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
Date Written: April 1991
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
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