Case study questions Conglomerate Inc s New PDA 1 Boya Jiang PDF

Preview

Summary

note...

Description

Marketing Engineering Case #1: Conglomerate Inc’s New PDA Boya Jiang Case study questions: 1. Run segmentation analysis with discriminant analysis included. Based on the results, identify distinct segments present in the market. (1) Decide on the number of clusters in your final segmentation solution.

I decide to use four clusters, because the four clusters distance is 1.45.

(2) Present the table for the means of the segmentation variables for each segment.

Cluster Sizes The following table lists the size of the population and of each segment, in both absolute and relative terms. Cluster Cluster Cluster Cluster Size / Cluster Overall 1 2 3 4 Number of 160 56 51 16 37 observations Proportion 1 0.35 0.319 0.1 0.231

Segmentation Variables Means of each segmentation variable for each segment. Cluster Cluster Segmentation Overall 1 2 variable / Cluster Innovator 3.47 3.71 2.43 Use Message 4.21 3.68 5.63 Use Cell 5.56 5.84 5.43 Use PIM 4.01 5.89 2.33 Inf Passive 4.45 5.02 3.88 Inf Active 4.5 5.2 3.9 Remote Access 3.99 3.86 5.04 Share Inf 3.71 3.39 3.73 Monitor 4.79 4.29 5.55 Email 4.72 5.96 3.31 Web 4.47 5.66 3.04 Mmedia 4.01 5.2 2.45 Ergonomic 4.63 3.95 4.16 Monthly 28.8 24.6 25.3

Cluster 3 2.19 3.19 4.31 3.06 6.12 6.25 5.31 6.12 5 2.88 1.44 1.94 5.5 45.3

Cluster 4 5.11 3.49 5.84 3.86 3.65 3.51 2.16 3.14 4.43 5.59 5.97 5.27 5.95 32.6

Price

332

290

273

488

411

(3) Present the table for the means of the discriminant variables for each segment.

Discriminant Variables Means of each discriminant variable for each segment. Discriminant Overall Cluster 1 Cluster 2 variable / Cluster Away 4.206 4.357 4.843 Education 2.506 2.482 2.196 PDA 0.438 0.446 0.176 Income 66.894 62.589 60.529 Business Week 0.275 0.304 0.176 Mgourmet 0.019 0 0 PC 0.981 1 1 Construction 0.081 0.054 0.059 Emergency 0.038 0.018 0.02 Cell 0.875 0.911 0.902 Computers 0.231 0.179 0.137 Sales 0.3 0.536 0.235 Service 0.181 0.107 0.392 Age 40.006 43.071 36.765 Field & Stream 0.125 0.036 0.235 PC Magazine 0.244 0.143 0.294 Professional 0.162 0.089 0.157

Cluster 3 5.375 1.938 0.188 52.438 0 0 0.812 0.312 0.188 0.625 0.312 0.062 0.125 42.188 0.312 0.25 0

Cluster 4 2.595 3.216 0.892 88.432 0.486 0.081 1 0.054 0.027 0.892 0.405 0.135 0.027 38.892 0.027 0.324 0.351

(4) Based on the above results, discuss: A. How are the customers’ needs different in different segments? Hint: look at the table for segmentation variables cluster 1 ‘s Means of segmentation variable higher use Cell and PIM and email, lower in monitor, ergonomic and monthly. cluster 2‘s Means of segmentation variable higher Use Message, Monitor ,lower in Use PIM, Price cluster3 ‘s Means of segmentation variable higher Inf Passive, Inf Active, Remote Access. Share Inf, Monthly, Price, lower in Innovator, Use Message, Use Cell, Email, Web, Mmedia. cluster 4 ‘s Means of segmentation variable higher Innovator, Use Cell, Web, Mmedia, Ergonomic,l , ower in Inf Passive, Inf Active, Remote Access. Share Inf,

B What kind of people are the customers in each segment? Hint: look at the table for discriminant variables. Cluster1 age is biggest, like high sale, low PC Magazine, Emergency, Construction Cluster2 age is minimum, lower use computer and PDA, highest pay attention on service Cluster 3 highest away, construction and emergency and Field & Stream, lower education income business week Mgourmet cell and professional. Cluster 4 highest Education PDA Income Business Week Mgourmet PC Computers and PC Magazine, lower in Field & Stream, Service, Construction and Away.

2. Based on your analysis, which segment do you think should be the target market? My target market is cluster 4 Because based on the date of two tables, the cluster 3 is too small, only 10% of market, clusters PDA is o, cluster 1 love sale and less information on PDA, but cluster 4 have 0.231 of market, and their behavioral habits, income level is more in line with product design.

Technical totes: (1) After you install the software, all the cases will be found in a folder “My marketing engineering”. This case is named “ConneCtor PDA 2001 (segmentation)”. Both the case and dataset needed for the case are included. (2) To run the analysis, go to “segmentation and classification”, then “run segmentation”. Remember to select “standardize data” and “enable discriminant analysis”. (3) A tutorial for segmentation analysis can be found in the software...