Perceptual maps

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 .

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?