UNIVERSITY OF ILLINOIS LIBRARY AT URBANA-CHAMPAIGN BOOKSTACKS Digitized by the Internet Archive in 2011 with funding from University of Illinois Urbana-Champaign http://www.archive.org/details/multidimensional323redi Faculty Working Papers MULTIDIMENSIONAL SCALING OF BINARY DATA FOR HOMOGENEOUS GROUPS Robert Redlnger and Jagdish N. Sheth # 32 3 College of Commerce and Business Administration University of Illinois at Urbana-Champaign FACULTY WORKING PAPERS College of Commerce and Business Administration University of Illinois at Urbana-Champaign August 16, 1976 MULTIDIMENSIONAL SCALING OF BINARY DATA FOR HOMOGENEOUS GROUPS Robert Redinger and Jagdish N. Sheth 9 325 MULTIDIMENSIONAL SCALING OF BINARY DATA FOR HOMOGENEOUS GROUPS Robert Redinger and Jagdish N. Sheth INTRODUCTION Inspired by measurement in the hard sciences, the first developed techniques in multidimensional scaling (c.f., 20) required the input data to be metric. However, the necessity of using metric data as input required strong assumptions about the underlying psychological processes (9, 11). One method of scaling psychological data while relaxing the assumptions of the input data and the concomitant cognitive processes is to collect lower order data (ordinal), find a function to transform this data into a metric representation, and then input this transformed data into existing metric multidimensional scaling techniques. Shepard (13, 14) discusses the problems attendant with this approach and as an alternative presents a method of multidimensional scaling (refined by Kruskal (7, 8) ) that requires only ordinal data as input, yet produces scales with metric properties. The major advantage of nonmetric versus metric multidimensional scaling is a relaxation in the assumptions of the underlying psychological processes an individual uses in making judgements. As Shepard (11) noted, qualitative judgements can be made with greater ease, assurance, validity, and reliability than can quantitative judgements. However, several problems can be identified with these nonmetric multidimensional scaling techniques. First, an assumption of metric techniques is that the respondent be consistent throughout the task with respect to the criteria used and the quantification of that criteria. Nonmetric techniques, while they do not require quantification, retain the assumption of consistancy of criteria. Shepard (12) found that similarity judgements are likely to be influenced by attention fluctuations, and Torgerson (18) reported that the judgements - 2 - nay be affected by contextual effects. Second, although the nonmetric methods require only ordinal properties in the data, t.ie assumptions of ordint.lity must be met. If the basic ordinal properties (properties that are empirically testable) are exhibited by the data, the researcher is justified in using geometric models for scaling. Thus, the use of nonmetric techniques depends on the validity of the underlying ordinal assumptions (1). The more difficult the task, the more likely it is the underlying assumptions of the psychological process and of consistancy will not be met. Task difficulty can be resolved primarily as a function of the number of stimuli and the requirements of the task. As the number of stimuli increases, the difficulty of the task increases. The rank ordering of similarities of all possible pairs (990) of forty-five stimuli is a more difficult task than the rank ordering of all possible pairs (45) of ten stimuli. Rao and Katz (10) state that methods of collecting similarities data (magnitude estimation, ranking of all possible pairs, n-dimensional rank ordering) for large stimulus sets are cumbersome and may render judgements meaningless. Further, different techniques require different types of data. The less invariant the data is to be (metric vs. ordinal), the more restrictive the assumptions of the underlying process, and hence, the task will be more difficult. For example, the question "How much greater is A than B?", which would yield interval data, is a more difficult task than that represented by the question "Which is greater, A or B?", which would yield ordinal data. The third problem associated with nonmetric techniques is that these methods require assumptions on the part of the researcher as to the dimension- ality of the underlying process and the metric to be used for calculating distances and scaling stimuli. The calculations in these techniques are - 3 - based on the minimization of some criterion of error. Hence, if the under- lying model (i.e., dimensionality and metric) is inappropriate, the procedures will calculate results capitalizing on the noise in the data, making interpre- tation difficult and statistical inferences to populations cr across similar experiments unlikely (1). What is needed then are simpler data collection procedures to handle the first two problems and simpler analytic procedures (at least in terms of fewest assumptions) to handle the third problem. Due to the large number of stimuli necessary for many marketing studies, attention has focused en providing alternative methods of collecting ordinal (similarities) data, methods which basically involve a reduction in the number of judgements the individual must make (10, ). However, en alternative solution is to reduce the difficulty of the task by further relaxing the assumptions underlying the psychological process implicit in the data collection technique. Rather than collecting ordinal data, the researcher can obtain nominal (classifactory) data or, in the simplest case of two classes, binary data. Green, Wind, and Jain (5) analysed associative data by assuming the association frequency represented a proximity measure of the stimuli and utilized existing geometric scaling models to arrive at configurations. They found the technique resulted in high dimensionality which was difficult to interpret. They met the first condition of simpler data but not the second condition of simpler analytic strategy which suggests that an alternative method of analysis for associative data may also be appropriate. The remainder of the paper describes a method of scaling associative (specifically binary) data which (1) requires as input only binary similarities data thereby increasing the consistancy of the data while relaxing the assumptions of the underlying cognitive process, and (2) does not require prior specifi- cation of a geometric model (dimensionality and metric). After a discussion - 4 - of the technique, the method is applied to the scaling of soft drinks and the results compered with the results from a standard multidimensional scaling method. Finally, the unresolved problems associeated with this technique and the implications of the technique for marketing research are discussed. DESCRIPTION OP THE MODEL Binary data may be collected in a variety of ways, ultimately represented as the assignment of the stimuli to one of two groups. Judgements can be made regarding an object's possession of an attribute, or an object belonging to a group. To collect binary similarities data respondents would judge whether a pair of stimuli were similar or not similar. Accumulating judgements over individuals, a frequency distribution of similarity of stimulus-pairs is obtained. Guttman (6) noted that a multivariate frequency distribution is scalable if one can derive from the distribution a quantitative variable with which to characterize the objects in the population so that each attribute is a simple function of that quantitative variable. Justified by the arguement that factor analysis can be legitimately applied to any symmetric table, Burt (3! describes a technique by which qualitative data can be factor analyzed. Sheth (15) has adapted this technique for the analysis of brand loyalty. Suppose we wish to estimate the attribute space of n products and then scale the products within that space relying on binary similarities data for input. The similarity judgements are obtained by asking M individuals whether a product-pair is similar (coded 1) or not similar (coded 0) for each of the N - n(n-l)/2 product-pairs. The data can be represented in an M x N matrix Y, where each cell, y. . , represents the judgement of similarity of — i»k product-pair k by individual i. - 5 - product-pair (k) 1 2 . . . N 1 ... 1 1 1 ... ... 1 1 2 3 M individual (i) In estimating the relevant attribute space, a necessary assumption is that all the individuals use the same space in making judgements. To test this assumption, a points of view analysis (22) using Eckart and Young's theorem of matrix approximation (4) is performed. An individual by individual matrix, C, is calculated - M X K ifrlxN ■=• N x M where each cell, c. ., represents the number of times individuals i and j both rated a product-pair as similar. C turns out to be nothing more than a square symmetric contingency table. These absolute joint frequencies are a function of the number of product pairs rated. To eliminate this sample size bias, the frequencies are standat Jized by computing the relative joint frequencies, p . ■ c. ./N . Dividing these relative joint frequencies by the standard deviation (p.p.) results in a set of proportionate values 1 J : i,j - p ifj ' ( •H ( . 01 rl a' P to . -1 1 4-> l CI u c H c 4J t;i H B si u •-I 10 C/ W to r> U o U tJ <1| '■1 f- o u ^7 ■H u Sj f> >i u OJ ■" , <;) CJ p, CI (3 r > G ■H ■£ U. -P ■P C; CJ III # -. a r- [1 ly *-- c '•■i •H ( ■ 13 c C.I Q i-j Q p , !i u ► M i 1 EH 1 1 o 1 1 < ) (.'. 1 cq 1 u Q, r: a £-• a fi' o a •H o. cy rH U a* 4J 3 i to 0) & £ •d •rt c -p On u § 3 y V (U g s fr A > •H £ i (L> 8 Ai (X o u ■8 •rl