Visualizing MR results Perceptual Maps
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1 Professor Ken Homa Georgetown University Visualizing MR results Perceptual Maps Proprietary Material K.E. Homa
2 Semantic Scaling Research Illustration How much caffeine is in your ideal cola? Lots=4 Some=3 Not much=2 None at all=1 How important is it to you that a cola have the desired caffeine level? Very=4 Somewhat=3 Not much=2 Not at all=1 How closely does brand X match to your ideal caffeine level? Right on=4 Close=3 Somewhat off=2 Way off=1
3 Conventional Mapping Snake Chart Does not Describes it describe completely it at all Company provides adequate insurance coverage for my car. 2. Company will not cancel policy because of age, accident experience, or health problems. 3. Friendly and considerate. 4. Settles claims fairly. 5. Inefficient, hard to deal with. 6. Provides good advice about types and amounts of coverage to buy. 7. Too big to care about individual customers. 8. Explains things clearly. 9. Premium rates are lower than most companies. 10. Has personnel available for questions all over the country. 11. Will raise premiums because of age. 12. Takes a long time to settle a claim. 13. Very professional/modern. 14. Specialists in serving my local area. 15. Quick, reliable service, easily accessible. 16. A good citizen in community. 17. Has complete line of insurance products available. 18. Is widely known name company. 19. Is very aggressive, rapidly growing company. 20. Provides advice on how to avoid accidents.
4 Alternate View: Perceptual Map Need 2 SELF SEMI SONO +20 Bu SUL I SOLD -20 Hi Pr Si +20 Need 1 SALT SIBI SAMA SUSI Ot -20 SIRO
5 Perceptual Map High Price 2-dimensional representations Critical attributes; relevant brands Perceptions = f (reality, promo) Proximity Similarity G E A D Low Quality C B High Quality F Low Price
6 Perceptual Map High Price If price is one of the attributes, value line relates price to attribute content. Question: least squares fit? G E D A Low Quality C B High Quality F Low Price
7 Perceptual Map If price is one of the attributes, value line relates price to attribute content. Question: least squares fit? Low Quality C High Price G Answer: best in range, not least squares fit F B E Low Price D A High Quality
8 Perceptual Map 2-dimensional representations Critical attributes; relevant brands Perceptions = f (reality, promo) Ideal points = strategically key Proximity Desirability High Price E G D A 2 3 Low Quality C B High Quality 1 F Low Price
9 In general... Most of a brand s sales will come from the segments with the closest ideal points Most of a segment s sales (share) will go to the brands closest to its ideal point
10 Markstrat illustration
11 Perceptual Map 2-dimensional representations Critical attributes; relevant brands Which attributes?
12 Importance Weights Note: conjoint reports weights by segment. but not for all of the attributes Which are the most important attributes? Brand values?
13 Brand Perceptions Period 2 Data
14 Perceptual Map 2-dimensional representations Critical attributes; relevant brands Perceptions = f (reality, promo) Proximity Similarity Price Power Ideal values?
15 Ideal Points
16 Perceptual Map 2-dimensional representations Critical attributes; relevant brands Perceptions = f (reality, promo) Proximity Desirability Price Non-product repositioning Ideal Points Power Evolution
17 Ideal Points Evolve over time Direction, speed Inflection points Projectibility?
18 The Great Wayne Gretzky says Skate to where the puck is going, not to where it was.
19 Ideal Points TakeAways Based on customer perceptions Point estimates of distributions Different shapes: points & vectors Idiosyncratic, contextual, & dynamic
20 Perceptual Mapping: Multi-Dimensional Scaling (MDS) Note: See material on MDS for more detail on the technique
21 Multidimensional Scaling (MDS) Rank pairs of products (brands) by degree of similarity A is more like B than B is like C Statistically reduce the data to a 2-dimensional mapping Usually a black box application Judgmentally interpret the axes Multi-dimensionally Mix of art and science
22 Beer Market Perceptual Mapping Old Milwaukee Meister Brau Stroh s Budweiser Miller Coors Beck s Heineken Coors Michelob Old Milwaukee Light Miller Lite Light
23 Beer Market Perceptual Mapping Old Milwaukee Good Value Full Bodied Meister Brau Blue Collar Stroh s Heavy Budweiser Miller Popular with Men Special Occasions Coors Beck s Heineken Dining Out Premium Michelob On a Budget Pale Color Old Milwaukee Light Miller Coors Light Lite Light Less Filling Popular with Women
24 Beer Market Perceptual Mapping Full Bodied Regular Heavy Popular with Men Good Value Budget Blue Collar Special Occasions Dining Out Premium Premium On a Budget Pale Color Light Light Less Filling Popular with Women
25 Beer Market Perceptual Mapping Old Milwaukee Good Value Budget Full Bodied Meister Brau Blue Collar Stroh s Regular Heavy Budweiser Miller Popular with Men Special Occasions Coors Beck s Heineken Dining Out Premium Premium Michelob On a Budget Pale Color Old Milwaukee Light Light Miller Coors Light Lite Light Less Filling Popular with Women
26 Beer Market Perceptual Mapping Regular Old Milwaukee Budget Meister Brau Stroh s Budweiser Miller Coors Beck s Heineken Premium Michelob Old Milwaukee Light Light Coors Miller Lite Light
27 Multidimensional Scaling Smaller samples (than semantic scaling) Very high cost methodology Requires extensive interpretation By definition, results are equivocal Conventional wisdom: more precise How does anybody know? Separate effort to juxtapose preferences Derived from brand rankings Joint space maps
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