Essay About High Loyalty Customers And Brand Advocacycustomer Loyalty Assessment

Decision Trees – Machine Learning
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Marketing Model for Brand AdvocacyCustomer Loyalty Assessment based on Demographics[pic 1]Model SummaryDecision Trees – CHAID ApproachResponse & PredictorsSpecificationsGrowing MethodCHAIDIs the tree model a good predictive model for High Loyalty Customers?NameTypeValuesDependent VariableBINARY LOYALTYLoyaltyOrdinal0-LOWIndependent VariablesAGE, GENDER,1-HIGHEDUCATION, MARITAL1:18-24STATUS, INCOME2:25-34AgeOrdinal3:35-444:45-545:55+yearsValidationNone1-MALEGenderOrdinalMaximum Tree Depth32-FEMALEMinimum Cases in251-High School2- Some CollegeEducationOrdinalParent Node3-College4-Graduate SchoolMinimum Cases in151-MarriedMaritalChild NodeOrdinal2-SingleStatus3-Divorced/Separated4-ResultsIndependent VariablesGENDERWidow/WidowerIncluded1:<35KNumber of Nodes32:35-54.999K3:55-74.999KNumber of Terminal2IncomeOrdinal4:75-94.999K5-95-114.999KNodes6:115-134.999K7:>135KDepth1Customer Loyalty Assessment based on Demographics[pic 2]Among predictors i.e. the demographic variables – Assessing based on the CHAID Analysis yields that only Gender is the predictor that gives a Chi Square value having statistical significance < .05 or 5% for the relation of its 2 categories with response variable Loyalty. This means that the process of comparison between 2 categories of a predictor, repeated for each of the predictors merging the categories found not to have statistically significant relationship with response variable in earlier comparisons did not have any 2 categories of a predictor having a significant effect on loyalty of the customer for the brand except for Male and Female categories of Gender that show significant affect on customer loyalty.As per the CHAID algorithm, the categories for Ordinal Variables are naturally defined and for continuous variables are taken in a bucket of 10 units(such as for Age).[pic 3][pic 4]Customer Loyalty Assessment based on Demographics[pic 5][pic 6][pic 7][pic 8][pic 9][pic 10][pic 11][pic 12][pic 13][pic 14][pic 15][pic 16][pic 17][pic 18][pic 19][pic 20][pic 21][pic 22][pic 23][pic 24]