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(1)

Chapter Twenty-One

Multidimensional Scaling and

Conjoint Analysis

(2)

Multidimensional Scaling (MDS)

Multidimensional scaling (MDS) is a class of procedures for representing perceptions and

preferences of respondents spatially by means of a visual display.

• Perceived or psychological relationships among stimuli are represented as geometric relationships among points in a multidimensional space.

• These geometric representations are often called

spatial maps. The axes of the spatial map are

assumed to denote the psychological bases or

underlying dimensions respondents use to form

perceptions and preferences for stimuli.

(3)
(4)

Similarity Rating Of Toothpaste Brands

Table 21.1

Aqua-Fresh Crest Colgate Aim Gleem Plus White Ultra Brite Close-Up Pepsodent Sensodyne Aqua-Fresh

Crest 5

Colgate 6 7

Aim 4 6 6

Gleem 2 3 4 5

Plus White 3 3 4 4 5

Ultra Brite 2 2 2 3 5 5

Close-Up 2 2 2 2 6 5 6

Pepsodent 2 2 2 2 6 6 7 6

Sensodyne 1 2 4 2 4 3 3 4 3

(5)

Conducting Multidimensional Scaling:

Obtain Input Data

Perception Data: Derived Approaches

. Derived approaches to collecting perception data are attribute-based

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

Whitens Does not

teeth ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ whiten teeth

Prevents tooth Does not prevent

decay ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ tooth decay .

. . .

Pleasant Unpleasant

tasting ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ tasting

• If attribute ratings are obtained, a similarity measure (such as Euclidean distance) is derived for each pair of brands.

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A Spatial Map of Toothpaste Brands

0.5

-1.5

Sensodyne

-1.0 -2.0

0.0 2.0

0.0 Close Up

-0.5 0.5 1.0 1.5 2.0

-1.5 -1.0

-2.0 -0.5 1.5 1.0

Pepsodent Ultra Brite

Plus White Aim

Crest

Colgate Aqua-Fresh Gleem

Fig. 21.4

(7)

Using Attribute Vectors to Label Dimensions

Fig. 21.5

0.5

-1.5

Sensodyne

-2.0 -1.0 0.0

2.0

0.0 Close Up

-0.5 0.5 1.0 1.5 2.0

-1.5 -1.0

-2.0 -0.5 1.5 1.0

Pepsodent Ultra Brite

Plus White Aim

Crest

Colgate Aqua-Fresh

Gleem Fights

Cavities

Whitens Teeth

Sensitivity Protection

(8)

Conjoint Analysis

Conjoint analysis attempts to determine the relative importance consumers attach to salient attributes and the utilities they attach to the

levels of attributes.

• The respondents are presented with stimuli

that consist of combinations of attribute levels and asked to evaluate these stimuli in terms of their desirability.

• Conjoint procedures attempt to assign values to the levels of each attribute, so that the

resulting values or utilities attached to the

stimuli match, as closely as possible, the input

evaluations provided by the respondents.

(9)

Sneaker Attributes and Levels

Level

Attribute Number Description

Sole 3 Rubber

2 Polyurethane

1 Plastic

Upper 3 Leather

2 Canvas

1 Nylon

Price 3 $30.00

2 $60.00

1 $90.00

Table 21.2

(10)

Pairwise Approach to Conjoint Data

U p p e r

Sole Sole

P r i c e

Price

U p p e r Nylon

Canvas

Plastic Polyure-

thane Rubber

$90.00

$60.00

$30.00

Plastic Polyure-

thane Rubber

Leather

Nylon Canvas

$90.00

$60.00

$ 30.00 Leather

Fig. 21.9

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Conducting Conjoint Analysis:

Construct the Stimuli

• A special class of fractional designs, called orthogonal arrays, allow for the efficient

estimation of all main effects. Orthogonal arrays permit the measurement of all main effects of interest on an uncorrelated basis.

These designs assume that all interactions are negligible.

• Generally, two sets of data are obtained. One, the estimation set, is used to calculate the part- worth functions for the attribute levels. The

other, the holdout set, is used to assess

reliability and validity.

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Sneaker Profiles and Ratings

Attribute Levels

a

Preference Profile No. Sole Upper Price Rating

1 1 1 1 9

2 1 2 2 7

3 1 3 3 5

4 2 1 2 6

5 2 2 3 5

6 2 3 1 6

7 3 1 3 5

8 3 2 1 7

9 3 3 2 6

a

The attribute levels correspond to those in Table 21.2.

Table 21.4

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Chapter Twenty-Three

Report Preparation and Presentation

(14)

Importance of the Report and Presentation

For the following reasons, the report and its presentation are important parts of the marketing research project:

1. They are the tangible products of the research effort.

2. Management decisions are guided by the report and the presentation.

3. The involvement of many marketing managers in the project is limited to the written report and the oral presentation.

4. Management's decision to undertake marketing research in

the future or to use the particular research supplier again

will be influenced by the perceived usefulness of the report

and the presentation.

(15)

The Report Preparation and Presentation Process

Fig. 23.1

Data Analysis

Oral Presentation Report Preparation

Interpretations, Conclusions, and Recommendations

Reading of the Report by the Client

Problem Definition, Approach,

Research Design, and Fieldwork

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Report Format I. Title page

II. Letter of transmittal III. Letter of authorization IV. Table of contents

V. List of tables VI. List of graphs

VII. List of appendices VIII. List of exhibits

IX. Executive summary a. Major findings b. Conclusions

c. Recommendations

(17)

Report Format

X. Problem definition

a. Background to the problem b. Statement of the problem XI. Approach to the problem

XII. Research design

a. Type of research design b. Information needs

c. Data collection from secondary sources d. Data collection from primary sources e. Scaling techniques

f. Questionnaire development and pretesting g. Sampling techniques

h. Fieldwork

(18)

Report Writing

• Readers. A report should be written for a specific reader or readers: the marketing managers who will use the results.

• Easy to follow. The report should be easy to follow. It should be structured logically and written clearly.

• Presentable and professional appearance. The look of a report is important.

• Objective. Objectivity is a virtue that should guide report writing. The rule is, "Tell it like it is."

• Reinforce text with tables and graphs. It is important to reinforce key information in the text with tables, graphs,

pictures, maps, and other visual devices.

• Terse. A report should be terse and concise. Yet, brevity

should not be achieved at the expense of completeness.

(19)

Oral Presentation

• Filler words like "uh," "y'know," and "all right," should not be used.

• The "Tell 'Em" principle is effective for structuring a presentation.

• Another useful guideline is the "KISS 'Em" principle, which states: Keep It Simple and Straightforward (hence the acronym KISS).

• Body language should be employed.

• The speaker should vary the volume, pitch, voice quality, articulation, and rate while speaking.

• The presentation should terminate with a strong closing.

(20)

Chapter Twenty-Four

International Marketing Research

(21)

Measurement and Scaling

• Construct equivalence concerns whether the

marketing constructs have the same meaning and significance in different countries. Construct

equivalence is comprised of conceptual equivalence, functional equivalence, and category equivalence.

• Conceptual equivalence deals with the interpretation of brands, products, consumer behavior, and marketing effort, e.g., special sales.

• Functional equivalence examines whether a given concept or behavior serves the same role or function in different countries, e.g., bicycles.

• Category equivalence refers to the category in which stimuli like products, brands, and behaviors are

grouped, e.g., principal shopper.

(22)

Measurement and Scaling

• Measurement equivalence concerns the

comparability of responses to particular (sets of) items.

It comprises of configural, metric, and scalar equivalence.

• Configural equivalence concerns the relationships of measured items to the latent constructs; the patterns of factor loadings should be the same.

• Metric equivalence refers to the unit of

measurement; the factor loadings should be the same.

• Scalar equivalence refers to both the unit of measurement and the constant in the equation

between the construct and the items measuring the

construct (the intercept).

(23)

Operational equivalence concerns how theoretical constructs are operationalized to make measurements, e.g., leisure.

Linguistic equivalence refers to both the spoken and the written language forms used in scales,

questionnaires, and interviewing. The scales and other verbal stimuli should be translated so that they are

readily understood by respondents in different countries and have equivalent meaning.

Measurement and Scaling

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Questionnaire Translation: Back Translation

• In back translation, the questionnaire is translated from the base language by a bilingual speaker whose native language is the language into which the questionnaire is being translated.

• This version is then retranslated back into the original

language by a bilingual whose native language is the initial or base language.

• Translation errors can then be identified.

• Several repeat translations and back translations may be

necessary to develop equivalent questionnaires, and this

process can be cumbersome and time consuming.

(25)

Questionnaire Translation: Parallel Translation

• In parallel translation, a committee of

translators, each of whom is fluent in at least two of the languages in which the questionnaire will be

administered, discusses alternative versions of the questionnaire and makes modifications until

consensus is reached.

• In countries where several languages are spoken, the questionnaire should be translated into the

language of each respondent subgroup.

• It is important that any nonverbal stimuli (pictures

and advertisements) also be translated using similar

procedures.

References

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