Overview of Perceptual Mapping Amruta Narkar 12058

Overview of Perceptual Mapping

Amruta Narkar

12058

Perceptual mapping is simple graphic tool which helps to communicate the relationship between competitors and the criteria used by consumers while making purchase decisions. Its powerful graphic simplicity appeals to senior management and can stimulate discussion and strategic thinking at all levels of all types of organizations. Perceptual mapping can be used to plot the interrelationships of consumer products, industrial goods, institutions, as well as populations.

Perceptual mapping involves two steps:  (1) data collection and (2) data analysis and presentation

Perceptual mapping can help in Brand positioning, Market segmentation, Concept development and  evaluation, Product positioning, Positioning analysis, Cluster analysis, Trend analysis, Competitor analysis, Identifying new market opportunities, Identifying potential customers etc.

Along with market research, Perceptual mapping can also be used for Procurement, Logistics and supply chain. I studied this literature on usage of perceptual mapping to understand procurement decisions.

Literature Review

"How procurement managers view low cost countries and geographies: A perceptual mapping approach", International Journal of Physical Distribution & Logistics Management, Vol. 38 Iss: 3, pp.224 – 243

- Joseph R. Carter, Arnold Maltz, Tingting Yan, Elliot Maltz, (2008)

As sourcing from low cost countries is being popular, it is necessary to know all conditions in such countries. Sourcing decisions cannot be based on single attribute of labour cost. Thus in this research paper, author studied knowledge and perceptions of purchasing managers regarding low cost regions and their capabilities. They studied multiple factors involved in current sourcing strategies and supplier selection decisions in low cost countries. Authors also compared managers' subjective perceptions with objective data regarding attributes of sourcing locations to identify the relationship between perceptions and reality.

The authors surveyed over 100 sourcing professionals on their perceptions of various low cost sourcing alternatives. Perceptual mapping techniques were used to combine the rankings of 12 different attributes to visualize how the various attributes relate to each other and how the low cost regions compare when rated against sourcing managers' ideal perceptions

The research results show that procurement managers select regions for low cost sourcing based on both specific measures and individual and/or group perceptions of the region, whether these perceptions are correct or not. Also author have compared these subjective perceptions with objective data to show that cultural stereotypes may bias managers' perception of location-specific characteristics.