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New Products Management Chapter 6 Analytical Attribute Approaches: Introduction and Perceptual Mapping.

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Presentation on theme: "New Products Management Chapter 6 Analytical Attribute Approaches: Introduction and Perceptual Mapping."— Presentation transcript:

1 New Products Management Chapter 6 Analytical 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 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)

4 Brands.... X Ideal Attributes Respondents A Data Cube Figure 6-3

5 Rate each brand you are familiar with on each of the following: Disagree Agree 1. Attractive design Stylish Comfortable to wear Fashionable I feel good when I wear it Is ideal for swimming Looks like a designer label Easy to swim in In style Great appearance Comfortable to swim in This is a desirable label Gives me the look I like I like the colors it comes in Is functional for swimming Obtaining Customer Perceptions Figure 6-4

6 Snake Plot of Perceptions (Three Brands) Aqualine Islands Sunflare Attributes Ratings Figure 6-5

7 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

8 No. of Factors Percent Variance Explained The Scree Selecting the Appropriate Number of Factors Figure 6-6

9 Factor Loading Matrix Figure 6-7

10 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, …, 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 ) + … + (3.77 x ) = Similarly, its score on Factor 2 can be calculated as All other brands factor scores are calculated the same way. Factor Scores Matrix Figure 6-8

11 Aqualine Islands Splash Molokai Sunflare Gap 1 Gap 2 Fashion Comfort The AR Perceptual Map Figure 6-9

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.

13 Mapping Methods in Marketing Perceptual Maps Preference Maps Joint Space Maps (includes both perception & preference) Similarity-based methods Attribute-based methods Ideal-point model (unfolding model) Vector model External analysis using PREFMAP-3 Simple joint space maps using modified perceptual mapping methods Positioning–8

14 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 Unreliable (A1) Common Distinctive (A2) Light Heavy (A3) Short battery life Long battery life (A4) Poor value Good value (A15)

15 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,....) A1A2A3A A15 Dell 320N63722 C1TI Travelmate43415 Toshiba concept36277 Dell 320N C2TI 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.

16 C Butterfly Slow Looks Performance Easy setup Light Value Common Elegant Example Plot of Attributes of Laptops on a 2D Perceptual Map The 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. Toshiba 1960CT

17 C Butterfly Slow Easy setup Light Common Elegant (Plain) Example Plot of Attributes of Laptops on a 2D Perceptual Map Looks Performance Good Value Toshiba 1960CT

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.

19 Guidelines for Interpreting Perceptual Maps (Laptop) contd G Attributes that are both relatively important and close to the horizontal (vertical) axis help interpret the meaning of the axis. G 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).

20 Perceptual Map of Beer Market (This slide shows only the products) Meister Brau Strohs Becks Heineken Old Milwaukee Miller Coors Michelob Miller Lite Coors Light Old Milwaukee Light Budweiser

21 Perceptual Map of Beer Market contd (This slide shows only the attributes) Popular with Men Heavy Special Occasions Dining OutPremium Popular with Women Light Pale Color On a Budget Good Value Blue Collar Full Bodied PremiumBudget Light Heavy Less Filling

22 Perceptual Map of Beer Market contd (This slide shows both products & attributes) Popular with Men Heavy Special Occasions Dining OutPremium Popular with Women Light Pale Color On a Budget Good Value Blue Collar Full Bodied PremiumBudget Light Heavy Meister Brau Strohs Becks Heineken Old Milwaukee Miller Coors Michelob Miller Lite Coors Light Old Milwaukee Light Budweiser Less Filling

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 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?


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