Professor Ken Homa - McDonough School of...
Transcript of Professor Ken Homa - McDonough School of...
Visualizing MR results…
Perceptual Maps
© K.E. Homa
Proprietary Material
Professor Ken HomaGeorgetown University
Semantic ScalingResearch 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
1. 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.
Does notDescribes it describecompletely it at all| | | | | |0 1 2 3 4 5
Conventional MappingSnake Chart
Need 2
Need 1
+20
+20
-20
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SELF
PrHi
Bu
Si
Ot
SEMI
SONO
SOLD
SULI
SAMA
SUSI
SALT
SIBI
SIRO
Alternate View: Perceptual Map
Perceptual Map
LowQuality
Low Price
High Price
HighQuality
G
C
F
E
BD
A• 2-dimensional representations• Critical attributes; relevant brands• Perceptions = f (reality, promo)• Proximity Similarity
Perceptual Map
LowQuality
Low Price
High Price
HighQuality
G
C
F
E
BD
A• If price is one of the attributes,
value line relates price to attribute“content”.
• Question: least squares fit?
Perceptual Map
LowQuality
Low Price
High Price
HighQuality
G
C
F
E
BD
A• If price is one of the attributes,
value line relates price to attribute“content”.
• Question: least squares fit?
•Answer: best in range, not least squares fit
Perceptual Map
LowQuality
Low Price
High Price
HighQuality
G
C
F
E
BD
A
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2 3
• 2-dimensional representations• Critical attributes; relevant brands• Perceptions = f (reality, promo)• Ideal points = strategically key• Proximity Desirability
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
Markstrat illustration …
Perceptual Map
• 2-dimensional representations• Critical attributes; relevant brands
Which attributes?
Importance Weights
Which are the most important attributes?
Brand values?
Note: conjoint reports weights by segment…. but not for all of the attributes
Brand PerceptionsPeriod 2 Data
Perceptual Map
• 2-dimensional representations• Critical attributes; relevant brands• Perceptions = f (reality, promo)• Proximity Similarity
Power
Price
Ideal values?
Ideal Points
Perceptual Map
Power
Price
Ideal Points
Evolution …
Non-productrepositioning
• 2-dimensional representations• Critical attributes; relevant brands• Perceptions = f (reality, promo)• Proximity Desirability
Ideal Points
• Evolve over time• Direction, speed• Inflection points• Projectibility ?
“Skate to where the puck is going, not to where it was.”
The Great Wayne Gretzky says …
Ideal PointsTakeAways
• Based on customer perceptions
• Point estimates of distributions
• Different shapes: points & vectors
• Idiosyncratic, contextual, & dynamic
Perceptual Mapping: Multi-Dimensional Scaling (MDS)
Note: See material on MDS for more detail on the technique
Multidimensional Scaling (MDS)
• Rank pairs of products (brands)by degree of similarityA is more like B than B is like C
• Statistically ‘reduce’ the data to a 2-dimensional mappingUsually a ‘black box’ application
• Judgmentally interpret the axesMulti-dimensionally Mix of art and science
Beer Market Perceptual Mapping
•
Meister Brau
Stroh’s
••
•
Beck’s
• Heineken
Old Milwaukee•
Miller •Coors•
Michelob•
Miller Lite
• Coors Light•
OldMilwaukee Light
•
Budweiser
•Coors
Popular with MenHeavy
Special Occasions
Dining Out Premium
Popular with
Women
Light
Pale Color
On a Budget
Good ValueBlue Collar
Full Bodied •
Meister Brau
Stroh’s
••
•
Beck’s
• Heineken
Old Milwaukee•
Miller •
Michelob•
Miller Lite
• Coors Light•
OldMilwaukee Light
•
Budweiser
Less Filling
Beer Market Perceptual Mapping
Popular with MenHeavy
Special Occasions
Dining Out Premium
Popular with
Women
Light
Pale Color
On a Budget
Good ValueBlue Collar
Full Bodied
PremiumBudget
Light
Regular
Less Filling
Beer Market Perceptual Mapping
•Coors
Popular with MenHeavy
Special Occasions
Dining Out Premium
Popular with
Women
Light
Pale Color
On a Budget
Good ValueBlue Collar
Full Bodied
PremiumBudget
Light
Regular
•
Meister Brau
Stroh’s
••
•
Beck’s
• Heineken
Old Milwaukee•
Miller •
Michelob•
Miller Lite
• Coors Light•
OldMilwaukee Light
•
Budweiser
Less Filling
Beer Market Perceptual Mapping
•Coors
PremiumBudget
Light
Regular
•
Meister Brau
Stroh’s
••
•
Beck’s
• Heineken
Old Milwaukee•
Miller •
Michelob•
Miller Lite
• Coors Light•
OldMilwaukee Light
•
Budweiser
Beer Market Perceptual Mapping
Multidimensional Scaling
• Smaller samples (than semantic scaling)Very high cost methodology
• Requires extensive interpretationBy definition, results are equivocal
• Conventional wisdom: “more precise”How does anybody know?
• Separate effort to juxtapose preferencesDerived from brand rankings‘Joint space’ maps