PERCEPTUAL MAPPING USING DISCRIMINANT ANALYSIS Presented By Ritika Gupta Mani kant roy Atharva deshpandey Shweta parashar What is Perceptual Map • A diagrammatic technique used by marketers to visualize (potential) customers’ perceptions and opinions about products, product lines or brands. • A perceptual map can also be used to represent a company’s situation relevant to the competition. • Perceptual mapping is also called positioning mapping which helps you to develop a market positioning strategy for your product or service How perceptual mapping can help 01 02 03 04 Understand the thought and behavior of the customer. Understand competitor Track market trend Identify the white space for company to operate Perceptual mapping of car brand How to Create Perceptual Mapping Step 1: Select Attributes. Step 2: Set Dimensions. Step 3: Decide Products/Brands To Map. Step 4: Conduct a Market research. Step 5: Identify the attribute which effects more using discriminate analysis. Step 6 : Plot the map depending on attribute and dimensions. Types of perceptual mapping 1. Standard Perceptual Map 2. Multi-Dimensional Scaled Perceptual Map Standard Perceptual Map The standard perceptual map has two-axis and visualizes collected data to communicate key findings. In other words, a standard perceptual map highlights the key findings from a survey quickly with minimum hassle. Multi-dimensional perceptual map Multi-dimensional maps have more than two axes with various attributes. The items are plotted on the map based on their closeness to the vector representing a certain product or brand feature. Case problem A marketing researcher wishes to determine the present position of four leading brands of wrist watches (Casio, Citizen, HMT and Titan) in the minds of the consumer and how these brands measure up on different attributes. Input Data The brand of the wristwatch is taken as a dependent variable for analysis and has been coded as a brand. The four brands of wristwatches chosen for study and their codes are as shown below. • Casio • Citizen • HMT • Titan The attributes chosen for analysis and their codes are as follows: • • • • • • Digital Display- digidisp Waterproff Feature- wetproof Provision for alarm Provision for date- date Use of jewels in the watch- jewels Provision of a metal band- metband Twenty respondents were asked to rate the four brands listed above (each brand assessed by five respondents) on the above-mentioned attributes on a five-point scale (1 Very bad to 5 Very good). The data collected is as shown in Table 1.1. This data was entered into the SPSS package and a Discriminant Analysis carried out. Brand 1. Casio 2. Citizen 3. HMT 4. Titan • Total Datapoints(N) = 20 • Total I.V. = 6 Digidisp 1 1 1 1 1 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 4 3 4 4 3 3 2 3 3 2 2 2 3 2 2 3 3 3 4 3 Watproof Alarm 4 3 4 4 3 3 3 3 4 2 3 3 3 3 2 3 3 3 2 4 Date 2 3 3 3 2 3 3 2 3 3 2 2 3 2 3 3 3 3 2 3 Jewels 3 3 4 4 3 2 4 3 3 2 2 2 2 2 3 3 3 2 4 3 2 2 3 2 3 4 4 4 3 4 4 3 4 4 4 4 4 4 3 4 Metband 3 2 2 2 3 4 3 4 4 3 4 4 3 3 4 4 4 4 3 3 Group Statistics Brands Digidisp Watproof Casio 3.6 3.6 Citizen 2.6 3 HMT 2.2 2.8 Titan 3.2 3 Total AVG 2.9 3.1 Casio Citizen HMT Titan Total STD 0.547723 0.547723 0.447214 0.447214 0.718185 0.547723 0.707107 0.447214 0.707107 0.640723 Mean Alarm Date Jewels Metband 2.6 3.4 2.4 2.4 2.8 2.8 3.8 3.6 2.4 2.2 3.8 3.6 2.8 3 3.8 3.6 2.65 2.85 3.45 3.3 0.547723 0.547723 0.547723 0.547723 0.447214 0.83666 0.447214 0.547723 0.547723 0.447214 0.447214 0.547723 0.447214 0.707107 0.447214 0.547723 0.48936 0.74516 0.759155 0.732695 ANOVA Sum of Squares Digidisp Watproof Tests of equality of group means Alarm Date Jewels Metband Mean Square df Between Groups Within Groups Total 5.800 3 1.933 4.000 16 0.250 9.800 19 Between Groups Within Groups Total 1.800 3 0.600 6.000 16 0.375 7.800 19 Between Groups Within Groups Total 0.550 3 0.183 4.000 16 0.250 4.550 19 Between Groups Within Groups Total 3.750 3 1.250 6.800 16 0.425 10.550 19 7.350 3 2.450 3.600 16 0.225 10.950 19 5.400 3 1.800 4.800 16 0.300 10.200 19 Between Groups Within Groups Total Between Groups Within Groups Total Wilks Lambda F Sig. 0.408 7.733 0.002 0.769 1.600 0.229 0.879 0.733 0.547 0.645 2.941 0.065 0.329 10.889 0.000 0.471 6.000 0.006 Steps to calculate One-Way Anova • SSW (Sum of Squares within Groups) : The is the sum of squares within each group. We can calculate it using std deviation of each and summing them across all groups as below Summation over all groups [std.dev(s)^2 * (n-1)] • SSB (Sum of Squares between Groups) : This is the sum of squares with the groups taken as single elements. • SST(Sum of squares Total) = SSB + SSW • Degree of freedom Within (dfw) = N – k (N = Total obs , k = no.of groups) • Degree of freedom between (dfb) = k-1 • F = (SSB/dfb) / ( SSW/dfw) Interpretations from One way Anova • Only Digidisp , Metband and Jewels Independent Variables are significant having significance less than 0.05 . Also note they have high F value and low Wilks Lambda (less than 0.5) Eigen Values V= 3.5371 0 0 0 0.9880 0 0 0 0 0 0 0 0 0 0.0783 0 0 0 0 0 0 0.0000 0 0 0 0 0 0 0 0 0 0 0.0000 0 0 0.0000 Command W=w1’*w1+ w2’*w2 +w3’*w3+ w4’*w4 B=T-W X=inv(W)*B [u,v]=eig(X) Linear Discriminant Coefficients Command X=inv(W)*B X*a=Lambda*a Get three linear eqn-1 Use cubic formula a’*Spooled*a=1-2 Using 1 and 2 we get the solution LD1 LD2 Digidisp 0.446259 1.687925 Watproof 0.348486 Alarm -0.08683 0.930529 Date Jewels -0.04719 0.638264 -1.39837 0.73948 Metband Constant -1.07499 0.752047 6.362 -13.125 -0.35087 Brand 1 2.900819 -0.14247 Brand 2 Brand 3 -0.99129 0.121001 -1.17644 -1.23916 Brand 4 -0.73297 1.261409 Substituting Group means in unstandardized discriminant functions we get the following centroid values which we plot on 2-D scale Discriminant Loadings S = Pooled Variance Matrix We find discriminant loadings which gives us the correlation between discriminant function and independent variables 0.2500 0.0875 -0.0250 0.0750 -0.0750 -0.0125 0.0875 0.3750 0.0375 -0.0000 -0.0250 0.0250 -0.0250 0.0375 0.2500 0.0125 0.0500 -0.0750 0.0750 -0.0000 0.0125 0.4250 -0.0500 -0.1125 -0.0750 -0.0250 0.0500 -0.0500 0.2250 0 -0.0125 0.0250 -0.0750 -0.1125 0 0.3000 loadings=S_d*b Taking sqrt of diagonals of S = S_d loadings = 0.5 0.0875 -0.025 0.075 0.0875 0.6124 0.0375 0 -0.025 0.025 0.5 0.0125 0.05 -0.075 -0.025 0.0375 0.075 0 0.0125 0.6519 -0.075 -0.025 -0.0125 0.025 0.05 -0.075 -0.0125 -0.05 -0.1125 -0.05 0.4743 -0.075 -0.1125 0 0 0.5477 0.3706 0.2573 -0.0314 0.1925 -0.7074 -0.5738 0.773 -0.032 0.3985 0.4327 0.2475 0.2404 Perceptual Mapping Loadings Digidisp LD1 Attribute LD2 F DIGIDISP 7.733 0.3671 0.7765 0.2196 -0.0514 -0.0384 0.4055 ALARM 0.733 0.189 0.4362 DATE 2.941 Jewels -0.7039 0.244 Metband -0.5668 0.2334 Attribute vectors are obtained by multiplying each attribute discriminant loadings with corresponding F value for that variable Watproof Alarm obtained earlier Date Attribute WATPROOF JEWELS METBAND Function1 1.6 10.898 6 Function2 DIGIDISP 2.838784 2.3295 WATPROOF ALARM 0.35136 -0.02815 -0.1542 1.2165 DATE JEWELS METBAND 0.555849 -7.6711 -3.4008 1.3086 0.732 0.7002 Varimax- Worked Out Manually Below are the rotated Attribute Function1 Function2 DIGIDISP 2.838784 2.3295 WATPROOF ALARM 0.35136 -0.02815 -0.1542 1.2165 DATE JEWELS METBAND 0.555849 -7.6711 -3.4008 1.3086 0.732 0.7002 Case Study 2 Televisions • Problem A consumer durables firm is interested in evaluating the consumer perceptions about television sets of three different brands - Samsung, Thomson and LG. The consumers were interviewed on eight different parameters and were asked to rank them on an 8-point scale. Sample Datapoints Fuzzy Weight Brand Logic Price Remote Colour Screen Audio Internet Below is part of datapoints that were collected in survey. 4 4 4 5 6 3 3 4 1 4 5 3 3 4 5 3 5 1 20 participants are asked to rate each of the 3 brands. So we have : 3 6 4 3 5 5 4 4 1 3 7 2 4 4 4 3 5 1 Total Datapoints (N) = 60 3 6 3 4 3 6 5 5 1 4 6 2 4 4 2 6 4 1 4 6 3 4 5 4 6 4 1 Datapoints in each Group (n)= 20 Total Independent Variable (p) = 8 No. of groups (g) = 3 Group Statistics This table presents the distribution of observations into the three groups within "brand". Here there are equal number of datapoints in each group and default weight of each datapoint is taken as 1. We can see screen and color variables have high standard deviation as compared to other observed variables. One-Way Anova for each Independent Variable The tests of equality of group means measure each independent variable's potential before the model is created. • Higher Values of F-statistic means the i.v. discriminates well , here "Color" variable has highest F value and "Remote" variable has lowest F- value • Significance value is greater than 0.10, the variable probably does not contribute to the model - "Remote" and "Audio" non-contributing • Wilks' lambda is another measure of a variable's potential. Smaller values indicate the variable is better at discriminating between groups. Summary of Canonical Discriminant Functions • These eigenvalues are related to the canonical correlations and describe how much discriminating ability a function possesses. The magnitudes of the eigenvalues are indicative of the functions’ discriminating abilities. • Wilks’ Lambda is one of the multivariate statistic calculated by SPSS. It is the product of the values of (1-canonical correlation2). In this example, our canonical correlations are .870 and 0.658, so the Wilks’ Lambda testing both canonical correlations is (10.8702)*(1-0.6582) =0.138 and the Wilks’ Lambda testing the second canonical correlation is (1-0.6582) = 0.567. Summary of Canonical Discriminant Functions • The magnitudes of Standardized Canonical Discriminant Function coefficients indicate how strongly the discriminating variables effect the score. In 1st function "Color" has highest value(0.964) and thus, will have the greatest impact of the 8 on the first discriminant score. Plot of Brands on Discriminant Functions • We find each discriminant function points for each group centroids by replacing group variable means in functions. • We then plot each datapoint function values on the map with dimensions of discriminant function as well as Group centroids for each brand . Perceptual Map of Television Brands & Attributes • To plot the attributes on the map we can use the standardised coefficients of the original variables in the discriminant function. For "Price" the co-ordinates are (0.402,-.436) . X-axis –Function 1, Y-axis – Function 2. • These vectors represent the effect of discriminating on each dimension. • Longer arrows pointing more closely towards a given group centroid, represent variables most strongly associated with that particular group (or Brand, in this case). • Vectors pointing in the opposite direction from a given group centroid represent lower association with the concerned group Perceptual Map of Television Brands & Attributes • Samsung, Thomson and LG have their unique positions on the map. In addition, on the same map, • Dimension 1 seems to be a combination of Colour and Weight (closest to the xaxis) • Dimension 2 seems to comprise Screen (size), Internet the vector that is closest to the vertical axis.