Project miscell

Hi all,

With some groups, I sat and tried factor/cluster analyses. Typically Q21 responses are used. Try to filter out respondents who are part of the target population, i.e., not prospective car buyers.

Some observations -

1. Use consistent variable transformations to numeric values.

2. Safe to remove missing valued rows from the analysis because we have enough rows left over at the end (>1500).

3. Not all variables may load well in factor analysis. The communalities table gives an idea of which variables have very little (<50%) of their variance explained by the factors. Kindly consider removing such variables from the factor analysis and consider them as separate factors in their own right.

4. Cluster analysis using the factors as bases doesn't always work great under the two-step method. In one case I saw, it was saying have 15 clusters based on the AIC method. In such a case, consider adding more clustering variables. If it still doesn't work, then use k-means clustering wherein you will have to specify the # clusters desired a priori. Go for a number between 4 and 6 for convenience and handling sake.

5. Define your target population well! Some janta continue to confuse the target population with the general population. The 2 are different. The target population IMHO in this project is the prospective car buying popn in the next 12 months. Estimate the size of the target population to the nearest lakh using secondary sources, sound reasoning and assumptions where appropriate. List these clearly for the project though.

6. You don't have to use a particular method just because you can or because it was covered in the course. Use only those methods that you need to arrive at recommendations. The logic used to arrive at the recomms will be considered for grading.

7. The recomms should be actionable from the client POV. Shall elaborate on this later.

P.S.
Am happy to hear the exam wasn't bad. I didn't ask for it to be placed next to the OFD exam though. Anyway, on has to go with the hand one is dealt, I guess. Jai Ho.