The profile analysis reveals a product’s buyer profile in terms of segment or demographic groups. It can be conducted for a brand, category, segment, or a combination of items of interest.
The analysis basically answers the following questions:
The demographic profile of holders of a particular credit card is depicted, in terms of % card users, in Exhibit 7.8.
The skew analysis for the same data is provided in Exhibit 7.9. This chart gives us the break-up of the credit card users across income levels and across household size. The bar chart on the left tells us the population break-up for this market across income levels: lower income — 29%, middle-lower — 35%, middle-upper — 23% and higher income — 13%. The other charts tell us that the profile of this card’s users has a positive skew on middle-upper income and a negative skew on lower income. If there was no skew at all, the break-up of users (%) and spend (%) would be exactly the same as the population break-up. However since there is a -9.4 point skew on lower income, the card’s proportion of users in lower income is 29 − 9.4 = 19.6%. Similarly the proportion of users is 37.6% (35 + 2.6) middle-lower income, 31.5% (23 + 8.5) middle-upper and 11.3% (13 − 1.7) higher income.
Profile analysis provides an understanding of which buyer groups (demographic groups, consumer segments) have greater propensity to purchase the brand (or any group of products of interest). The skew analysis best illustrates the areas of strengths and weaknesses. This information can be used for targeting particular buyer groups through product development, advertising, promotions and distribution.
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