Definition of Market Analysis
Market analysis is a type of business intelligence that supplies a large amount of data which is worth analyzing fully and intelligently. Having a good research analysis would give the enterprises a clear vision of China market.
Methods of Marketing Research Using by Chinese Consulting Companies
Consulting companies will then use multivariate statistical processes to interpret the results in more depth to serve their clients better. The following are the common multivariate statistical analysis that Chinese consulting companies use:
1. Regression analysis
Regression analysis studies the dependence of a single, interval scale variable (such as sales) on simple or multiple variables. Regression analysis can be used to predict or explain the value of one quantitative variable based on the value of another variable. It can also predict or explain the value of a quantitative variable based on the value of more than one other variable, and determine which of those other variables has the strongest influence on the variable being predicted.
2. Factor analysis
Factor analysis is an analytical tool that helps to reduce a large number of variables into a more manageable set. It does this based on correlations within the data by (i) identify the number of factors; (ii) define the factors as functions of the measured variables; (iii) analyze the factors which have been defined. The factors produced can show what judgment patterns lay behind people’s image evaluations of the products in China market research analysis.
3. Principal component analysis
4. Cluster analysis
Cluster Analysis uses several techniques to classify people, objects, or variables into more homogeneous groups. It can be used to identify market segments, develop typologies and find target markets in China market entry.
5. Discriminant analysis
Discriminant analysis examines how two or more groups of respondents differ from one another based on a few predictor variables. It is practical for (i) discovering variables (i.e., a discriminant function) which are the distinguishing factors, (ii) understanding differences among groups and (iii) forecasting market behavior based on demographic and psychographic variables.
6. Conjoint analysis
Conjoint analysis is used to evaluate preferences and tradeoffs that buyers are willing to make for their desired product. The techniques are thus effective tools for developing bundling of product or service offerings, optimizing product configurations, and diagnosing competitive strengths and weaknesses inthe service of China market entry.
7. Correspondence analysis
China market research frequently involves categorical data. This analysis could help answer the questions: who our customers are? who else our customers should be? what new products we should create? etc.
8. Multidimensional preference analysis
Consumers’ preferences for goods are based on various factors. However, these factors are not often defined in the China market. Thus, a multidimensional preference analysis will be able to analyze such data by using a data matrix whereby the columns represent consumers and the rows represent products.
9. Multidimensional scaling analysis
This method is used to find out what products are substitutes or complementary of one another.
10. Benchmarking analysis
The benchmarking analysis shows how performance leads to good positioning in China market as consumers increase the purchasing intentions.
Results of Market Analysis in China
Through statistical analysis and professional experience, Chinese consulting companies are able to perform comprehensive market assessment, which may include: Assessment of market supply and demand, Assessment of market competition, Overall efficiency of the industry, Strength and weakness analysis of the products, Opportunities and threats related to the industry, Assessment of market potentiality, Assessment of the overall market ability.