Correspondance Analysis
| Correspondence Analysis“Letting the data speak” | ST 3003 Marketing Research |
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What is Correspondence Analysis?
Whenever it is possible to categorize events into two or more different sets of categories, a cross tabulation can be used. This can also be considered as a Matrix. However reliable conclusions cannot be made just by observing these values in the matrix.
Correspondence Analysis is a statistical technique to extract useful information graphically out of this matrix.
Why is it important?
The strength of the technique is in its capability of revealing the structure of a complex matrix using a simpler matrix in low dimensions without losing essential information. It also allows one to present the results visually, which makes the analysis easier. Another advantage of this technique is that it can be used to analyze both qualitative and quantitative variables.
What is a Brand map?
Brand mapping is often used in brand research by placing products and attributes together on a map. This allows close interpretation of company perceptions with a variety of product and service attributes simultaneously. (See Figure 1)
Graphical interpretation of a Brand map
Brands are strongly associated with the attributes which are closest to them on the map. From this a clear understanding can be gained about what attributes are associated with which product. If products are placed close to each other on the brand map, it means that they have a similar image in the market. The relative association of brands with an attribute can be determined by drawing a perpendicular line from the attribute vector line (i.e. line from the origin to the attribute point) to each of the brands. The distance between the brand and the attribute is the distance between the attribute location and where the perpendicular line crosses the attribute vector line.
The center of the brand maps (the cross on the map), represents the overall mean of each attribute, and is
|
What is Correspondence Analysis?
Whenever it is possible to categorize events into two or more different sets of categories, a cross tabulation can be used. This can also be considered as a Matrix. However reliable conclusions cannot be made just by observing these values in the matrix.
Correspondence Analysis is a statistical technique to extract useful information graphically out of this matrix.
Why is it important?
The strength of the technique is in its capability of revealing the structure of a complex matrix using a simpler matrix in low dimensions without losing essential information. It also allows one to present the results visually, which makes the analysis easier. Another advantage of this technique is that it can be used to analyze both qualitative and quantitative variables.
What is a Brand map?
Brand mapping is often used in brand research by placing products and attributes together on a map. This allows close interpretation of company perceptions with a variety of product and service attributes simultaneously. (See Figure 1)
Graphical interpretation of a Brand map
Brands are strongly associated with the attributes which are closest to them on the map. From this a clear understanding can be gained about what attributes are associated with which product. If products are placed close to each other on the brand map, it means that they have a similar image in the market. The relative association of brands with an attribute can be determined by drawing a perpendicular line from the attribute vector line (i.e. line from the origin to the attribute point) to each of the brands. The distance between the brand and the attribute is the distance between the attribute location and where the perpendicular line crosses the attribute vector line.
The center of the brand maps (the cross on the map), represents the overall mean of each attribute, and is
References: Mike Bendixen (2003) A Practical Guide to the Use of Correspondence Analysis in Marketing Research University of Witwatersrand South Africa B2B International Market Research (2013) Brand Mapping in Brand Research http://www.b2binternational.com/techniques-tools/statistical-techniques/brand-map/ Phillip M. Yelland Mathematica Journal (2013) Volume 12 http://www.mathematica-journal.com/2010/09/an-introduction-to-correspondence-analysis/ Appendix Table 1: Key to statements and food Table 2: Frequency of response Figure 1: Asymmetric plot of breakfast food data with statements in standard coordinates Figure 1: Asymmetric plot of breakfast food data with statements in standard coordinates Figure 2: Plot of breakfast food in statement labeled space