A Clusterwise Bilinear Multidimensional Scaling Methodology for Simultaneous Segmentation and Positioning

Journal of Marketing Research, Vol. 45, No. 3, pp. 280-292

Posted: 15 Jun 2016

See all articles by Wayne S. DeSarbo

Wayne S. DeSarbo

Pennsylvania State University

Rajdeep Grewal

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School

Crystal Scott

University of Michigan at Dearborn - School of Management

Date Written: June 2008

Abstract

The segmentation–targeting–positioning conceptual framework has been the traditional foundation and genesis of marketing strategy formulation. The authors propose a general clusterwise bilinear spatial model that simultaneously estimates market segments, their composition, a brand space, and preference/utility vectors per market segment; that is, the model performs segmentation and positioning simultaneously. After a review of related methodological research in the marketing, psychometrics, and classification literature streams, the authors present the technical details of the proposed two-way clusterwise bilinear spatial model. They develop an efficient alternating least squares procedure that estimates conditional globally optimum estimates of the model parameters within each iteration through analytic closed-form expressions. The authors present various model options. They provide a conceptual and empirical comparison with latent-class multidimensional scaling. They use an illustration of the new bilinear multidimensional scaling methodology with an actual commercial study sponsored by a large U.S. automotive manufacturer to examine buying/consideration intentions for small sport-utility vehicles. The authors conclude by summarizing the contributions of this research, discussing the marketing implications for managers, and providing several directions for further research.

Keywords: market segmentation, positioning, clusterwise analyses, bilinear spatial models, sport-utility vehicles

Suggested Citation

DeSarbo, Wayne S. and Grewal, Rajdeep and Scott, Crystal, A Clusterwise Bilinear Multidimensional Scaling Methodology for Simultaneous Segmentation and Positioning (June 2008). Journal of Marketing Research, Vol. 45, No. 3, pp. 280-292, Available at SSRN: https://ssrn.com/abstract=2795777

Wayne S. DeSarbo (Contact Author)

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

Rajdeep Grewal

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School ( email )

McColl Building
Chapel Hill, NC 27599-3490
United States

Crystal Scott

University of Michigan at Dearborn - School of Management ( email )

4901 Evergreen Road
Dearborn, MI 48128-1491
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
233
PlumX Metrics