Multivariate Analysis

Definition All statistical techniques which simultaneously analyze more than two variables on a sample of observations In other words, the multivariate analysis helps the researcher in evaluating the relationships between multiple (more than two) variables simultaneously. The subject of multivariate analysis deals with the statistical analysis of the data collected on more than one (response) variable. These variables may be correlated with each other, and their statistical dependence is often taken into account when analyzing such data. Multivariate analysis is used for following key purposes The Techniques can Analyze the Interrelationships Among Many Variables Most Techniques Identifies Patterns of Similarities It Estimate the Relative Importance of Several Variables

Major Two Methods of Multivariate Analysis Dependence Independence Dependence Techniques Variable Researchers Want to Predict, Explain, or Understand Examples: Total Sales, Overall Product or Service Evaluation, Preference Ratings, Market Share % Independence Techniques All Variables are Independent Variable IfFree to Vary and Approx Equal in Importance Examples : Market Segments, which Consist of Group of People or Companies Application of Multivariate Analysis Determine the Relative Importance of Product Finding the Optimum Combination of Product Predicting Market Share Estimating a Demand Curve Identifying Market Segments Constructing Positioning Maps Product and Service Design and Evaluation Pricing Studies and Simulations Advertising Copy Platform Development Evaluation of Advertising Effectiveness Customer Satisfaction Studies