Tool 2
lance5600
Week23PerceptualMaps.ppt
Understanding Perceptions by
Creating & Using Perceptual Maps
Overview of Today’s Class
- Understanding perceptual mapping
- Assumptions of perceptual maps
- The procedure for creating perceptual maps
- Interpreting perceptual maps
So, What Are Perceptual Maps?
- Spatial representation in which customer perceptions for competitors’ brands are represented in a Euclidean space
- We are taking a very complex 3-D system and taking it down to a 2-D map
When are Perceptual Maps Used?
- Can be used for finding space in customers’ minds -
- New product positioning decisions
- Existing product re-positioning decisions
- Check against managers’ views of market structure
- Identifying competitive set
- Image or reputation studies
Harsh
Gentle
Expensive
Cheap
Advil
St Joseph Baby Aspirin
Excedrin
Tylenol
4 Assumptions of Perceptual Maps
- Pair-wise distances between product alternatives directly indicate “perceived similarities” between any pair
- how close or how far apart are the products in customers’ MINDS
- A vector on the map (line & arrow) indicates BOTH magnitude and direction
- vectors denote underlying attributes
4 Assumptions of Perceptual Maps
- The axes of the maps are a special set of vectors suggesting underlying dimensions (or factors) that best characterize how customers differentiate between alternatives – they are just condensed vectors
- You can’t move directly into a good gap when repositioning
Reliable
Retro
Retro & Reliable =
Old Standard
Classic
Intuitive Understanding of
Perceptual Mapping
- Suppose we have a set of ratings of airlines from customers on a set of attributes
Convenience Punctuality Service Comfort
- Obtained using a 1 to 9 scale, where 1 = worst or lowest level of attribute and 9 = best or highest level of attribute
AA 5.00 6.00 8.00 6.00
UA 8.00 5.00 7.00 6.00
US 3.00 5.00 5.00 4.00
C 3.00 4.00 4.00 4.00
SW 8.00 8.00 6.00 3.00
Intuitive Understanding of
Perceptual Mapping
- Problem?
- Too many attributes
- Difficult if not impossible to understand how competitors stack up
- Can we (somehow) reduce number of attributes AND pictorially represent the options
- KEY: Without losing too much information
Procedure for Creating Perceptual Maps
1. Identify products and attributes
that are relevant
2. Obtain perceptions data
3. Select a perceptual mapping
method (factor analysis)
4. Drawing the Map and Interpretation
Step 1. Identifying Relevant Products
and Attributes
- Attributes and products depend on objectives of the study
- Use focus groups (at least 4) to determine attributes and brands – 30 hours maximum
- Attributes will be feelings - not just Features
- Previous airline data example
- American, United, USAir, Continental, Southwest
- Convenience, Punctuality, Overall Service, Comfort
Step 2. Obtain Perceptions Data
- Generally administered via surveys
- Keep segmentation in mind
- Important to get ratings from homogenous groups of customers
- Can group by demographics, behavior, psychographics, etc.
- Any method appropriate (all at once or one at a time) 100 minimum
- Airlines data - on a 1 to 9 scale
- (1 = worst, 9 = best or 1 = disagree, 9 = agree)
- Could use any odd-numbered scale
Step 2. Obtain Perceptions Data
Writing a 7 in the space provided means you agree with the statement and writing in a 1 means you disagree.�
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Step 3. Perceptual Mapping Method
- In order to create a matrix of standardized scores - important to have the following form
Attributes (Columns)
Brands
(Rows)
- Remember, the purpose of perceptual mapping?
- Data Reduction no significant loss of information
- Use Factor Analysis
Step 3. Factor Analysis Methodology
- Systematically finds underlying patterns and inter-relationships among variables (attributes)
- using input (brands x attributes) matrix
- using the knowledge that attributes are correlated
- and the knowledge that correlated attributes have an underlying factor that can (usually) represent all of them without significant information loss
- Use SPSS Factor Analysis procedure – it will compress data
Step 3. Factor Analysis Output
- Total Variance Explained
- How much of information (previously contained in MANY attributes) is explained by FEW factors?
- Remember, factors are the axes of the perceptual maps
- Important to see if 1-2 factors explain 60% or more of the variance
- Rotated Component Matrix (VARIMAX)
- Contains coordinates of attributes on perceptual map (with factors/components as axes)
- Also provides loading of attributes on individual factors
Step 3. Factor Analysis Output
- First Page (in the SPSS data)
- contains coordinates for brands
- posted at the end of your original data in SPSS
Step 4. Drawing The Perceptual Map
Perceptual Map of Airlines
-15.00
-10.00
-5.00
0.00
5.00
10.00
15.00
-15.00
-10.00
-5.00
0.00
5.00
10.00
15.00
20.00
Attributes
Brands
AA
UA
C
US
SW
Punctuality
Convenience
Service
Comfort
Step 4. Critical Outputs from Perceptual Maps
- 1. Name the axes (all 4 quadrants)
- 2. Competitive Clusters and Positioning
- 3. Order of brand preference
- 4. Locate good and bad gaps
- 5A. Make recommendations as to how to occupy good gaps
- Which attributes’ perceptions to improve and/or communicate?
- 5B. Specific position on the map that is to be achieved
- Which exact quadrant to move into and exact location on the map?
Now You Do It (Or Walk Me Through It)
- Data on cars
- See handout
Perceptual map of cars
Preference
Unreliable
Poor Value
Poorly Built
Interesting
Common
Uncomfortable
Sporty
Easy Service
Avant-garde
Attractive
Success
Prestige
Quiet
Roomy
Explain this map
- What does position of brands mean?
- Why are there vectors going to attributes?
- Why is preference vector bigger?
- Why not just use the preference data and forget the rest?
- Keep in mind this is PERCEPTION of our target market we surveyed
Primary Attributes
- They are always the 3-5 attributes that are closest to the preference line. Can come from opposite direction.
- Well built – was poorly built in other direction
- Successful
- Prestigious
- Quiet
- Comfortable – was uncomfortable in other direction
Name Axes
Preference
Unreliable
Poor Value
Poorly Built
Interesting
Common
Uncomfortable
Sporty
Easy Service
Avant-garde
Attractive
Success
Prestige
Quiet
Roomy
Made for Speed
All in the Family
Total Package
Lemon
Interpreting Output 1 – Name Axes Rules
- Cut each quadrant exactly in half with your X
- Make them short, catchy, and memorable
- Make them client and industry specific
- Try a phrase instead of a word
- Important to use only attributes NOT brands to name the quadrants
Interpreting Output 2 – Competitive Clusters & Positioning
Made for Speed
All in the Family
Total Package
Lemon
AMERICAN
“MUSCLE”
JAPANESE
“PRINCES OF
THE ROAD”
EURO
“STUCK-IN-THE
MIDDLE”
“EURO-LIKE”
STATELY RIDES
Interpreting Output 2 - Competitive Clusters
- Brands within clusters are direct competitors in customers’ minds
- Clusters are named in each quadrant
- Brands within clusters compete on similar attributes
Interpreting Output 3: Order of Brand Preference
Preference
Interpreting Output 3: Order of Brand Preference
- Distance from the preference vector is irrelevant
- What matters is where the brand-projection falls ON the preference vector – brand lines must be drawn with a 90 degree angle where the line hits the preference line
- The farther a brand-projection falls ON the preference vector in the direction of increasing preference – the more preferred the brand
- And vice versa – farther on decreasing side of preference – the less preferred the brand
Preference
Gaps - Ovals & Space- Rectangle –
Good Green Bad Red
Bad Space
Bad Space
Good Space
Good Space
Interpreting Output 4: Gaps& Spaces
- Gaps – are the ovals that fall between brands on preference vector – make sure to look at brands that fall on both sides
- Spaces – are the rectangles on the map and are ALWAYS linked with a gap
- Good gaps/space – are where if a brand is anywhere in that space/rectangle when you draw the 90 degree line to the preference line you will fall in a preferred position in a good gap/oval
- Bad gaps/Bad space – as above only you will fall in a not preferred gap/oval
Interpreting Output 5A - Repositioning to a Good Gap – Must Do!
- Choosing a good gap? Impact of size and feasibility
- Think of repositioning as involving 2 major steps
- 1. Must do – to start moving in the direction of the good gap- ALWAYS choose the 3-5 attributes CLOSEST to Preference line!!!
- 2. Choosing an exact location in a GOOD SPACE that makes sense based on data
- Must do to move in the direction of a good gap-Improve on primary attributes
First Step Reposition
- Identify the 3-5 attributes closest to the Preference line
- These are your Primary Attributes – NO MATTER WHAT!!
- Make sure to check if a non-preffered attribute turned around is closer than ones on preferred side (Well Built & Comfortable)
Interpreting Output 5A - Possible Repositioning to a Good Gap – Must Do!
Preference
Well Built
Success
Prestige
Quiet
All in the Family
Total Package
Lemon
Comfortable
Step 2 -Repositioning Exact Location on Map
- After the must do first step, step 2 involves choosing an exact location
- Choice of exact location
- Degree of competition near the space – which cluster?
- Existing positioning of the brand
- Once exact location is chosen, identify additional auxiliary/secondary attributes that your brand needs to improve on
- These are attributes that will move you in direction of new space ex: moving upward then you need to find vectors that are pointing up
Preference
Interpreting Output 4: Gaps and Space – Good and Bad
??
??
Well Built
Success
Prestige
Quiet
Comfortable
Interpreting Output 5C - Repositioning into a Good Gap + Space –Must Do &Auxiliary Attributes
Preference
Well Built
Success
Prestige
Quiet
Comfortable
Avant-garde
Easy Service
Sporty
X
Review Outcomes
- We will be able to reposition by making customers aware that we have the Primary Attributes – Well Built, Successful, Prestigious, Quiet and Comfortable
- In order to move to our new space where we fall in the proper competitive cluster we must additionally highlight our Secondary Attributes – Sporty, Avant-garde & Easy Service
Summary
- Perceptual maps reflect a succinct understanding of the competitive marketplace
- Need attributes and alternatives
- Need perceptions
- Need factor analysis with mapping software
- Interpreting perceptual mapping
Writing a
7
in the space provided means you agree with the
statement and writing in a
1
means you disagree.
