Template-Type: ReDIF-Paper 1.0
Author-Name: van de Velden, M.
Author-Name-Last: van de Velden
Author-Name-First: Michel
Author-Name: de Beuckelaer, A.
Author-Name-Last: de Beuckelaer
Author-Name-First: Alain
Author-Name: Groenen, P.J.F.
Author-Name-Last: Groenen
Author-Name-First: Patrick
Author-Person: pgr229
Author-Name: Busing, F.M.T.A.
Author-Name-Last: Busing
Author-Name-First: Frank
Title: Nonmetric Unfolding of Marketing Data: Degeneracy and Stability
Abstract: Nonmetric unfolding is a powerful (nonparametric) analytical tool generating a preference-based joint display of subjects (e.g., customers) and objects (e.g., brands or products). Systematic patterns in customers’ preferences can be directly inferred from this display, and may provide valuable input for making important marketing decisions such as deciding what new product to launch. Unfortunately, nonmetric unfolding frequently produces degenerate unfolding solutions (i.e., unfolding solutions showing close-to-perfect model fit irrespective  of the data analyzed). As a degenerated display shows ill-positioned customers and brands/products, the chance of making an incorrect marketing decision (e.g., launching the wrong product) is very high. To solve this problem adequately, we combine bootstrapping with penalized nonmetric unfolding (Prefscal) to obtain an accurate, nondegenerate and stable unfolding solution.
Creation-Date: 2011-03-11
File-URL: https://repub.eur.nl/pub/22725/ERS-2011-006-MKT.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2011-006-MKT
Classification-JEL: C44, M, M31
Keywords: bootstrap analysis, customer preference modeling, nonmetric multidimensional unfolding, perceptual mapping
Handle: RePEc:ems:eureri:22725