A Stochastic Multidimensional Unfolding Approach for Representing Phased Decision Outcomes

Psychometrika, Volume 61, Issue 3, pp 485-508

24 Pages Posted: 8 Jun 2016

See all articles by Wayne S. DeSarbo

Wayne S. DeSarbo

Pennsylvania State University

Donald R. Lehmann

Columbia Business School - Marketing

Gregory Carpenter

Northwestern University - Department of Marketing

Indrajit Jay Sinha

Temple University - Department of Marketing and Supply Chain Management

Date Written: September 1996

Abstract

This paper presents a stochastic multidimensional unfolding (MDU) procedure to spatially represent individual differences in phased or sequential decision processes. The specific application or scenario to be discussed involves the area of consumer psychology where consumers form judgments sequentially in their awareness, consideration, and choice set compositions in a phased or sequential manner as more information about the alternative brands in a designated product/service class are collected. A brief review of the consumer psychology literature on these nested congnitive sets as stages in phased decision making is provided. The technical details of the proposed model, maximum likelihood estimation framework, and algorithm are then discussed. A small scale Monte Carlo analysis is presented to demonstrate estimation proficiency and the appropriateness of the proposed model selection heuristic. An application of the methodology to capture awareness, consideration, and choice sets in graduate school applicants is presented. Finally, directions for future research and other potential applications are given.

Keywords: consumer psychology, multidimensional scaling, maximum likelihood, consideration sets, multidimensional unfolding, successive categories analysis

Suggested Citation

DeSarbo, Wayne S. and Lehmann, Donald R. and Carpenter, Gregory and Sinha, Indrajit Jay, A Stochastic Multidimensional Unfolding Approach for Representing Phased Decision Outcomes (September 1996). Psychometrika, Volume 61, Issue 3, pp 485-508. Available at SSRN: https://ssrn.com/abstract=2791090

Wayne S. DeSarbo (Contact Author)

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

Donald R. Lehmann

Columbia Business School - Marketing ( email )

New York, NY 10027
United States

Gregory Carpenter

Northwestern University - Department of Marketing

Kellogg School of Management
2001 Sheridan Rd.
Evanston, IL 60208
United States

Indrajit Jay Sinha

Temple University - Department of Marketing and Supply Chain Management ( email )

Philadelphia, PA 19122
United States

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