The authors present a new measurement methodology of perceived value, based on latent structure multidimensional scaling, that derives simultaneously the underlying dimensions of the perceived value of various brands and market segment heterogeneity in terms of how such value evaluations are made. This latent structure, ordered probit, multidimensional scaling (MDS) based methodology improves on existing industry techniques of illustrating perceived customer value because it enables researchers to infer the underlying dimensions of perceived value from the data without specifying these a priori, as is common in existing methods. The authors compare the proposed model against more traditional MDS approaches in an empirical illustration involving the perceived value of compact cars. Finally, the authors discuss managerial implications of this technique and provide directions for further research.
All Science Journal Classification (ASJC) codes
- Business and International Management
- Economics and Econometrics