Multidimensional Scaling for Product Positioning
Multidimensional scaling (MDS) is a series of statistical techniques used for identifying the key dimensions underlying respondents’ evaluations of objects and keeping them in multidimensional space. MDS is widely used in marketing research for positioning of brands. It would be desired for any company to know as to how its brand of products is rated among other similar competing brands. While assessing the brand image of any product, the respondents may rate it on the basis of its overall image or on the basis of certain attributes. Thus, besides knowing the relative positioning of the products, one may like to know the strength of the product in comparison to other similar products on different dimensions. The MDS can be used to solve varieties of problems in management research. For example, it finds application in market segmentation, product life cycle, vendor evaluation, and advertising media selection.