Content Type:

Glossary

Discriminant Analysis Definition

A multivariate technique for analyzing the predictive value of a set of independent variables.

Discriminant analysis distinguishes and classifies groups or categories of variables within a dataset. It’s useful in marketing research because it provides a systematic approach to deciphering complex data sets. The statistical technique seeks to identify key variables that contribute to the separation of these groups, like customer segments or market segments. The analysis determines which variables are most influential in discriminating between them by analyzing the differences among groups.

Who relies on discriminant analysis?

When dealing with multiple variables that might influence consumer choices, marketing researchers, analysts and businesses rely on discriminant analysis. Other industries – retail, hospitality and e-commerce, to name a few – rely on the technique when making decisions about product positioning, customer segments and marketing strategies.

Why should I care about discriminant analysis?

Discriminant analysis offers insights into differentiation among customer segments. Findings can be used to create marketing campaigns, design products that align with specific customer preferences and allocate resources more efficiently. The bottom line is discriminant analysis permits businesses to make data-driven decisions that resonate with their target audiences.