Brand Laddering

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Quantitative LadderingQuantitative LadderingThe model, the implementation, the analysis

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©© 2009, KPA Ltd., all rights reserved2009, KPA Ltd., all rights reserved

The Customers’ behavior observed

The Customers’ needs expressed in their own terms

Laddering methodologyLaddering methodologyWhat is the Voice of the Customer?What is the Voice of the Customer?

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Laddering methodologyLaddering methodologyDefinitionDefinition

� Laddering is a combination of qualitative and quantitative techniques who analyze features, benefits and values from service or product/concept.

� The result of a laddering survey is a map showing how features are linked to benefits and values. So we get the picture, it is an aggregated picture from a qualitative survey. This has to be validated and should enable us to link the individual choices to the ladders (links between features-benefits-values).

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ValuesValues

BenefitsBenefits

FeaturesFeatures

Laddering methodologyLaddering methodologyThe modelThe model

Using laddering, you can uncover what drives the consumer to purchase a certain brand and reveal, at the same time, what is the best way to address this consumer to convince him to buy your product!

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ValuesValues

BenefitsBenefits

FeaturesFeatures

ProductAttributes

Fuel consumption

Modern design

Price

TOYOTA CAR

Benefits(consequences)

to the person

Emotions and values

PERSON:CAR DRIVER

BrandBrand

Laddering methodologyLaddering methodologyAn exampleAn example

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Laddering methodologyLaddering methodologyA typical laddering interviewA typical laddering interview

(The interviewer has established that fuel economy (low fuel consumption) is the most important car attribute)

Q. You stated that fuel economy is important to you. Why is that?

A. Use as little as possible. Cut down on pollution.

Q. Can you explain to me why you care about cutting down on pollution?

A. The atmosphere is fouled enough and I should do my bit. We must all be greener.

Q. And if you are not greener? What are the consequences for you then?

A. I have an obligation to for future generations. It just is part of my ethic – I feel responsible.

Q. Why is this important for you? What is your ‘benefit’ in this?

A. Makes me feel good. To be happy!

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Laddering methodologyLaddering methodologyA typical laddering analysisA typical laddering analysis

Value

Feel goodMakes me feel good. To be happy!

Consequence

Less pollutionUse as litt le as possible. Cut down on pollut ion

Characteristic

Fuelconsumption

Fuel economy is a very important car characteristic for me

Consequence

We must be‘greener’

The atmosphere is fouled and I should do my bit. We must all be greener

Consequence

Obligation tonext generation

I have an obligation for future generations. It’s just part of my ethic -I feel responsible

Individual Individual meansmeans --endend

chainchain

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Individual Individual meansmeans --endend

chainchain

Feel good

Budget

Spendmoney on

otherthings

Fuelconsump.

corresp.to personality

Modernlook

Financialsecurity

Selfexpression

Price

Value f . money

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Toyota Toyota Yaris Yaris VersoVerso

Like to be comfortable

Self fulfilment

Large interior

Avoid stress

‘I can feel comfortable in the car’‘I like comfort and well-being’‘I need a car which although small has room for me’‘To feel well inside’

‘To feel more relaxed’‘I feel at ease’‘I don’t want to feel tired’‘I don’t like getting crazy about things’

‘I feel as if my life is fulfilled’‘I’m great!’‘I want to be able to be proud of myself’


Care for family

Drive comfortably

Performance

Many thingsto transportfor family

Large interior

Transportmany things

Family / child friendly

Toyota Toyota Yaris Yaris VersoVerso

Everybody needs to feel comfortableThe whole atmosphere is more relaxed and friendly

I want to be able to transport bigger things when necessary

We've recently had another child so we need a bigger carI must think of my family when I buy a carIt has to fit the whole family

I have a family, we always take a lot of luggage with us, need space

My family is the most important thing in my lifeChildren and family are the main things in my life

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Feel good

Budget

Spendmoney on

otherthings

Fuelconsump.

youngsingles/couples

families

empty nesters

corresp.to personality

Selfexpression

modernlook

Safe

Survival

Peaceof

mind

Feeling protected

Financialsecurity

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Feel good

Budget

Spendmoney on

otherthings

Fuelconsump.

Financialsecurity

Price

Value f. money

Respondents who do not consider

Toyota Yaris

Respondents who consider Toyota

Yaris

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Avoid stress

Consumerbenefits

Message elements

Driving force

Family/childfriendly

Care for family

Performance

Drive comfortably

MODELPOSITIONINGSTRATEGY

Large interior

Transport manythings

Self fulfilment

Personal relevance Bridge: On the one handthe car complies with the transport needs of ayoung family

Value Bridge: and on the other hand the owner of the Yaris Verso takes a definite stand concerning the styling

Product Bridge: The new Toyota YarisVerso is a new, compact Toyota withstyle, which offers the necessary spaceand performance, especially for youngfamilies

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ReferencesReferences

- Claeys, C., Vanden Abeele, P.: Consumers’ means-end chains for “think” and “feel” pro ducts ; International Journal of Research in Marketing, 12, pp. 193-208, 1995

- Hofstede, F, Audenaert, A, Steenkamp, J.B.E.M, Wedel, M: An investigation into the association pattern technique as quantitative approach to measu ring means-end chain , International

Journal of Research in Marketing, 1998.

- Kenett, R. and Zacks, S.: Modern Industrial Statistics , Duxbury Press: San Francisco, 1998

- Fuchs C. and Kenett, R.: Multivariate Quality Control , M. Dekker: New York, 1998

- Izard, C.A.: Human Emotions . Plenum Press New York, 1977.

- Reynolds, T.J., Gengler, C.E., Howard D.J.:A means-end analysis of brand persuasion through advertising ; international journal of research in marketing 12 (October 1995) pg 257-266

- Reynolds, T.J. and Gutman, J: Laddering theory, method, analysis and interpretati on .; Journal of advertising research , pp 11-13, 1988

- Sukhdial, A.S., Chakraborty, G., Steger, E.K., Measuring values can sharpen segmentation in the luxury auto market ; Journal of Advertising Research, pp. 9-22, 1995

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Designing an internal Help DeskDesigning an internal Help Deskwith quantitative ladderingwith quantitative laddering

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A Survey of Company ValuesA Survey of Company Values

4022D5Collaboration

13355D4Excellence

13634D3Result Driven

12435D2Customer First

10235D1Can Do

5221D7Respect for Ind.

6510D6Accountability

TOTALTo be improved

Best Feature

Most ImportantCodeCompany Values

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Correspondence Analysis OverviewCorrespondence Analysis Overview

Correspondence analysis is a statistical visualization method for picturing the associations between the levels of a two-way contingency table. The name is a translation of the French "Analyses des Correspondances", where the term ‘correspondance’ denotes a “system of associations”between the elements of two sets. In a two-way contingency table, the observed association of two traits is summarized by the cell frequencies. A typical inferential aspect is the study of whether certain levels of one characteristic are associated with some levels of another. Correspondence analysis displays the rows and columns of a two-way contingency table as points in a low-dimensional space, such that the positions of the row and column points are consistent with their associations in the table. The goal is to have a global view of the data that is useful for interpretation.

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Component 1

Component 2

1.00.50.0-0.5

1.0

0.5

0.0

-0.5

To be improved

Best COMVERSE Values

Most Important

Respect for Ind.

Accountability

Collaboration

Excellence

Result DrivenCustomer First

Can Do

Symmetric Plot

Company Values AnalysisCompany Values Analysis

Most Important:Most Important:

> Can do

> Customer first

To be improvedTo be improved :

> Result Driven

BestBest :

> Excellence

Correspondence analysis of Company Values’ contingen cy table by category

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A Survey of Personal ValuesA Survey of Personal Values

2200C6Reliability

4031C5Quality

2020C3Customer information

21849C2Effectiveness - Efficiency

14545C1Customer satisfaction

TOTALTo be improved

Best Feature

Most ImportantCodeValues

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Personal Values Personal Values –– Most ImportantMost Important

Effectiveness/efficiency and customer satisfaction are the most important values (93.3%)

Count

Percent

Values

Count

0.0

Cum % 60.0 93.3 100.0 100.0

9 5 1 0

Percent 60.0 33.3 6.7

Other

Quality

Custom

er satisfaction

Effectiveness - Efficiency

16

14

12

10

8

6

4

2

0

100

80

60

40

20

0

Pareto Chart of Values

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Personal Values Personal Values –– BestBest

Customer satisfaction and Effectiveness/efficiency and customer satisfaction are the best value (61.5%)

Count

Percent

Values

Count

23.1 15.4 0.0

Cum % 30.8 61.5 84.6 100.0 100.0

4 4 3 2 0

Percent 30.8 30.8

Other

Custom

er information

Quality


Custom

er satisfaction

14

12

10

8

6

4

2

0

100

80

60

40

20

0


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Personal Values Personal Values –– To be ImprovedTo be Improved

Effectiveness/efficiency and customer satisfaction need to be improved (86.7%)

Count

Percent

Values

Count

0.0

Cum % 53.3 86.7 100.0 100.0

8 5 2 0

Percent 53.3 33.3 13.3

Other

Reliability

Custom

er satisfaction


16

14

12

10

8

6

4

2

0

100

80

60

40

20

0


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Component 1

Component 2

1.00.50.0-0.5-1.0-1.5

1.0

0.5

0.0

-0.5

-1.0

-1.5

To be improved

Best Personal Values

Most Important

Reliability

Quality

Customer information

Effectiveness - EfficiencyCustomer satisfaction

Symmetric Plot

Personal Values summaryPersonal Values summary


> Effectiveness/efficiency

> Customer Satisfaction


> Effectiveness/efficiency


BestBest :

> Quality

Correspondence analysis of Personal Values’ continge ncy table by category

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BenefitsBenefits

1100B13Resource allocation

1001B11User's motivation

3012B10Work flow

3021B9Tec. Knowledge

2200B8Customer satisfaction

3030B6Ability to listen

2011B5Quality

12246B2Understanding customer & business needs

201145B1Efficiency

TOTALTo be improved

Best Feature

Most ImportantCodeBenefits

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BenefitsBenefits

Count

Percent

Benefit

Count

12.5 6.3 0.0

Cum % 68.8 81.3 93.8 100.0 100.0

11 2 2 1 0

Percent 68.8 12.5

Other

resource allocation

Und. Customer & BU needs

Customer satisfaction

Efficiency

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16

14

12

10

8

6

4

2

0

100

80

60

40

20

0

Pareto Chart of To be improved Benefits

Efficiency needs to be improved (68.8%)

Count

Percent

Benefit

Count

26.7 26.7 20.0 13.3 6.7 6.7 0.0

Cum % 26.7 53.3

4

73.3 86.7 93.3 100.0 100.0

4 3 2 1 1 0

Percent

Other

Work flow

Quality

Tec. Knowledge

Ability to listen


Efficiency

16

14

12

10

8

6

4

2

0

100

80

60

40

20

0

Pareto Chart of Best Benefits

Efficiency and understanding Customer &

Business needs and are best benefits (53.3%)

Count

Percent

Benefit

Count

37.5 31.3 12.5 6.3 6.3 6.3 0.0

Cum % 37.5 68.8

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81.3 87.5 93.8 100.0 100.0

5 2 1 1 1 0

Percent

Other

User's motivation

Tec. Knowledge

Quality

Work flow

Effi ciency


18

16

14

12

10

8

6

4

2

0

100

80

60

40

20

0

Pareto Chart of Most important Benefits

Understanding Customer & Business needs and

efficiency are the most important benefits (68.8%)

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Benefits summaryBenefits summary

Component 1

Component 2

1.00.50.0-0.5-1.0-1.5

1.0

0.5

0.0

-0.5

-1.0

-1.5

To be improv ed

Best Benefit

Most Important

resource allocation

User's motiv ation

Work flow

Tec. Know ledge

C ustomer satisfaction

Ability to listen

Q uality

Und. C ustomer & BU needs

Efficiency

Symmetric Plot


> Workflow

> Understanding Customer needs

>Quality


> Efficiency

> Resource allocation


BestBest :

> Tech. Knowledge

> Ability to listen

Correspondence analysis of Benefits’ contingency tab le by category

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A Survey of Help Desk FeaturesA Survey of Help Desk Features

3021A13Willingness to assist

3120A11Level of knowledge

1001A10Flexibility

1100A9Awareness for previous calls

7502A8Response time to solution

4130A7Availability

1100A6Customer training

5221A4Response time to answer

3300A3Quality of solution

8215A2Understanding needs

12147A1Professionalism

TOTALTo be improved

Best Feature

Most ImportantCodeFeature

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FeaturesFeatures

Count

Percent

Feature

Count 0

Percent 41.2 17.6 11.8 5.9 5.9 5.9 5.9 5.9

7

0.0

Cum % 41.2 58.8 70.6 76.5 82.4 88.2 94.1 100.0

3

100.0

2 1 1 1 1 1

Other

Professionalism

Level of knowledge

Custom

er training

Awareness for previous calls

Availability

Understanding needs

Quality of solution

Response time to solution

18

16

14

12

10

8

6

4

2

0

100

80

60

40

20

0

Pareto Chart of To be improved Features

Response time to solution is the major feature to be

improved (41.2%)

Count

Percent

Feature

Count

28.6 21.4 14.3 14.3 14.3 7.1 0.0

Cum % 28.6 50.0

4

64.3 78.6 92.9 100.0 100.0

3 2 2 2 1 0

Percent

Other

Understanding needs

Willingness to assist

Response time to answer

Level of knowledge

Availabil ity

Professionalism

14

12

10

8

6

4

2

0

100

80

60

40

20

0

Pareto Chart of Best Features

Professionalism and availability are best features

(50%)

Count

Percent

Feature

Count

29.4 17.6 5.9 5.9 0.0

Cum % 41.2 70.6 88.2 94.1

7

100.0 100.0

5 3 1 1 0

Percent 41.2

Other

Will ingness to assist

Flexibi lity


Understanding needs

Professionalism

18

16

14

12

10

8

6

4

2

0

100

80

60

40

20

0

Pareto Chart of Most Important Features

Professionalism and Understanding needs are most

important features (70.6%)

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Features summaryFeatures summary

Component 1

Component 2

1.51.00.50.0-0.5-1.0

1.5

1.0

0.5

0.0

-0.5

-1.0

To be improved

Best Feature

Most Important

Willingness to assist

Level of knowledge

Flexibility

Awareness for previous calls


AvailabilityCustomer training

Response time to answerQuality of solution

Understanding needs

Professionalism

Symmetric PlotMost Important:Most Important:

> Understanding needs

> Professionalism


> Response time to solution

> Quality Solution

> Awareness of previous calls

> Customer training

BestBest :

> Willingness to assist

> Level of knowledge

> Availability

Correspondence analysis of Features’ contingency tab le by category

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MeansMeans --End ChainsEnd Chains

� Help Desk Means-End Chains � Most important� Best � To be improved

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Help Desk MeansHelp Desk Means --End ChainsEnd ChainsMost ImportantMost Important

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Help Desk MeansHelp Desk Means --End ChainsEnd ChainsBestBest

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Help Desk MeansHelp Desk Means --End ChainsEnd ChainsTo be ImprovedTo be Improved

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Take Away MessageTake Away Message

Time to solution

EfficiencyUnderstanding the customer*

Professionalism

Efficiency vs. effectiveness balance

Customer First

Can Do

To be improved Preserve

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Thank YouThank You

Brand Laddering

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