Perceptual maps can be created using a multivariate statistical method called multidimensional scaling, which helps visu

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Perceptual Maps Can Be Created Using A Multivariate Statistical Method Called Multidimensional Scaling Which Helps Visu 1 (200.5 KiB) Viewed 15 times

Perceptual maps can be created using a multivariate statistical method called multidimensional scaling, which helps visualize the level of similarity of individual cases in a dataset. A much simpler and more practical approach to creating perceptual maps involves combining consumer purchase criteria with how competing brands are perceived. This quick "back of the envelope" method can be a useful way to consider a marketplace of interest and brainstorm new product ideas or repositioning current products. 1. Choose a product category (e.g., candy, restaurants, makeup, vacation destinations, shoes, surfboards, or any product area that you know fairly well). 2. Label the x- and y-axes with attributes that customers care about when purchasing products in that category. Caveat: Do not pair "Price" with "Quality" because they are too highly correlated in consumers' minds and therefore yield an unhelpful map. 3. Plot all the competitors, including your products. 4. Interpret: • Look for groupings of competitors, where price competition is likely occurring. • Look for open areas because these may represent opportunities for a new product or where a current product may be successfully repositioned. • Consider the extremes of the dimensions for possible new product ideas. Identify your most promising new product idea(s) clearly on the map and write up a brief description of each one. What new product ideas did you identify? Submit your completed perceptual map with the required details and descriptions.