Chapter 21

Multidimensional Scaling and Conjoint Analysis

True/False Questions
1. The conjoint analysis procedure is based on trade-offs respondents make when
evaluating alternatives.
(True, easy, page 611)
2. The number of brands or stimuli selected for use in MDS analysis and the specific
brands included does not affect the nature of the resulting dimensions and
configurations.
(False, moderate, page 612)
3. The choice of the number and specific brands or stimuli to be included in the MDS
analysis should be based on the statement of the marketing research problem, theory,
and the judgment of the researcher.
(True, easy, page 613)
4. Preference data may be direct or derived.
(False, moderate, page 613)
5. Direct approaches to collecting perception data are attribute-based approaches.
(False moderate, page 613)
6. Derived approaches to collecting perception data require respondents to rate the
brands or stimuli on the identified attributes using semantic differential scales or
Likert scales.
(True, moderate, page 613)
7. The direct approaches to collecting perception data are used more frequently than the
attribute-based approaches.
(True, moderate, page 614)
8. Preference data order the brands or stimuli in terms of respondents preference for
some property.
(True, moderate, page 614)
9. The configuration derived from preference data is very similar to that obtained from
similarity data.
(False, difficult, page 615)
10. Non-metric MDS procedures assume that the input data are ordinal, but they result in
metric output.
(True, difficult, page 615)

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11. The metric MDS procedures assume that input data are metric and the output is also
metric.
(True, easy, page 615)
12. The metric and non-metric MDS methods often produce vastly different results.
(False, difficult, page 615)
13. Spatial maps are computed in such a way that the fit increases as the number of
dimensions decreases.
(False, difficult, page 615)
14. The objective in MDS is to obtain a spatial map that best fits the input data in the
smallest number of dimensions.
(True, easy, page 615)
15. Each dimension determined in MDS represents only one attribute.
(False, moderate, page 617)
16. MDS solutions are subject to substantial random variability.
(True, moderate, page 617)
17. Stress values indicate the proportion of variance of the optimally scaled data that is
not accounted for by the MDS model.
(True, moderate, page 617)
18. An assumption of MDS is that the similarity of stimulus A to B is the same as the
similarity of stimulus B to A.
(True, moderate, page 618)
19. In order to perform internal analysis of preferences, both preference and perception
data must be obtained.
(False, difficult, page 619)
20. External analysis of preferences is preferred in most situations.
(True, moderate, page 619)
21. Quantitative data can be mapped using correspondence analysis.
(False, moderate, page 621)
22. Results in correspondence analysis are interpreted in terms of proximities among
rows and columns.
(True, moderate, page 621)
23. Correspondence analysis requires more effort on the part of the respondent than other
MDS techniques.
(False, moderate, page 621)

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24. Correspondence analysis data is binary or categorical.

(True, moderate, page 621)
25. If the attribute-based approaches are used to obtain input data, spatial maps can also
be obtained by using factor or discriminant analysis.
(True, moderate, page 621)
26. To develop spatial maps by means of discriminant analysis, the dependent variable is
the brand rated and the independent variables are the attribute ratings.
(True, moderate, page 621)
27. When conducting conjoint analysis, the attributes selected should be salient in
influencing consumer preference and choice.
(True, easy, page 623)
28. When constructing conjoint analysis stimuli, it is necessary to evaluate all possible
combinations of levels of the attributes.
(False, moderate, page 624)
29. The full-profile approach to conducting conjoint analysis stimuli is more commonly
used than the pairwise approach.
(True, moderate, page 625)
30. For metric conjoint analysis input data, the respondents are typically required to
provide rank order evaluations.
(False, difficult, page 625)
31. With the full-profile approach to constructing conjoint analysis stimuli, respondents
rank all the stimulus profiles.
(True, difficult, page 625)
32. For metric conjoint analysis input data, the respondents provide ratings.
(True, difficult, page 625)
33. In conjoint analysis, the dependent variable is usually preference or intention to buy.
(True, difficult, page 625)
34. In conjoint analysis, the importance of an attribute, Ii, is defined in terms of the range
of the part-worths, ij, across the levels of that attribute Ii = {max(ij) - min(ij)}, for
each i.
(True, moderate, page 627)
38. In conjoint analysis, the attribute's importance is normalized to ascertain its
importance relative to other attributes, Wi.
(True, difficult, page 627)
39. For interpreting conjoint analysis, it is helpful to plot the part-worth functions.
(True, difficult, page 629)
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40. If individual-respondent level analysis has been conducted, the estimation sample can
be split in several ways to assess the stability of conjoint analysis solutions.
(False, difficult, page 630)
41. Conjoint analysis assumes that the important attributes of a product can be identified.
(True, easy, page 630)
42. Conjoint analysis assumes that consumers evaluate the choice alternatives in terms of
the important attributes and make trade-offs.
(True, easy, page 630)
Multiple Choice Questions
43. _____ is a class of procedures for representing perceptions and preferences of
respondents spatially by means of a visual display.
a. Conjoint analysis
b. Correspondence analysis
c. Hybrid conjoint analysis
d. Multidimensional scaling (MDS)
(d, moderate, page 611)
44. The derivation and use of _____ lie at the heart of multidimensional scaling.
a. perceptual maps
b. pair-wise tables
c. part-worth functions
d. contrasts
(a, moderate, page 611)
45. MDS could be used for all of the marketing applications below except:
a. Market segmentation - position brands and consumers in the same space and thus
identify groups of consumers with relatively homogeneous perceptions.
b. Assessing advertising effectiveness-spatial maps can be used to determine
whether advertising has been successful in achieving the desired brand
positioning.
c. Consumer intention - how do consumers intentions to buy the brand vary with
different price levels?
d. Channel decisions - judgments on compatibility of brands with different retail
outlets could lead to spatial maps useful for making channel decisions.
(c, moderate, page 611)
46. _____ is a lack of fit measure; higher values indicate poorer fits.
a. Attribute levels
b. Stress
c. R-square
d. Relative importance weights
(b, moderate, pages 612)
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47. _____ is a squared correlation index that indicates the proportion of variance of the
optimally scaled data that can be accounted for by the MDS procedure. This is a
goodness-of-fit measure.
a. Attribute levels
b. Stress
c. R-square
d. Relative importance weights
(c, easy, page 612)
48. In MDS, at minimum, _____ brands or stimuli should be included so as to obtain a
well-defined spatial map. Including more than _____ brands is likely to be
cumbersome and may result in respondent fatigue.
a. 6; 20
b. 6; 25
c. 8; 20
d. 8; 25
(d, moderate, page 612)
49. _____ requires that the researcher specify the purpose for which the MDS results
would be used and select the brands or other stimuli to be included in the analysis.
a. Formulating the problem
b. Obtaining input data
c. Selecting an MDS procedure
d. Deciding on the number of dimensions
(a, easy, page 612)
50. In _____ approaches to collecting perception data, the respondents are asked to use
their own criteria to judge how similar or dissimilar the various brands or stimuli are.
a. direct
b. preference
c. derived
d. Likert
(a, moderate, page 613)
51. In which approach to collecting perception data are respondents often required to rate
all possible pairs of brands or stimuli in terms of similarity on a Likert scale?
a. direct
b. preference
c. derived
d. Likert
(a, moderate, page 613)
52. Which is a disadvantage of the direct approach to collecting perception data?
a. The criteria are influenced by the brands or stimuli being evaluated.
b. The researcher must identify all the salient attributes.
c. The spatial map obtained depends upon the attributes identified.
d. Both b and d are disadvantages.
(a, moderate, page 614)
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53. Which is a disadvantage of the derived approach to collecting perception data?

a. The criteria are influenced by the brands or stimuli being evaluated.
b. The researcher must identify all the salient attributes.
c. It may be difficult to determine before analysis if and how the individual
respondents judgments should be combined.
d. It may be difficult to label the dimensions of the spatial map.
(b, moderate, page 614)
54. Which is an advantage of the direct approach to collecting perception data?
a. It is easier to label the dimensions.
b. It is easy to identify respondents with homogeneous perceptions.
c. The researcher does not have to identify a set of salient attributes.
d. The respondents can be clustered based on the attribute ratings.
(c, moderate, page 614)
55. Which is an advantage of the derived approach to collecting perception data?
a. Respondents make similarity judgments using their own criteria, as they would
under normal circumstances.
b. It is easy to identify respondents with homogeneous perceptions.
c. The researcher does not have to identify a set of salient attributes.
d. Both a and c are advantages.
(b, moderate, page 614)
56. _____ data order the brands or stimuli in terms of respondents preferences for some
property.
a. Direct
b. Preference
c. Derived
d. Likert
(b, moderate, page 614)
57. Which of the ways below is not a way in which preference data might be obtained?
a. asking respondents to rank brands from the most preferred to the least preferred
b. asking respondents to rate all possible pairs of brands in terms of similarity on a
Likert scale
c. asking respondents to make paired comparisons and indicate which brand in a pair
they prefer
d. asking respondents for preference ratings for the various brands
(b, difficult, page 614)
58. Which of the following is not a factor influencing the MDS selection procedure?
a. whether some of the original values will be used in subsequent analysis
b. whether perception or preference data are being scaled, or whether the analysis
requires both kinds of data
c. the nature of the input data
d. whether the MDS analysis will be conducted at the individual respondent level or
at an aggregate level
(a, moderate, page 614)
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59. Which guideline for deciding on the number of MDS dimensions relies on theory or
past research to suggest the number of dimensions?
a. a priori knowledge
b. interpretability of the spatial map
c. ease of use
d. elbow criterion
(a, moderate, page 615)
60. Which guideline for deciding on the number of MDS dimensions warns that it is
difficult to interpret configurations or maps derived in more than three dimensions?
a. a priori knowledge
b. interpretability of the spatial map
c. ease of use
d. elbow criterion
(b, difficult, page 615)
61. Which guideline for deciding on the number of MDS dimensions suggests plotting
stress versus dimensionality?
a. a priori knowledge
b. interpretability of the spatial map
c. ease of use
d. elbow criterion
(d, moderate, page 615)
62. Which guideline for deciding on the number of MDS dimensions suggests it is easier
to work with two-dimensional maps or configurations than with those involving more
dimensions?
a. a priori knowledge
b. interpretability of the spatial map
c. ease of use
d. elbow criterion
(c, difficult, page 615)
63. Various ways to label dimensions obtained in MDS were mentioned in the text.
Which of the ways below was not mentioned in your text?
a. axes may be labeled for the attributes with which they are most closely aligned
b. label based on the criteria respondents used in making their evaluations
c. respondents can be shown their maps and asked to label the dimensions by
inspecting the configurations
d. none of the above
(d, moderate, page 617)
64. Which of the following is a way to interpret the configuration or spatial map?
a. examine dimension centroids
b. profile dimensions in terms of variables that were not used in the MDS procedure
c. examine variables that load high on a factor
d. examine the coordinates and relative positions of the brands
(d, difficult, page 617)
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65. Values of .60 or better are considered acceptable values of _____, the index of fit.
a. attribute levels
b. stress
c. R-square
d. relative importance weights
(c, difficult, page 617)
66. Which of the Kruskals stress formula 1 values below represent a perfect fit of the
MDS model?
a. 20
b. 10
c. 5
d. 0
(d, difficult, page 618)
67. Which of the following is not a way to assess reliability and validity of the MDS
solution?
a. Collect input data at two different points in time and then determine test-retest
reliability.
b. Selectively eliminate stimuli from the input data and then determine the solution
from the remaining stimuli.
c. Add a random error term to the input data, subject the resulting data to MDS
analysis, and compare the solutions.
d. All of the above are ways to assess reliability and validity.
(d, difficult, page 618)
68. In MDS, when a spatial map is obtained, it is assumed that interpoint distances are
_____ scaled and that the axes of the map are multidimensional _____ scaled.
a. interval; interval
b. ratio; interval
c. ordinal; interval
d. interval; ratio
(b, difficult, page 618)
69. _____ is a method of configuring a spatial map such that the spatial map represents
both brands or stimuli and respondent points or vectors and is derived solely from the
preference data.
a. Metric analysis of preferences
b. Correspondence analysis
c. Internal analysis of preferences
d. External analysis of preferences
(c, difficult, page 619)

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70. _____ is a method of configuring a spatial map, such that the ideal points or vectors
based on preference data are fitted in a spatial map derived from perception data.
a. Metric analysis of preferences
b. Correspondence analysis
c. Internal analysis of preferences
d. External analysis of preferences
(d, difficult, page 619)
71. _____ is an MDS technique for scaling qualitative data that scales the rows and
columns of the input contingency table in corresponding units so that each can be
displayed in the same low-dimensional space.
a. Metric analysis of preferences
b. Correspondence analysis
c. Internal analysis of preferences
d. External analysis of preferences
(b, difficult, page 621)
72. Which statement is true about correspondence analysis?
a. The interpretation of results is similar to that in principal components analysis.
b. An advantage over other MDS techniques is that it reduces the data collection
demands put on the respondents because only binary or categorical data are
obtained.
c. A disadvantage is that between-set distances cannot be meaningfully interpreted.
d. All of the statements are true.
(d, difficult, page 621)
73. Which statement is true about using factor analysis to create spatial maps?
a. Input data should be obtained via attribute-based approaches to obtaining
perception data.
b. Spatial maps are obtained by plotting brand scores on the factors.
c. Discriminant weights can be used to label the dimensions.
d. Both a and b are correct.
(d, moderate, page 621)
74. Which statement is true about using discriminant analysis to create spatial maps?
a. Input data should be obtained via attribute-based approaches to obtaining
perception data.
b. Spatial maps are obtained by plotting brand scores on the factors.
c. Discriminant weights can be used to label the dimensions.
d. Both a and c are true.
(d, moderate, page 621)

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75. _____ is a technique that attempts to determine the relative importance consumers
attach to salient attributes and the utilities they attach to the levels of attributes.
a. Internal analysis of preferences
b. External analysis of preferences
c. Conjoint analysis
d. Correspondence analysis
(c, difficult, page 621)
76.

77.

78.

79.

Which of the following statements is not true concerning conjoint analysis?

a. The underlying assumption is that any set of stimuli, such as products, brands, or
stores, is evaluated as a bundle of attributes.
b. Conjoint analysis relies on respondents subjective evaluations.
c. Conjoint analysis seeks to develop the part-worth or utility functions describing
the utility consumers attach to the levels of each attribute.
d. The stimuli in conjoint analysis are products or brands.
(d, moderate, page 622)
Conjoint analysis could be used for all of the marketing applications below except:
a. determining the relative importance of attributes in the consumer choice process
b. estimating market share of brands that differ in attribute levels
c. used as a general data reduction tool
d. determining the composition of the most preferred brand
(c, difficult, page 622)
When conducting conjoint analysis, in _____, the researcher must identify the
attributes and attribute levels to be used in constructing stimuli.
a. formulating the problem
b. constructing the stimuli
c. deciding on the form of input data
d. selecting a conjoint analysis procedure
(a, moderate, page 623)
Which statement is not true about formulating the conjoint analysis problem?
a. Attributes selected should be salient in influencing consumer preference.
b. Once the salient attributes have been identified, their appropriate level should be
evaluated.
c. The set of variables selected should describe the similarity between objects in
terms that are relevant to the marketing research problem.
d. The researcher should take into account the attribute levels prevalent in the
marketplace and the objectives of the study.
(c, moderate, page 623)

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80.

81.

82.

In (the) _____ for constructing conjoint analysis stimuli, respondents evaluate two
attributes at a time until all the possible pairs of attributes have been evaluated.
a. full-profile approach
b. pair-wise approach
c. two-factor evaluations
d. both b and c
(d, moderate, page 624)
When constructing conjoint analysis, full or complete profiles of brands are
constructed for all the attributes in (the) _____.
a. full-profile approach
b. pair-wise approach
c. two-factor evaluations
d. both b and c
(a, moderate, page 625)
Which statement is not true about the pair-wise approach to constructing conjoint
analysis stimuli?
a. It is possible to reduce the number of paired comparisons by using cyclical
designs.
b. The number of stimulus profiles can be greatly reduced by means of fractional
factorial designs.
c. The advantage of pair-wise is that it is easier for the respondents to provide
judgments on the paired comparisons.
d. The disadvantage of pair-wise is that it requires more evaluations than the fullprofile approach.
(b, difficult, page 625)

83. The basic conjoint analysis model expressing the fundamental relationship between
attributes and utility in conjoint analysis is shown below:
m

ki

U(X)= ijxij
i 1 j 1

What does ij represent?

a. 1 if the jth level of the ith attribute is present, or 0 otherwise.
b. the part-worth contribution or utility associated with jth level (j, j=1, 2, ki) of
the ith attribute (i, i=1, 2, m)
c. number of attributes
d. number of levels of attribute i
(b, moderate, page 626)

21

84. The basic conjoint analysis model expressing the fundamental relationship between
attributes and utility in conjoint analysis is shown below:
m

ki

U(X)= ijxij
i 1 j 1

What does xij represent?

a. 1 if the jth level of the ith attribute is present, or 0 otherwise.
b. the part-worth contribution or utility associated with jth level (j, j=1, 2, ki) of
the ith attribute (i, i=1, 2, m)
c. number of attributes
d. number of levels of attribute i
(a, moderate, page 626)
85. The basic conjoint analysis model expressing the fundamental relationship between
attributes and utility in conjoint analysis is shown below:
m

ki

U(X)= ijxij
i 1 j 1

What does ki represent?

a. 1 if the jth level of the ith attribute is present, or 0 otherwise.
b. the part-worth contribution or utility associated with jth level (j, j=1, 2, ki) of
the ith attribute (i, i=1, 2, m)
c. number of attributes
d. number of levels of attribute i
(d, moderate, page 626)
86. The basic conjoint analysis model expressing the fundamental relationship between
attributes and utility in conjoint analysis is shown below:
m

ki

U(X)= ijxij
i 1 j 1

What does m represent?

a. 1 if the jth level of the ith attribute is present, or 0 otherwise
b. the part-worth contribution or utility associated with jth level (j, j=1, 2, ki) of
the ith attribute (i, i=1, 2, m)
c. number of attributes
d. number of levels of attribute i
(c, moderate, page 626)

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87. Decisions related to selecting the conjoint analysis procedure include all of the
following except:
a. whether perception or preference data are being scaled
b. whether to average the data at the individual-respondent level or the aggregate
level
c. which grouping procedure to use
d. which model for estimating parameters should be specified
(a, difficult, page 627)
88. Which of the following is not one of the procedures for assessing the reliability and
validity of conjoint analysis results?
a. The goodness of fit of the estimated model (R2) should be evaluated.
b. Stress values or badness of fit measures should be evaluated. Stress values vary
with the type of conjoint analysis procedure and the data being analyzed.
c. Test-retest reliability can be assessed by obtaining a few replicated judgments and
correlating them.
d. Internal validity can be determined by correlating predicted evaluations with those
obtained from the respondents.
(b, difficult, page 629)
89. _____ is a form of conjoint analysis that can simplify the data collection task and
estimate selected interactions as well as all main effects.
a. Conjoint analysis
b. Correspondence analysis
c. Hybrid conjoint analysis
d. Multidimensional scaling (MDS)
(c, easy, page 632)
Essay Questions
90. What are the steps involved in conducting multidimensional scaling?
Answer
formulate the problem
obtain input data
select an MDS procedure
decide on the number of dimensions
label the dimensions and interpret the configuration
assess reliability and validity
(moderate, page 612)

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91. What are the advantages and disadvantages of the direct and derived approaches to
obtaining perception data for multidimensional scaling?
Answer
Direct approaches have the advantage that the researcher does not have to identify a
set of salient attributes. Respondents make similarity judgments using their own
criteria, as they would under normal circumstances. The disadvantages are that the
criteria are influenced by the brands or stimuli being evaluated. If the various brands
of automobiles being evaluated are in the same price range, then price will not emerge
as an important factor. It may be difficult to determine before analysis if and how the
individual respondents judgments should be combined. Furthermore, it may be
difficult to label the dimensions of the spatial map. The advantage of the attributebased approach is that it is easy to identify respondents with homogeneous
perceptions. The respondents can be clustered based on the attribute ratings. It is also
easier to label the dimensions. A disadvantage is that the researcher must identify all
the salient attributes, a difficult task. The spatial map obtained depends upon the
attributes identified.
(difficult, page 614)
92. Which approach is best to use to obtain perception data the direct approach or the
derived approach?
Answer
The direct approaches are more frequently used than the attribute-based approaches.
However, it may be best to use both these approaches in a complementary way. Direct
similarity judgments may be used for obtaining the spatial map, and attribute ratings
may be used as an aid to interpreting the dimensions of the perceptual map.
(difficult, page 614)
93. What are the disadvantages of internal analysis of preferences?
Answer
In internal analysis, the differences in perceptions are confounded with differences in
preferences. It is possible that the nature and relative importance of dimensions may
vary between the perceptual space and the preference space. Two brands may be
perceived to be similar (located close to each other in the perceptual space) yet, one
brand may be distinctly preferred over the other (i.e., the brands may be located apart
in the preference space). These situations cannot be accounted for in internal analysis.
In addition, internal analysis procedures are beset with computational difficulties.
(moderate, page 619)
94. Contrast conjoint analysis with MDS.
Answer
Like multidimensional scaling, conjoint analysis relies on respondents subjective
evaluations. However, in MDS, the stimuli are products or brands. In conjoint
analysis, the stimuli are combinations of attribute levels determined by the researcher.
The goal in MDS is to develop a spatial map depicting the stimuli in a
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multidimensional perceptual or preference space. Conjoint analysis, on the other

hand, seeks to develop the part-worth or utility functions describing the utility
consumers attach to the levels of each attribute. The two techniques are
complementary.
(moderate, page 622)
95. What are the limitations of conjoint analysis?
Answer
In situations where image or brand name is important, consumers may not evaluate
the brands or alternatives in terms of attributes. Even if consumers consider product
attributes, the trade-off model may not be a good representation of the choice process.
Another limitation is that data collection may be complex, particularly if a large
number of attributes are involved and the model must be estimated at the individual
level.
(moderate, page 632)
96. What are the two main purposes for which hybrid conjoint analysis models were
developed?
Answer
Hybrid models have been developed to serve two main purposes: (1) simplify the
data-collection task by imposing less of a burden on each respondent, and (2) permit
the estimation of selected interactions (at the subgroup level) as well as all main (or
simple) effects at the individual level.
(moderate, page 632)
97. How does hybrid conjoint analysis simplify the data collection task?
Answer
In the hybrid approach, the respondents evaluate a limited number, generally no more
than nine, conjoint stimuli, such as full profiles. These profiles are drawn from a
large master design, and different respondents evaluate different sets of profiles, so
that over a group of respondents, all the profiles of interest are evaluated. In addition,
respondents directly evaluate the relative importance of each attribute and desirability
of the levels of each attribute. Combining the direct evaluations with those derived
from the evaluations of the conjoint stimuli, it is possible to estimate a model at the
aggregate level and still retain some individual differences.
(difficult, pages 632-633)

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