Past research reports have often questioned the usefulness of multidimensional scaling for marketing or positioning decisions and have concluded that this method may at best be used as a diagnostic aid. Two often cited criticisms are that (1) measures based on direct similarity judgments are themselves notoriously poor in psychometric properties, and (2) respondents do not seem to use information on all attributes of the products while comparing pairs of them. This study is designed to address these and related issues. Data was collected and analyzed on perceived similarities of soft drinks as well as on perceptions relating to similarities along specific attributes so that results could be compared. Next, the results are viewed within the context of the criticisms of MDS advanced by past studies. These issues are addressed in this study by analyzing the differences in perception of various cola drinks among consumers. The increasing competition among soft drink manufacturers and the recent entry of a new cola drink (King Cola) emphasizing price alone point to the usefulness of such an analysis for positioning decisions in the soft drink market.
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- Multidimensional Scaling and Product Positioning: Are Physical Product Attributes Good Predictors of the Overall Similarities Data