JSM 2012 Home

JSM 2012 Online Program

The views expressed here are those of the individual authors and not necessarily those of the JSM sponsors, their officers, or their staff.

Online Program Home

Abstract Details

Activity Number: 467
Type: Contributed
Date/Time: Wednesday, August 1, 2012 : 8:30 AM to 10:20 AM
Sponsor: Section on Statistics in Marketing
Abstract - #304873
Title: A Method for Developing Maximum Differential Scaling (MaxDiff) Segmentation Typing Tools
Author(s): Shon Magnan*+
Companies: GfK CRNA
Address: 8401 Golden Valley Road, Minneapolis, MN, 55427, United States
Keywords: Marketing Research ; Segmentation ; MaxDiff

Maximum Differential Scaling or MaxDiff is a popular methodology in marketing research as an alternative to collecting Likert-based ratings for key driver analysis and segmentation. Rating scales, especially when collecting global data, are notorious for scale usage heterogeneity problems. An issue when using MaxDiff utilities in the creating of segments, however, is the creation of a typing tool. Typing tools are short lists of attributes and a model that are used by organizations to quickly predict segment membership for new sets of data. The models used to create typing tools for rating scale segmentations are typically discriminant or multinomial logit method. Obviously, those approaches are much harder to implement with MaxDiff utilities. In a 2009 Marketing Research article, "Typing Tools that Work", Orme & Johnson suggest a methodology for typing tools from a MaxDiff using an iterative search and optimization algorithm. Using their approach as a framework, we illustrate an easier method that produces satisfactory segment classification accuracies by careful and appropriate selection of the items to include in each max-diff set.

The address information is for the authors that have a + after their name.
Authors who are presenting talks have a * after their name.

Back to the full JSM 2012 program

2012 JSM Online Program Home

For information, contact jsm@amstat.org or phone (888) 231-3473.

If you have questions about the Continuing Education program, please contact the Education Department.