Brand Positioning Using Multidimensional Scaling

Shows how, in researching new brands, it is important for the investigator to assess the existing market, to determine how consumers perceive brands and the nature of consumer preferences. States that because consumers are heterogeneous in their perceptions and preferences a spread of techniques have been proposed to analyse this problem. Posits that multidimensional scaling has some unique advantages and illustrates that there are practical applications of this set of techniques and points out their strengths and limitations in new product planning. Concludes that most brands compete in well‐established markets and suggests that multi‐dimensional scaling offers a useful approach to the brand‐positioning problem.