Marketing Letters

, Volume 2, Issue 2, pp 129–146 | Cite as

Simultaneous multidimensional unfolding and cluster analysis: An investigation of strategic groups

  • Wayne Desarbo
  • Kamel Jedidi
  • Karel Cool
  • Dan Schendel


This paper develops a maximum likelihood based methodology for simultaneously performing multidimensional unfolding and cluster analysis on two-way dominance or profile data. This new procedure utilizes mixtures of multivariate conditional normal distributions to estimate a joint space of stimulus coordinates and K ideal points, one for each cluster or group, in a T-dimensional space. The conditional mixture, maximum likelihood methodology is introduced together with an E-M algorithm utilized for parameter estimation. A marketing strategy application is provided with an analysis of PIMS data for a set of firms drawn from the same competitive industry to determine strategic groups, while simultaneously depicting strategy-performance relationships.

Key words

Marketing Strategy Multidimensional Scaling Cluster Analysis Strategic Groups 


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Copyright information

© Kluwer Academic Publishers 1991

Authors and Affiliations

  • Wayne Desarbo
    • 1
    • 2
  • Kamel Jedidi
    • 3
  • Karel Cool
  • Dan Schendel
    • 4
  1. 1.Marketing DepartmentUniversity of Michigan, School of Business AdministrationAnn ArborUSA
  2. 2.Statistics DepartmentUniversity of Michigan, School of Business AdministrationAnn ArborUSA
  3. 3.Columbia UniversityColumbiaUSA
  4. 4.Purdue UniversityUSA

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