NEW PRODUCT MANAGEMENT

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CHAP1106.ppt

Chapter 6
Analytical Attribute Approaches: Introduction and Perceptual Mapping

What are Analytical Attribute Techniques?

  • Basic idea: products are made up of attributes -- a future product change must involve one or more of these attributes.
  • Three types of attributes: features, functions, benefits.
  • Theoretical sequence: feature permits a function which provides a benefit.

*

Gap Analysis

  • Determinant gap map (produced from managerial input/judgment on products)
  • AR perceptual gap map (based on attribute ratings by customers)
  • OS perceptual map (based on overall similarities ratings by customers)

*

A Determinant Gap Map

Figure 6.2

1 2 3 .... Options .... X Ideal

1

2

.

.

.

.

.

.

.

15

Attributes

Respondents

1

2

.

.

700

.

A Data Cube

Figure 6.3

Rate each brand you are familiar with on each of the following: Disagree Agree

1. Attractive design 1..2..3..4..5

2. Stylish 1..2..3..4..5

3. Comfortable to wear 1..2..3..4..5

4. Fashionable 1..2..3..4..5

5. I feel good when I wear it 1..2..3..4..5

6. Is ideal for swimming 1..2..3..4..5

7. Looks like a designer label 1..2..3..4..5

8. Easy to swim in 1..2..3..4..5

9. In style 1..2..3..4..5

10. Great appearance 1..2..3..4..5

11. Comfortable to swim in 1..2..3..4..5

12. This is a desirable label 1..2..3..4..5

13. Gives me the look I like 1..2..3..4..5

14. I like the colors it comes in 1..2..3..4..5

15. Is functional for swimming 1..2..3..4..5

Obtaining Customer Perceptions

Figure 6.4

Snake Plot of Perceptions

(Three Brands)

Aqualine

Islands

Sunflare

Attributes

Ratings

Figure 6.5

*

Figure 6-5

Snake Plot of Brand Ratings

Data Reduction Using Multivariate Analysis

  • Factor Analysis
  • Reduces the original number of attributes to a smaller number of factors, each containing a set of attributes that “hang together”
  • Cluster Analysis
  • Reduces the original number of respondents to a smaller number of clusters based on their benefits sought, as revealed by their “ideal brand”

*

No. of Factors

Percent Variance

Explained

The Scree

Selecting the Number

of Factors

Figure 6.6

Factor

Eigenvalue

Percent Variance Explained

1

6.04

40.3

2

3.34

22.3

3

0.88

5.9

4

0.74

4.9

5

0.62

4.2

6

0.54

3.6

7

0.52

3.5

8

0.44

3.0

9

0.40

2.7

Factor Loading Matrix

Figure 6.7

Attribute

Factor 1 -- “Fashion”

Factor 2 -- “Comfort”

1. Attractive design

.796

.061

2. Stylish

.791

.029

3. Comfortable to wear

.108

.782

4. Fashionable

.803

.077

5. I feel good when I wear it

.039

.729

6. Is ideal for swimming

.102

.833

7. Looks like a designer label

.754

.059

8. Easy to swim in

.093

.793

9. In style

.762

.123

10. Great appearance

.758

.208

11. Comfortable to swim in

.043

.756

12. This is a desirable label

.807

.082

13. Gives me the look I like

.810

.055

14. I like the colors it comes in

.800

.061

15. Is functional for swimming

.106

.798

Sample calculation of factor scores: From the snake plot, the mean ratings of Aqualine on Attributes

1 through 15 are 2.15, 2.40, 3.48, …, 3.77. Multiply each of these mean ratings by the corresponding

coefficient in the factor score coefficient matrix to get Aqualine’s factor scores. For example, on

Factor 1, Aqualine’s score is (2.15 x 0.145) + (2.40 x 0.146) + (3.48 x -0.018) + … + (3.77 x -0.019)

= 2.48. Similarly, its score on Factor 2 can be calculated as 4.36. All other brands’ factor scores are

calculated the same way.

Factor Scores Matrix

Figure 6.8

Attribute

Factor 1 -- “Fashion”

Factor 2 -- “Comfort”

1. Attractive design

0.145

-0.022

2. Stylish

0.146

-0.030

3. Comfortable to wear

-0.018

0.213

4. Fashionable

0.146

-0.017

5. I feel good when I wear it

-0.028

0.201

6. Is ideal for swimming

-0.021

0.227

7. Looks like a designer label

0.138

-0.020

8. Easy to swim in

0.131

0.216

9. In style

-0.021

-0.003

10. Great appearance

0.146

0.021

11. Comfortable to swim in

-0.029

0.208

12. This is a desirable label

0.146

-0.016

13. Gives me the look I like

0.148

-0.024

14. I like the colors it comes in

0.146

-0.022

15. Is functional for swimming

-0.019

0.217

The AR Perceptual Map

Figure 6.9

Aqualine

Islands

Splash

Molokai

Sunflare

Gap 1

Gap 2

Fashion

Comfort

Dissimilarity Matrix

Figure 6.10

Aqualine

Islands

Sunflare

Molokai

Splash

Aqualine

X

3

9

5

7

Islands

X

8

3

4

Sunflare

X

5

7

Molokai

X

6

Splash

X

The OS Perceptual Map

Figure 6.11

Aqualine

Islands

Splash

Molokai

Sunflare

Comfort

Fashion

Source: Adapted from Robert J. Dolan, Managing the New Product Development Process: Cases and Notes

(Reading, MA: Addison-Wesley, 1993), p. 102.

Comparing AR and OS Methods

Figure 6.12

AR Methods

OS Methods

Input Required

Brand ratings on specific attributes

Overall similarity ratings

Attributes must be pre-specified

Respondent uses own judgment of similarity

Analytic Procedures Commonly Used

Factor analysis; multiple discriminant analysis

Multidimensional scaling (MDS)

Graphical Output

Shows product positions on axes

Axes interpretable as underlying dimensions (factors)

Shows product positions relative to each other

Axes obtained through follow-up analysis or must be interpreted by the researcher

Where Used

Situations where attributes are easily articulated or visualized

Situations where it may be difficult for the respondent to articulate or visualize attributes

Failures of Gap Analysis

  • Input comes from questions on how brands differ (nuances ignored)
  • Brands considered as sets of attributes; totalities, interrelationships overlooked; also creations requiring a conceptual leap
  • Analysis and mapping may be history by the time data are gathered and analyzed
  • Acceptance of findings by persons turned off by mathematical calculations?

*

1

1.5

2

2.5

3

3.5

4

4.5

5

123456789101112131415

Factor

Eigenvalue

Percent Variance

Explained

1

6.04

40.3

2

3.34

22.3

3

0.88

5.9

4

0.74

4.9

5

0.62

4.2

6

0.54

3.6

7

0.52

3.5

8

0.44

3.0

9

0.40

2.7

0

5

10

15

20

25

30

35

40

45

123456789

Attribute

Factor 1 --

“Fashion”

Factor 2 --

“Comfort”

1. Attractive design

.796

.061

2. Stylish

.791

.029

3. Comfortable to wear

.108

.782

4. Fashionable

.803

.077

5. I feel good when I wear it

.039

.729

6. Is ideal for swimming

.102

.833

7. Looks like a designer label

.754

.059

8. Easy to swim in

.093

.793

9. In style

.762

.123

10. Great appearance

.758

.208

11. Comfortable to swim in

.043

.756

12. This is a desirable label

.807

.082

13. Gives me the look I like

.810

.055

14. I like the colors it comes in

.800

.061

15. Is functional for swimming

.106

.798

Attribute

Factor 1 --

“Fashion”

Factor 2 --

“Comfort”

1. Attractive design

0.145

-0.022

2. Stylish

0.146

-0.030

3. Comfortable to wear

-0.018

0.213

4. Fashionable

0.146

-0.017

5. I feel good when I wear it

-0.028

0.201

6. Is ideal for swimming

-0.021

0.227

7. Looks like a designer label

0.138

-0.020

8. Easy to swim in

0.131

0.216

9. In style

-0.021

-0.003

10. Great appearance

0.146

0.021

11. Comfortable to swim in

-0.029

0.208

12. This is a desirable label

0.146

-0.016

13. Gives me the look I like

0.148

-0.024

14. I like the colors it comes in

0.146

-0.022

15. Is functional for swimming

-0.019

0.217

Aqualine

Islands

Sunflare

Molokai

Splash

Aqualine

X

3

9

5

7

Islands

X

8

3

4

Sunflare

X

5

7

Molokai

X

6

Splash

X

AR Methods OS Methods

Input Required

Brand ratings on specific attributes Overall similarity ratings

Attributes must be pre-specified Respondent uses own judgment of similarity

Analytic Procedures Commonly Used

Factor analysis; multiple discriminant a nalysis Multidimensional scaling (MDS)

Graphical Output

Shows product positions on axes

Axes interpretable as underlying dimensions

(factors)

Shows product positions relative to each other

Axes obtained through follow -up analysis or

must be interpreted by the researcher

Where Used

Situations where attributes are easily

articulated or visualized

Situations where it may be difficult for the

respondent to articulate or visualize attributes