MKT355e: Case 4.1: JPMorgan Chase: Chasing Growth Through Mergers and Acquisitions: Multivariate Analysis Assignment, SUSS, Singapore

SECTION A

Please read the case study “Case 4.1: JPMorgan Chase: Chasing Growth Through Mergers and Acquisitions” thoroughly on pages 840-845 of the textbook. You are provided with a file that contains data from a study conducted by JPMorgan Chase to understand its customers, their lifestyles, and the potential for customer segmentation in terms of products and service needs.

In this project, assume your company has been engaged as the Market Research Consultant by JPMorgan Chase to perform the tasks described in the ECA questions. It is important that you relate multivariate analysis to the JPMorgan Chase’s situation and the nature of variables in the survey. You must generate and interpret JMP results, and make recommendations to address the management’s concerns.

Question 1

(a) Plan and recode, as a new column, “How would you rate the advantage of using your primary provider than other financial services providers ?” (Q5). You shall recode the original categories “1” & “2” as “1”, “3” as “2”, “4” & “5” as “3”. The new column is to be renamed as “Q5_Recoded”.

Under the new column’s Column Info, change the data type to Character, and Modelling Type to Nominal.

Present the recoded column’s frequency distribution table in your report without showing the detailed recorded list.

(b) Examine through a three-group discriminant analysis on whether Q5_Recoded differs in terms of ratings of the primary financial provider in Q6_b, Q6_e, Q6_g, Q6_i, and Q6_j when these variables are considered together.

You need to demonstrate your ability to use JMP Software to solve the problems. For Discriminant Analysis, use Stepwise Variable with Linear Covariance method.

Assemble the relevant results from the analysis. Hence recommend to JPMorgan Chase’s management appropriate actions.

Question 2

The survey requested customers to rate several criteria in selecting financial service providers. However, these criteria may overlap. That will not help the management to identify key areas to focus on. Solve this problem with a Factor Analysis on Q1_b, Q1_c, Q1_d, Q1_f, Q1_g, Q1_k and Q1_i. Your analysis shall include the following processes with relevant JMP outputs:

(a) Discuss the appropriateness of using Factor Analysis by Bartlett’s Test of Sphericity.

(b) Compare the number of factors to be extracted based on Eigenvalues, Cumulative Percentage, and Scree Plot methods.

(c) Using Eigenvalues as the basis for the number of factors to be extracted, with Principal Component Analysis as the extraction method and Varimax Rotation as the rotation method, appraise the dominant variables in each factor and the variance each factor accounts for. Hence interpret the factors and recommend appropriate actions to JPMorgan Chase’s management.

Question 3

JPMorgan Chase’s management wants to know the major groups of customers’ feelings about its products and services. Appraise a hierarchical Clustering Analysis to cluster the customers, based on their response to Q6_b, Q6_c, Q6_d, Q6_i and Q6_l through the following processes.

(a) Infer an appropriate number of clusters using relevant JMP output. Present the Cluster’s Frequency Distribution Table without the detailed classification list.

Note: You must change the Cluster’s Data Type to Character and Modelling Type Nominal before carrying out further analysis.

(b) Based on the Final Cluster Centres table, distinguish and interpret each cluster profile. For each cluster, formulate appropriate actions to the management.

Question 4

Based on the results of the analysis conducted in Q1 to Q3, compose an executive summary to JP Morgan Chase’s management in no more than 300 words.

Question 5

You are required to conduct a literature search on a research paper. First, log in to your SUSS Student Portal and access the Library E-Resources.

(a) Using any of the databases listed (such as ABI-INFORM Complete and ScienceDirect), select one (1) journal paper that uses Logistic Regression (also known as Logit Model) in marketing applications and provide the following information in a table.

(b) Discuss the purposes and limitations of using Logistic Regression as outlined in the journal paper.

SECTION B

Prepare a video recording of the presentation of at least 3 minutes but not exceeding 6 minutes. There are two methods for ECA video assignment submission; either Record Media or Upload Media. For Upload Media, please note that your file size should be no more than 500MB and the format is in .mp4.

SECTION C

Prepare a set of PowerPoint presentations upon which the video presentation is based. Please note that the PowerPoint must be converted to PDF before submission to Canvas.