Objectives of Presentation

   

To make every participant aware from the underlying concepts of Conversion Model To enable everyone to process the CM segments To make everyone understand the In & Out of CM segments To enable handling of CM independently

What is Conversion Model & How did it evolve



It is a market research tool that measures attitudinal loyalty. It is also called as micro model. It is psychological model of consumer behavior providing brand managers insight on the relationship between consumers & brands. The Conversion Model was initially developed to understand religious conversion. It was developed by Jan Hofmeyr, who was a lecturer in religious studies at the University of Cape Town. The first commercial study conducted using the Conversion Model was in 1989 in South Africa and in the United States in 1990.

You need to know

 

How to identify the inputs How to check that your inputs are clean and correct How to set up your data so that the program will accept your inputs How the programs work And, how to check your outputs

 

Conversion Model Process

Merge the Conversion Model segments that you have created using CMWeb back into your original dataset so that you can produce cross-tabulations for analysis purposes.

Conversion Model Outputs Conversion Model segments CCE (Customer Equity) Number Traffic patterns BrandNetter Jaccard coefficient CASE (category non-users) Commit /Involve profile States of Mind segments EmployeeScore Party

What are the Conversion Model segments?

There are nine Conversion Model segments. CM Analysis will produce 4 user segments and 5 non-user segments for each brand in the brand list.

The 9th segment, not represented above, is referred to as Category in trouble and is usually combined with Strongly unavailable. Entrenched and Average are grouped as Committed users Shallow and Convertible are grouped as Uncommitted users

What are the Conversion Model questions? 1. Total awareness 2. Satisfaction question (brand rating) 3. Usage question T_A Sat Usage

4. Most often usage/Main Brand question 5. Importance question 6. Many good reasons question Imp Mgr

It is not necessary for a study to have Most Often Brand

How do I identify these questions?

Total awareness:


This question is not essential for any of the Conversion Model TM programs. If there are no awareness questions in your questionnaire, you should not be concerned.

Typical wording:. Which of the following brands of ____ have you ever heard of? Usage question:


Often there are a number of usage questions in the questionnaire. You need to confirm which usage definition is going to be used for Conversion Model purposes with the executive involved. This question is always a multiple mention.

Most often/Main brand usage question:

 

The most often usage question is always a single mention question. Make sure that the brand that a respondent uses most often is included in the list of brands used currently (regular usage). If the most often question is not present in the questionnaire, you can run the Conversion Model TM program without this variable.

Typical wording: Which brand do you use most often? OR Which is your main brand?

Satisfaction question: This question is asked for (filtered on) all brands aware of. This question has a 10-point scale which should ALWAYS run from 1 = Terrible to 10 = Perfect in every way. Typical wording: I would like you to rate each brand of_____ which you are aware of, using a 10-point scale where 10 means you think it is perfect, and 1 means you think it is terrible. Now, taking into account everything you look for in a_____, how would you rate_____ (read the name of each brand aware of)?

Importance question: This question is used to measure involvement and is asked of ALL respondents. The code frame for this question is: 1 = Extremely important 2 = Very important 3 = Moderately important 4 = Slightly important 5 = Not at all important

Many good reasons question: This question is asked for (filtered on) all brands used (the usage question identified earlier).


This question has a 3-point scale. And, there is a single response for each brand used.

Typical wording: Think about each of the _____ you use. Which one statement best describes your feelings about _____ (read the name of each brand used)?


1 = There are many good reasons to continue using _ , and few good reasons to change 2 = There are many good reasons to continue using _, and many good reasons to change 3 = There are few good reasons to continue using _, and many good reasons to change

Points to be noted
Respondents will be dropped from the program completely (they will receive 0 Conversion Model segment) if: (1) they dont use any of the brands OR (2) they do use brands but havent rated any used brands using the satisfaction question. Main brand - As long as the person uses at least one brand regularly, they will go through the program. However, they will not receive a Main Brand Commitment score if they dont have a most often used/main brand. Importance scores - a default value will be assigned. Regular usage - If respondents have not indicated that they use at least one of the brands on the brand list regularly, they will not receive a segmentation for ANY brand as they will be considered non-users of the category. Satisfaction scores -If a satisfaction score is missing for a used brand, the respondent will be unsegmented for that brand and will receive a 0 segment for that brand. Many good reasons scores - a value will be allocated, based on the other scores, providing the respondent uses that brand. The order of the brand lists is VERY IMPORTANT. For example, if you are running a beverage study and Coca-Cola is referred to in the layout file as Brand 2 in the usage entry, Coca-Cola should also be referred to as Brand 2 in the main brand, satisfaction and many good reasons entries.

An example input file

Interpretation: Col 1-10: Respondents ID = 0000000001 Col 11-13: Most often/Main brand (always 3 cols) = brand 2 Col 14: Importance rating = 2 Col 15-28: Usage in this case, the respondent uses brands 1, 2 and 4. There are 14 brands in this study. Col 29-56: Satisfaction. The ratings occupy two columns per brand, starting in column 29. In this example, the respondent gave a satisfaction score of 9 for brand 1, a satisfaction score of 10 for brand 2 (the most often used brand) and a score of 7 for brand 4, etc. Col 57-70: Many good reasons. The ratings occupy one column per brand, starting in column 57. In this example, the respondent gave a mgr of 1 forbrand 1, a mgr of 2 for brand 2 (most often used brand) and an mgr of 3 for brand 4.

CM.DAT

An example layout file - repertoire version

[Info] Cards=1 (Every respondent has 1 card of data) [Card 1] (Indicates that what follows is data on card 1) ident=1, 1-10 (ID starts in col 1, is 10 cols wide and occupies cols 1-10) mob=11 (Most often brand code starts in col 11, 3 columns wide) imp=14 (Importance rating is found in col 14) usage=15, 1-14 (Regular usage data starts in col 15, data for brands 1-14) sat1=29, 1-14 (Satisfaction data starts in col 29, data for brands 1-14. The program knows that each satisfaction score occupies two cols) mgr1=57, 1-14 (mgr data starts in col 57, mgr for brands 1-14)

The format of the layout files for CMWeb is the same as that of Microsoft *.ini files. All rules that apply to *.ini files can be applied to layout files.

CM analysis Where to start

How to run CM analysis

Number of brands Single or repertoire study 4 Question version (Optional) Input Card column layout Input data file and Input Layout file spec Involvement Split Output Card column Layout Output file name Log file set up (Optional)

Suggested Conventions
All All All All input data files can be *.dat (For eg. CM.DAT) input layout files can be *.txt (For eg. CM.TXT) output data files can be *.out (For eg. CM.OUT) log files can be *.log (For eg. CM.LOG)

At the end of CM run

The program, after finding the Conversion Model segments, will then connect to the web to send the information to The Customer Equity Company. Do not click OK until the data transfer is complete If an error message is displayed go back and check that your inputs have been formatted correctly

An example output file - repertoire version

xxxx01xyabcde...nABCDE...naaa.abbb.bccc.cddd.deee.e...nnn.nAAA.ABBB.BCCC.CDDD.DEEE.E...NNN.NXZ

The xxxx are columns for the respondent identity number. 01 - this is an invariant part of the output. Its a dummy card number. x - column for the Category in Trouble (code 0 or 1).
0 Not Category in Trouble, 1 Category in Trouble

y - column for the Strength of Commitment to the main brand (codes 1 to 4).
1 Entrenched, 2 Average, 3 Shallow, 4 Convertible

to n - columns for the user segments for the first to the last brand for which output was requested (codes 1 to 4).
1 Entrenched, 2 Average, 3 Shallow, 4 Convertible

A to n - columns for the Conversion Model Segment codes for the first to the last brands for which output was requested (codes 1 to 9).
Codes = 1 Entrenched, 2 Average, 3 Shallow, 4 Convertible, 5 Available, 6 Ambivalent, 7 Weakly Unavailable, 8 Strongly Unavailable, 9 Category in Trouble

aaa.a output for Customer Equity (if selected). The CCE number is a number between 0 and 100, and has one decimal. AAA.A output for Power in the mind (if selected). The PITM number is a number between 0 and 100, and has one decimal. X output for States of Mind (5). Y output for States of Mind (6).

How to check CM output

Main brand users should not have a non-user segment Regular users of the brand should not have a non-user segment There should be a negative correlation between the satisfaction scores and the Conversion Model segments on both the user (codes 1 to 4) and nonuser (codes 5 to 9) sides.

States of Mind output

Following are the Text meanings for States of Mind (5) 1 Single-minded 2 Passive 3 Shared 4 Seekers 5 Uninvolved Following are the Text meanings for States of Mind (6) 1 Single-minded 2 Passive 3 Shared - committed 4 Shared uncommitted 5 Seekers 6 Uninvolved

COMMITMENT MODULE
The Commitment program creates a commitment/involvement profile for each respondent. Following are the classification. 1 Committed to all 2 Committed to some 3 Uncommitted to all - involved 4 Uncommitted to all - uninvolved

COMMITMENT MODULE Example data file

COMMITMENT MODULE Example layout file

There is 1 card of data: cards=1 The respondent ID numbers can be found on card 1, starting in column 1 and are 4 columns wide: The Conversion Model TM segments start in column 20 and occupy one column each: seg1-10=1.20[1] The importance scores are in column 10, occupying one column: imp=1.10[1]

How to run COMMITMENT analysis

Number of brands

Input Card column layout Input data file and Input Layout file spec Whether to split uncommitted into involved and not involved Output file name

Log file set up (Optional)

How to read COMMITMENT output

The respondent numbers can be found in the first 5 columns. The commitment/Involvement scores are in column 6. You will see that respondent 00001 has, in fact, received a Commitment code 2. If you have not used the split uncommitted to all option, your output file will contain codes 1 to 3 1 Committed to all 2 Committed to some 3 Uncommitted to all If you have used the split uncommitted to all option, your output file will contain codes 1 to 4 1 Committed to all 2 Committed to some 3 Uncommitted to all - involved 4 Uncommitted to all - uninvolved

TRAFFIC Patterns
The TRAFFIC program is used to calculate the switching patterns from one brand to others among all consumers in the market. Following are the classification. 1 High risk 2 Low risk 3 Not at risk 4 Committed users 5 Uncommitted users 6 Everybody else 7 Unsegmented users
The Traffic program looks at uncommitted users of each brand and works out which of the brands that these people are open to (they are at risk of switching to).

TRAFFIC MODULE Example data file

TRAFFIC MODULE Example layout file

There is 1 card of data: cards=1 The respondent ID numbers can be found on card 1, starting in column 1 and is 10 columns wide: ident=1.1[10] The main brand variable can be found on card 1, starting in column 11 and is 3 columns wide: mob=1.11[3] Usage for brands 1 to 9 can be found on card 1 starting in column 14. Each brand occupies one column of data: usage1-9=1.14[1] The brand ratings (satisfaction scores) for brands 1 to 9 can be found on card 1 starting in column 23, each score occupies two columns: fav19=1.23[2] The Conversion Model segments for brands 1 to 9 can be found on card 1 starting in column 41, each Conversion Model TM segment occupies one column: seg1-9=1.41[1]

How to run TRAFFIC analysis

Number of brands Whether the Favourability scale is 1-7 or 1-10 Input Card column layout Input data file and Input Layout file spec Output file name Log file set up (Optional)

How to read TRAFFIC output

The output file from the TRAFFIC program will contain numerous cards for each respondent. There will be as many cards for each respondent as there are brands in the input file. Each card will have the following structure: xxxxxXYZabcdefghi...........n xxxxx = the respondent number. XYZ = the card number. A card will be created for each brand included in the input file. abcdefghi...........n = output values for comparative brands

TRAFFIC Tables

THANK YOU