Market Data Analysis Using JMP

MaxDiff Analysis

Introduction

MaxDiff, short for Maximum Difference Scaling, is the third of the choice methodologies I introduced above. It's very powerful for modeling choices among attributes that don't have explicit levels the way the teas or bicycles had in the previous sections. In those examples, an optimally combined combination of attribute levels defined a product, option, or alternative. The alternatives are changeable based on the way the levels are combined. The alternatives are then put into choice sets that are presented to consumers.

Sometimes there are no levels to optimally combine into an alternative. For example, if there are five airlines available for a particular vacation destination with each airline defined by a ...