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Chapter 21 Mo2

The document discusses Multidimensional Scaling (MDS) and Conjoint Analysis as methods for understanding consumer perceptions and preferences. It outlines the procedures, statistical terms, and steps involved in conducting these analyses, emphasizing the importance of reliability and validity in the results. MDS visually represents relationships between stimuli, while Conjoint Analysis determines the relative importance of attributes in consumer choice.

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Rajshekher Singh
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2 views4 pages

Chapter 21 Mo2

The document discusses Multidimensional Scaling (MDS) and Conjoint Analysis as methods for understanding consumer perceptions and preferences. It outlines the procedures, statistical terms, and steps involved in conducting these analyses, emphasizing the importance of reliability and validity in the results. MDS visually represents relationships between stimuli, while Conjoint Analysis determines the relative importance of attributes in consumer choice.

Uploaded by

Rajshekher Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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PUNE INSTITUTE OF BUSINESS MANAGEMENT

MARKETING RESEARCH

DR. Prantosh Banerjee

GROUP NO: 09

2023-2208-0001-0004 Rajshekhar Singh


2023-0809-0001-0010 Rishiraj Swami
2023-0909-0001-0001 Laveena Rupani
2023-1208-0001-0008 Phijam Bebeto Singh
2023-1208-0001-0010 Yumkhaibam Swami Singh
2023-2208-0001-0011 Sneha Mohis
CHAPTER -21
Scaling on Multidimensional Level and Conjoint Analysis

Multidimensional scaling (MDS): a class of procedures for representing perceptions and preferences
of respondents spatially using a visual display.

The axes of a spatial map denote the psychological bases or underlying dimensions respondents use to
form perceptions and preferences for stimuli.

Statistics and terms associated with MDS:

Similarity judgment: ratings on all possible pairs of brands or other stimuli in terms of their similarity
using a Likert-type scale.

Preference rankings: rank orderings of the brands or other stimuli from the most preferred to the least
preferred.

Stress: lack-of-fit measure; higher values of stress indicate poorer fits.

R-square: squared correlation index indicating the proportion of variance of the optimally scaled data
that can be accounted for by the MDS procedure. This is a goodness-of-fit measure.

Spatial map: observes relationships between brands or other stimuli are represented as geometric
relationships between points in a multidimensional space.

Coordinates: the positioning of a brand or a stimulus in a spatial map.

Unfolding: representation of both brands and respondents as points in the same space.

Steps in conducting Multidimensional Scaling:

1. Formulate the problem.

2. Obtain input data.


> Perception data: direct approaches: respondents are asked to judge how similar or
dissimilar the various brands or stimuli are, using their own criteria.

> Perception data: derived approaches: attribute-based approaches to collecting


perception data requiring the respondents to rate the stimuli on the identified
attributes using semantic differential or Likert scales.

3. Select an MDS procedure.


Nonmetric MDS: type of multidimensional scaling method that assumes that the input data are
ordinal.

Metric MDS: assumes that the input data are metric.


4. Decide on the number of dimensions.
The fit of an MDS solution is often assessed by the stress measure. Stress is a lack-of-fit measure,
higher values indicate poorer fits.

Guidelines for determining the number of dimensions:

1. A priori knowledge: theory or past research.


2. Interpretability of the spatial map.
3. Elbow criterion: plot of stress versus dimensionality used in MDS. The point
at which an elbow or a sharp bend occurs indicates an appropriate
dimensionality.
4. Ease of use. It’s easier to work with two-dimensional maps than with thouse
involving more dimensions.
5. Statistical approaches Label the dimensions and interpret the configuration.

6. Assess reliability and validity. Suggestions:


- examine the index of fit, or R-square.
- stress values are indicative of the quality of MDS solutions.
- adding a random error term.
- collection of the input data could be done at two different points in time

Analysis of Preference Data.

Internal analysis of preferences: configuring a spatial map such that it represents both brands or
stimuli and respondent points or vectors and is derived solely from the preference data.

External analysis of preferences: configuring a spatial map such that the ideal points or vectors based
on preference data are fitted in a spatial map derived from perception data.

Correspondence analysis: MDS technique for scaling qualitative data that scales the rows and
columns of the input contingency table in corresponding units so that each can be displayed in the
same low-dimensional space.

Conjoint analysis: a technique to attempt to determine the relative importance consumers attach to
salient attributes and the utilities they attach to the levels of attributes.

Conjoint analysis is used in marketing with several goals:

- Determine the relative importance of attributes in the consumer choice process.


- Estimate the market share of brands that differ in attribute level.
- Determine the composition of the most preferred brand.
- Segment the market based on the similarity of preferences for attribute levels.

Statistics and terms associated with conjoint analysis:

Part-worth functions: utility functions describe the utility consumers attach to the levels of each
attribute.

Relative importance weights: indicate which attributes are important in influencing consumer choice.

Attribute levels: values assumed by the attributes.

Full profiles: profiles that are constructed in terms of all the attributes by using the attribute levels
specified by the design.
Pairwise tables: the respondents evaluate two attributes at a time until all the required pairs of
attributes are evaluated.

Cyclical designs: designs to reduce the number of paired comparisons.

Fractional factorial designs: to reduce the number of stimulus profiles to be evaluated in the full
profile approach.

Orthogonal arrays: a special class of fractional designs that enable the efficient estimation of all main
effects.

Internal validity: correlations of the predicted evaluations for the holdout or validation stimuli with
those obtained from the respondents.

Steps in conducting the Conjoint Analysis:

1. Formulate the problem.

2. Construct the stimuli.

3. Decide on the form of input data.

4. Select a conjoint analysis procedure.


Conjoint analysis model: mathematical model expressing the fundamental relationship
between attributes and utility in conjoint analysis.

5. Interpret the results.

6. Assess reliability and validity.


Several procedures for this:
- goodness of fit of the estimated model should be evaluated.
- test-retest reliability can be assessed by obtaining a few replicated judgments
later in data collection
- evaluations for the holdout or validation stimuli can be predicted by the
estimated part-worth functions.
- if an aggregate-level analysis is conducted, the estimation sample can be split
in several ways and conjoint analysis was conducted on each subsample.

Hybrid conjoint analysis: the form of conjoint analysis that attempts to simplify the data-collection
task and estimate selection interactions and main effects.

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