Skip to Content

Statistical Marketing Tools

Unit code: HMS794

Credit points12.5 Credit Points
DurationOne semester / teaching period
Contact hours3 Hours per Week
CampusHawthorn, Online
PrerequisitesHMS780 Multivariate Statistics Multivariate Statistics
CorequisitesNil

Related course(s)

A unit of study in the Master of Science (Applied Statistics).

Aims and objectives

In this unit of study the aim is for students to be able to investigate the underlying structure of market research and social science data using a number of dimensional analysis mapping, segmentation and preference techniques. The process of data mining is introduced as well as most of the techniques used by data miners.  
 
Learning Objectives:
After successfully completing this unit, you should be able to:
  • Demonstrate an understanding of the basic theory and principles of data miningPerform and interpret association analyses including market segmentation and market basket analysis.
  • Apply prediction and classification methods such as regression, neural networks and decision trees, understanding how to choose between these methods.
  • Use quantitative analysis techniques commonly used in market research; mapping techniques, including multidimensional scaling and correspondence analysis, and preference techniques, including conjoint analysis.
  • Read, understand and critically assess research publications using data mining methods and statistical tools for marketing

Teaching methods

The classes are held in a computer laboratory and practical exercises are integrated with class teaching throughout the sessions. SAS software will be supplied by DVD. Please note: SAS will only run on a Windows platform.

Assessment

Online Quizzes (10%)
Assignments (40%)
Exam (50%)

Content

Market research analysts in both commerce and industry make daily decisions regarding their products and services in today's complex and competitive markets. These decisions, important to the welfare of their companies, must be based on the best available information, usually gathered through surveys. The methods included will be selected from the following with possible changes in order:

  • Mapping techniques, including multidimensional scaling and correspondence analysis
  • Preference techniques, including conjoint analysis
  • Market segmentation methods for finding statistically significant groups in data using methods, such as cluster analysis and self organizing maps
  • Data Mining approaches and procedures using appropriate software.  
  • Association using market basket analysis and link analysis.                                                 
  • Classification using logistic regression, classification trees, neural networks and memory based reasoning.
  • Prediction  using regression, regression trees, neural networks and memory based reasoning.   

Week 1      Multidimensional scaling 1.
Week 2      Multidimensional scaling 2.
Week 3      Correspondence analysis 1.
Week 4      Correspondence analysis 2.
Week 5      Conjoint Analysis 1.
Week 6      Conjoint Analysis 2.
Week 7      Intro to data mining and EDA 
Week 8      Market basket analysis and classification trees.
Week 9      Logistic regression, regression and regression trees.
Week 10    Neural networks for classification and prediction.
Week 11    Cluster analysis and self organising maps.
Week 12    Student Presentations     
                                                                                                 

Text books

HMS794: Statistical marketing Tools Module 1 and 2 Brian Phillips and Denny Meyer
 
Software:
A variety of statistical packages will be used including SAS enterprise Miner.

References

Benzecri, JP (1992), Correspondence Analysis Handbook.
 
Berry, MJA & Linoff, G (2004), Data Mining Techniques: for marketing, sales and customer relationship management, Wiley.
 
Berry, MJA & Linoff, G (2000), Mastering Data Mining: the art and science of customer relationship management, Wiley.
 
Gordon, AD (1999), Classification, Monographs on Statistics and Applied Probability (82), Chapman & Hall/CRC.
 
Greenacre, M & Blasius, J (eds), (1994), Correspondence Analysis in the Social Sciences: Recent Developments and Applications.
 
Grimm, LG & Yarnold, PR (eds), Reading and Understanding Multivariate Statistics, Amazon.
 
Borg, I, Groenen, P (Contributors) (2000), Modern Multidimensional Scaling: Theory and Applications.
 
Gustafsson, A, et al. (eds), Conjoint Measurement: Methods and Applications.Hair, JF Jr et al., (1998), Multivariate Data Analysis with Readings, 5th edn, Maxwell Macmillan, Sydney.
 
Jacoby, WG, (1991), Data Theory and Dimensional Analysis.
 
McGarigal, K, Cushman, S, Stafford, S (2000), Multivariate Statistics for Wildlife and Ecology Research, Springer-Verlag, New York.
 
Tabachnick, BG et al. (2000), Using Multivariate Statistics, 4th edn, Allyn & Bacon.