Optimal product positioning based on paired comparison data

A new approach for analyzing paired comparison data is proposed which combi nes a probabilistic ideal point model with product positioning issues. Unli ke traditional approaches based on paired comparison data the same formulat ion is used for estimating a joint space representation of consumer segment s and products as well as for determining optimal (new) product positioning options in a relevant product-market. A Monte Carlo experiment is presente d and real-world coffee market data are used to show advantages of the new approach. (C) 1999 Elsevier Science S.A. All rights reserved. JEL classific ation: C25; C53; C61; L10; M31.