Segment your market using factor analysis with R programming

Offered By
Coursera Community Project Network
In this Guided Project, you will:

Create a factor analysis model with R programming

Use the results of the factor analysis to identify the market segments

Clock2 hours
CloudNo download needed
VideoSplit-screen video
Comment DotsEnglish
LaptopDesktop only

If you ever thought of starting a new business or launching a new product, you’d probably already asked yourself: which type of products are the customers ordering? What type of competition are the products facing in this market? To answer these questions objectively, you can apply Factor Analysis to identify how many and which are the segments in your market. When a company organizes its product line to cover all the attractive market segments and to avoid product overlapping, profitability is more secure. By the end of this project, you will create a market segmentation by applying Q-type Factor Analysis with R Programming. This guided project is for Business and/or Economics students, entrepreneurs, marketing analysts and anyone else interested in improving product planning and trading strategies by applying quantitative methods to support the decision making process. The prerequisites are familiarity with the concepts of market segmentation, multivariate analysis and R programming. This Guided Project was created by a Coursera community member.

Skills you will develop

Data ScienceR ProgrammingFactor AnalysisMarket SegmentationQuantitative methods

Learn step-by-step

In a video that plays in a split-screen with your work area, your instructor will walk you through these steps:

  1. Introduction and data preparation

  2. Calculating the correlation matrix and testing for the assumptions

  3. Extracting and determining the number of factors

  4. Setting the number of factors and evaluating the overall adjustment

  5. Improving the model adjustment

  6. Visualizing and interpreting the results

How Guided Projects work

Your workspace is a cloud desktop right in your browser, no download required

In a split-screen video, your instructor guides you step-by-step

Frequently asked questions

Frequently Asked Questions

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