New Products Management

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)

Figure 6-3

A Data Cube
2 1
1 2 . . . . . . . 15

.700 .
1 2 3 .... Brands .... X Ideal

Attributes

Obtaining Customer Perceptions

Figure 6-4

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

1. Attractive design 2. Stylish 3. Comfortable to wear 4. Fashionable 5. I feel good when I wear it 6. Is ideal for swimming 7. Looks like a designer label 8. Easy to swim in 9. In style 10. Great appearance 11. Comfortable to swim in 12. This is a desirable label 13. Gives me the look I like 14. I like the colors it comes in 15. Is functional for swimming

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

Snake Plot of Perceptions (Three Brands)

Ratings
5 4.5 4

Figure 6-5

Aqualine

3.5 3 2.5
Sunflare Islands

2 1.5 1
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Attributes

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

Figure 6-6

Selecting the Appropriate Number of Factors

Factor 1 2 3 4 5 6 7 8 9 Eigenvalue 6.04 3.34 0.88 0.74 0.62 0.54 0.52 0.44 0.40 Percent Variance Explained 40.3 22.3 5.9 4.9 4.2 3.6 3.5 3.0 2.7

45 40 35 30 25 20 15 10 5 0 1 2

Percent Variance Explained

The Scree

No. of Factors

Figure 6-7

Factor Loading Matrix

Attribute 1. Attractive design 2. Stylish 3. Comfortable to wear 4. Fashionable 5. I feel good when I wear it 6. Is ideal for swimming 7. Looks like a designer label 8. Easy to swim in 9. In style 10. Great appearance 11. Comfortable to swim in 12. This is a desirable label 13. Gives me the look I like 14. I like the colors it comes in 15. Is functional for swimming Factor 1 -Fashion .796 .791 .108 .803 .039 .102 .754 .093 .762 .758 .043 .807 .810 .800 .106 Factor 2 -Comfort .061 .029 .782 .077 .729 .833 .059 .793 .123 .208 .756 .082 .055 .061 .798

Figure 6-8

Factor Scores Matrix

Attribute 1. Attractive design 2. Stylish 3. Comfortable to wear 4. Fashionable 5. I feel good when I wear it 6. Is ideal for swimming 7. Looks like a designer label 8. Easy to swim in 9. In style 10. Great appearance 11. Comfortable to swim in 12. This is a desirable label 13. Gives me the look I like 14. I like the colors it comes in 15. Is functional for swimming Factor 1 -Fashion 0.145 0.146 -0.018 0.146 -0.028 -0.021 0.138 0.131 -0.021 0.146 -0.029 0.146 0.148 0.146 -0.019 Factor 2 -Comfort -0.022 -0.030 0.213 -0.017 0.201 0.227 -0.020 0.216 -0.003 0.021 0.208 -0.016 -0.024 -0.022 0.217

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 Aqualines factor scores. For example, on Factor 1, Aqualines 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.

Figure 6-9

The AR Perceptual Map

Aqualine Gap 1
Comfort

Islands

Molokai

Fashion

Splash Sunflare

Gap 2

Uses of Mapping Techniques

Understand the market structure of product categories as perceived by customers. Select the set of competitors to compete against. Image studies to help position the organization. Represent customers perceptions and preferences in a manner that aids communication and discussion within the organization. Evaluate a new product concept in the context of existing brands in the market. Developing a name for a new product.

Mapping Methods in Marketing

Perceptual Maps
Similarity-based methods Attribute-based methods

Joint Space Maps Preference Maps

(includes both perception & preference)

Ideal-point model (unfolding model) Vector model

External analysis using PREFMAP-3 Simple joint space maps using modified perceptual mapping methods

Positioning8

Perceptual Maps Using Attribute Ratings

Example: Evaluation of New Laptop Concept with Longer Battery Life Select a set of laptop computers of interest to the target group (including the new concept). Identify key attributes (eg,through focus groups). Ensure that consumers are familiar with the laptops (eg, through video presentation). Have consumers evaluate the laptops.

Reliable Common Light Short battery life

.............................. Unreliable (A1) .............................. Distinctive (A2) .............................. Heavy (A3) .............................. Long battery life (A4) Poor value .............................. Good value (A15)

Perceptual Maps Using Attribute Ratings contd

Generate a matrix of inputs consisting of each consumers (C1, C2,...) Ratings of each brand on each of the attributes (A1, A2, A3,....) A1 A2 A3 A4 ............... A15 Dell 320N 6 3 7 2 2 C1 TI Travelmate 4 3 4 1 5 Toshiba concept 3 6 2 7 7 Dell 320N C2 TI Travelmate Toshiba concept Compute average ratings of each brand on each attribute. Submit data to a suitable perceptual mapping technique (eg, MDPREF or Factor Analysis). Interpret the underlying key dimensions of the map using the directions of the individual attributes. Explore the implications of how consumers view the competing products.

Example Plot of Attributes of Laptops on a 2D Perceptual Map

Common

Slow

Easy setup

yToshiba 1960CT

Performance
Light

y -&1C
Butterfly

Value

Elegant

Looks
The six attributes were measured on semantic differential scales: 1) SlowFast operation, 2) PlainElegant, 3) EasyDifficult setup, 4) PoorExcellent value, 5) LightHeavy, and 6) CommonDistinctive.

Example Plot of Attributes of Laptops on a 2D Perceptual Map

(Plain) Common

Slow

Easy setup

yToshiba 1960CT

Performance
y -&1C
Butterfly Good Value Light

Elegant

Looks

Guidelines for Interpreting Perceptual Maps (Laptop)

The arrow indicates the direction in which that attribute is increasing (The attribute is decreasing in the direction opposite to the arrow). The 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.

Guidelines for Interpreting Perceptual Maps (Laptop) contd

Attributes that are both relatively important and close to the horizontal (vertical) axis help interpret the meaning of the axis. To position a laptop on each attribute, draw an imaginary perpendicular line from the location of the laptop onto that attribute. (These are shown by dashed lines on the map).

Perceptual Map of Beer Market (This slide shows only the products)
Old Milwaukee

Budweiser
Becks Miller

Meister Brau

Coors

Heineken

Strohs

Michelob
Miller Lite

Coors Light

Old Milwaukee Light

Perceptual Map of Beer Market

contd

(This slide shows only the attributes)

Heavy
Full Bodied Heavy Popular with Men

Special Occasions Good Value Blue Collar Dining Out Premium

Budget

Premium
Popular with Women Light Less Filling

Pale Color On a Budget

Light

Perceptual Map of Beer Market contd (This slide shows both products & attributes) Heavy
Full Bodied Old Milwaukee Heavy Popular with Men Becks

Budweiser

Meister Brau

Miller Blue Collar Strohs

Special Occasions

Heineken
Dining Out Premium

Good Value

Budget

Coors

Premium

Michelob
Pale Color Miller Lite Light

Coors Light

Popular with Women

On a Budget

Old Milwaukee Light

Light

Less Filling

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?