Use discriminant analysis to categorize your insights.

Discriminant analysis is a statistical function that groups subjects based on a collection of predictor variables. To illustrate, imagine that your business wants to introduce a product or service to a new market. An analyst could use demographic information about existing users to establish a set of predictors for who among the new group is likely to adopt.

The applications of discriminant analysis with regard to marketing science are vast.

• Predict a subject’s probability of group membership based on a single variable.
• In more complex scenarios, predict a subject’s likelihood of group membership based on several variables.
• Distinguish between different groupings of subjects using predictive capabilities.
• Develop graphic representations of predictive models.

The word “subjects” here can mean both products or services and customers. In short, discriminant analysis has versatile applications for end users. Your marketing team can employ the results of discriminant analysis to:

• Determine the category to which a new offering belongs by comparing its attributes with those of existing goods or services. Position products more effectively.
• Group existing customers according to their attributes. Use this information to market more effectively to different categories of user.
• Predict to which categories new prospects most likely belong, and use your advanced insight to make successful entry in a new market.

FGI’s team of professionals can help you make the most of your data to accomplish these objectives and others. At your request, we can design an optimal study, collect and report your data, apply our robust analytical capabilities, and produce actionable recommendations that help drive business results.

Contact a representative to explore the full range of opportunities available to you and learn more about our offerings.