A Gravity‐Based Multidimensional Scaling Model for Deriving Spatial Structures Underlying Consumer Preference/Choice Judgments

The Journal of Consumer Research, Vol. 29, No. 1, pp. 91-100, 2002

Posted: 13 Jun 2016

See all articles by Wayne S. DeSarbo

Wayne S. DeSarbo

Pennsylvania State University

Juyoung Kim

Michigan State University

S Chan Choi

Rutgers Business School

Melinda Spaulding

Eli Lilly and Company, Ltd - Eli Lilly and Company, Indianapolis

Date Written: June 1, 2002

Abstract

In multidimensional unfolding multidimensional scaling (MDS) procedures, the predicted utility of a brand for a consumer is inversely related to the distance between that consumer’s ideal point and the brand position in the derived space. Most MDS models treat all brands the same regardless of their respective market share. In many product categories, however, consumer preferences are heavily influenced by the size of the existing market share (i.e., the brand mass). This article presents two versions of a new spatial methodology that incorporates the effects of brand as well as consumer mass via a spatial gravity model of consumer utility; that is, the attraction of a brand for a consumer depends not only on the distance of the brand from a consumer’s ideal point but also on the current market size of the brand, as well as the consumer purchase pattern and volume. One version of the proposed model estimates brand positions and individual ideal points with two‐way or three‐way pick any/N binary choice data. The second version we develop provides the same spatial decomposition for two‐way or three‐way metric preference/dominance data. We also develop a series of nested MDS models to estimate, test, and compare four different model structures with respect to any common data set. We illustrate the proposed methodology using an actual commercial application involving physician prescription behavior and examine competing model fits.

Keywords: Brand Equity/Extensions, Brand Loyalty, Choice (Brand or Product Level), Mathematical Models, Multi‐dimensional Scaling

Suggested Citation

DeSarbo, Wayne S. and Kim, Juyoung and Choi, S Chan and Spaulding, Melinda, A Gravity‐Based Multidimensional Scaling Model for Deriving Spatial Structures Underlying Consumer Preference/Choice Judgments (June 1, 2002). The Journal of Consumer Research, Vol. 29, No. 1, pp. 91-100, 2002, Available at SSRN: https://ssrn.com/abstract=2792364

Wayne S. DeSarbo (Contact Author)

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

Juyoung Kim

Michigan State University ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States

S Chan Choi

Rutgers Business School ( email )

100 Rockafeller Road
Piscataway, NJ 08854
United States

HOME PAGE: http://www.business.rutgers.edu/faculty-research/directory/choi-chan

Melinda Spaulding

Eli Lilly and Company, Ltd - Eli Lilly and Company, Indianapolis ( email )

Lilly Corporate Center
Indianapolis, IN 46285
United States

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