Multidimensional Scaling

A. Classical Multidimensional Scaling (One matrix)

B. Weighted Multidimensional Scaling (Several matrices)

1. Objective of Multidimensional Scaling

- Position of the product in a perceptual map of major competitors
- Assessment of the preference toward ABC product relative to major competitors

Three fundamental issues should be consider before conducting MDS

a. Selecting the objects that will be evaluated
b. Represent attribute similarity
c. Aggregate Analysis-understanding of the overall evaluation of objects

2. Research design for MDS

- Decompositional Method-Attribute free

- Selecting objects and number of objects
- Similarity Data

Pair comparison = n (n-1)/2

n = Number of objects
 Example- 5 Sneakers:

Puma,

UCB,

Vans,

Addidas &

Fila

Total no. of pairs = 5(5-1)/2 = 10

Collection of data through questionnaire

Q.1 Puma--------------- UCB

0……1…….2……3……4……5……6…….7……8……9……10

Dissimilar Similar

Q.2 Puma --------------- Vans

0……1…….2……3……4……5……6…….7……8……9……10

Dissimilar Similar

Q.3 Puma --------------- Addidas

0……1…….2……3……4……5……6…….7……8……9……10

Dissimilar Similar

Q.4 Puma --------------- Fila

0……1…….2……3……4……5……6…….7……8……9……10

Dissimilar Similar

Q.5 UCB --------------- Vans

0……1…….2……3……4……5……6…….7……8……9……10

Dissimilar Similar
Q.6 UCB---------------Addidas

0……1…….2……3……4……5……6…….7……8……9……10

Dissimilar Similar

Q.7 UCB---------------Addidas

0……1…….2……3……4……5……6…….7……8……9……10

Dissimilar Similar

Q.8 Vans----------------Addidas

0……1…….2……3……4……5……6…….7……8……9……10

Dissimilar Similar

Q.9 Vans --------------- Fila

0……1…….2……3……4……5……6…….7……8……9……10

Dissimilar Similar

Q.10 Addidas --------------- Fila

0……1…….2……3……4……5……6…….7……8……9……10

Dissimilar Similar
3. Assumptions of MDS

- Objects should be comparable

- Representativeness of the objects

4. MDS results and assessing overall fit

- Dimensionality of the solution
- Stress-badness of fit index
- R2 –High value

5. Interpreting the results

Source: Inspired by Hair & Anderson “Multivariate Data Analysis”