JMP for marketing and consumer research — an update
In a previous post, I compared what’s available for marketing and consumer research in JMP to what’s taught in an MBA classroom as represented by this textbook. Now that JMP 13 and JMP Pro 13 have been released, I’d like to provide an update on the newly added platforms:
MDS (Multidimentional Scaling), previously available only as a JMP add-in, is now fully developed into a new platform in JMP Consumer Research. It is a very useful analytical tool for visualizing similarity or dissimilarity of objects such as product or brand similarity in a 2D or 3D plot.
New MaxDiff (Maximum Difference Scaling) Design and Analysis use a single-factor design to get consumers' picks of "best-worst" pairs from multiple choice sets and then fits a random utility model to estimate the probability of consumer’s preferring one option to another. The MaxDiff method complements the existing Choice Design and Choice Models so researchers can choose an appropriate approach to investigate consumer choices in different situations.
Association Analysis, also known as Market Basket Analysis or Affinity Analysis, can sort through a large transnational data set to discover interesting patterns like "80% of shoppers who buy a bag of tortilla chips also buy salsa. This association occurs more often than chance alone by a factor of two." The Association Analysis platform is available in JMP Pro since it also uses an advanced statistical technique called singular value decomposition (SVD) to group items into topics.
JMP 13 brings together different clustering methods such as K Means Clustering and Variable Clustering into a new menu called Clustering. A new technique called Latent Class Analysis (LCA) is added. Compared with K Means or Hierarchical Clustering. LCA is probability model based and works with categorical data. Just like other clustering methods, it can be applied for customer segmentation by estimating two sets of probabilities: the probably of belonging to a cluster and the conditional probabilities for each response level based on the assigned cluster.
(Clustering Probabilities from LCA)
Last, but not least, JMP 13 adds Text Explorer that opens the door for you to understand your customers’ opinions and experiences through unstructured texts as never before. (Note: Some of Text Explorer’s advanced capabilities such as Latent Semantic Analysis and Topical Analysis are only in JMP Pro).