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)
