Marketing Analytics | Key
Concepts, Study Guide,
Exam Review & Practice
Questions
|Guaranteed success|
,Perceptual Maps • a.k.a., product-space maps
• Similarity-based methods and attribute-based methods
• Use graphical displays that possess the following characteristics
- The distances between products indicate similarities in the minds of
customers, such that *the shorter the distance, the more similarly the products
are perceived by customers
- A vector on the map (shown by a line with an arrow) indicates both
magnitude and direction, usually to denote product attributes
- The map axes, a special set of vectors, suggest the broad underlying
dimensions that best characterize how customers differentiate among
alternatives
Conceptual Marketing when a decision maker relies solely on his or her mental models, without using
any support system
Preference Maps • Introduces preference vectors or ideal points for each respondent of a study
on to a perceptual map --> allow customers to choose among alternatives
(Pink lines)
• Fundamentally different from perception maps
- Though customers perceive think Volvo is safe, some may rank a high value on
safety while others may not
• Preferences do not necessarily change according to the magnitude of an
attribute
- Customers may have an ideal level of an attribute, above or below that level
and the product becomes less preferable
- However, customers may prefer more or less of an attribute
• Ideal Preference Maps: distances directly indicate preference, such that the
greater the distance the brand is from the ideal point, the less preferred the
brand is
• Vector Preference Maps: product locations are projected onto the a
preference vector, and distances are measured along the preference vector
--C--B--A-->
A is preferred to B, and B is preferred to C.
Automated Marketing automate the decision making process using sophisticated information system
, Joint-Space Maps • Incorporate both perceptions and preferences into the same maps
• More sophisticated methods employ external analysis and average
perception data --> Joint-Space Maps
• There are two simple methods for generating joint-space maps:
1) Averaged ideal-point models
- require hypothetical ideal brand that appears among the set of alternatives
customers can rate
- Customers rate the available brands and indicate where their ideal brand
would fall, if it existed, in terms of the attributes
- The perceptual map would include the averaged perceptions of the ideal
brand
- The farther away an existing brand is from the ideal brand for the segment,
the less it would be preferred by these customers
2) Averaged vector models
- If a preference attribute appears in the set of attributes, or if the market share
of each brand is a surrogate for preference, the associated vector in the
resulting perceptual map indicates the direction of increasing preference
- The farther a product appears along the vector, the more it is preferred
- The other attributes closely aligned with this preference attribute can be
interpreted as drivers/explanations for customer preferences
Customer Relationship Management (CRM) managing detailed information about individual customers and carefully
managing customer touch points to maximize customer loyalty
First Choice Rule • Customers always choose (or purchase) the product they prefer the most,
even if one or more other alternatives are also acceptable.
• Applies well in product categories that are:
(1) infrequently purchased
(2) expensive
(3) visible during use (e.g., clothing)
(4) require high involvement decision making on the part of customers
• Ex. automobiles, smartphones, cosmetics, designer clothes
Enterprise Resource Planning (ERP) a suite of applications called modules, a database, and a set of inherent
processes for consolidating business operations into a single, consistent,
computing platform
Share of Preference Rule • Customers distribute their purchases across different product offerings
proportional to their relative preferences for each
• Applies well in product categories that are:
(1) frequently purchased (e.g., soft drinks)
(2) relatively inexpensive
(3) not visible during use
(4) do not require careful decision making
(5) seek variety from time to time
• Ex. beer, wine, soft drinks, breakfast cereals
Concepts, Study Guide,
Exam Review & Practice
Questions
|Guaranteed success|
,Perceptual Maps • a.k.a., product-space maps
• Similarity-based methods and attribute-based methods
• Use graphical displays that possess the following characteristics
- The distances between products indicate similarities in the minds of
customers, such that *the shorter the distance, the more similarly the products
are perceived by customers
- A vector on the map (shown by a line with an arrow) indicates both
magnitude and direction, usually to denote product attributes
- The map axes, a special set of vectors, suggest the broad underlying
dimensions that best characterize how customers differentiate among
alternatives
Conceptual Marketing when a decision maker relies solely on his or her mental models, without using
any support system
Preference Maps • Introduces preference vectors or ideal points for each respondent of a study
on to a perceptual map --> allow customers to choose among alternatives
(Pink lines)
• Fundamentally different from perception maps
- Though customers perceive think Volvo is safe, some may rank a high value on
safety while others may not
• Preferences do not necessarily change according to the magnitude of an
attribute
- Customers may have an ideal level of an attribute, above or below that level
and the product becomes less preferable
- However, customers may prefer more or less of an attribute
• Ideal Preference Maps: distances directly indicate preference, such that the
greater the distance the brand is from the ideal point, the less preferred the
brand is
• Vector Preference Maps: product locations are projected onto the a
preference vector, and distances are measured along the preference vector
--C--B--A-->
A is preferred to B, and B is preferred to C.
Automated Marketing automate the decision making process using sophisticated information system
, Joint-Space Maps • Incorporate both perceptions and preferences into the same maps
• More sophisticated methods employ external analysis and average
perception data --> Joint-Space Maps
• There are two simple methods for generating joint-space maps:
1) Averaged ideal-point models
- require hypothetical ideal brand that appears among the set of alternatives
customers can rate
- Customers rate the available brands and indicate where their ideal brand
would fall, if it existed, in terms of the attributes
- The perceptual map would include the averaged perceptions of the ideal
brand
- The farther away an existing brand is from the ideal brand for the segment,
the less it would be preferred by these customers
2) Averaged vector models
- If a preference attribute appears in the set of attributes, or if the market share
of each brand is a surrogate for preference, the associated vector in the
resulting perceptual map indicates the direction of increasing preference
- The farther a product appears along the vector, the more it is preferred
- The other attributes closely aligned with this preference attribute can be
interpreted as drivers/explanations for customer preferences
Customer Relationship Management (CRM) managing detailed information about individual customers and carefully
managing customer touch points to maximize customer loyalty
First Choice Rule • Customers always choose (or purchase) the product they prefer the most,
even if one or more other alternatives are also acceptable.
• Applies well in product categories that are:
(1) infrequently purchased
(2) expensive
(3) visible during use (e.g., clothing)
(4) require high involvement decision making on the part of customers
• Ex. automobiles, smartphones, cosmetics, designer clothes
Enterprise Resource Planning (ERP) a suite of applications called modules, a database, and a set of inherent
processes for consolidating business operations into a single, consistent,
computing platform
Share of Preference Rule • Customers distribute their purchases across different product offerings
proportional to their relative preferences for each
• Applies well in product categories that are:
(1) frequently purchased (e.g., soft drinks)
(2) relatively inexpensive
(3) not visible during use
(4) do not require careful decision making
(5) seek variety from time to time
• Ex. beer, wine, soft drinks, breakfast cereals
