Advertising Effectiveness Essay

3376 WordsAug 6, 201214 Pages
Current Practices in Perceptual Mapping 1997 Sawtooth Software Conference Thomas A. Wittenschlaeger Hughes Aircraft Company, Virginia John A. Fiedler POPULUS, Inc., Idaho Abstract This paper uses data from a proprietary Hughes survey to demonstrate the principles which underlie current practices in perceptual mapping using discriminant analysisbased maps. The paper discusses the advantages of using discriminant analysis in creating perceptual maps, criteria for selecting brands and products for respondents to evaluate, and principles for optimizing a perceptual space. Introduction Perceptual mapping has been used as a strategic management tool for about thirty years. It offers a unique ability to communicate the complex relationships between marketplace competitors and the criteria used by buyers in making purchase decisions and recommendations. Its powerful graphic simplicity appeals to senior management and can stimulate discussion and strategic thinking at all levels of all types of organizations. Despite their high value as a decision-making tool, perceptual maps are easy to produce. Most currently popular mapping procedures utilize readily available ratings data which satisfy management’s need for a competitive score card. Despite their having been around for thirty years, perceptual maps are still viewed as an innovative technique. Why Use Discriminant Analysis to Produce Perceptual Maps? From the authors’ experience, two approaches are most commonly used today to produce perceptual maps: Correspondence Analysis (CA) and Discriminant Analysis (DA). CA is generally easier to use than DA; it can be used with aggregated data such as cross-tabulations while DA cannot. However, DA offers several advantages over CA which make it the authors’ first choice. 1. DA has a close linkage between product points and attribute locations. When

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