1. Response Analysis

2. Example: Opening of Cinema/ Children’s Park/Exhibition Center
To find consumer responses to opening of Cinema, Children’s park or Exhibition
903 respondents were asked to rate each alternative on a 5 point scale: 1(v.low) to 5 (v.high)
The analyst also collected demographic data on the respondents

3. Example: Opening of Cinema/ Children’s Park/Exhibition Center
Dependent var - % of positive responses
Indep variables (with coding in parenthesis)
Gender: Male (1), Female (2)
Age: (1)
21-24 (2)
25-34 (3)
35-44 (4)
45-54 (5)
55-64 (6)
(7)
Socio-economic group had 6 categories:A(1), B(2), C1(3), C2(4) etc

4. Response Analysis: Chi-Squared Automatic Interaction Detection(CHAID)
CHAID is a dependence method.
For given dependent variable we want technique that can
1. Indicate independent variable that most affects dependent variable
2. Identify market segments that differ most on these important indep. var.

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

6. Multiple Discriminant Analysis and Logistic Regression(MDA & LR)
Appropriate when dep. var. is categorical and indep. var. are metric
MDA derives variate that best distinguishes between a priori groups
MDA sets variate’s weights to maximize between-group variance relative to within-group variance