How to identify differences between market segments with attribute analysis

Abstract

Determinant attribute analysis, a technique that isolates critical product attributes, can be a useful managerial tool in old line industries hoping to penetrate new markets with commodity-like products. This article uses residential siding materials as an example. A nationwide mail survey was used to collect primary data from professional end users of siding products. The dual question method was used to calculate determinance scores for 23 siding attributes and multiple discriminant analysis was used to highlight differences between four builder type market segments.