Multidimensional Scaling Istijanto, MM, MCom. Multi Dimensional Scaling (MDS) Used for: -image measurement  product/ brand positioning -Market segmentation.

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Multidimensional Scaling Istijanto, MM, MCom

Multi Dimensional Scaling (MDS) Used for: -image measurement  product/ brand positioning -Market segmentation -NPD -Assessing ad effectiveness -Pricing analysis -Channel decision -Attitude scale construction

Multidimensional Scaling (MDS) The Number and Nature of Dimensions Consumers Use to Perceive Different Brands in the Marketplace The Positioning of Current Brands on these Dimensions The Positioning of Consumers’ Ideal on these Dimensions

Formulate The Problem Obtain Input Data Select an MDS Procedure Decide on The Number of Dimension Label the Dimensions and Interpret the Configuration Assess Reliability and Validity CONDUCTING MULTIDIMENSIONAL SCALING

Perceptions Preferences Direct (Similarity Judgments Derived (Attribute Ratings MDS Input Data Multidimensional Scaling (MDS)

Direct Approach Example: Similarity judgments on all the possible pairs of toothpaste brands: (rank from the most similar to least similar) Crest versus Colgate Very Similar Very Dissimilar Aqua-Fresh versus Crest Crest versus Aim Colgate versus Aqua-Fresh

Derived Approach Rated the brands on attributes Whitens Teeth Prevents tooth decay Pleasant tasting Does not Whitens Teeth Does not prevent tooth decay Unpleasant tasting

Preference A Correspondence is presented with all possible pairs and asked to indicate which pair is most preferred Example:The preferred brand in each pair is: AAAABBBCCDAAAABBBCCD BCDECDEDEEBCDECDEDEE

Aqua-Fresh Crest Colgate Aim Gleem Macleans Ultra-Brite Close Up Pepsodent Dentagard Aqua-Fresh Crest Colgate Aim Gleem Macleans Ultra-Brite Close Up 6 4 Pepsodent 3 SIMILARITY RATINGS OF TOOTHPASTE BRANDS

, Macleans Aim Ultrabite Crest Colgate Aqua-Fresh Gleem Dentagard Pepsodent A Spatial Map of Toothpaste Brands Close-Up

, MacleansAim Ultrabite Pepsodent Gleem Crest ColgateClose Up Aqua-Fresh Dentagard Cleans Stains Whitens Teeth Fights Cavities Using Attribute Vectors to Label Dimensions

SPSS - MDS Direct - similarity approach Answer the questionnaire to obtain the data: car similarity!

SPSS - MDS

Move the variables

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