A Review of the Major Multidimensional Scaling Models for the Analysis of Preference/Dominance Data in Marketing

Quantitative Modelling in Marketing and Management, L. Mouthinho & K. Huarng (Eds.), World Scientific Press: London, pp. 3-27, 2013

Posted: 19 Jun 2016

See all articles by Wayne S. DeSarbo

Wayne S. DeSarbo

Pennsylvania State University

Sunghoon Kim

Pennsylvania State University

Date Written: 2013

Abstract

Multidimensional scaling (MDS) represents a family of various spatial geometric models for the multidimensional representation of the structure in data as well as the corresponding set of methods for fitting such spatial models. Its major uses in Marketing include positioning, market segmentation, new product design, consumer preference analysis, etc. We present several popular MOS models for the analysis of consumer preference or dominance data. The first spatial model presented is called the vector or scalar products model which represents brands by points and consumers by vectors in a T dimensional derived joint space. We describe both individual and segment level vector MDS models. The second spatial model is called the multidimensional simple unfolding or ideal point model where both brands and consumers are jointly represented by points in a T dimensional derived joint space. We briefly discuss two more complex variants of multidimensional unfolding called the weighted unfolding model and the general unfolding model. Here too, we describe both individual and segment level unfolding MOS models. We contrast the underlying utility assumptions implied by each of these models with illustrative figures of typical joint spaces derived from each approach. An actual commercial application of consideration to buy large Sports Utility Vehicle (SUV) vehicles is provided with the empirical results from each major type of model at the individual level is discussed.

Keywords: Multidimensional scaling, vector model, unfolding model, positioning analysis, market segmentation, clusterwise models

Suggested Citation

DeSarbo, Wayne S. and Kim, Sunghoon, A Review of the Major Multidimensional Scaling Models for the Analysis of Preference/Dominance Data in Marketing (2013). Quantitative Modelling in Marketing and Management, L. Mouthinho & K. Huarng (Eds.), World Scientific Press: London, pp. 3-27, 2013. Available at SSRN: https://ssrn.com/abstract=2796771

Wayne S. DeSarbo (Contact Author)

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

Sunghoon Kim

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
197
PlumX Metrics