NEW PRODUCTS
MANAGEMENT
Merle Crawford
Anthony Di Benedetto
Analytical Attribute Approaches:
Introduction and Perceptual Mapping
6-2
Which Companies should start
investing in advertising from this
month? Why?
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.
6-4
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)
6-6
DETERMINANT GAP MAP
• Prepared by Product Manager using his
own market knowledge
• Manager defines the axis factors and give
score to various brands
• Concept generation takes place after PIC
has targeted a market or user group on
which to focus.
• Try one… about cars
Determinant Gap
Lets position the following on the map
•
•
•
•
•
•
•
•
•
•
•
•
•
•
FX
Mehran
Suzuki Alto
Baleno
Cultus
Liana
Suzuki Swift
Suzuki Wagon R
Suzuki Carry
Honda Accord
Honda City
Honda Civic
Honda Fit
Honda CR-Z
•Corolla
•Hilux
•Vigo Champ
•Fortuner
•Camry
•Land Cruiser
•Prado
•RAV4
•Avanza
•Hiace
•Coaster
•Terios
•Prius
•Dimensions?
•Fuel economy & Comfort
ECONOMY +
ECONOMY --
COMFORT +
COMFORT --
A Determinant Gap Map
6-10
Video link:
https://www.youtube.com/watch?v=GPivHd9OSmE
https://www.youtube.com/watch?v=x7qPAY9JqE4
This perceptual map was used…... (which one is true)
• As the original identification of the market gap of the iPhone
• As a guide to designers and developers to keep focused on the final
product and its benefits
• As a launch presentation technique only
• As a way of clearly communicating to consumers the unique benefits
(positioning) of the iPhone
• As a simple diagram to encourage the media and bloggers to
communicate the iPhone’s point-of-difference
Discussion cont
Were there other attributes that Apple could have
considered for the perceptual map design? Or are these
the two most important attributes in a consumer’s
purchase decision?
Given that Apple’s approach to finding a market gap is
clearly shown here, what is stopping their competitors
from leap-frogging them back? (That is, how does Apple
now retain its market leadership position?)
AR Perceptual Gap Maps
Obtaining Customer Perceptions
Rate each brand you are familiar with on each of the following:
Disagree
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
Agree
1…2…3…4…5
1…2…3…4…5
1…2…3…4…5
1…2…3…4…5
1…2…3…4…5
1…2…3…4…5
1…2…3…4…5
1…2…3…4…5
1…2…3…4…5
1…2…3…4…5
1…2…3…4…5
1…2…3…4…5
1…2…3…4…5
1…2…3…4…5
1…2…3…4…5
6-16
A Data Cube
6-17
Snake Plot of Perceptions
(Three Brands)
Ratings
5
4.5
4
Aqualine
3.5
Islands
3
2.5
Sunflare
2
1.5
1
1
2
3
4
5
6
7
8
9
10 11 12 13 14 15
Attributes
6-18
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”
6-19
Selecting the Number
of Factors
6-20
Factor Loading Matrix
Attribute
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
Factor 1 -“Fashion”
.796
.791
.108
.803
.039
.102
.754
.093
.762
.758
.043
.807
.810
.800
.106
Factor 2 -“Comfort”
.061
.029
.782
.077
.729
.833
.059
.793
.123
.208
.756
.082
.055
.061
.798
6-21
Factor Loading Matrix
Attribute
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
Factor 1 -“Fashion”
.796
.791
.108
.803
.039
.102
.754
.093
.762
.758
.043
.807
.810
.800
.106
Factor 2 -“Comfort”
.061
.029
.782
.077
.729
.833
.059
.793
.123
.208
.756
.082
.055
.061
.798
6-22
Factor Scores Matrix
Attribute
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
Factor 1 -“Fashion”
0.145
0.146
-0.018
0.146
-0.028
-0.021
0.138
0.131
-0.021
0.146
-0.029
0.146
0.148
0.146
-0.019
Factor 2 -“Comfort”
-0.022
-0.030
0.213
-0.017
0.201
0.227
-0.020
0.216
-0.003
0.021
0.208
-0.016
-0.024
-0.022
0.217
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, …, 3.77. 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 -0.018) + … + (3.77 x -0.019)
= 2.48. Similarly, its score on Factor 2 can be calculated as 4.36. All other brands’ factor scores are
calculated the same way.
6-23
Comfort
The AR Perceptual Map
Aqualine
Gap 1
Islands
Molokai
Fashion
Splash
Sunflare
Gap 2
6-24
OS Perceptual Gap Map
Dissimilarity Matrix
Coke
Pepsi
Sting
Rohafza
Coke
X
Pepsi
2
X
Sting
6
5
X
Rohafza
9
9
4
X
6-26
Dissimilarity Matrix
Aqualine
Islands
Sunflare
Molokai
Splash
Aqualine
X
Islands
3
X
Sunflare
9
8
X
Molokai
5
3
5
X
Splash
7
4
7
6
X
6-27
The OS Perceptual Map
Aqualine
Islands
Splash
Molokai
Sunflare
6-28
The Challenge of an OS Gap Map
• There are NO labels on the X and Y axis –
in fact, there are no X or Y axes produced.
• You will need to work out HOW the
consumers think, classify and different
between the competitors.
The Challenge of an OS Gap Map…
• OS perceptual maps only provide a series
of points, you will need to work out the
underlying driving factors – that is, what
attributes and other factors are consumers
using to help them make purchase
decisions in real life.
Interpreting An Overall Similarities
Perceptual Map
• You need to determine the likely factors/influences that
consumers have used in forming their view (perception) of
how the different brands in the market are interrelated.
• These influences can run in any direction. (not necessary
to be at right angle or upwards or downwards)
• There WILL be more than one logical solution.
• There can be more than two factors on the same map.
• It is a helpful technique because it forces you to think
about the consumers and their thinking process
Interpreting An Overall
Similarities Perceptual Map
• BUT… a poor interpretation of the map
(that is, identifying the wrong factors) will
result in a poor understanding of the
market and subsequent poor marketing
decisions as a result.
• So be very careful…
Comparing AR and OS Methods
AR Methods
OS Methods
Input Required
Brand ratings on specific attributes
Overall similarity ratings
Attributes must be pre-specified
Respondent uses own judgment of similarity
Analytic Procedures Commonly Used
Factor analysis; multiple discriminant analysis
Multidimensional scaling (MDS)
Graphical Output
Shows product positions on axes
Shows product positions relative to each other
Axes interpretable as underlying dimensions
Axes obtained through follow-up analysis or must
(factors)
be interpreted by the researcher
Where Used
Situations where attributes are easily articulated or
Situations where it may be difficult for the
visualized
respondent to articulate or visualize attributes
Source: Adapted from Robert J. Dolan, Managing the New Product Development Process: Cases and Notes
(Reading, MA: Addison-Wesley, 1993), p. 102.
6-37
Class Activity
• Choose a product category and design an
OS Gap map in small groups.