Response Analysis
Example: Opening of Cinema/
Children’s Park/Exhibition Center
• To find consumer responses to opening
of Cinema, Children’s park or Exhibition
• 903 respondents were asked to rate
each alternative on a 5 point scale:
1(v.low) to 5 (v.high)
• The analyst also collected demographic
data on the respondents
Example: Opening of Cinema/
Children’s Park/Exhibition Center
• Dependent var - % of positive responses
• Indep variables (with coding in parenthesis)
Gender: Male (1), Female (2)
Age: 16-20 (1)
21-24 (2)
25-34 (3)
35-44 (4)
45-54 (5)
55-64 (6)
65+ (7)
Socio-economic group had 6
categories:A(1), B(2), C1(3), C2(4) etc
Response Analysis: Chi-Squared Automatic
Interaction Detection(CHAID)
• CHAID is a dependence method.
• For given dependent variable we want
technique that can
1. Indicate independent variable that most
affects dependent variable
2. Identify market segments that differ most
on these important indep. var.
General procedure for CHAID
1. First select independent variable whose
subgroups differ most w.r.t dependent variable
2. Each subgroup of this variable is further divided
into subgroups on remaining variables
3. These subgroups are tested for differences
on dependent variable
4. Variable with greatest difference is selected next
5. Continue until subgroups are too small
Multiple Discriminant Analysis and Logistic
Regression(MDA & LR)
• Appropriate when dep. var. is categorical
and indep. var. are metric
• MDA derives variate that best
distinguishes between a priori groups
• MDA sets variate’s weights to maximize
between-group variance relative to withingroup variance