![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](https://image.slidesharecdn.com/multidimensionalscaling-130401113743-phpapp01/85/Multidimensional-scaling-4-320.jpg)
Multidimensional scaling
- 2. MDS can be used to measure • Image measurement • Market segmentation • New product development( positioning) • Assessing advertising effectiveness • Pricing analysis • Channel decisions • Attitude scale construction
- 3. 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
- 4. 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
- 5. Select a MDS procedure • Non metric MDS(ordinal) • Metric MDS(interval or ratio)
- 6. Deciding on number of dimensions • Stress is the deciding factor • Ease of use
- 7. 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
- 8. Interpreting TV brands • Tables representing 3-dimension, 2-dimension and 1-dimension data • Stress score 3-dimension: 0.05230(best one) 2-dimension: 0.24015 1-dimension: 0.43159 Since 8 brands so we can go for 3 dimension but if 12-15 brands we can go for higher dimensions
- 9. • 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)