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Presentation On Discriminant Analysis, Factor Analysis & Conjoint Analysis Presented by Sandip Magar

This document provides an overview of discriminant analysis, factor analysis, and conjoint analysis. It defines discriminant analysis as classifying objects into groups based on measurements. Factor analysis identifies unobservable factors inferred from variables. Conjoint analysis measures the joint effects of independent variables on a dependent variable. The document outlines procedures for each technique and discusses their assumptions and limitations.

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jagdish magar
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87 views

Presentation On Discriminant Analysis, Factor Analysis & Conjoint Analysis Presented by Sandip Magar

This document provides an overview of discriminant analysis, factor analysis, and conjoint analysis. It defines discriminant analysis as classifying objects into groups based on measurements. Factor analysis identifies unobservable factors inferred from variables. Conjoint analysis measures the joint effects of independent variables on a dependent variable. The document outlines procedures for each technique and discusses their assumptions and limitations.

Uploaded by

jagdish magar
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Presentation On

Discriminant Analysis, Factor Analysis &


Conjoint Analysis

Presented By
Sandip Magar
Discriminant Analysis
Idea & Purpose

– Objective is to find a linear combination


of independent variables that make the
mean scores across categories of
dependent variables on this linear
combination maximally different.
– Used to classify objects into two or more
alternative groups on the basis of a set of
measurements.
Discriminant Analysis Procedure
 Obtain a random sample of objects from each class (these are
objects whose membership is known) This is known as the
“training” or “learning” sample.

 Submit the training sample to a Discriminant Analysis and obtain a


set of discriminant functions. These functions are used implicitly by
for example SPSS or SAS, so you do not need to see or know them.

 The information on these functions is stored in a dataset that is


created within the program.

 The same procedure allows a true validation of the classification


functions by using a file that contains objects of known
membership to be classified using only the information on the
variables and the classification functions developed with the
“training” or “learning” sample
Factor Analysis

Factor:
 A variable or a construct that is not directly
observable but needs to be inferred
from input variables

Eigenvalue:
 Amount of variance in the original variables
that are associated with the factor
Factor Analysis

Percentage of Variance Criteria: The number of


factors extracted is determined so that the
cumulative percentage of variance extracted by
the variance reaches a satisfactory level.

Factor Score: Value of each factor for all


respondents
Disadvantages of Factor
Analysis
 Subjective

 Does not make use of any standard

 Statistical tests
Conjoint Analysis

– Measure joint effects of two or more


independent variables on the ordering of
a dependent variable

– Quantitative measure of relative


importance of one attribute over another
Conducting Conjoint Analysis
Formulate the Problem
 Identify the attributes and attribute levels to be used in
constructing the stimuli.
 The attributes selected should be salient in influencing
consumer preference and choice and should be actionable.
 A typical conjoint analysis study involves six or seven
attributes.
 At least three levels should be used, unless the attribute
naturally occurs in binary form (two levels).
 The researcher should take into account the attribute levels
prevalent in the marketplace and the objectives of the study.
Conducting Conjoint Analysis
Decide on the Form of Input
Data
 For non-metric data, the respondents are typically required to
provide rank-order evaluations.
 In the metric form, the respondents provide ratings, rather
than rankings. In this case, the judgments are typically made
independently.
 In recent years, the use of ratings has become increasingly
common.
 The dependent variable is usually preference or intention to
buy. However, the conjoint methodology is flexible and can
accommodate a range of other dependent variables, including
actual purchase or choice.
 In evaluating sneaker profiles, respondents were required to
provide preference.
Assumptions and Limitations of
Conjoint Analysis
 Conjoint analysis assumes that the important attributes of a
product can be identified.
 It assumes that consumers evaluate the choice alternatives in
terms of these attributes and make tradeoffs.
 The tradeoff model may not be a good representation of the
choice process.
 Another limitation is that data collection may be complex,
particularly if a large number of attributes are involved and
the model must be estimated at the individual level.
 The part-worth functions are not unique.
References

 www.wikipedia.com
 Business Research – By Gupta
 www.google.com
Thank you !

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