Mkt 566 3 Dimensions

1. There are totally 3 dimensions for chosen in this question. Because the variance explained for the first 3 dimensions are 0.546, 0.188, and 0.112 which are higher than 0.1. If we ignore the third dimension, we will lose too much variance explained. So, the 3 dimensions should be the best-chosen number in this question.

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Labels:

Dimension 1: High-end/luxury

Dimension 2: Sporty

Dimension 3: Economical

The best associated attributes to dimension 1 are attractive (-0.9042), prestige (-0.8749), successful (-0.7949), and quiet (-0.7058). So, the dimension 1 can be concluded as high-end and luxury label.

The best associated attribute to dimension 2 is sporty, which is only -0.6173 though.

The best associated attribute to dimension 3 is economical which is -0.8835.

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2. I choose to use the Map 1-2 to complete because dimension 1 and 2 are the biggest variance explained.

According to the perceptual maps, BMW 318i is the best in attractiveness, successful, and prestige. G20 has similar rate in successful, but G20 is better in attractive than Saab. Saab is better in prestige than G20. Toyota is better in attractive than G20, but worse in successful and prestige than G20. Audi is the worst in successful and attractive in these brands.

Attractive：BMW 318i> G20> Saab900> Toyota Supra> Audi90

Successful: BMW 318i> Saab900> G20> Toyota Supra> Audi90

Prestige: BMW 318i> Saab900> G20> Audi90>Toyota Supra

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2.2 According to the computation, the projection for BMW is 0.3704 which is better than G20 which is 0.3015. After the one normalizes by the prices of the two brands, the BMW variance is still higher than G20. And I think the implication is reasonable for G20. Since after the normalize by the prices of the two brands, the difference of the variance in 2D is only 0.024 which is quite small. It means the features in customers mind for G20 is similar with the features for BMW. However, the price for G20 which is $17,500 is much cheaper than BMW which is $19,900. So the implication which is German feel with Japanese price is acceptable for me.