A Spatial Interaction Model for Deriving Joint Space Maps of Bundle Compositions and Market Segments from Pick-Any/J Data: An Application to New Product Options

Marketing Letters, Volume 7, Issue 2, pp 131-145

15 Pages Posted: 8 Jun 2016

See all articles by Wayne S. DeSarbo

Wayne S. DeSarbo

Pennsylvania State University

Venkatram Ramaswamy

University of Michigan, Stephen M. Ross School of Business

Michel Wedel

University of Maryland - Robert H. Smith School of Business, Marketing Department; University of Groningen - Faculty of Economics and Business

Tammo H.A. Bijmolt

University of Groningen - Department of Marketing & Marketing Research

Date Written: March 1996

Abstract

We propose an approach for deriving joint space maps of bundle compositions and market segments from three-way (e.g., consumers x product options/benefits/features x usage situations/scenarios/time periods) pick-any/J data. The proposed latent structure multidimensional scaling procedure simultaneously extracts market segment and product option positions in a joint space map such that the closer a product option is to a particular segment, the higher the likelihood of its being chosen by that segment. A segment-level threshold parameter is estimated that spatially delineates the bundle of product options that are predicted to be chosen by each segment. Estimates of the probability of each consumer belonging to the derived segments are simultaneously obtained. Explicit treatment of product and consumer characteristics are allowed via optional model reparameterizations of the product option locations and segment memberships. We illustrate the use of the proposed approach using an actual commercial application involving pick-any/J data gathered by a major hi-tech firm for some 23 advanced technological options for new automobiles.

Suggested Citation

DeSarbo, Wayne S. and Ramaswamy, Venkatram and Wedel, Michel and Bijmolt, Tammo H.A., A Spatial Interaction Model for Deriving Joint Space Maps of Bundle Compositions and Market Segments from Pick-Any/J Data: An Application to New Product Options (March 1996). Marketing Letters, Volume 7, Issue 2, pp 131-145. Available at SSRN: https://ssrn.com/abstract=2791176

Wayne S. DeSarbo (Contact Author)

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

Venkatram Ramaswamy

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109-1234
United States
734-763-5932 (Phone)
734-936-0279 (Fax)

Michel Wedel

University of Maryland - Robert H. Smith School of Business, Marketing Department ( email )

College Park, MD 20742
United States
301.405.2162 (Phone)
301.405.0146 (Fax)

HOME PAGE: http://www.rhsmith.umd.edu/marketing/faculty/wedel.html

University of Groningen - Faculty of Economics and Business ( email )

Postbus 72
9700 AB Groningen
Netherlands

Tammo H.A. Bijmolt

University of Groningen - Department of Marketing & Marketing Research ( email )

Nettelbosje 2
Groningen, 9747 AE
Netherlands

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