Scribd
Upload
32 views4 pages

Proxscal Goodness of Fit: Credit Stress and Fit Measures

The document presents an analysis of brand positioning using Multidimensional Scaling (MDS) with a focus on proximities among car brands such as Toyota, Honda, Ford, BMW, Tesla, and Mercedes. The stress values indicate a very good fit for the model, with normalized raw stress at 0.00128 and dispersion accounted for at 0.99872, suggesting that the distances in the reduced dimensional space accurately reflect those in the original space. The MDS map reveals that Honda and Toyota are perceived similarly, while Mercedes and BMW are seen as premium brands, with Tesla positioned uniquely as the only electric car brand in the sample.

Uploaded by

CHARLES
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
32 views4 pages

Proxscal Goodness of Fit: Credit Stress and Fit Measures

The document presents an analysis of brand positioning using Multidimensional Scaling (MDS) with a focus on proximities among car brands such as Toyota, Honda, Ford, BMW, Tesla, and Mercedes. The stress values indicate a very good fit for the model, with normalized raw stress at 0.00128 and dispersion accounted for at 0.99872, suggesting that the distances in the reduced dimensional space accurately reflect those in the original space. The MDS map reveals that Honda and Toyota are perceived similarly, while Mercedes and BMW are seen as premium brands, with Tesla positioned uniquely as the only electric car brand in the sample.

Uploaded by

CHARLES
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

Question 10 a.

Sum of all strictly lower-triangular and strictly


upper-triangular proximities.
PROXSCAL VARIABLES=Toyota Honda Ford
BMW Tesla Mercedes b. Active proximities include all non-missing
/SHAPE=BOTH proximities.
/INITIAL=SIMPLEX
/TRANSFORMATION=INTERVAL
/PROXIMITIES=DISSIMILARITIES
/ACCELERATION=NONE
/CRITERIA=DIMENSIONS(2,2)
MAXITER(100) DIFFSTRESS(.0001)
MINSTRESS(.0001)
/PRINT=COMMON STRESS
/PLOT=STRESS COMMON.

Proxscal Goodness of Fit

Stress and Fit Measures


Credit
Normalized Raw Stress .00128
Proxscal

Stress-I .03575a
Version 1.0

Stress-II .07593a
by

S-Stress .00430b
Leiden SPSS Group

Dispersion Accounted For .99872


Leiden University
(D.A.F.)
The Netherlands
Tucker's Coefficient of .99936
Congruence

Case Processing Summary PROXSCAL minimizes Normalized Raw


Stress.
Cases 6
a. Optimal scaling factor = 1.001.
Sources 1
b. Optimal scaling factor = 1.000.
Objects 6

Proximities Total Proximities 30a Common Space


Final Coordinates
Missing Proximities 0

Active Proximitiesb 15
Dimension

1 2

Toyota .696 .094

Honda .665 .135

Ford .462 -.229

BMW -.465 -.172

Tesla -.707 .302

Mercedes -.650 -.130


Question: Analyze the MDS map to understand brand positioning and comment on the
stress value
In MDS we evaluate the fit of the model using the stress values. In essence the stress value is a
badness of fit measure that minimizes the deviation between the fitted distances and the observed
distances (Ding, 2018) . Typically stress values below 0.15 indicate a good fit (Dugard et al.,
Normalized raw stress value of 0.00128 indicates that the fit of the model is very good.
2010).
Normalized raw stress values close to zero indicates that distances in the reduced dimensional
space accurately reflect distances in the original space.
Stress I — The value of 0.0375 is within the acceptable range of below 0.15 indicating that the
model is a good fit
Stress II- this value of 0.07593 is also below the acceptable range of below 0.15, also confirming
that our model is a good fit
S-Stress
Dispersion Accounted for (DAF) — this represents the proportion of variance explained by
MDS. Values close to one indicate a good fit. Our model has a value of 0.99872 which is a
nearly perfect fit.
Tuckers Coefficient of congruence — this is the square root of DAF and also measures goodness
of fit. our value of 0.99936 shows near perfect congruence.
Interpretation of MDS map
Honda and Toyota are very close on the map indicating similarities in market perception which
can be reliability or affordability. Ford is also close to Honda and Toyota indicating dimension
that it may be perceived as an affordable brand but also not as affordable as Honda and Toyota.
On the other end we have Mercedes and BMW close together which might indicate the
perception of being premium brands. Tesla is also located near BMW and Mercedes but located
slightly further indicating perception of a premium brand but with a unique identity. This may be
due to the fact that Tesla is the only electric car brand in our sampled data.

Ding, C. S. (2018). Fundamentals of Applied Multidimensional Scaling for Educational and

Psychological Research. Springer International Publishing. https://doi.org/10.1007/978-3-319-

78172-3

Dugard, P., Todman, J. B., & Staines, H. (2010). Approaching multivariate analysis: A practical

introduction (2nd edition). Routledge. https://doi.org/10.4324/9781003343097

You might also like