New Product Development MKTG 4320.

002
Dr. Audhesh Paswan
Spring 2006 M 2:00-4:50 PM (BUSI 330)

DML-COBA

Analytical Approaches: Introduction And Perceptual Mapping

Ch - 6

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.

Gap Analysis

Determinant gap map (produced from managerial input/judgment on products)

Attribute Ratings perceptual gap map (based on attribute ratings by customers) Overall Smilarity perceptual map (based on overall similarities ratings by customers)

A Determinant Gap Map

A Data Cube
700 . .
1 2 3 .... Options .... X Ideal

2. 1 Attributes
1 2 . .

. . . . 15

Obtaining Customer Perceptions

Rate each brand you are familiar with on each of the following:
Disagree Agree

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

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

Snake Plot of Perceptions (Three Brands)

Ratings
5 4.5 4
Aqualine

3.5 3 2.5 2 1.5 1

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Attributes

Islands

Sunflare

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

Selecting the Number of Factors

Factor 1 2 3 4 5 6 7 8 9

Eigenvalue 6.04 3.34 0.88 0.74 0.62 0.54 0.52 0.44 0.40

45 40 35 30 25 20 15 10 5 0 1 2

Percent Variance Explained

The Scree

Percent Variance Explained 40.3 22.3 5.9 4.9 4.2 3.6 3.5 3.0 2.7

No. of Factors

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

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 Aqualines factor scores. For example, on Factor 1, Aqualines 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.

The AR Perceptual Map

Comfort

Aqualin e

Gap 1

Islands

Molokai
Fashion

Splash

Sunflare Gap 2

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

The OS Perceptual Map

Aqualine

Islands

Molokai

Splash

Sunflare

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.

Failures of Gap Analysis

Input comes from questions on how brands differ (nuances ignored)

Brands considered as sets of attributes; totalities, interrelationships overlooked; also creations requiring a conceptual leap Analysis and mapping may be history by the time data are gathered and analyzed
Acceptance of findings by persons turned off by mathematical calculations?