Ashesi University COURSE TITLE : NEW PRODUCT DEVELOPMENT SEMESTER : SECOND, 2015/16 MODULE 4: Attribute Analysis Techniques Lecturer: Ebow Spio

The Phases of the New Products Process 2-2

Learning Goals Understand why customers buy a product Enhance idea generation skills by reviewing and practicing how to use Attribute Analysis techniques such as Perceptual Gap Analysis

Understanding Why Customers Buy a Product : Product Attributes Basic idea: products are made up of attributes. Attributes are characteristics of a product Three types of attributes: features, functions, benefits. — a future product change must involve one or more of these attributes. 6-4

Understanding Why Customers Buy a Product : Product Attributes Features : what a product consists of e.g. dimensions, ingredients, colour etc. Functions : What a product does and how it works Benefits : How the product provides satisfaction to the user Theoretical sequence: feature permits a function which provides a benefit. 6-5

Customers often unaware of them Easily influenced by advertising and current styles Emotional Motives Adventure Affection Appearance Change/Variety Comfort/Convenience Fear Health Leisure time Pleasure Recognition Recreation Security Social or group approval Feelings, Emotions, Impulses

Rational Motives Reason, Judgment, Logic Pros and cons Customer awareness Bottom line Money’s worth Accuracy Convenience Dependability Durability Economy Efficiency Increased production Knowledge Low cost/maintenance Profit Quality of workmanship/materials Safety Service Simplicity Versatility Health

Emotional Motives Rational Motives Appearance Prestige Durability Quality Versatility

Analytical Attribute Techniques Analytical Attribute Techniques allow a firm to create new product concepts by changing one or more of its current attributes, or by adding attributes, and to assess the desirability of these concepts if they are to be developed. Quantitative Techniques: Perceptual Gap Analysis 6-9

Perceptual Map A perceptual map is a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands relative to its own and then take marketing actions.

Product Positioning using Perceptual Maps

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) 6-12

Determinant Gap Map Purpose is to find a spot on the map where a gap offers potential as a new item The map consists of two dimensions Scales ran from low to high on each factor or attribute Attributes used in gap analysis should be differentiating and important Attributes that both differentiate and are important are called Determinant Attributes Determinant gap maps are speedy and cost-efficient 6-13

A Determinant Gap Map 6-14

Perceptual Gap Maps based on Attribute Rating (AR) Based on market place perception which may or may not be accurate Begin with a set of attributes (features, functions and benefits that describe the product category being considered.) Gather consumers’ perceptions of the available choices (i.e. brands, manufacturers, etc) on each of these attribute Typically is done using Likert-type of scales 1-5,

Rate each brand you are familiar with on each of the following: Disagree Agree 1. Attractive design 1…2…3…4…5 2. Stylish 1…2…3…4…5 3. Comfortable to wear 1…2…3…4…5 4. Fashionable 1…2…3…4…5 5. I feel good when I wear it 1…2…3…4…5 6. Is ideal for swimming 1…2…3…4…5 7. Looks like a designer label 1…2…3…4…5 8. Easy to swim in 1…2…3…4…5 9. In style 1…2…3…4…5 10. Great appearance 1…2…3…4…5 11. Comfortable to swim in 1…2…3…4…5 12. This is a desirable label 1…2…3…4…5 13. Gives me the look I like 1…2…3…4…5 14. I like the colors it comes in 1…2…3…4…5 15. Is functional for swimming 1…2…3…4…5 Obtaining Customer Perceptions 6-16

Snake Plot of Perceptions (Three Brands) Aqualine Islands Sunflare Attributes Ratings 6-17

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 ” 6-18

Aqualine Islands Splash Molokai Sunflare Gap 1 Gap 2 Fashion Comfort The AR Perceptual Map 6-19

Perceptual Gap Maps based on Overall Similarities Users sometimes make purchase decisions using attributes they cannot identify Attribute sets therefore not comprehensive enough Some also find it very difficulty to rate attributes Overall Similarities do not require customers to rate choices on individual attributes, but rather on overall similarities between pairs of brands Respondents could rank the pairs from most similar to most dissimilar or rate pairs on say 1-to-9 Likert-type scale where 1 is “very similar” and 9 is “very dissimilar” 6-20

Dissimilarity Matrix 6-21

Aqualine Islands Splash Molokai Sunflare Comfort Fashion The OS Perceptual Map 6-22

Source: Adapted from Robert J. Dolan, Managing the New Product Development Process: Cases and Notes (Reading, MA: Addison-Wesley, 1993), p Comparing AR and OS Methods 6-23

Failures of Gap Analysis Input comes from questions on how brands differ (nuances ignored) Brands considered as sets of attributes; totalities, interrelationships overlooked; Gap analysis discovers gaps, not demand Analysis and mapping may be history by the time data are gathered and analyzed Acceptance of findings by persons turned off by mathematical calculations? 6-24