Analytical Techniques

Strategic Marketing & Research, Inc., (SMARI) will employ different analytical techniques, depending on the specific needs of the client. Here are methods that might be employed in a typical market research project:

Cluster Analysis

A technique used when large quantities of information about customers or prospects need to be classified into manageable, meaningful sets.  The idea is to identify groups of individuals who are similar on some set of characteristics, yet as a whole different from other groups.

Conjoint Analysis

This method examines hypothetical trade-offs to determine the combination of attributes that are the most appealing to consumers.  With this information, clients can focus on optimal features of their product or service, simulate probable market response to changes, and design messages that will most likely resonate with target buyers.

Correspondence Analysis

A flexible tool employed when market researchers want to analyze data that is in categorical form. Sometimes words work better than numbers when respondents are asked to describe a product or service. Brand attribute ratings are collected in the form of words or imagery, which enables us to show the relationships among this non-numerical data.

Decision Tree Algorithms

Also known as CHAID (Chi-squared Automatic Interaction Detector), this form of analysis studies the relationship between a dependent variable and a group of predictor variables to find those that best predict the dependent measure.  The developed model takes the form of a “tree trunk” with progressive splits into smaller and smaller “branches.”

Discriminant Analysis

This is the study of the differences between two or more groups of objects with respect to several variables simultaneously.  It is commonly linked to the use of perceptual mapping. A major application in marketing is to discern which attributes best distinguish or discriminate among the various objects.

Factor Analysis

This data simplification procedure is often used to find the underlying common threads among a collection of product or service attributes, resulting in condensed and more useful information.

Key Driver Analysis

This statistical technique is used for measuring the impact of underlying factors on the overall view of a product or service. Results of this technique help managers target marketing and development priorities.

Loyalty Matrix

In order to build customer loyalty, companies must first understand the dynamics of consumer purchasing behavior. This type of chart depicts the relationship between rational satisfaction against the emotional depth of the relationship.

Perceptual Analysis

This analysis quantifies the perceptions and images consumers may have about a product by assessing how similar or dissimilar they perceive it to be from other related products. The program plots these concepts as points in a geometric space so they are visually displayed as a picture, or product map.

Quadrant Analysis

This is a graphic representation of a target group’s perceptions of how well a product or service performs in terms of the group’s satisfaction with a certain attribute versus how important they feel this attribute is to the overall product or service.

Regression Analysis

It is used to statistically quantify the relationship between variables. Knowing the quantified relationship between the variables allows SMARI to help businesses perform a variety of forecasting functions.

Significance Difference Testing

This testing determines whether or not a finding is the result of a genuine difference between two or more items or groups, or whether it is just due to chance.

Van Westindorp Modeling

It’s also referred to as the Price Sensitivity Meter. This technique involves respondents answering a series of price-related questions about a product, then statistically evaluating the answers and creating a chart depicting valuable information such as the point of marginal cheapness, the point of marginal expensiveness, the indifference price point and, of course, the optimal price point for the product.