In which of the following marketing research situations is discriminant analysis probably NOT appropriate?
A) the investigation of differences between light and heavy users of a product
B) the investigation of naturally occurring market segments existing in a market
C) the determination of the basic dimensions that underlie customer brand loyalty
D) the investigation of brand-loyal vs. non-brand-loyal customers
E) discriminant analysis is the most appropriate method of data analysis in each of these situations

Question

Quizplus · Accepted Answer

Discrimant analysis is not suitable for determining the basic dimensions underlying customer brand loyalty because it is primarily used for classifying entities into predefined groups rather than identifying underlying dimensions or factors. Factor analysis would be more appropriate for uncovering the basic dimensions of brand loyalty.

In Which of the Following Marketing Research Situations Is Discriminant