Are you able to reasonably predict purchase decisions of customers?

Do you understand the key parameters that drive purchase decisions?

What are the dependencies between those parameters?

Do we have the right insights? Understanding this is a pre-requisite for planning and strategy. Even promotions and product design will depend on this.

Certain purchase decisions of consumers are too complex to be represented in a linear equation. Standard factor analysis to determine key drivers is a good starting point but not sufficient. Identifying the key drivers, their interactions and the resulting decision path will help the marketers to focus on the programs that matter the most to their customers.

Factor analysis helps to identify theme such as dealership profitability, customer satisfaction programs etc. which are used to draw further insights through SEM. The key decision path driving overall satisfaction helps the manufacturer by providing insights on dealers association with different brands.

Factor analysis can be used as a data reduction method to identify a small number of factors that explain most of the variance in the measured attributes. A set of variables can be mapped to each named factor. Structural Equation Modeling can be used to study the relationship between overall satisfaction and the factors that are identified.

SEM gives a clear identification of key factors affecting overall satisfaction. Brand strengths can be identified with special attention given to that not aiding brand recognition. They can then be further analyzed to strengthen relevant programs.

Dexterity’s Decision Path Analytics has helped customers identify and maximize specific business opportunities. It has aided them in strategic business decisions and driven them to the right focus areas.

Talk to one of our Consumer Analytics Experts today to learn how we can help you in decision path modeling.