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Perceptual Maps
A Perceptual map serves as a tool to visualize subjective consumer perceptions – how customers see, think, and compare different products or brands within a market.
The most common type is the two-dimensional perceptual map, which employs two distinct product attributes per map.
For example, for the hotel business, the X-axis represents the perception of luxury and value, while the Y-axis represents traditional or innovative facilities.
Data is collected through surveys, where consumers rate various products based on these attributes.
Competing brands are then plotted on the map according to these attributes.
Marketers have to create multiple attribute-based maps to extract meaningful insights.
Alternatively, a Multi-Dimensional Scaled or MDS map can depict multiple attributes simultaneously, offering a more comprehensive perspective on brand similarities and attribute relationships.
But, perceptual maps are subject to consumer biases, possibly causing a misalignment between consumer perceptions and actual product attributes or market conditions.
Nevertheless, they prove valuable in uncovering essential attributes, market opportunities, and competitive threats.
Perceptual Maps
Perceptual maps are visual tools that help businesses understand how customers perceive their products or brands compared to competitors. It shows how people perceive products or services based on specific attributes.
The process of creating a perceptual map involves:
- • Identifying Key Attributes: First, businesses must determine what essential qualities or attributes matter to customers in their industry. For example, if the business sells smartphones, important attributes include price, camera quality, and battery life.
- • Collecting Data: Companies collect data from surveys, customer feedback, or market research to understand how customers perceive different brands or products regarding these key attributes.
- • Plotting the Data: A visual map is created using the collected information, where each brand or product is placed on the map according to how customers perceive these attributes.
Perceptual maps can be categorized into two-dimensional maps, which compare two attributes like price and quality for smartphones; three-dimensional maps, which assess three attributes, such as taste, price, and packaging for food products; and multi-dimensional maps, which are more complex and evaluate perceptions across multiple attributes using statistical techniques like factor analysis.
Perceptual maps are helpful for competitor analysis, identifying market gaps, determining marketing strategy, and gaining customer insights.