Simultaneous Multidimensional Unfolding and Cluster Analysis: An Investigation of Strategic Groups

Marketing Letters, Volume 2, Issue 2, pp 129-146, 1990

Posted: 2 Jun 2016

See all articles by Wayne S. DeSarbo

Wayne S. DeSarbo

Pennsylvania State University

Kamel Jedidi

Columbia Business School - Marketing

Karel Cool

INSEAD - Strategy

Dan Schendel

Purdue University

Date Written: April 1991

Abstract

This paper develops a maximum likelihood based methodology for simultaneously performing multidimensional unfolding and cluster analysis on two-way dominance or profile data. This new procedure utilizes mixtures of multivariate conditional normal distributions to estimate a joint space of stimulus coordinates and K ideal points, one for each cluster or group, in a T-dimensional space. The conditional mixture, maximum likelihood methodology is introduced together with an E-M algorithm utilized for parameter estimation. A marketing strategy application is provided with an analysis of PIMS data for a set of firms drawn from the same competitive industry to determine strategic groups, while simultaneously depicting strategy-performance relationships.

Keywords: Marketing Strategy, Multidimensional Scaling, Cluster Analysis, Strategic Groups

Suggested Citation

DeSarbo, Wayne S. and Jedidi, Kamel and Cool, Karel and Schendel, Dan, Simultaneous Multidimensional Unfolding and Cluster Analysis: An Investigation of Strategic Groups (April 1991). Marketing Letters, Volume 2, Issue 2, pp 129-146, 1990. Available at SSRN: https://ssrn.com/abstract=2788180

Wayne S. DeSarbo (Contact Author)

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

Kamel Jedidi

Columbia Business School - Marketing ( email )

New York, NY 10027
United States

Karel Cool

INSEAD - Strategy ( email )

Boulevard de Constance
77305 Fontainebleau
France
(33) (0)1 60 72 42 76 (Phone)
(33) (0)1 60 74 55 58 (Fax)

Dan Schendel

Purdue University

610 Purdue Mall
West Lafayette, IN 47907
United States
317-463-9846 (Phone)
317-463-6746 (Fax)

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