Blog Archives

TURF Analysis: A Bad Answer to the Wrong Question

September 29, 2014
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TURF Analysis: A Bad Answer to the Wrong Question

Now that R has a package performing Total Unduplicated Reach and Frequency (TURF) Analysis, it might be a good time to issue a warning to all R users. DON'T DO IT!The technique itself is straight out of media buying from the 1950s. Given some number of...

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Recognizing Patterns in the Purchase Process by Following the Pathways Marked By Others

September 28, 2014
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Recognizing Patterns in the Purchase Process by Following the Pathways Marked By Others

Herbert Simon's "ant on the beach" does not search for food in a straight line because the environment is not uniform with pebbles, pools and rough terrain. At least the ant's decision making is confined to the 3-dimensional space defining the beach. C...

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What is Cluster Analysis? A Projective Test

September 22, 2014
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What is Cluster Analysis? A Projective Test

Supposedly, projective tests (e.g., the inkblots of psychoanalysis) contain sufficient ambiguity that "what you see" reveals some aspect of your thinking that has escaped your awareness. Although the following will provide no insight into your neurotic...

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The New Consumer Requires an Updated Market Segmentation

September 18, 2014
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The New Consumer Requires an Updated Market Segmentation

The new consumer is the old consumer with more options and fewer prohibitions. Douglas Holt calls it the postmodern market defined by differentiation: "consumer identities are being fragmented, proliferated, recombined, and turned into salabl...

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The Ecology of Data Matrices: A Metaphor for Simultaneous Clustering

September 13, 2014
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The Ecology of Data Matrices: A Metaphor for Simultaneous Clustering

"...a metaphor is an affair between a predicate with a past and an object that yields while protesting." Nelson Goodman (1976)It is, as if, data matrices were alive. The rows are species, and the columns are habitats. At least that seems to be the...

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Attention Is Preference: A Foundation Derived from Brand Involvement Segmentation

September 1, 2014
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Attention Is Preference: A Foundation Derived from Brand Involvement Segmentation

"A wealth of information creates a poverty of attention."Herbert SimonWe categorize our world so that we can ignore most of it. In order to see figure, everything else must become ground. Once learned, the process seems automatic, and we forget how har...

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Continuous or Discrete Latent Structure? Correspondence Analysis vs. Nonnegative Matrix Factorization

August 25, 2014
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Continuous or Discrete Latent Structure? Correspondence Analysis vs. Nonnegative Matrix Factorization

A map gives us the big picture, which is why mapping has become so important in marketing research. What is the perceptual structure underlying the European automotive market? All we need is a contingency table with cars as the rows, attributes as the ...

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Extracting Latent Variables from Rating Scales: Factor Analysis vs. Nonnegative Matrix Factorization

August 21, 2014
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Extracting Latent Variables from Rating Scales: Factor Analysis vs. Nonnegative Matrix Factorization

For many of us, factor analysis provides a gateway to learning how to run and interpret nonnegative matrix factorization (NMF). This post will analyze a set of ratings on a 218 item adjective checklist using both principal axis factor analysis and NMF....

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Exploiting Heterogeneity to Reveal Consumer Preference: Data Matrix Factorization

August 11, 2014
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Exploiting Heterogeneity to Reveal Consumer Preference: Data Matrix Factorization

We begin with a data matrix, a set of numbers arrayed so that each row contains information from a different consumer. Marketing research focuses on the consumer, but the columns are permitted more freedom, although they ought to tell us something abou...

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Customer Segmentation Using Purchase History: Another Example of Matrix Factorization

August 2, 2014
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Customer Segmentation Using Purchase History: Another Example of Matrix Factorization

As promised in my last post, I am following up with another example of how to perform market segmentations with nonnegative matrix factorization. Included with the R package bayesm is a dataset called Scotch containing the purchase history for 21 brand...

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