Quantitative Research (Cluster and Regression Analysis) Essay

quantitative Research (Cluster and Regression Analysis) - Essay ExampleIn most of the marketing selective information sets like the cardinal taken now for analysis none of these two conditions hold.Data were collected from the database provided by the chain store, the verity program of which were researched upon. In any supermarket store loyalty, the location of the store plays a major role as a determinant for the loyalty of the customer (Messinger & Narasimhan, 1997 Engel et al., 1995). In this study the location of the three stores chosen would in spades have affected the purchasing behavior of the customers. Hence the study becomes weak in its identification of the data source. Another weakness of the data has been discover in the varying proportion of the various categories of buying which allow for have an influence on the application of the cluster analysis technique.The study has not identified the occur number of customers of the three stores and hence it would be dif ficult to comment on the randomness of the sample selected. A comparison of the do number of customers and the number constituting the sample size would have thrown some write down on the comparability of the loyal customers between the customers who shopped generally during the period under study and the number of customers who opted to design the loyalty program.Basis for Collection of Information - Clustering VariablesThe collection of information and clustering considering the percentage of total share of wallet within product categories instead of taking into account the total purchases would have been a much better presentation of data under the research method of clustering analysis. The variables selected are cold too general to form an opinion on the customer loyalty. The clustering lacks seriously because of the massiveness of data considered under the general clustering variables. For sure these clustering variables would have been subjected to behavioral benchmarking . It would be interesting to remember the behavioral factors like shopping frequency, tolerance of price increase etc. (Lacey, 2003)Validation of the ClustersThe study has apply the numerical taxonomy process to group the members into segments (Bunn, 1993 McKelvey, 1975 Punj and Stewart, 1983) However no clarity appears to be in sight in determining the range of potential market structures. Initially the number of groups ranged from two to eleven. Although the study has used the conquer testing and analysis methods like scree testing, discriminant analysis and regression analysis to arrive at a particular number of groups as cluster groups, there is the lack of a scientific variation among the different groups evolved for study. There are possibilities that a slight change in the scaling would have vitiated the results especially in the middle range groups. This may be either due to problems of scaling as observed by Long (1997) or due to large volume of data analysed.According t o Long (1997) leveling is a common cause of problems when numerical or interdependence methods are utilized, with the ratio between the largest beat deviation and the smallest standard deviation considered heuristically predictive of the likelihood and size of