4 - - 0
Helpful staff - - - - - 0
Variety of Items - - - - -4 0
Satisfies Cust - - - - - 0
Meets cust Expec - - - - - 0
Deli v on
promises
- - - - - 0
Meets needs - - - - - 0
Low credit int - - -4 - 4 0
Everyday Shopng - - - - - 0
Specialty Prod - - - - - 0
Convnt hrs 6 - -6 - - 0
Conv Location - 5 6 -7 -5 0
No wait Chkout - -5 -15 6 8 0
Attractive store - - 4 - - 0
Mean 0 0 0 0 0 0
Some Patterns Stand Out clearly
Store A is considered to have convenient hours;
store C is not considered to have convenient
hours
The attribute No wait for check out clearly
discriminates stores : store C is perceived inferior
while stores B, D and E are perceived superior
Store E is perceived to lack variety
Store E offers lower interest rates; store C does
not

Patterns not obvious initially
STORES
Statement A B C D E Mean
Friendly staff 87 84 90 93 91 89
Knowledgeable
staff
82 81 88 89 86 85
Helpful staff 78 74 77 83 84 79
Variety of Items 82 78 85 85 83 83
Satisfied
Customers
87 80 89 92 94 88
Meets cust Expec 76 71 77 83 81 78
Deli v on
promises
80 76 82 90 87 83
Meets needs 81 75 83 88 88 83
Low credit int 72 65 66 75 79 71
Everyday Shopng 90 86 90 91 93 90
Specialty Prod 75 73 74 79 81 76
Convnt hrs 94 81 81 90 95 88
Conv Location 85 85 90 82 84 85
No wait Chkout 76 63 57 83 85 73
Attractive store 82 77 86 85 85 83
Mean 82 77 81 86 86 82
Procedure explained is known as row and
column centering
The analysis can be made more sophisticated
by standardizing the deviations
Learning so far
There are hidden structures in data
We can uncover such hidden structures by
eliminating the variables that prevent us from
seeing such patterns
Such variables could be column effects, row
effects, variability effects or some other effects
Bi-variate analysis may not always be the best
way to uncover structures
Analysis to identify the structure can be carried
out in more than one way

How are techniques classified?
Two basic types of Analysis

Structural and Functional
Structural Methods
Which variables are similar?
Which consumers can be grouped together for
marketing purposes?
Questions:
Can we group consumers who are similar with
regard to benefits they expect from a
product?
Can we identify variables that elicit a similar
response from consumers?
Functional Methods
Such techniques try to explain a variable in
terms of other variables: What variables
determine sales?
What demographic characteristics predict a
voters intention?
Questions:
Can we relate a consumers ratings of a product
with his or her purchase intentions?
Commonly used Multivariate
Techniques
Structural Techniques Functional Techniques
Factor Analysis Regression Analysis
Cluster Analysis Covariance Analysis
Perceptual mapping Discriminant Analysis
Correspondence analysis Classification tree analysis
Techniques for Bivariate Analysis
Variable Nominal Interval/Ratio
Nominal Chi Sq Discriminant
Interval/Ratio ANOVA Reg/Cor
Independent Variable
Dependant
Variable