Perceptual Mapping Techniques

1. Perceptual Mapping Techniques

2. +20 SONO SELF Bu SEMI SULI Pr Hi SOLD -20 +20 Si SALT SUSI Ot SIBI SAMA SIRO -20 Perceptual Map Need 2 Need 1

3. Semantic ScalingResearch Illustration • How sweet is your ideal cola ? • How important is it to you that a cola have the proper sweetness ? • How closely does brand X match to your ideal sweetness ? Very=4 Somewhat=3 Not much=2 Not at all=1

4. Semantic Scaling • Large samples (typically)Survey-based methodology • A priori selection of attributesUnimportant attributes get low ratingsImportant attributes may be overlooked overlooked • Limited rating scaleConstrained upper & lower ratingsGradients may not adequately differentiateImplicitly assumes linear relationships • (Relatively) easy understand & apply

5. Conventional MappingSnake Chart Does notDescribes it describecompletely it at all | | | | | | 0 1 2 3 4 5 1. Company provides adequate insurance coverage for my car. 2. Company will not cancel policy because of age, accident experience, or health problems. 3. Friendly and considerate. 4. Settles claims fairly. 5. Inefficient, hard to deal with. 6. Provides good advice about types and amounts of coverage to buy. 7. Too big to care about individual customers. 8. Explains things clearly. 9. Premium rates are lower than most companies. 10. Has personnel available for questions all over the country. 11. Will raise premiums because of age. 12. Takes a long time to settle a claim. 13. Very professional/modern. 14. Specialists in serving my local area. 15. Quick, reliable service, easily accessible. 16. A “good citizen” in community. 17. Has complete line of insurance products available. 18. Is widely known “name company”. 19. Is very aggressive, rapidly growing company. 20. Provides advice on how to avoid accidents.

7. Perceptual Map High Price E A G D C B Low Quality High Quality F Low Price

8. Perceptual Map High Price VALUE E A G D C B Low Quality High Quality F Low Price

9. Perceptual Map High Price E A G D C B Low Quality High Quality F Low Price

10. Ideal Points • Customer perceptions • Aggregation of individuals • Distributions around points • Different shapes • Optimal points, vectors • Segment variations • Evolutionary progression • Nice to have => Must have

11. Preference Models • Ideal points (individuals) • Clusters (segments) • Proximity (preference)

12. Perceptual Map High Price E A G D 2 3 C B Low Quality High Quality 1 F Low Price

13. In general ... • Most of a brand’s sales will come from the segments with the closest ideal points • Most of a segment’s sales (share) will go to the brands closest to its ideal point

14. Targeting Strategies • Direct hit … single product ‘right on’ • Bracketingmultiple products ‘surround’ • “Tweeners”single product ‘splitting the difference’ to induce a new segmentation

15. Multidimensional Scaling (MDS) • Rank pairs of products (brands)by degree of similarityA is more like B than B is like C • Statistically ‘reduce’ the data to a 2-dimensional mappingUsually a ‘black box’ application • Judgmentally interpret the axes Multi-dimensionallyMix of art and science

16. Beer Market Perceptual Mapping Old Milwaukee Budweiser Beck’s Meister Brau Heineken Miller Coors Stroh’s Michelob Coors Light Miller Lite OldMilwaukee Light

17. Beer Market Perceptual Mapping Popular with Men Heavy Full Bodied Old Milwaukee Budweiser Beck’s Meister Brau Heineken Special Occasions Miller Blue Collar Dining Out Premium Good Value Coors Stroh’s Michelob Popular with Women Coors Light Miller Lite Pale Color On a Budget OldMilwaukee Light Light Less Filling

18. Beer Market Perceptual Mapping Regular Popular with Men Heavy Full Bodied Special Occasions Blue Collar Dining Out Premium Good Value Budget Premium Popular with Women Pale Color On a Budget Light Less Filling Light

19. Beer Market Perceptual Mapping Regular Popular with Men Heavy Full Bodied Old Milwaukee Budweiser Beck’s Meister Brau Heineken Special Occasions Miller Blue Collar Dining Out Premium Good Value Coors Stroh’s Budget Premium Michelob Popular with Women Coors Light Miller Lite Pale Color On a Budget OldMilwaukee Light Light Less Filling Light

20. Beer Market Perceptual Mapping Regular Old Milwaukee Budweiser Beck’s Meister Brau Heineken Miller Coors Stroh’s Budget Premium Michelob Coors Light Miller Lite OldMilwaukee Light Light

21. Multidimensional Scaling • Smaller samples (than semantic scaling)Very high cost methodology • Requires extensive interpretationBy definition, results are equivocal • Conventional wisdom: “more precise”How does anybody know? • Separate effort to juxtapose preferencesDerived from brand rankings‘Joint space’ maps

22. Conjoint Measurement • Pairs of tightly defined alternativesReduced attribute setSpecific attribute values‘Orthogonal arrays’ • Computed ‘utility’ weightsBased on pairwise preferencesIf added, reflect original preferencesBasis for inferences re: attribute importance weights

23. Conjoint Measurement • Smaller samples (than semantic scaling)Very high cost methodology • Requires extensive interpretationHighly complex, hardly intuitive • Basis for strong insightsPotentially dangerous if used literally