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. A Data Cube 700 . . . 2 1 Attributes 1 2 3 .... Brands .... X Ideal 1
Figure 6-3
A Data Cube
700 . .
Respondents . 2 1
Brands X Ideal 1 2 . 15
Attributes

5. 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

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

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

9. Figure 6-7
Factor Loading Matrix

10. Figure 6-8
Factor Scores Matrix
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 Aqualine’s factor scores. For example, on
Factor 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 are
calculated the same way.

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

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. 4 7 5

13. Mapping Methods in Marketing
Joint Space Maps (includes both perception & preference)
Perceptual Maps
Preference Maps
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 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) 6 6 9

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 A15
Dell 320N
C1 TI Travelmate
Toshiba concept
• • •
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. 7 10 7

16. Example Plot of Attributes of Laptops on a 2D Perceptual Map
Common
Toshiba 1960CT
Easy setup
Slow
Performance
Light
Value
 C “Butterfly”
Elegant
Looks
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. 8 11 8

17. Example Plot of Attributes of Laptops on a 2D Perceptual Map
(Plain)
Common
Toshiba 1960CT
Easy setup
Slow
Performance
Light
Good Value
 C “Butterfly”
Elegant
Looks 9 12 9

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. 10 13 10

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). 11 14 11

20. Perceptual Map of Beer Market (This slide shows only the products)
Old Milwaukee
Budweiser
Beck’s
Meister Brau
Heineken
Miller
Coors
Stroh’s
Michelob
Coors Light
Miller Lite
Old Milwaukee Light 12 12 15

21. Perceptual Map of Beer Market cont’d (This slide shows only the attributes)
Heavy
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
Light
Less Filling 13 16 13

22. Perceptual Map of Beer Market cont’d (This slide shows both products & attributes)
Heavy
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
Budget
Stroh’s
Premium
Michelob
Coors Light
Popular with Women
Miller Lite
Pale Color
On a Budget
Old Milwaukee Light
Light
Light
Less Filling 17

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?