Multivariate Data Analysis Assignment:

Discriminant Analysis (3 groups)

Group 5 | Section A |
Ashit Sharma (11) | Ayush Pandey (12) | Joshua Melwani (22) |
Niharika Mondal (31) | Pranitha Balasubramanian (34)
 Discriminant Analysis (3 groups)
ABPM Lipsticks

Q1. Identify the Discriminant Functions that distinguish Consumer Preferences for Lipsticks.

A1.

Canonical Discriminant Function

Coefficients

Function

1 2

Colour .102 -.416

Price 1.383 .289

Long_Lasting .599 -.563

Packaging 1.113 .561

Finish -.859 .783

(Constant) -6.456 -2.317

Unstandardized coefficients

Function 1

Z1= .102*Colour+1.383*Price+.599*Long_Lasting+1.113*Packaging-.859*Finish-6.456

Function 2

Z2= -.416*Colour +.289* Price -.563*Long_Lasting +.561* Packaging +.783*Finish -2.317

Q2. State the Classification Accuracy and the Statistical Significance of the Discriminant Functions.

A2.
a
Classification Results

Predicted Group Membership

Brand Revlon Maybelline Lakme Total

Original Count Revlon 4 0 1 5

Maybelline 0 5 0 5

Lakme 0 0 5 5

% Revlon 80.0 .0 20.0 100.0

Maybelline .0 100.0 .0 100.0

Lakme .0 .0 100.0 100.0

a. 93.3% of original grouped cases correctly classified.

The brand perception for one data entry of Revlon was misclassified as Lakme. Thus, out of 15 data
points, 14 were classified correctly. Thus the classification was 93.3% accurate.

Eigenvalues

Functio Canonical
n Eigenvalue % of Variance Cumulative % Correlation
a
1 7.091 70.1 70.1 .936
a
2 3.030 29.9 100.0 .867

a. First 2 canonical discriminant functions were used in the analysis.

Wilks' Lambda

Test of
Function(s) Wilks' Lambda Chi-square df Sig.

1 through 2 .031 34.845 10 .000

2 .248 13.938 4 .007

The eigen value must be above 1, and the Wilks’ Lambda value must be below 0.5 for the functions
to be significantly different. The values are:
Eigen value for Z1=7.091, Eigen Value for Z2=3.30, Wilks’ Lambda for Z1=0.031, Wilks’ Lambda for
Z2=.248
Thus, our groups are significantly different from each other. We can conclude that the
corresponding function explain the group membership well.
Q3. Identify the Constituent Attributes of each Function. Label each of them based on their
characteristics.
A3.

Structure Matrix

Function

1 2
*
Price .393 .162
*
Finish -.237 .634
*
Packaging .244 .416
*
Long_Lasting .143 -.396
*
Colour .045 -.257

Pooled within-groups correlations between discriminating variables and standardized canonical discriminant functions
Variables ordered by absolute size of correlation within function.

*. Largest absolute correlation between each variable and any discriminant function

The constituent attributes for function Z1 is the Price of the Lipstick. For Z2 function the attributes
are Finish, Long Lasting, Packaging and the Colour of the Lipstick. This is based on the value of the
correlations between discriminating variables and standardized canonical discriminant functions.
Z1= f (Price) => The label for this function would be Price
Z2= f (Finish, Long_Lasting, Packaging, Colour) => The label for this function is Features
Q4. Draw a Perceptual Map with the Discriminant Functions as the Axes. Plot the Brands on this
Map based on their Centroid scores on each Function. On the same Map, depict the Attributes as
Vectors based on their Correlations to each Function.
2.5

Finish 2
Lakme
1.5 Packaging

1
Maybelline
Price
0.5
z1 (Price)
0 Perceptual Map
-3 -2 -1 0 1 2 3 4
-0.5

-1 Colour
Long-lasting
-1.5

-2
Revlon
-2.5 z2 (Features)
Q5. Interpret the Map to create Positioning Statements for each Brand as per Consumer
Perceptions. Justify your answers.

 Lakme - This brand is positioned highest in terms of Features, but consumers find it to be
expensive. If they try to create a brand image based on features, maybe consumer
perception will shift to less expensive.
 Maybelline - Maybelline is positioned the highest when it comes to Price. It has a positive
perception in terms of Features as well. This shows that they have positioned themselves
well based on Price, while also having good enough Features.
 Revlon - Revlon ranks negatively on both functions. Hence, it has an ambiguous positioning.
Revlon can be a candidate for a well-designed repositioning strategy.