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MDS (Multi dimensional scaling) Multidimensional scaling (MDS) is a series of techniques that helps the analyst to identify key

dimensions underlying respondents evaluations of objects. It is often used in Marketing to identify key dimensions underlying customer evaluations of products, services or companies. Once the data is in hand, multidimensional scaling can help determine: what dimensions respondents use when evaluating objects how many dimensions they may use in a particular situation the relative importance of each dimension, and how the objects are related perceptually

The purpose of MDS is to transform consumer judgments of similarity or preference (eg. preference for stores or brands) into distances represented in multidimensional space. The resulting perceptual maps show the relative positioning of all objects. Multidimensional scaling is based on the comparison of objects. Any object (product, service, image, etc.) can be thought of as having both perceived and objective dimensions. For example, a firm may see their new model of lawnmower as having two color options (red versus green) and a 24-inch blade. These are the objective dimensions. Customers may or may not see these attributes. Customers may also perceive the lawnmower as expensive-looking or fragile, and these are the perceived dimensions. The dimensions perceived by customers may not coincide with (or even include) the objective dimensions assumed by the researcher The evaluations of the dimensions may not be independent and may not agree. For example, one soft drink may be judged sweeter than another because the first has a fruitier aroma, although both contain the same amount of sugar

Stages involved in MDS 1. Stage 1: Selecting the object category that will be evaluated Deciding whether similarities or preferences are to be analyzed Choosing whether the analysis will be performed at: - Group level - Individual level 2. Stage 2: Selection of the objects (in our case brands) Selection of de-compositional method or compositional method

Collection of similarity or preference data Perceptual mapping techniques can be classified into one of two types based on the nature of the responses obtained from the individuals concerning the object: Compositional method an alternative approach that uses several multivariate techniques in forming an impression or evaluation based on a combination of specific attributes (see factor analysis, correspondence analysis) attribute-based Decompositional method measures only the overall impression or evaluation of an object and then attempts to derive spatial positions in multidimensional space that reflect these perceptions. This technique is typically associated with MDS. attribute-free

3. Stage 3: Multidimensional scaling has no restraining assumptions on the methodology, type of data, or form of the relationships among the variables. But there are three perception requirements (you need to keep in mind): Variation in dimensionality respondents may vary in the dimensionality they useto form their perceptions of an object (although it is thought that most people judgein terms of a limited number of characteristics or dimensions). Variation in importance respondents need not attach the same level of importance to a dimension, even if all respondents perceive this dimension. Variation over time judgments of a stimulus in terms of either dimensions or levels of importance are likely to change over time

4. Stage 4: Creating a perceptual map Selecting the dimensionality Incorporating preferences into MDS DATA Perceptual Map

MDS
Determining an objects position in the perceptual map MDS programs follow a common 3-step process for the optimal positions: 1. It starts with an initial configuration at a desired initial dimensionality

2. It computes the distances between the stimuli points and compares the relationships (observed versus derived) with a measure of fit: Once a configuration is found, the interpoint distances between stimuli are compared with the distance measures derived from the similarity judgments .These two distance measures are then compared by a measure of fit. (a measure of stress) 3. If the measure of fit does not meet a pre-selected stopping value, MDS seeks a new configuration for which the measure of fit is further minimized. 5. Stage 5: Identifying the dimensions Subjective procedures (by visual inspection) may be best for affective, highly intangible, or emotional dimensions. Objective procedures (e.g., PROFIT) collect attribute ratings for each object and then find the best correspondence of each attribute to the derived perceptual space

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