{{see also, Logistic regression Logit analysis is a statistical technique used by

marketers Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to empha ...

to assess the scope of customer acceptance of a

product Product may refer to: Business * Product (business), an item that serves as a solution to a specific consumer problem. * Product (project management), a deliverable or set of deliverables that contribute to a business solution Mathematics * Produ ...

, particularly a new product. It attempts to determine the intensity or magnitude of customers' purchase intentions and translates that into a measure of actual buying behaviour. Logit analysis assumes that an unmet need in the marketplace has already been detected, and that the product has been

designed A design is a plan or specification for the construction of an object or system or for the implementation of an activity or process or the result of that plan or specification in the form of a prototype, product, or process. The verb ''to design'' ...

to meet that need. The purpose of logit analysis is to quantify the potential sales of that product. It takes survey data on consumers' purchase intentions and converts it into actual purchase probabilities. Logit analysis defines the functional relationship between stated purchase intentions and preferences, and the actual probability of purchase. A

preference regression Preference regression is a statistical technique used by marketers to determine consumers’ preferred core benefits. It usually supplements product positioning techniques like multi dimensional scaling or factor analysis and is used to create ...

is performed on the survey data. This is then modified with actual historical observations of purchase behavior. The resultant functional relationship defines purchase probability. This is the most useful of the purchase intention/rating translations because explicit measures of confidence level and statistical significance can be calculated. Other purchase intention/rating translations include the

preference-rank translation Preference-rank translation is a mathematical technique used by marketers to convert stated preferences into purchase probabilities, that is, into an estimate of actual buying behaviour. It takes survey data on consumers’ preferences and conve ...

and the

intent scale translation Intent scale translation is a mathematical technique used by marketing, marketers to convert stated purchase intentions into purchase probabilities, that is, into an estimate of actual buying behaviour. It takes statistical survey, survey data on c ...

. The logit function is the reciprocal function to the sigmoid logistic function.

See also