Logit analysis in marketing
- Logit analysis in marketing
Logit analysis is a statistical technique used by marketers to assess the scope of customer acceptance of a product, particularly a new product. It attempts to determine the intensity or magnitude of customers' purchase intentions and translates that into a measure of actual buying behaviour. Logit analysis assumes that an unmet need in the marketplace has already been detected, and that the product has been designed to meet that need. The purpose of logit analysis is to quantify the potential sales of that product. It takes survey data on consumers purchase intentions and converts it into actual purchase probabilities.
Logit analysis defines the functional relationship between stated purchase intentions and preferences, and the actual probability of purchase. A preference regression is performed on the survey data. This is then modified with actual historical observations of purchase behavior. The resultant functional relationship defines purchase probability.
This is the most useful of the purchase intention/rating translations because explicit measures of confidence level and statistical significance can be calculated. Other purchase intention/rating translations include the preference-rank translation and the intent scale translation. The main disadvantage is that the software is not easy to find.
See also
* marketing research
* New Product Development
* marketing
* preference regression
* logit
Wikimedia Foundation.
2010.
Look at other dictionaries:
Logit — The logit function is an important part of logistic regression: for more information, please see that article. The logit function is the inverse of the sigmoid , or logistic function used in mathematics, especially in statistics. The logit of a… … Wikipedia
Positioning (marketing) — Marketing Key concepts Product marketing · Pricing … Wikipedia
List of marketing topics — This is a list of marketing topics. Marketing fundamentals * [ [Marketing] * Consumer * Business Marketing * Core * Customer ** Customer lifetime value (CLV) ** Customer relationship management (CRM) * Marketing mix * Marketing orientation, also… … Wikipedia
Topic outline of marketing — For a more comprehensive list, see the List of marketing topics. Marketing refers to the social and managerial processes by which products, services and value are exchanged in order to fulfil individual s or group s needs and wants. These… … Wikipedia
Outline of marketing — The following outline is provided as an overview of and topical guide to marketing: Marketing refers to the social and managerial processes by which products, services and value are exchanged in order to fulfil individuals or group s needs and… … Wikipedia
Linear discriminant analysis — (LDA) and the related Fisher s linear discriminant are methods used in statistics, pattern recognition and machine learning to find a linear combination of features which characterize or separate two or more classes of objects or events. The… … Wikipedia
Discrete choice analysis — is a statistical technique. In these models the dependent variable is a binary variable. Instances of discrete choice analysis are probit, logit and multinomial models. They are applied in econometrics, marketing research and transportation mode… … Wikipedia
Optimal discriminant analysis — (ODA) and the related classification tree analysis (CTA) are statistical methods that maximize predictive accuracy. For any specific sample and exploratory or confirmatory hypothesis, optimal discriminant analysis (ODA) identifies the statistical … Wikipedia
List of mathematics articles (L) — NOTOC L L (complexity) L BFGS L² cohomology L function L game L notation L system L theory L Analyse des Infiniment Petits pour l Intelligence des Lignes Courbes L Hôpital s rule L(R) La Géométrie Labeled graph Labelled enumeration theorem Lack… … Wikipedia
List of statistics topics — Please add any Wikipedia articles related to statistics that are not already on this list.The Related changes link in the margin of this page (below search) leads to a list of the most recent changes to the articles listed below. To see the most… … Wikipedia
