How to analyze market statistics?

<p id="isPasted">Here are six models of analysis that professionals may use to analyze market research:</p><p><strong>Multiple regression</strong></p><p>Multiple regression is a statistical model that tries to find the equation that best explains how the changes of an independent variable affect dependent variables. For example, to determine what a successful new product design would be for your notepad company, you could analyze what colors, sizes and paper types had higher sales revenue in the past.</p><p>Related: <a href="https://www.indeed.com/career-advice/career-development/multiple-regression-analysis-definition" target="_blank" rel="noopener noreferrer">Multiple Regression Analysis: Definition and How To Calculate</a></p><p><strong>Discriminant analysis</strong></p><p>Discriminant analysis organizes data into two or more categories. You can use this method to find out why some factors result in specific outcomes. This can help you determine best practices for any aspect of your business, like your products, your customers or even your distribution styles for each product. For example, you can use data about customers' purchasing habits to determine which of your products appeal to which demographics. This can help you segment your products for more direct marketing.</p><p><strong>Factor analysis</strong></p><p>Factor analysis determines which factors in any given situation have the strongest correlation. You can use this to identify the factors that determine your revenue. If the notepad company is trying to understand what makes its notepads appealing to specific demographics, it can use factor analysis to determine two or three factors about its notepads that make one set appeal to a particular customer group vs. another. The company can then use these factors to guide new product designs.</p><p><strong>Cluster analysis</strong></p><p>Cluster analysis is establishing clusters of things that have similarities. The idea is to create as many clusters of similarities as possible. There may be some clusters that overlap, which can help you identify multiple ways to market to a specific audience. Essentially, cluster analysis is useful for recognizing patterns, and the more patterns you can recognize, the more information you can use in your marketing.</p><p>You can use cluster analysis to determine market segmentation. For example, if you work for the notepad company, all your customers write on paper. However, some customers work in business and some customers are teachers. Recognizing the similarities and differences between these groups can help you market to them more effectively.</p><p><strong>Conjoint analysis</strong></p><p>Conjoint analysis is identifying the attributes of a product, then conducting research to determine which attributes influence the customer's decision to buy and at what price point. Conjoint analysis tries to determine the utility of each attribute, meaning what the customer uses it for, and the relative importance of each attribute, meaning how important it is to the customer's decision to buy that product.</p><p><strong>Multidimensional scaling</strong></p><p>Multidimensional scaling is a type of analysis that compares a company or product to its competitors by organizing them on a map. The similarities of the product's attributes determine where each competitor is on the map.</p><p>For instance, as a notepad seller, you may place other notepad brands with the same target markets and price points very close to your product in the center of the map. A little further away, you may place notepads that are at different price points or have different target markets. On the part of the map the furthest away from your product, you may place other stationary brands that sell items similar to your notepads but aren't direct competitors. This can help you determine where you are in your market and what your strengths are compared to your competitors.</p>