A high-end market research firm has contacted your boss and is trying to sell some business to your organization. Upper management does not want to appear incompetent, so they have asked you to research and explain three major ways multivariate statistics are used in a business.
Provide at least 1 example of how a real company has used each of the following multivariate techniques: factor analysis, multi-dimensional scaling, and cluster analysis. Companies that provide statistics software websites and market research firm websites usually include case studies and customer testimonials.
Also, Write an e-mail explaining to upper management the chosen multivariate technique, how it is different than the other 2 techniques, how at least one other real-life company has used this technique to address a business problem and how that technique might be used at your own organization.
Factor analysis, in general, refers to a set of procedures primarily used for data reduction and summarization. Factor analysis is used for
? Identifying underlying factors that explain the correlations among a set of variables. For example, identifying the psychographic characteristics of individuals who regularly purchase from lifestyle stores
? Identifying a new uncorrelated variable as a replacement for the original set of correlated variables in subsequent multivariate analysis. For example, psychographic variable can be used as independent variable in multivariate regression to explain differences amongst age groups in purchasing from life style stores
Example: Gallup Research uses factor analysis to understand the engagement of employees in organizations.
Multi-dimensional scaling is a technique to represent perceptions and ...
This posting contains compares three multivariate techiniques. It also gives an example of an organization using these techniques.