Wednesday, September 12, 2012

Day 6 - Team H


Perceptual Mapping

It is a graphics technique used by asset marketers that attempts to visually display the perceptions of customers or potential customers. Typically the position of a product, product line, brand, or company is displayed relative to their competition.

Characteristics of Perceptual Mapping

1.       Pair-wise distances between product alternatives directly indicate how close or far apart the products are in the minds of customers
2.       A vector on the map indicates both magnitude and direction in the Euclidean space. Vectors are usually used to geometrically denote attributes of the perceptual maps
3.       The axes of the map are a special set of vectors suggesting the underlying dimensions that best characterize how customers differentiate between alternatives

Methods to collect information on the consumers perceptions of products

1.       Similarity-Based method (Multi-Dimensional Scaling)
2.       Attribute based method (Factor Analysis).

Similarity-Based method

Perceptual Map using similarity based method has been shown below for the “Cell inter” file” discussed in the class. Where the services used has been grouped together to find out which services form clusters based on the similarities perceived by customers for these services. In the given example consumers perceive SMS, Games, Alarm to be similar. This type of data gives us information about the perception of the consumer and helps us to develop further strategies if we analyze what are the reasons that the above mentioned services are considered similar by the consumers.

Advantages of attribute free perceptual map

1.       Requires respondent to give their overall perception without defining the attribute used by them for evaluation.
2.       These can be developed at individual or aggregate level.

Disadvantages of attribute free perceptual map

1.       Respondents don’t give an objective basis on which to identify the dimensions they use for evaluating brands. In, turn little guidance is provided for specific actions since we don’t have an idea about attributes used by the respondent.
2.        We can only use general guidelines to define the dimensions of the perceptual map.

Attribute based method

In this method we define the number of products for which we want to know the perception of the consumers on different attributes of that product. The perception map drawn gives us an clear indication that for which attributes which product is considered better.
From the example considered in class, as products we have 4 stores: Store 1, Store 2, Store 3, Store 4 and 6 attributes that are 1-Price satisfaction, 2-Variety satisfaction, 3-Organization satisfaction, 4-Service satisfaction,5- Item quality satisfaction, 6-Overall satisfaction.
In the above mentioned example perception of the consumers have been taken on a scale of 1 to 5 with 1 being the lowest.
The stores (products) that are near to the head on the arrow of a given attribute shows a higher rating for that attribute by the consumers.

Guidelines for interpreting the above map

1.       The arrow indicates the direction in which that attribute is increasing.
2.       Length of the line from the origin to the arrow is an indicator of the variance of that attribute explained by the 2D map.  The longer this line, the greater is the importance of that attribute in explaining variance.
3.       Attribute that are both relatively important (i.e., long vector) and close to the horizontal (vertical) axis help interpret the meaning of axis.
4.       To represent a store on each attribute, draw an imaginary perpendicular line from the location of the laptop onto that attribute.

Advantages of attribute based perceptual map

1.       Respondents give detailed evaluations across many attributes for each brand, which provides an explicit description of the dimensions in the perceptual map.
2.       Allow us to represent more than one brand and attributes and sometimes respondents on a single map, which is very useful in competitive analysis.

Disadvantages of attribute based perceptual map

1.       Brand evaluation is limited to the attributes rated by the respondents.
2.       Results are generally available in aggregated form.
3.       Required respondent effort can be significant as the number of brands and attributes increases.

Author
Ruhi Singla
14103



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