8.mv - correspondence analysis

8/13/2019 8.MV - Correspondence Analysis

1/17

December 25, 2013

Application of Multivariate Statistical Methods inMarketing Research

Industrial Statistics

MS3001

Advanced Marketing Research

Faculty of ScienceUniversity of Colombo

Session 5Correspondence Analysis


2/17

December 25, 2013

Illustration

I am keen on understanding how consumers perceive retailchains (banners) on key attributes.

I want to discover positioning gaps, if any, in the oral care

category.

What are the prominent imagery parameters in my category?

What are the parameters where my brand is strong, and which

my brand owns?

Correspondence Analysis


3/17

December 25, 2013

Correspondence Analysis

An attribute-based positioning exercise.

Respondents associate objects (brands) on a set of attributes. No rating or ranking involved, only yes and no responses.

The resulting frequency data are used to generate a

correspondence map, often called a brand map.

Too many objects (brands) and too many attributes could resulted in

maps that are useless.

Typically 2D outputs are forced. Maps with more dimensions haveproblems of interpretation.


4/17


5/17

December 25, 2013

What is Correspondence Analysis (CA)?

Correspondence analysis is a technique for summarizinglarge tables of data in terms of a visual map CA analyses respondents perceptions of the similarity or

dissimilarity of certain brands, products and services across arange of attributes

Maps present simple graphical summaries of a market: forexample: Brand positioning: the relationship between brands and attributes The relationship between current brand positioning and the ideal

positioning Image ratings by brand users, segments, etc

Research Questions Answered?What attributes do consumers associate my brand with?What are my brands / competitors strengths and

weaknesses maps present results of cross-tabs or count data visually need to consider the absolute scores and relative scores in

explaining the research findings


6/17

December 25, 2013

Data Table: Cereal Brands Image DataCOCO

POPS FRUITYBIXKELLOGG

S CORN

FLAKESKELLOGG

S RICE

BUBBLES NUTRI-GRAIN VITABRITS WEET-BIXWEETBI

X

CRUNCH MILOHigh in fibre 3% 11% 11% 4% 19% 41% 73% 2% 1%Good source of

energy 11% 12% 26% 12% 46% 34% 63% 2% 6%Most nutritious

breakfast 2% 8% 17% 5% 19% 29% 65% 1% 1%Meets my familys

needs 14% 8% 36% 17% 25% 21% 54% 1% 3%Australian owned &

made 6% 5% 19% 10% 11% 18% 53% 2% 2%Children like the

taste 69% 12% 23% 34% 32% 8% 22% 1% 8%Good for kids

10%

12%

31%

19%

22%

33%

66%

2%

3%

Good value for

money 8% 4% 35% 16% 12% 23% 60% 1% 1%Like the taste 37% 12% 43% 26% 38% 19% 47% 2% 5%Meets my needs 11% 7% 31% 13% 22% 20% 53% 1% 3%Low in sugar 2% 4% 24% 13% 8% 37% 70% 1% 0%Convenient 33% 17% 49% 33% 36% 29% 61% 2% 6%My kids want it 45% 5% 14% 21% 23% 4% 17% 1% 5%Everyone eats it 18% 3% 48% 19% 20% 11% 46% 1% 3%A brand I trust 22% 10% 53% 31% 29% 26% 64% 2% 4%Number 1 cereal

brand 6% 1% 33% 7% 9% 4% 28% 1% 1%


7/17

December 25, 2013

Input for Correspondence Maps

Attitudinal data are most common

Brand association grids are a typical type of input Anything with absent / present type scores is appropriate (eg. Yes

associate that brand with that attribute, or no dont associate it) Tables of either percentages or raw numbers are acceptable

Means can be used

Whether based on means, or percentages, correspondence maps

usually provide similar results. Often maps are just based onpercentage data


8/17

December 25, 2013

Points to consider withCorrespondence analysis

What is the minimum number of attributes?This is subjective, but a map of data with fewer than four brands

(columns) or 8 attributes (rows) may be relatively uninformative

Sample size issues are less critical than insegmentation studies, as analysis has a qualitative feel

about itBut a sample size of between 200-400 would be a minimum

threshold

Care is needed with interpretationOverplaying weak relationships

Underplaying strong relationshipsUsing overly precise language in describing the map


9/17

December 25, 2013

COCO

POPS FRUITY BIX

KELLOGGS

CORN

FLAKES

KELLOGGS

RICE

BUBBLES

NUTRI-

GRAIN VITA BRITS WEET-BIX

WEETBIX

CRUNCH MILO Average

High in fibre 3% 11% 11% 4% 19% 41% 73% 2% 1% 18%

Good source of energy 11% 12% 26% 12% 46% 34% 63% 2% 6% 24%

Most nutritious breakfast 2% 8% 17% 5% 19% 29% 65% 1% 1% 16%

Meets my familys needs 14% 8% 36% 17% 25% 21% 54% 1% 3% 20%

Australian owned & made 6% 5% 19% 10% 11% 18% 53% 2% 2% 14%

Children like the taste 69% 12% 23% 34% 32% 8% 22% 1% 8% 23%

Good for kids 10% 12% 31% 19% 22% 33% 66% 2% 3% 22%

Good value for money 8% 4% 35% 16% 12% 23% 60% 1% 1% 18%

Like the taste 37% 12% 43% 26% 38% 19% 47% 2% 5% 25%

Meets my needs 11% 7% 31% 13% 22% 20% 53% 1% 3% 18%

Low in sugar 2% 4% 24% 13% 8% 37% 70% 1% 0% 18%

Convenient 33% 17% 49% 33% 36% 29% 61% 2% 6% 30%

My kids want it 45% 5% 14% 21% 23% 4% 17% 1% 5% 15%

Everyone eats it 18% 3% 48% 19% 20% 11% 46% 1% 3% 19%

A brand I trust 22% 10% 53% 31% 29% 26% 64% 2% 4% 27%

Number 1 cereal brand 6% 1% 33% 7% 9% 4% 28% 1% 1% 10%

Average 18% 8% 31% 17% 23% 22% 53% 1% 3%

Data Table: Cereal Brands Image Data


10/17

December 25, 2013

Correspondence Map: Example 1

High in fibre

Good source of energy

t nutritious breakfast

Meets my familys needs

Australian owned & made

Children like the taste

Good for kids

Good value for money

Like the taste

Meets my needs

ugar

Convenient

My kids want it

Everyone eats it

A brand I trust

Number 1 cereal brand

COCO POPS

FRUITY BIX

KELLOGGS CORN FLAKES

KELLOGGS RICE BUBBLES

NUTRI-GRAIN

VITA BRITS

WEET-BIX

WEETBIX CRUNCH MILO

Axis 2 16.8%

Axis 1

73.7%

Cereal Brand Ima e Data

= Correlation < 0.50


11/17

December 25, 2013

Interpreting the Map

Brands that are closeto each other are seen to have

similarprofiles in the eyes of the consumer

Brands are located next to attributes which are their

greatest relative strength(I.e. consumers feel most

characterise the brand)

Attributes that differentiatethe brands are close to theedges.

Attributes that do not discriminate (i.e. could be

considered are generic to the category) are located near

the centre of the map

The axes also have meaning (but not in terms of positivev/s negative)the horizontal is more important than the

vertical. Thus, the position of a brand relative to the

horizontal axis is more important than its location vertically


12/17

December 25, 2013

Interpreting Correspondence Maps

Angle in d Correlation Level of Correlation/Association

0 1 Perfect +ve

15 0.97 +ve Correlation



60 0.5 Some +ve

75 0.26 Small +ve

90 0 No association105 -0.26 Small oppostite -ve

120 -0.5 Some oppostite -ve

135 -0.71 -ve Correlation



180 -1 Perfect opposite ve

Distance from the origin to the brand or attribute:Brands furthest

from the origin, particularly horizontally (east or west), are more

distinct than brands nearer the middle of the map. Similarly forattributes.

Relationships between brands and attributes:The smaller the angle

between a brand and an attribute the more that attribute applies to

that brand. Brands that are 180 degrees apart have the opposite

positioning to each other. Brands at right angles are simply different

or uncorrelated. Attributes that are at right angles to a brand have

no association with that brand.


13/17

December 25, 2013

Correspondence Map: UK ST Data Example 2

ASDA SAINSBURY MORRISONS SOMERFIELD WAITROSE LIDL ALDI COOP KWIK SAVE NETTO

MARKS &

SPENCER TESCO

Convenient to get to 49 58 50 48 37 41 42 57 19 29 35 69

Staff provide good service 60 66 54 34 67 28 37 40 21 18 73 65

Food and Groceries are VFM 75 55 67 34 40 71 70 31 47 54 36 75

Everything I need in the one shop 70 59 52 19 41 17 19 15 14 11 22 74

Well presented display of products 64 71 56 30 65 20 28 26 18 15 69 69

Always have what I want in stock 53 49 45 18 46 18 19 15 14 12 33 54

Better selection of high quality products 52 66 46 18 72 15 17 17 10 13 72 62

Wide product range and variety 70 71 60 24 59 25 29 19 17 15 45 74

Is close to home 44 52 46 46 35 40 37 56 21 32 37 60

Modern, comfortable store 63 69 53 28 62 25 33 24 15 19 65 69

Good quality instant foods 59 65 54 26 65 21 26 22 15 13 76 65

Good range of fresh products 66 75 66 32 72 30 32 24 19 18 72 74

Attractive and interesting promotions 56 54 60 33 33 48 49 25 22 37 35 66

It's easy to find what I need 52 56 53 33 47 34 41 39 27 26 45 64

Low prices for most items 74 38 62 30 17 73 74 23 38 58 13 67

Clean and hygienic store 67 74 64 38 70 45 55 43 26 31 81 76

Ease of parking 67 66 64 36 50 62 65 33 26 46 28 72

High quality fresh food 65 75 65 33 76 32 36 31 19 21 82 72

Spacious 68 66 55 27 59 28 34 22 21 19 51 71

Efficient checkout counters 61 63 53 28 63 28 36 26 20 17 61 67

Provides good own brand alternatives 67 72 57 36 58 34 44 36 27 18 72 78

Long opening hours 74 66 47 23 33 26 22 42 15 22 24 86

Has programs that reward regular purch 25 69 27 13 20 8 8 28 7 4 18 83


14/17

December 25, 2013

Convenient to get to

Staff provide good service

Food and Groceries are VFM

Everything I need in the one shop

Well presented display of products

Always have what I want in stock

Better selection of high quality products

Wide product range and variety

Is close to home

Modern, comfortable store

Good quality instant foodsGood range of fresh

Good promotions

It's easy to find what I need

Low prices for most items

Clean and hygienic store

Ease of parking

High quality fresh food

Spacious

Efficient checkout counters

Provides good own brand alternatives

Long opening hours

Has programs that reward regular purchases

ASDA

SAINSBURY

MORRISONS

SOMERFIELD

WAITROSE

LIDL

ALDI

COOP

KWIK SAVE NETTO

MARKS & SPENCER

TESCO

Axis 2 19%

Axis 1

61.4%

2008 ACNielsen, 2006= Correlation < 0.50

Correspondence Map: UK ST Data Example 2


15/17

December 25, 2013

Data Table: Cereal Brands Image Data

COCO

POPS FRUITYBIXKELLOGGS

CORN

FLAKESKELLOGGS

RICE

BUBBLES NUTRI-GRAIN VITA BRITS WEET-BIX WEETBIXCRUNCH MILOHigh in fibre 3% 11% 11% 4% 19% 41% 73% 2% 1%Good source of energy 11% 12% 26% 12% 46% 34% 63% 2% 6%Most nutritious breakfast 2% 8% 17% 5% 19% 29% 65% 1% 1%Meets my familys needs 14% 8% 36% 17% 25% 21% 54% 1% 3%

Australian owned & made 6% 5% 19% 10% 11% 18% 53% 2% 2%Children like the taste 69% 12% 23% 34% 32% 8% 22% 1% 8%Good for kids 10% 12% 31% 19% 22% 33% 66% 2% 3%Good value for money 8% 4% 35% 16% 12% 23% 60% 1% 1%Like the taste 37% 12% 43% 26% 38% 19% 47% 2% 5%Meets my needs 11% 7% 31% 13% 22% 20% 53% 1% 3%

Low in sugar 2% 4% 24% 13% 8% 37% 70% 1% 0%Convenient 33% 17% 49% 33% 36% 29% 61% 2% 6%My kids want it 45% 5% 14% 21% 23% 4% 17% 1% 5%Everyone eats it 18% 3% 48% 19% 20% 11% 46% 1% 3%A brand I trust 22% 10% 53% 31% 29% 26% 64% 2% 4%Number 1 cereal brand 6% 1% 33% 7% 9% 4% 28% 1% 1%


16/17

December 25, 2013

Biplot: Example Cereals

Biplots use

absolutedata values

High in fibre

Good source of energy

Most nutritious breakfast

Meets my familys needs

Australian owned & made

Children like the taste

Good for kids

Good value for money

Like the taste

Meets my needs

Low in sugar

Convenient

My kids want it

Everyone eats it

A brand I trust

Number 1 cereal brand

COCO POPS

FRUITY BIX

KELLOGGS CORN FLAKES

KELLOGGS RICE BUBBLES NUTRI-GRAIN

VITA BRITS

WEET-BIX

WEETBIX CRUNCH

MILO

Axis 2 16%

Axis 1

77.1%

Cereal Brand Ima e Data Projector

Projector II


17/17

December 25, 2013

Correspondence Analysis -Summary

CA.... Summarises large amount of

information from tables

succinctly and visually

Identifies relationships

between statements, betweenbrands & between statements

and brands

Removes halo effects of

brands as it is a relative

analysis Probably need to show

absolute scores as well

But....

CA can... Be misinterpreted - map

presented visually, highlights

relative strengths of brands

mean numbers from analysis

difficult to interpret Be hard to compare different

different maps - how different

they are?

Should be described in

qualitative, or passivelanguage...eg brands tends to

be or near to

8.mv - correspondence analysis

Documents