An Alternating Least-Squares Procedure for Estimating Missing Preference Data in Product-Concept Testing

Decision Sciences, Vol. 17, No. 2, pp. 163-185, 1986

23 Pages Posted: 26 May 2016

See all articles by Wayne S. DeSarbo

Wayne S. DeSarbo

Pennsylvania State University

Paul E. Green

University of Pennsylvania, The Wharton School, Marketing Department (Deceased)

J. Carroll

Rutgers, The State University of New Jersey (Deceased)

Date Written: 1986

Abstract

Product-concept testing is a popular activity in marketing research. Often the number of new product/service concepts under study far exceeds the time available for any single respondent. Respondents therefore may receive only a subset of the concepts comprising the total design. Researchers are interested in making plausible imputations for the missing evaluations of any given respondent.

This paper proposes a model and an iterative estimation procedure to impute missing entries for each evaluator. The model and the procedure incorporate (1) the internal structure of the response matrix arid (2) an ancillary matrix of (nonmissing) respondent background data; they also (3) allow for individual differences in respondents’ uses of the numerical rating scale. The model is applied to both real and synthetic data. Suggestions also are given on how the data imputations may be used in market segmentation and product-line decisions.

Keywords: Marketing Research, Product Design, and Statistical Techniques

Suggested Citation

DeSarbo, Wayne S. and Green, Paul E. and Carroll, J., An Alternating Least-Squares Procedure for Estimating Missing Preference Data in Product-Concept Testing (1986). Decision Sciences, Vol. 17, No. 2, pp. 163-185, 1986, Available at SSRN: https://ssrn.com/abstract=2783846 or http://dx.doi.org/10.2139/ssrn.2783846

Wayne S. DeSarbo (Contact Author)

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

Paul E. Green

University of Pennsylvania, The Wharton School, Marketing Department (Deceased) ( email )

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States

J. Carroll

Rutgers, The State University of New Jersey (Deceased)

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