NEW PRODUCTS

MANAGEMENT
Merle Crawford
Anthony Di Benedetto
 Analytical Attribute Approaches:
Introduction and Perceptual Mapping

6-2
Which Companies should start
investing in advertising from this
month? Why?
 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.

6-4
 Gap Analysis
• Determinant gap map (produced from
managerial input/judgment on products)
• AR perceptual gap map (based on
attribute ratings by customers)
• OS perceptual map (based on overall
similarities ratings by customers)

6-6
 DETERMINANT GAP MAP
• Prepared by Product Manager using his
own market knowledge
• Manager defines the axis factors and give
score to various brands
• Concept generation takes place after PIC
has targeted a market or user group on
which to focus.
• Try one… about cars
 Determinant Gap
Lets position the following on the map

• FX •Corolla
• Mehran •Hilux
• Suzuki Alto •Vigo Champ
• Baleno •Fortuner
•Camry
• Cultus •Land Cruiser
• Liana •Prado
• Suzuki Swift •RAV4
• Suzuki Wagon R •Avanza
• •Hiace
Suzuki Carry
•Coaster
• Honda Accord •Terios
• Honda City •Prius
• Honda Civic
• Honda Fit •Dimensions?
• Honda CR-Z •Fuel economy & Comfort
 COMFORT +
ECONOMY --

ECONOMY +
COMFORT --
A Determinant Gap Map

6-10
 Video link:
https://www.youtube.com/watch?v=GPivHd9OSmE
https://www.youtube.com/watch?v=x7qPAY9JqE4

This perceptual map was used…... (which one is true)

•As the original identification of the market gap of the iPhone
•As a guide to designers and developers to keep focused on the final
product and its benefits
•As a launch presentation technique only
•As a way of clearly communicating to consumers the unique benefits
(positioning) of the iPhone
•As a simple diagram to encourage the media and bloggers to
communicate the iPhone’s point-of-difference
 Discussion cont
Were there other attributes that Apple could have
considered for the perceptual map design? Or are these
the two most important attributes in a consumer’s
purchase decision?

Given that Apple’s approach to finding a market gap is

clearly shown here, what is stopping their competitors
from leap-frogging them back? (That is, how does Apple
now retain its market leadership position?)
AR Perceptual Gap Maps
 Obtaining Customer Perceptions

Rate each brand you are familiar with on each of the following:
Disagree Agree
1. Attractive design 1…2…3…4…5
2. Stylish 1…2…3…4…5
3. Comfortable to wear 1…2…3…4…5
4. Fashionable 1…2…3…4…5
5. I feel good when I wear it 1…2…3…4…5
6. Is ideal for swimming 1…2…3…4…5
7. Looks like a designer label 1…2…3…4…5
8. Easy to swim in 1…2…3…4…5
9. In style 1…2…3…4…5
10. Great appearance 1…2…3…4…5
11. Comfortable to swim in 1…2…3…4…5
12. This is a desirable label 1…2…3…4…5
13. Gives me the look I like 1…2…3…4…5
14. I like the colors it comes in 1…2…3…4…5
15. Is functional for swimming 1…2…3…4…5

6-16
A Data Cube

6-17
 Snake Plot of Perceptions
(Three Brands)

Ratings
5

4.5

4
Aqualine
3.5

3 Islands

2.5
Sunflare
2

1.5

1
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Attributes
6-18
 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”

6-19
Selecting the Number
of Factors

6-20
 Factor Loading Matrix

Attribute Factor 1 -- Factor 2 --

“Fashion” “Comfort”
1. Attractive design .796 .061
2. Stylish .791 .029
3. Comfortable to wear .108 .782
4. Fashionable .803 .077
5. I feel good when I wear it .039 .729
6. Is ideal for swimming .102 .833
7. Looks like a designer label .754 .059
8. Easy to swim in .093 .793
9. In style .762 .123
10. Great appearance .758 .208
11. Comfortable to swim in .043 .756
12. This is a desirable label .807 .082
13. Gives me the look I like .810 .055
14. I like the colors it comes in .800 .061
15. Is functional for swimming .106 .798

6-21
 Factor Loading Matrix

Attribute Factor 1 -- Factor 2 --

“Fashion” “Comfort”
1. Attractive design .796 .061
2. Stylish .791 .029
3. Comfortable to wear .108 .782
4. Fashionable .803 .077
5. I feel good when I wear it .039 .729
6. Is ideal for swimming .102 .833
7. Looks like a designer label .754 .059
8. Easy to swim in .093 .793
9. In style .762 .123
10. Great appearance .758 .208
11. Comfortable to swim in .043 .756
12. This is a desirable label .807 .082
13. Gives me the look I like .810 .055
14. I like the colors it comes in .800 .061
15. Is functional for swimming .106 .798

6-22
 Factor Scores Matrix
Attribute Factor 1 -- Factor 2 --
“Fashion” “Comfort”
1. Attractive design 0.145 -0.022
2. Stylish 0.146 -0.030
3. Comfortable to wear -0.018 0.213
4. Fashionable 0.146 -0.017
5. I feel good when I wear it -0.028 0.201
6. Is ideal for swimming -0.021 0.227
7. Looks like a designer label 0.138 -0.020
8. Easy to swim in 0.131 0.216
9. In style -0.021 -0.003
10. Great appearance 0.146 0.021
11. Comfortable to swim in -0.029 0.208
12. This is a desirable label 0.146 -0.016
13. Gives me the look I like 0.148 -0.024
14. I like the colors it comes in 0.146 -0.022
15. Is functional for swimming -0.019 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 Aqualine’s factor scores. For example, on
Factor 1, Aqualine’s 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.
6-23
The AR Perceptual Map

Comfort
Aqualine

Gap 1

Islands Molokai

Fashion

Splash
Sunflare

Gap 2

6-24
OS Perceptual Gap Map
Dissimilarity Matrix

6-26
 Dissimilarity Matrix

Aqualine Islands Sunflare Molokai Splash

Aqualine X 3 9 5 7
Islands X 8 3 4
Sunflare X 5 7
Molokai X 6
Splash X

6-27
The OS Perceptual Map

Co
Aqualine

mf
or
t
Islands Molokai

Fashion

Sunflare
Splash

6-28
The Challenge of an OS Gap Map

• There are NO labels on the X and Y axis –

in fact, there are no X or Y axes produced.

• You will need to work out HOW the

consumers think, classify and different
between the competitors.
 The Challenge of an OS Gap Map…

• OS perceptual maps only provide a series

of points, you will need to work out the
underlying driving factors – that is, what
attributes and other factors are consumers
using to help them make purchase
decisions in real life.
 Interpreting An Overall Similarities
Perceptual Map
• You need to determine the likely factors/influences that
consumers have used in forming their view (perception) of
how the different brands in the market are interrelated.
• These influences can run in any direction. (not necessary
to be at right angle or upwards or downwards)
• There WILL be more than one logical solution.
• There can be more than two factors on the same map.
• It is a helpful technique because it forces you to think
about the consumers and their thinking process
 Interpreting An Overall
Similarities Perceptual Map
• BUT… a poor interpretation of the map
(that is, identifying the wrong factors) will
result in a poor understanding of the
market and subsequent poor marketing
decisions as a result.
• So be very careful…
 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.

6-37
 Class Activity
• Choose a product category and design an
OS Gap map in small groups.