Adaptive Multidimensional Scaling: The Spatial Representation of Brand Consideration and Dissimilarity Judgments

We propose Adaptive Multidimensional Scaling (AMDS) for simultaneously deriving a brand map and market segments using consumer data on cognitive decision sets and brand dissimilarities.In AMDS, the judgment task is adapted to the individual respondent: dissimilarity judgments are collected only for those brands within a consumers' awareness set.Thus, respondent fatigue and subjects' unfamiliarity with any subset of the brands are circumvented; thereby improving the validity of the dissimilarity data obtained, as well as the multidimensional spatial structure derived.Estimation of the AMDS model results in a spatial map in which the brands and derived segments of consumers are jointly represented as points.The closer a brand is positioned to a segment's ideal brand, the higher the probability that the brand is considered and chosen.An assumption underlying this model representation is that brands within a consumers' consideration set are relatively similar.In an experiment with 200 subjects and 4 product categories, this assumption is validated.We illustrate adaptive multidimensional scaling on commercial data for 20 midsize car brands evaluated by 212 members of a consumer panel.Potential applications of the method and future research opportunities are discussed.scaling;brands;market segmentation

Adaptive Multidimensional Scaling:The Spatial Representation of Brand Consideration and Dissimilarity Judgments

We propose Adaptive Multidimensional Scaling (AMDS) for simultaneously deriving a brand map and market segments using consumer data on cognitive decision sets and brand dissimilarities.In AMDS, the judgment task is adapted to the individual respondent: dissimilarity judgments are collected only for those brands within a consumers' awareness set.Thus, respondent fatigue and subjects' unfamiliarity with any subset of the brands are circumvented; thereby improving the validity of the dissimilarity data obtained, as well as the multidimensional spatial structure derived.Estimation of the AMDS model results in a spatial map in which the brands and derived segments of consumers are jointly represented as points.The closer a brand is positioned to a segment's ideal brand, the higher the probability that the brand is considered and chosen.An assumption underlying this model representation is that brands within a consumers' consideration set are relatively similar.In an experiment with 200 subjects and 4 product categories, this assumption is validated.We illustrate adaptive multidimensional scaling on commercial data for 20 midsize car brands evaluated by 212 members of a consumer panel.Potential applications of the method and future research opportunities are discussed.

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

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 particlar 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.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/47207/1/11002_2004_Article_BF00434905.pd

A new spatial classification methodology for simultaneous segmentation, targeting, and positioning (stp analysis) for marketing research

The Segmentation-Targeting-Positioning (STP) process is the foundation of all marketing strategy. This chapter presents a new constrained clusterwise multidimensional unfolding procedure for performing STP that simultaneously identifies consumer segments, derives a joint space of brand coordinates and segment-level ideal points, and creates a link between specified product attributes and brand locations in the derived joint space. This latter feature permits a variety of policy simulations by brand(s), as well as subsequent positioning optimization and targeting. We first begin with a brief review of the STP framework and optimal product positioning literature. The technical details of the proposed procedure are then presented, as well as a description of the various types of simulations and subsequent optimization that can be performed. An application is provided concerning consumers' intentions to buy various competitive brands of portable telephones. The results of the proposed methodology are then compared to a naïve sequential application of multidimensional unfolding, clustering, and correlation/regression analyses with this same communication devices data. Finally, directions for future research are given

Towards an international understanding of the power of celebrity persuasions: a review and a research agenda

Research into advertising using celebrity has been undertaken for nearly 40 years. It has principally used surveys and experiments to explore how consumers respond to celebrity advertisements. A recent meta-study of 32 papers has demonstrated that different populations respond in different ways to celebrity endorsements. Specifically, both US subjects and college students are more likely to respond in a significant way to the presence of celebrity than subjects who are not from the US, or who are not studying at college. Given that the nationality and student status of subjects matter, this article explores the make up of the samples that have been used to examine celebrity advertising. The article finds that these samples are not representative of US populations (because so many are students), nor of populations outside the US (because so few live beyond it). Furthermore, the history of dominance of US-based student samples, and the citation practices which keep them circulating in academia, suggests that theories of celebrity advertising have for a long time been excessively influenced by ideas tested on this unrepresentative group. This fact will limit the applicability of research into celebrity advertising to the wider world. I explore whether this matters, and how deficiencies might be addressed in further research

Random effects diagonal metric multidimensional scaling models

By assuming a distribution for the subject weights in a diagonal metric (INDSCAL) multidimensional scaling model, the subject weights become random effects. Including random effects in multidimensional scaling models offers several advantages over traditional diagonal metric models such as those fitted by the INDSCAL, ALSCAL, and other multidimensional scaling programs. Unlike traditional models, the number of parameters does not increase with the number of subjects, and, because the distribution of the subject weights is modeled, the construction of linear models of the subject weights and the testing of those models is immediate. Here we define a random effects diagonal metric multidimensional scaling model, give computational algorithms, describe our experiences with these algorithms, and provide an example illustrating the use of the model and algorithms.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/45758/1/11336_2005_Article_BF02295730.pd

On the Non-Existence of Optimal Solutions and the Occurrence of “Degeneracy” in the CANDECOMP/PARAFAC Model

The CANDECOMP/PARAFAC (CP) model decomposes a three-way array into a prespecified number of R factors and a residual array by minimizing the sum of squares of the latter. It is well known that an optimal solution for CP need not exist. We show that if an optimal CP solution does not exist, then any sequence of CP factors monotonically decreasing the CP criterion value to its infimum will exhibit the features of a so-called “degeneracy”. That is, the parameter matrices become nearly rank deficient and the Euclidean norm of some factors tends to infinity. We also show that the CP criterion function does attain its infimum if one of the parameter matrices is constrained to be column-wise orthonormal