CONSUMER BEHAVIOR CLASS (GROUP 7)

Analyzing Consumer Perception

By Robert J. Dolan

An understanding of how consumers perceive the brand is an important input to marketing decision
and a check whether or not the desired positioning has been achieved. In the article, the consumer
perception data is collected, analyzed and applied in three different procedures which are named as
follows

1. Collection of perception data and the reporting of them in a profile analysis

2. Creation of a perceptual map
3. Sampling of applications and uses in marketing decision making

Collection of perception data

A commonly used variant of the rating scale is the semantic differential scale having five or seven
points with polar adjectives at either end of the spectrum. For example

Unreliable _________ ________ ________ ________ ________ reliable

Hard-to-use _________ ________ ________ ________ ________ Easy-to-use
Poor value _________ ________ ________ ________ ________ Good value

We check on how similar perceptions are across respondent through variance of the ratings on an
attribute across consumers. If we assume perceptions to be pretty same across respondents, we can
summarize the data by averaging it across all survey respondents and visually represent in Profile
Analysis (Snake plot). The utility of snake plots depends on how many brands have to be considered in
the analysis.

Perceptual mapping techniques

When consumer perception of multiple competitors on multiple dimensions are of interest, more
powerful analysis techniques such as perceptual mapping are used to make more meaningful data.
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There are two kinds of mapping procedures 1) Attribute rating method 2) Judgement of overall
similarity of pairs of brands.

Attribute Rating Method

LOral used the attribute rating method for eight brands on 15 attributes and the value is that it gives
us a pictorial representation to summarize the data.

Firm
Competitor 1
Competitor 2
Competitor 3

1 2 3 4 5 6

The cell entry in the data matrix is the average rating of the competitor represented by the row on the
attribute represented by the column. The statistical procedure underlying this type of perceptual
mapping is typically either factor analysis or discriminant analysis.

The following is the perceptual map of brand imagery among aware of brand in a two-dimensional
space by varying the angle by which the vectors come out of the origin.

We see two vectors Dining Out and Premium go in the same direction. This shows us the both of them
are rated high together.

Overall Similarity Method

The attribute method has a limitation that it requires the researches to articulate and the respondents
to think in terms of specific product attributes.
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Respondent ranking of similarity of 5 soft-drinks are done which is then submitted to a statistical
procedure, to develop a map to permit us to see the data and get the information out of it. The
statistical procedure is called multidimensional scaling, also known as MDS.

Applying maps in New Product Development

There are three major ways in which perceptual maps are used in marketing

1) To obtain a better understanding of current positioning and market structure

2) To test where a new product being considered for introduction would be perceived
3) To provide direction to R&D efforts to satisfy the wants of consumers better

Purpose 1

One often would like to check vigorously that the desired product positioning has been attained.
Understanding where the firm is seen relative to its competitors facilitates this. Also, at the idea
generation stage, perceptual maps can be a useful stimulus to opportunity identification in product
development process. A deeper understanding of customer attitudes and perceptions can show that the
means of attacking this seemingly impregnable incumbent.

Purpose 2

Once a general opportunity is identified, the process usually moves forward to concept development
and testing. Perceptual maps can be used to test if the concept or product would be perceived by
consumers as intended by the firm. For this purpose, respondents must be informed about the new
concept or product, either through a concept statement or, if possible, product use. Once they are able
to form their own image and judgements about the brand, the method proceeds as usual.