In multidimensional scaling (MDS), what is measured to determine how brands are positioned?

In multidimensional scaling (MDS), brand similarity is the key measure used to determine how brands are positioned in a perceptual space. MDS is a statistical technique that analyzes the perceived similarities or dissimilarities between various brands or products. By focusing on brand similarity, MDS allows marketers to visualize how different brands relate to one another based on consumer perceptions.

This is essential for understanding how consumers differentiate between brands and can inform strategies to position a brand effectively in the market. The technique builds a spatial map where brands that are perceived as similar are placed closer together, while those deemed dissimilar are positioned further apart.

In contrast, customer preferences, market trends, and sales figures, while all valuable in their own right, do not directly pertain to the core of MDS. Customer preferences might inform brand positioning but are distinct from the similarity assessments that MDS directly conducts. Market trends provide broader industry insights but do not measure individual brands' positions relative to one another. Sales figures represent performance outcomes rather than perceptions, making them unsuitable for the MDS framework that specifically addresses how brands are viewed in relation to each other.