Purpose
The purpose of the CDI metric is to quantify the relative performance of a category within specified customer groups. The CDI helps marketers identify strong and weak segments (usually demographic or geographic) for categories of goods and services. The CDI is useful in all marketing strategies when used with the Brand Development Index (BDI). The CDI can give vital data for marketers to allocate advertising to specific areas maximizing product category knowledge and profit.Construction
CDI: An index of how well a category performs in a given market segment, relative to its performance in the market as a whole. ::CDI (I) = :: ategory sales to group (#) ÷ Households in group (#)÷ :: otal category sales (#) ÷ Total households (#)::''Note: Although defined here with respect to households, these indexes could also be calculated for customers, accounts, businesses, or other entities.'' For example, Boston enjoys high per capita consumption of ice cream. Bavaria and Ireland show higher per capita consumption of beer than Iran.See also
* Brand development indexReferences
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