Presentation on theme: "New Products Management"— Presentation transcript:
1 New Products Management Chapter 6Analytical Attribute Approaches:Introduction and Perceptual Mapping
2 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.
3 Gap AnalysisDeterminant 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)
4 A Data Cube 700 . . . 2 1 Attributes 1 2 3 .... Brands .... X Ideal 1 Figure 6-3A Data Cube700..Respondents.21Brands X Ideal12.15Attributes
5 Obtaining Customer Perceptions Figure 6-4Rate each brand you are familiar with on each of the following: Disagree Agree1. Attractive design2. Stylish3. Comfortable to wear4. Fashionable5. I feel good when I wear it6. Is ideal for swimming7. Looks like a designer label8. Easy to swim in9. In style10. Great appearance11. Comfortable to swim in12. This is a desirable label13. Gives me the look I like14. I like the colors it comes in15. Is functional for swimming
6 Snake Plot of Perceptions (Three Brands) Figure 6-5RatingsAqualineIslandsFigure 6-5Snake Plot of Brand RatingsSunflareAttributes
7 Data Reduction Using Multivariate Analysis Factor AnalysisReduces the original number of attributes to a smaller number of factors, each containing a set of attributes that “hang together”Cluster AnalysisReduces the original number of respondents to a smaller number of clusters based on their benefits sought, as revealed by their “ideal brand”
8 Selecting the Appropriate Number of Factors Figure 6-6Selecting the Appropriate Number of FactorsThe ScreePercent VarianceExplainedNo. of Factors
10 Figure 6-8Factor Scores MatrixSample calculation of factor scores: From the snake plot, the mean ratings of Aqualine on Attributes1 through 15 are 2.15, 2.40, 3.48, …, Multiply each of these mean ratings by the correspondingcoefficient in the factor score coefficient matrix to get Aqualine’s factor scores. For example, onFactor 1, Aqualine’s score is (2.15 x 0.145) + (2.40 x 0.146) + (3.48 x ) + … + (3.77 x )= Similarly, its score on Factor 2 can be calculated as All other brands’ factor scores arecalculated the same way.
11 The AR Perceptual Map Aqualine Gap 1 Islands Molokai Splash Sunflare Figure 6-9The AR Perceptual MapAqualineIslandsSplashMolokaiSunflareGap 1Gap 2FashionComfort
12 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.475
13 Mapping Methods in Marketing Joint Space Maps (includes both perception & preference)Perceptual MapsPreference MapsSimilarity-based methodsAttribute-based methodsIdeal-point model (unfolding model)Vector modelExternal analysis using PREFMAP-3Simple “joint space maps” using modified perceptual mapping methodsPositioning–88
14 Perceptual Maps Using Attribute Ratings Example: Evaluation of New Laptop Concept with Longer Battery LifeSelect 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 Unreliable (A1)Common Distinctive (A2)Light Heavy (A3)Short battery life Long battery life (A4)• • •Poor value Good value (A15)669
15 Perceptual Maps Using Attribute Ratings cont’d Generate a matrix of inputs consisting of each consumer’s (C1, C2,...) Ratings of each brand on each of the attributes (A1, A2, A3,....)A1 A2 A3 A A15Dell 320NC1 TI TravelmateToshiba concept• • •Dell 320NC2 TI TravelmateToshiba conceptCompute 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.7107
16 Example Plot of Attributes of Laptops on a 2D Perceptual Map CommonToshiba 1960CTEasy setupSlowPerformanceLightValue C “Butterfly”ElegantLooksThe six attributes were measured on semantic differential scales: 1) Slow–Fast operation, 2) Plain–Elegant,3) Easy–Difficult setup, 4) Poor–Excellent value, 5) Light–Heavy, and 6) Common–Distinctive.8118
17 Example Plot of Attributes of Laptops on a 2D Perceptual Map (Plain)CommonToshiba 1960CTEasy setupSlowPerformanceLightGood Value C “Butterfly”ElegantLooks9129
18 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.101310
19 Guidelines for Interpreting Perceptual Maps (Laptop) cont’d 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).111411
20 Perceptual Map of Beer Market (This slide shows only the products) Old MilwaukeeBudweiserBeck’sMeister BrauHeinekenMillerCoorsStroh’sMichelobCoors LightMiller LiteOld Milwaukee Light121215
21 Perceptual Map of Beer Market cont’d (This slide shows only the attributes) HeavyPopular with MenHeavyFull BodiedSpecial OccasionsBlue CollarDining OutPremiumGood ValueBudgetPremiumPopular with WomenPale ColorOn a BudgetLightLightLess Filling131613
22 Perceptual Map of Beer Market cont’d (This slide shows both products & attributes) HeavyPopular with MenHeavyFull BodiedOld MilwaukeeBudweiserBeck’sMeister BrauHeinekenSpecial OccasionsMillerBlue CollarDining OutPremiumGood ValueCoorsBudgetStroh’sPremiumMichelobCoors LightPopular with WomenMiller LitePale ColorOn a BudgetOld Milwaukee LightLightLightLess Filling17
23 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 leapAnalysis and mapping may be history by the time data are gathered and analyzedAcceptance of findings by persons turned off by mathematical calculations?