Exam 10: Multivariate Methods of Marketing Research I: Factor, cluster, and Discriminant Analyses

Use the following table from a cluster analysis to answer the following questions. Agglomeration Schedule for Centroid Hierarchical Cluster Analysis -When Budweiser Light joins with a cluster,identify all of the other brands already in the cluster it joins.

The best analysis technique for discovering segments within a market is

In cluster analysis it is especially dangerous if the ranges of the variables are dramatically different.

Factor analysis can help determine coefficients in multiple regression,because

Hierarchical clustering works well if a researcher needs a fixed number of clusters,whereas nonhierarchical clustering is more useful when one needs to compare different clustering solutions.

One of the primary problems with the principal components analysis of factor analysis is that it can take most of the variance to explain the first factor and leave little variance for other factors to explain.

In dependence models,no variable or variables are designated as being predicted by others,because the researcher is interested in the interrelationships among all of the variables taken together.

What is a latent class,and how does it apply to segmentation analysis?

In simple terms,_______________ works on dividing up data points so that those in the same group are close to one another while those in different groups are far away.

Discriminant analysis can only be used for a binary nominal dependent variable.

A problem in developing a scale is in weighting the variables being combined in the scale._______________ can do this by using the _______________ as the weights.

Identify the three steps in a factor analysis solution.

Knowing the value that someone scores on the principle factor after a varimax rotation tells you _______________ their score on other factors.

All of the following of real-world uses of discriminant analysis except

Factor analysis can be used for all of the following applications in marketing research except

Factor analysis can be used for data transformations by identifying covariates that are exactly uncorrelated and make good inputs for dependence methods.

In factor analysis,the object of the initial extraction is to

A z-transformation is done by

Discuss the possible applications in marketing research for factor analysis.

Both _______________ analyses are classified as data reduction methods because they take a great deal of data and summarize them with a much smaller set of quantities.