Group Member Name: (Group No-4)
Ritu Sarda- 220791
Shubhi Garg-220704
Vaijanti S Haldankar- 220782
Himanshu Gang-220728
Anjali Jhanwar- 220741
SHIVA TOURIST DHABA: MANAGING CUSTOMER LOYALTY
Research: Conjoint Discriminant Analysis
1. In this study, what was the primary objective of the marketing research team?
The primary objective of this study is to identify on which metric variable, the categoric
variable “LOYALTY”, is dependent on. The study appears to have used canonical
discriminant analysis to identify the key variables that differentiate between groups of
customers with different levels of loyalty towards the brand. The study analysed various
variables such as advertising, price, place, product quality, service quality, product variety,
store atmosphere, promotions, and gifts, and identified the variables that had the highest
correlation with each discriminant function. The study also reported the percentage of
variance explained by each function and the classification statistics indicating the accuracy
of the discriminant analysis in predicting group membership. Overall, the study seems to
have been conducted to understand the drivers of customer loyalty towards a brand and to
help the brand improve its marketing strategy to retain loyal customers and attract new ones.
2. How can market researchers gain insight into the value propositions and offerings
that lead to high customer loyalty?
Eigenvalues
Based on the output provided, the results show that the first canonical discriminant function
explains 99.8% of the variance, while the second function explains only 0.2%. The canonical
correlation of function 1 is 0.992 and function 2 is 0.332.
Wilks’ lambda
By Analysing we see that Wilks’ Lambda 0.014 of function 1 is close to zero that
signifies there is clear distinction between groups and reflects better discriminating
power of the model (must be between 0 to 1).
Also, significance is low i.e., 0 suggest better discriminant power. This function is
giving us a higher explanation of variables, so we can depend or relate with the
analysis.
The probability value of the F-test shows discrimination between groups is highly
significant p< 0.05 at 18 degrees of freedom.
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