Description
Big D Incorporated will be examining how multivariate techniques can serve the organization best and how they can be applied to their new client, the outdoor sporting goods customer. The Board of Directors has asked you to research and explain 3 major ways in which multivariate statistics are utilized in this scenario. In this case, be sure to justify your decision.
Research using the library and the Internet to find at least 1 example of how a real company has used each of the following multivariate techniques: factor analysis, multidimensional scaling, and cluster analysis. This can be considered a benchmark if you can justify how it could benefit Big D Incorporated.
Write a summary to upper management explaining the following:
- How can each multivariate technique be utilized in Big D Incorporated, and what purpose would each serve?
- Which technique is your preferred method, and how is your chosen multivariate technique different from the other two techniques?
- What will the Board of Directors learn from your selected technique and more importantly, how will it contribute to the overall decision-making process? Ensure that your explanation is clear and concise in its explanation.
Scenario
Big Data is everywhere and various businesses around the world are driven by Big Data. However, while some businesses rely on Big Data for organizational decision making, this does not mean that the implications and applications of Big Data are properly used to ensure optimal effectiveness for the organization
For this scenario, you have been appointed as the Business Analyst for Big D Incorporated charged with providing authoritative recommendations to the Board of Directors. As the Business Analyst, the recommendation you provide will be based upon data calculated from statistical appropriate formulas. Be reminded that you are not the company’s statistician yet the Business Analyst and therefore responsible for interpreting statistical data and making the appropriate recommendations.
Big D Incorporated was offered a series of business opportunities and it is your job as the Business Analyst to provide expert insight and justification for recommendations regarding these potential prospects.
Explanation & Answer
Attached.
Running head: SUCCESSFUL MULTIVARIATE TECHNIQUES IN BIG D
INCORPORATION
OUTLINE, SUCCESSFUL MULTIVARIATE TECHNIQUES IN BIG D
INCORPORATION
The attached report entails the following parts:
Introduction
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Definition of multivariate techniques
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Importance of customer data collection and its accuracy
Factor analysis
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Factor analysis in marketing
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Factor analysis in Insurance Companies
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Factor analysis in Financial Institutions
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How factor analysis can be used by Big D company
Multidimensional scaling
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Multidimensional scaling in marketing-mix
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Multidimensional scaling in product comparison survey
Cluster analysis
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Business application of clustering
Appropriate multivariate technique
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Cluster analysis
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How will Big D make decision using Cluster analysis
Conclusion
References
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Running head: SUCCESSFUL MULTIVARIATE TECHNIQUES IN BIG D
INCORPORATION
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SUCCESSFUL MULTIVARIATE TECHNIQUES IN BIG D INCORPORATION
Name:
Institution affiliation:
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SUCCESSFUL MULTIVARIATE TECHNIQUES IN BIG D INCORPORATION
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SUCCESSFUL MULTIVARIATE TECHNIQUES IN BIG D INCORPORATION
Introduction
In the current marketplace, firms are ever scrambling for customers due to increased sellers
and availability of a variety of substitutes that can satisfy needs. Every firm is keen not only to
retain its customers but also to attract more (Conley & Friedenwald-Fishman, 2006). The reason
for the struggle is profit making. The aim of every firm is to maximize profit. First, profit is
calculated by subtracting the total cost from total revenue. It, therefore, follows that the firm can
increase its profit using two techniques. First, it can reduce total cost. Second, it can increase total
revenue. The first option is limited as some expenses cannot be avoided nor decreased. For
instance, the fixed cost must be incurred regardless of the output produced by the firm. Further,
the firm has to take the price of its low materials existing in the markets as they are determined
solely by the forces of demand and supply. The firm is therefore left with the option of maximizing
revenue. Revenue is the product of price and quantity sold. Relevant information is required to
achieve this.
Definition of multivariate techniques
Multivariate techniques entail statistical data analysis methods that are employed to
analyze data that has more than one variable (Duarte Silva, 2001). Each product, situation or
decision will involve many variables. For instance, several factors may influence the consumer to
decide whether to make a purchase or not. The factors can be the fraction of the income that the
product will take, the price of the related good, the future expectation of prices and his/her taste.
SUCCESSFUL MULTIVARIATE TECHNIQUES IN BIG D INCORPORATION
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All these are variables that will be analyzed to determine if the consumer will buy. This is an
example of a multivariate analysis.
Importance of customer data collection and its accuracy
The firm can increase its quantity by increasing the number of customers that buy its
products. For the ...