Session 22: Associative Analysis Practice

Author

Sungjin Kim

The Auto Concepts Survey Associative Analysis

Objective

The goal of this assignment is to analyze the media usage and social media profiles of target markets for five potential automobile models. By using statistical techniques, including Chi-Square tests of association and correlations, you will provide advertising recommendations tailored to each automobile model’s unique demographic profile. The results will form the foundation of preliminary marketing plans that align with the preferred media strategies of the advertising division.

Background

Cory Rogers of CMG Research was pleased with the progress of the Auto Concepts project. Celeste Brown, the CMG data analyst, applied differences analysis using the desirability measures for various alternative automobile models under consideration. Her findings identified unique demographic target market profiles for each model. These insights were summarized into a professional presentation, delivered successfully to Nick Thomas and his management team.

By the end of the presentation, Nick decided to proceed with preliminary marketing plans for all five models. However, he emphasized that advertising strategies must align with media usage research. The Auto Concepts survey captured data on favorite types of media, including:

  • Radio genres

  • Local newspaper sections

  • Television shows

  • Magazines

  • Social media platforms

Nick’s development teams require actionable insights on how to allocate advertising dollars effectively based on these media usage patterns. Nick’s advertising agency has specific preferences for demographic variables to use for media recommendations:

  • Radio: Analyze by age.

  • Newspaper and Television: Analyze by education.

  • Magazines: Analyze by income.

The five automobile models under consideration have distinct demographic profiles identified through previous differences analyses (i.e., Session19: Difference Analysis Practice Solution). Each model requires a tailored advertising strategy, including traditional and social media components.

Analysis Task

You are tasked with revisiting the previous group homework (See the Target Market Profiles for Each Automobile model section below), where Celeste used differences analysis to uncover demographic profiles for each of the five possible new models. Building on this, your assignment is as follows:

Using auto_concept.csv data,

  1. Demographic Profiles and Media Usage Analysis

    • Use Chi-Square tests of association to explore relationships between demographic variables (age, eduction, and income)and media usage (radio, newspaper, television, and magazines).

    • Identify significant associations (p < 0.05) and recommend suitable media vehicles based on the advertising agency’s preferences:

      • Radio: Age

      • Newspaper and Television: Education

      • Magazines: Income

    • For each target demographic group, create a detailed table summarizing:

      • Automobile Model

      • Target Demographic (age, education, income)

        • e.g., For the Super Cycle model, the age
      • Recommended Media Vehicles (specific radio genres, television show types, newspaper sections, magazine genres)

  2. Social Media Analysis

    • Examine correlations between social media usage and the desirability of each automobile model.

    • Explore correlations between social media usage and demographic variables (age, education, income) to identify broader trends.

    • Provide strategic recommendations for incorporating social media into advertising plans.

Deliverables

  1. Detailed Report:

    • Statistical findings for demographic profiles and media usage analysis.

    • Recommendations for traditional media vehicles for each automobile model.

    • Insights into the social media profiles of each target market and related advertising strategies.

  2. Summary Table:

    • Present results in a table format for ease of interpretation. Include:

      • Model

      • Demographic Target

      • Recommended Media Vehicles

      • Key Social Media Insights

  3. Executive Summary:

    • A brief summary highlighting the major findings, strategic insights, and practical recommendations for advertising placements.
  4. R Code and Results

    • Include well-documented R scripts used for the analysis (Chi-Square tests, correlations, etc.).

    • Present outputs of the analysis, such as tables, graphs, and statistical test results.

    • Ensure reproducibility by providing clear instructions or annotations within the R code.

Target Market Profiles for Each Automobile Model

For your information, here are the target market profiles for each automobile model from the last homework.

  • Target Market Profile for Super Cycle - 1 Seat All-Electric Motorcycle
Demographic Segment
Age Group 20-29 years old
Education Level Less than high school
Income Level Under $50K
  • “Target Market Profile for Runabout Sport - 2 Seat All-Electric Sports Car”
Demographic Segment
Age Group 30-49 years old
Education Level Some college
Income Level $50K-$75K
  • Target Market Profile for Runabout with Stowage - 2 Seat Hybrid
Demographic Segment
Age Group 30-49 years old
Education Level College degree
Income Level $76K-$150K
  • Target Market Profile for Economy Hybrid - 4 Seat Hybrid
Demographic Segment
Age Group 50-59 years old
Education Level Graduate or professional degree
Income Level Over $150K
  • Target Market Profile for Economy Gasoline - 4 Seat Gasoline Economy
Demographic Segment
Age Group 60+ years old
Education Level High school graduate or Graduate or Professional degree
Income Level $150K over

Codebook

Question Description Variable Name Codes Value Labels
Size of hometown or city townsize 5, 55, 300, 750, 1250 Under 10K (5), 10K to 100K (55), 100K to 500K (300), 500K to 1 million (750), 1 million and more (1250)
Gender gender 0,1 Male (0), Female (1)
Marital status marital 0,1 Unmarried (0), Married (1)
Number of people in household familysize Actual number No labels (Actual number)
Age age 25,35,45,55,65 20 to 29 (25), 30 to 39 (35), 40 to 49 (45), 50 to 59 (55), 60 and older (65)
Education edcation 0,4,6,8,10 Less than high school (0), High school graduate (4), Some college or Associate’s degree (6), Bachelor’s degree (8), Graduate or professional degree (10)
Household income level income 25, 63, 88, 125, 175 Under $50K (25), $50K to $75K (63), $76 to $100K (88), $101K to $150K (125), Over $150K (175)
Dwelling type hometype 1,2,3,4 Single family (1), Multiple family (2), Condominium/Townhouse (3), Mobile home (4)
Auto or truck type owned cartype 1,2,3,4 None (1), Economy (2), Standard (3), Luxury (4)
Plan to purchase or lease a vehicle in the coming year plan 0,1 No (0), Yes (1)
I am worried about global warming. warming 1,2,3,4,5,6,7 Very strongly disagree (1), Strongly disagree (2), Disagree (3), Neither disagree nor agree (4), Agree (5), Strongly agree (6), Very strongly agree (7)
Gasoline emissions contribute to global warming. gasemit 1,2,3,4,5,6,7 Very strongly disagree (1), Strongly disagree (2), Disagree (3), Neither disagree nor agree (4), Agree (5), Strongly agree (6), Very strongly agree (7)
Global warming is a real threat. threat 1,2,3,4,5,6,7 Very strongly disagree (1), Strongly disagree (2), Disagree (3), Neither disagree nor agree (4), Agree (5), Strongly agree (6), Very strongly agree (7)
I drive conservatively to use less fuel. conserve 1,2,3,4,5,6,7 Very strongly disagree (1), Strongly disagree (2), Disagree (3), Neither disagree nor agree (4), Agree (5), Strongly agree (6), Very strongly agree (7)
I check traffic reports to avoid idling in traffic. checktraffic 1,2,3,4,5,6,7 Very strongly disagree (1), Strongly disagree (2), Disagree (3), Neither disagree nor agree (4), Agree (5), Strongly agree (6), Very strongly agree (7)
I drive an automobile that is fuel efficient. fuelefficient 1,2,3,4,5,6,7 Very strongly disagree (1), Strongly disagree (2), Disagree (3), Neither disagree nor agree (4), Agree (5), Strongly agree (6), Very strongly agree (7)
Desirability: Super Cycle - 1 Seat Motorcycle All-Electric supercycle1seat 1,2,3,4,5,6,7 Very undesirable (1), Undesirable (2), Somewhat undesirable (3), Neutral (4), Somewhat desirable (5), Desirable (6), Very desirable (7)
Desirability: Runabout Sport - 2 Seat Sports Car All-Electric runaboutsport2seat 1,2,3,4,5,6,7 Very undesirable (1), Undesirable (2), Somewhat undesirable (3), Neutral (4), Somewhat desirable (5), Desirable (6), Very desirable (7)
Desirability: Runabout with Stowage - 2 Seat Sports Car Electric & Gasoline Hybrid runaboutstowage2seat 1,2,3,4,5,6,7 Very undesirable (1), Undesirable (2), Somewhat undesirable (3), Neutral (4), Somewhat desirable (5), Desirable (6), Very desirable (7)
Desirability: Economy Hybrid - 4 Seat Economy Electric & Gasoline Hybrid economyhybrid4seat 1,2,3,4,5,6,7 Very undesirable (1), Undesirable (2), Somewhat undesirable (3), Neutral (4), Somewhat desirable (5), Desirable (6), Very desirable (7)
Desirability: Economy Gasoline - 4 Seat Economy Gasoline economygas4seat 1,2,3,4,5,6,7 Very undesirable (1), Undesirable (2), Somewhat undesirable (3), Neutral (4), Somewhat desirable (5), Desirable (6), Very desirable (7)
Lifestyle: Novelist, Innovator, Trendsetter, Forerunner, Mainstreamer, Classic lifestyle1~6 1,…,7 Does not describe me at all (1), … (…), Describes me perfectly (7)
Favorite television show type television 1,2,3,4,5,6,7 Comedy (1), Drama (2), Movies/mini-series (3), News/documentary (4), Reality (5), Science fiction (6), Sports (7)
Favorite radio genre radio 1,2,3,4,5,6 Classic pop & rock (1), Country (2), Easy listening (3), Jazz & blues (4), Pop & chart (5), Talk (6)
Favorite magazine type magazines 1,2,3,4,5,6,7,8 Business & Money (1), Music & Entertainment (2), Family & Parenting (3), Sports & Outdoors (4), Home & Garden (5), Cooking-Food & Wine (6), Trucks-Cars & Motorcycles (7), News-Politics & Current Events (8)
Favorite local newspaper section newspaper 1,2,3,4,5,6,7 Editorial (1), Business (2), Local news (3), National news (4), Sports (5), Entertainment (6), Do not read (7)
Use of online blogs, content communities, social network sites, online games, virtual worlds blogs, YouTube, Facebook, Games, Virtworld 0,1,2,3 Less than 1 hour (0), About 1 hour (1), About 2 hours (2), About 3 hours or more (per day) (3)