All consumers are categorized into several segments (groups) to identify the core target segments of your product. Segmentation can be carried out based on psychographic attributes such as "shopping attitudes" and "health awareness" as well as basic attributes (demographic attributes) such as gender, age and place of residence. Analysis methods such as cluster analysis, factor analysis and CHAID are mainly used.
It is determined whether the favorable brand image of a product is built and the relative relationship of brand images between a product and competitors' products is assessed. Through this process, the strength and weakness of a product are formulated for examining specific actions toward brand strategies. Correspondence analysis and multi-dimensional scaling (MDS) are mainly used.
Adequate pricing and specifications of a product that are accepted by consumers are identified. Price has a direct impact to the sales volume of a product. Inadequate pricing incurs different unfavorable perceptions to consumers: too high price results in hesitation to buy and too low price results in concerns about the quality. PSM analysis and conjoint analysis are used to determine the adequate price statistically that is comfortable for many consumers to buy a product.
Relevance Analysis and Model Building
In order to build and implement adequate marketing activities, it is crucial to formulate the relevance among the elements of circumstances and build a model. For example, if the brand awareness can be revealed for each advertising medium, future measures are clearer. Modeling for relevance of such elements is performed mainly using correlation analysis, regression analysis, path analysis, etc.
Time Series Analysis and Future Trend Prediction
Time series analysis enables to predict the future data trend and verify a hypothesis based on past data prepared along the axis of time. It can be utilized for various cases like forecasting the demand of a product and the number of visitors to a specific shop.
Understanding Simultaneous Purchase Tendency
What combination of products consumers purchase in a shop or shopping site, i.e. simultaneous purchase tendency, is to be revealed. This enables to improve sales (purchase items for each purchaser) by recommending other products with a good affinity for a specific product (improving convenience and satisfaction of a purchaser) and cross-selling. Market basket analysis is mainly used.