Your consulting firm is approached by a leading consumer products manufacturer, General Mills, which has just introduced
Question:
Your consulting firm is approached by a leading consumer products manufacturer, General Mills, which has just introduced a new brand of cookie in a test-market city. General Mills would like your company to use a discriminant analysis to see if it is possible to predict the people who will try a new brand, compared to those who will not try the new brand. You know that the market share of the new brand is only 10 percent, and observe that you can predict 90 percent of the population correctly by simply assuming that each person did not try the new brand. This assumes that the market share of the new brand should be zero. From past experience, you know that it is difficult to predict 90 percent correctly with a discriminant analysis model, so you are reluctant to suggest such an investigation.
Step by Step Answer:
Marketing Research
ISBN: 9781119497639
13th Edition
Authors: V. Kumar, Robert P. Leone, David A. Aaker, George S. Day