The Application of Multidimensional Scaling (MDS) in National and International Marketing; Part I: Mathematical, Empirical and Processing Procedures
[Der Einsatz der multidimensionalen Skalierung (MDS) im nationalen und internationalen Marketing; Teil 1: Mathematische, empirische und auswertungsbezogene Vorgehensweise]
Part I focuses on achieving a practical and comprehensible depiction of the multivariate method ‘multidimensional scaling (MDS)’. These methods play a significant role in professional marketing. The article begins with some examples and classifies the relevant multivariate methods. It then describes the different forms of multidimensional scaling as well as the empirical gathering of ‘similarities’ and ‘preferences’. Subsequently the mathematical approach for developing a multidimensional configuration is explained in which similar objects (e.g. products, consumers) are close together and dissimilar are farther away in the MDS configuration. Next specific questions including the selection and number of objects, choice of dimensionality, and the occurrence of degenerated solutions are discussed. Then the configuration is interpreted based on feature vectors. Finally some suitable computer programmes are presented and possible applications for MDS in marketing are identified. Overall the article clarifies some advantages of MDS, in particular that the method takes global decisions about similarities and preferences without prior instructions. Afterwards these judgements are then interpreted. Consequently a key advantage of this method is that it provides better insight into the heart of the consumer than simple direct methods. Part II addresses the different applications of MDS in marketing. In particular it focuses on the following aspects: image, positioning, market segmentation, identification of salient features, and the resulting marketing actions. In addition the international marketing context is also presented.
|Date of creation:||Oct 2008|
|Publication status:||Published in Forschungsberichte des Fachbereichs Wirtschaft der Fachhochschule Duesseldorf, 2008,4|
|Contact details of provider:|| |
When requesting a correction, please mention this item's handle: RePEc:ddf:wpaper:fobe04. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stefanie Soehnitz)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.