Perceptual Mapping Using R

What is Perceptual Mapping?
Perceptual mapping is a diagrammatic technique used by asset marketers that attempts to
visually display the perceptions of customers or potential customers. Typically the position of a
company's product, product line, or brand is displayed relative to their competition. Perceptual
maps, also known as market maps, usually have two dimensions but can be multi-dimensional;
they can be used to identify gaps in the market and potential partners or merger targets as well as
to clarify perceptual problems with a company's product.
Uses of Perceptual Map:

Perceptual mapping enables companies to better understand their customers: the who, why,
where, how and what of their behavior. If a business is perceived in a manner they find
unsatisfactory, further research then identifies what can be done to change that. Perceptual
mapping also allows businesses to see what consumers think of other brands, particularly their
competitors. Regular uses of the maps can help track preferences, and see changes as they
happen. Perceptual mapping can help define market segments, showing clusters of businesses
differentiated by key aspects (such as higher class or number of restaurants). Within the clusters
found in perceptual maps of entire industries, a business can classify potential partners or
possible businesses to merge with, since the clustering of brands signifies the similarity in
businesses, meaning they have corresponding attributes. It can also help identify gaps in a market
where a new product or service could be introduced. Perceptual maps can also be used to help
keep track of how a new product, such as a recently introduced smartphone, is being viewed in a
specific market. It is important to see that the way a business is marketing its product is not only
successful, but successful in a manner that aligns with the business’s overarching goal for
positioning.

Some companies seem to have fallen out of favor with the public, such as Quicken Loans and
VW. Perceptual mapping can help elicit the extent of the damage.

Limitation of Perceptual Mapping:

There are many limitations to perceptual mapping. The largest is the number of variables used.
Traditionally, the map uses two variables and does not account for others. This assumption can
hinder the reliability of results, as in some cases, it is not safe to assume that there are only two

You can do a survey or a focus group to find those hot buttons that control consumer behavior. such as purchasing a beverage at a store or going to a fast food restaurant. a graph may use quality of food and pricing. lack of knowledge. So ask your market what is important to them. because if you have the wrong criteria. creating a slight bias in the statistics. It’s also good to get demographics. and so on. There are also ways to use a customer relationship management system (CRM). Survey your market Once you’ve identified consumer hot buttons. Also. so the characteristics that consumers use to determine which car to buy are entirely different from which doctor to use. This could be due to miscommunication. The range of behaviors that the map covers is also a constraint. 2. if properly designed. there is often a blurred line between what a business can offer and what a consumer thinks the business can offer. Graph results . as the limitation to two variables means that its application works mainly with purchase decisions made with little thought and effort. but not take into account other relevant variables such as the number of visits and locations. impact from social media. different segments generate different maps and you can use this to reach the segments better with unique brands. you need to find out how consumers rate your products. How to Construct Perceptual Map 1. My preferred way of doing this is to have consumers identify competing products.major factors influencing the decision of purchase for a consumer. and some psychographic information do see if there might be some segmentation value ie. where the criterion might be reputation (high versus unknown) and location (near versus far). The data needed to form a perceptual map is usually obtained through surveys. These untruths can influence the result. For example. some geographic. 3. then rate them based on hot button criteria. and can be difficult to obtain. then the rest of your efforts would be wasted. to see what consumer hot buttons are based on actual purchase behavior. You can’t guess on this stuff. Another limitation is data gathering. Determine which characteristics of the product are consumer hot buttons This is going to be a function of your market. as well as how they rate your competitors.

think about how your brand can stand out — you really don’t want to go head-to-head with competitors and price is the last tool you should use to differentiate your brand. although there is special software for perceptual mapping and you can buy SPSS. If there’s really something wrong with your brand leading to poor consumer attitudes. changes to your advertising and promotional campaign are needed to help moderate these attitudes. think about introducing a new brand or moving your brand into the unfilled position. We need to install package "MASS" . but can be used for lots of analysis projects. then fix your brand. Here are some things to look for on your map. If there are holes you think represent viable products that your company can produce. Perceptual Mapping in R: 1.  Do consumer attitudes toward my brand match what I want them to think about my brand?  Do consumer attitudes toward my competitor’s match what I thought about them?  Who are the competitor’s consumers see as closest to my brand?  Are there holes in the map indicating potential for new brands? 5. you need to make changes. Interpret the perceptual map This step is where you get strategic value from the map. but the size of the brand on the map should reflect its market share (so you’ll need to gather this info from secondary sources). If not. Regardless. which is more expensive. You can use Excel to do this. the map should not only display the position of various brands. computers are necessary.Computer programs can make this a lot easier and if you’ve got more than 2 dimensions you want to graph. Make changes in your marketing strategy If consumers don’t see your brand in a favorable way. If consumers view competitors as being very similar to your brand. 4.

cr <-princomp(USArrests.R Code: Simple Data Visualization using biplots. We use USArrests data (inbuilt R dataset) to see how it can be visualized in 2 dimensions. Below code will be used > library("MASS") > pc. cor = TRUE)# scale data > summary(pc.cr) > biplot(pc.cr) .

] #view first 10 rowsr ## --.2. ylim=c(-1.5.txt". # plot parms .## JSM <. na.1:2].function(inp1.=TRUE) # extract prin compts plot(fit$rotation[.1. # use only top 2 prinComps type ="n". header = TRUE.5). Below is the code and R output of a program: setwd("C:/Users/spectre360/Desktop/R Data") getwd() # -.rm = TRUE) mydata = t(mydata) #transposing to ease analysis as.txt".table("pref.5).xlim=c(-1. prefs){ # inp1 = perception matrix with row and column headers # brands in rows and attributes in columns # prefs = preferences matrix par(pty="s") # set square plotting region fit = prcomp(inp1.5.1.numeric(mydata) mydata #view the table read # extract brand & attribute names # brdnames = rownames(mydata) attribnames = colnames(mydata) pref = read.Build func to run simple perceptual maps --.rm = TRUE) dim(pref) #check table dimensions pref[1:10. header = TRUE. scale. na.Read in Average Perceptions table -.# mydata = read.table("per_map.

1)} # <--. cex=1.1]. x1=fit$rotation[i1.insert attrib vectors as arrows-- for (i1 in 1:nrow(fit$rotation)){ arrows(0.2]=fit$x[.25)} } JSM(mydata.5] . pch=19.1) # --. col="red") text(x=fit1$x[.3] [.2]/apply(abs(fit$x). abline(v=0) # build horiz & vert axes attribnames = colnames(inp1) brdnames = rownames(inp1) # <-.add preferences to map ---# k1 = 2.5).1] [.2]. x1=pref1[i1.0.2]*fit$sdev[2].y=fit$rotation[i1.1:2] for (i1 in 1:nrow(pref1)){segments(0. labels=attribnames[i1].2]/k1.4] [.y1=pref1[i1.0.main ="Joint Space map . col="blue".Home-brew on R") # plot title abline(h=0). col="maroon2".2.1]*fit$sdev[1]. text(x=fit$rotation[i1. lwd=1.sum)[2] points(x=fit1$x[. lwd=1. #scale-down factor pref=data.1].2. y=fit1$x[.pref) Output: > mydata #view the table read [.1]/apply(abs(fit$x). y1=fit$rotation[i1. cex=1.sum)[1] fit1$x[.2]*fit$sdev[2]. labels=brdnames.1) frame # fit1=fit fit1$x[.col="black".col="blue".matrix(prefs)# make data compatible pref1 = pref %*% fit1$x[.1]*fit$sdev[1].make co-ords within (-1.1]=fit$x[.2]. y=fit1$x[.2] [.1]/k1.

3" "2.2" "3.2" "2.8" "2.7" "2.] #view first 10 rowsr V1 V2 V3 V4 1 5 3 3 1 2 4 3 4 2 3 4 2 3 2 4 5 3 5 3 5 2 5 3 2 6 4 3 2 2 7 3 3 4 2 8 1 2 3 5 9 2 4 4 3 10 2 5 4 3 Perceptual Map .9" "2.4" "4.9" "5.1" "1.1" "3.6" "1.1" "4.1" > pref[1:10.4" OfficeEquipment "3.7" Supermarket "2.X "Largechoice" "Lowprices" "Servicequality" "Productquality" "Convenience" OfficeStar "5.6" "3.7" PaperCo "4.3" "4.5" "2.1" "4.

.NOTE: Please find the two text file and a r file with code.