The Spatial Representation of Heterogeneous Consideration Sets

Abstract

Consideration sets have been the recent focus of a large volume of research in marketing. The primary orientation of this stream of research has been toward consideration set composition, measurement, and the theoretical formation process itself. This paper proposes a new multidimensional scaling methodology (MDS) devised to spatially represent preference intensity collected over consumers' consideration sets. Predictions concerning the probability of consideration set membership, as well as the degree of preference intensity of these brands within a consideration set, are possible from such a model. In addition, consumer heterogeneity is accommodated vis á vis latent market segment level estimation. The technical details of the proposed MDS methodology are presented. Two actual commercial applications of the procedure are provided in the modeling of consideration sets and respective preference intensity for “intenders” for mid-size and luxury automobiles. Finally, limitations and directions for future research in this area are discussed.

Keywords: buyer behavior, choice models, scaling methods, segmentation research