Multidimensional scaling
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Transcript of Multidimensional scaling
Multidimensional Scaling
MDS can be used to measure
• Image measurement• Market segmentation• New product development( positioning)• Assessing advertising effectiveness• Pricing analysis• Channel decisions• Attitude scale construction
Terms associated with MDS
• Similarity judgments : between all possible pairs using a likert type scale
• Preference rankings: most to least preferred• Stress: Lack of fit. Higher values lower fit• Spatial Map: geometric relationships in a
multidimensional space• Coordinates• Unfolding : representation of both brands and
respondents as points in the space is unfolding
Formulation of Problem
• Purpose for which MDS would be used.• here we can go for brands or attributes• Brand of tooth paste: crest, Colgate, aqua
fresh, aim, closeup n(n-1)/2 [Comparatively easy]
• Attribute: whitening of teeth, tooth decay, pleasant taste etc
Select a MDS procedure
• Non metric MDS(ordinal)• Metric MDS(interval or ratio)
Deciding on number of dimensions
• Stress is the deciding factor• Ease of use
Label and interpret the configuration
• By examining the coordinates and their relative positions of brands
• Brands located near compete fiercely• Brands farther along descriptor are strong• Gaps indicate potential opportunities • Higher Rsquare is desirable. More than 0.6
Interpreting TV brands
• Tables representing 3-dimension, 2-dimension and 1-dimension data
• Stress score3-dimension: 0.05230(best one)2-dimension: 0.240151-dimension: 0.43159 Since 8 brands so we can go for 3 dimension but if
12-15 brands we can go for higher dimensions
• Dimension 1 : Value for money(var 6, var1 & var5)
• Dimension 2: After sales(var7, var 2• Dimension 3: current brand image( var2 &
var8)( judgment, knowledge or data generated
market survey)