Analyzing Consumer Perceptions case

Contents [hide] 1 Basic Information of Analyzing Consumer Perceptions 2 Case Summary of Analyzing Consumer Perceptions 3 Case Analysis of Analyzing Consumer Perceptions 4 External Link of Analyzing Consumer Perceptions 5 Relevent File Cabinet of Analyzing Consumer Perceptions 6 Article Purchase Link of Analyzing Consumer Perceptions

Basic Information of Analyzing Consumer Perceptions

Author: Robert J. Dolan
Publisher: HBR
Case Number: 599110
Publication Date: Mar 16, 1999
Revision Date: Dec 12, 2001
Course Category: Marketing

Case Summary of Analyzing Consumer Perceptions

Analyzing Consumer Perceptions
• Important to understand how consumers “see” the firm, brand, or product relative to competitors.
  o Black and Decker vs. Makita and Milwaukee user surveys
  o L’Oreal “Class to Mass” campaign, collected user data

Data Collection and Profile Analysis
• L’Oreal used a 1-10 scale and asked consumers to rate attributes.
• Semantic differential scale – ratings based on two polar opposites (safe vs. unsafe, low price vs. high price, poor value vs. good value)
• Perception data (What people see) vs. Preference data (what people like) – i.e. We may both agree that we perceive Volvo to be a safe car, but we can differ in our desire for a safe car.
• “Snake Plots” are useful for visually representing scaled survey data (see pg. 4 of article for diagram)
Perceptual Mapping Techniques
• Attribute Rating Method – L’Oreal used this method to rate eight brands on 15 attributes. (See page 6 of article for a diagram).
  o If you’re too lazy to look at the diagram, I’ll try to explain it very badly. Basically is a graph on 2-axes, an attribute goes on each axis, such as “Meets deliver dates” and “Innovation”. Plot a point on the graph for each competitor depending on how well consumers perceive they represent those attributes.
  o Using this technique, we can see how certain attributes may correlate with others “Leaves skin feeling soft” and “Relieves dryness” (What the heck does that mean… I feel so manly).
• Overall Similarity Method – A way to map how similar products are (such as between coke and pepsi’s taste, or theme parks)
  o The statistical procedure is called “multidimensional scaling” or MDS. (I have no idea wtf this means either.
Method Input Data Statistical Technique Output Best suited for
Attribute Rating • Brand ratings on attributes


Applying the Maps In New Product Development
• 3 Major ways perceptual maps are used in marketing:
  o to obtain better understanding of current position and mkt structure
  o to test where a new product would be perceived.
  o to provide direction to R&D efforts to satisfy the wants of the consumer.

Limitation of Perceptual Mapping
• It presents a static view (snapshot of consumer’s preferences/perceptions)
• Provides no indication of the cost or likelihood of being able to achieve the desired positioning.