Multidimensional Scaling

If you are a student of marketing, you need to know the definition of what a multidimensional scale is before writing an assignment on the topic. It is an essential part of marketing research. Many students often look for an answer to the question of what is multidimensional scaling, and how it works. Keep reading this blog for relevant insights.

What Is Multidimensional Scaling?

Multidimensional scaling is the visual representation of distances or dissimilarities between sets of objects. It can also be defined as a means of visualising the level of similarity of individual cases of a dataset. Multidimensional scaling or MDS is a form of non-linear dimensionality reduction.

The objects of the dimensional scale can be anything like colours, faces, map coordinates, political persuasion, or any real or conceptual stimuli. The term scaling comes from psychometrics, and it helps to measure the parity between the objects. For instance, you may want to quantify a person's attitude to feminism. You could assign a '1' to 'do believe in the ideology of feminism' a '10' to 'firmly believe in feminism.' The scale of 2-9 can be used to interpret the parity in attitudes in between. Read on to know how multidimensional scaling is essential in marketing research.

How Multidimensional Scaling Works?

Are you wondering how to interpret multidimensional scaling? Before you know the answer to that, you need to understand the purpose of the scale in marketing research. It can be considered as an alternative to factor analysis. In general, the goal of the analysis is to detect meaningful underlying dimensions that allow the researcher to explain similarities or dissimilarities between the investigated objects.

The process that multidimensional scaling follows while working is simple. Multidimensional scaling has problems that can deliver improper results. It is applied by using a square that is known as a symmetric matrix for input. The matrix shows the relationship between the items in the scale. Here are some of the basic steps that you need to follow while using a multidimensional scale.

• Assign a number of points to coordinates in n-dimensional space:

  The ‘N’ space in the scale is the central dimension. The ‘N’ dimensional space of the symmetric matrix can be 2-dimensional or 3-dimensional at the same time. There are specific coordination axes that work to measure the scale. These axes work to find out the proximity among various scales in the multidimensional sphere.

• Calculating Euclidean distance for all pairs of points: 

  The straight line between the two ‘X' of the scale is the Euclidean space. It helps to measure the distance and calculate the time to cover the distance.

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This is the simple process in which multidimensional scaling works.

Examples Of Multidimensional Scaling

Multidimensional scaling (MDS) is an essential tool in finding out and determining the strategy of product positioning. According to many market researchers, MDS can create 'perceptual maps' that will help the companies to assess the market position and sell their products. There are many technical examples of MDS that students may find to be challenging. Here is a practical example that shows how MDS is necessary for every market researcher when they plan to boost the business with the appropriate positioning of the product.

Here is an example:

A spirits manufacturer planned the optimal positioning of one of his products – herb liqueur – within the competitive environment. With this in mind, a tracking study was put in place to monitor specific changes in the product over a long period. 9 items were defined related to the objective. It was checked by identifying the key dimensions.

The factor analysis showed that the items could be classified into the three key rating dimensions, "taste, contents, and effect."

How To Calculate Multidimensional Scaling With Sample Example?

Multidimensional scaling can be of two types-Metric scaling and non-metric scaling.  You need to apply non-metric scaling and calculate the MDS accordingly. ‘How to calculate multidimensional scaling with sample or example’ is the first query that can come to your mind. To understand the non-metric calculation, you need to choose various factors and determine the differences.

Example: You can choose various cities and measure the distance using the multidimensional scale. See the example below.

Perth-Sydney-Melbourne (1224 Kms)

Perth-Sydney (667 Kms)

Perth-Melbourne (2000 Kms)

Sydney-Melbourne (678 Kms)

You can segregate the places to measure the distance within these cities.

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