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Attribute Based Perceptual Mapping Using

Discriminant Analysis Regarding Selected Brands
of Mobile Handsets:
Handsets An Empirical Investigation in
Haryana

Dr Ashutosh Nigam
Associate Professor
Vaish College of Engineering Rohtak (India)

Abstract customer become extremely demanding and

Indian mobile handset industry has seen explosive their perceptions regarding mobile handsets is
growth backed by liberalization and heavy investment changing from merely communication
in the telecommunication infrastructure. With growth instrument to its convergence to different
it becomes extremely important for mobile handset application areas. Technology advancement have
brands to position their brands properly. This paper
attempts to know how customers perceive different
developed convergence of mobile handsets with
brands of mobile handset in the light of attributes built-in cameras, memory, radio, messaging
considered by consumers in making purchase services, and color displays are stimulating the
decision. A questionnaire survey of 300 respondents growth potential (Bell, 2002). Market revenues
was collected in Haryana. Discriminant analysis is of mobile handset companies are soaring from
used to draw perceptual maps showing selected INR 255.91 billion in 2010 to INR 350.05 billion
mobile handset companies. The results showed that in 2016. Mobile handsets are emerging as the
selected mobile handset brands do not differ future growth engine of the Indian economy with
significantly with regard to given attributes. its inclusion with different application areas.
Keywords: Brands, Mobile handsets. Market share of leading mobile handset brands is
shown in Table 1. According survey of voice and
Introduction data (2010) Nokia remains the top handset maker
in FY2010-11 with revenues of Rs 12,929 crores
Mobile phone industry has shown tremendous and a growth of 0.2 per cent from Rs 12,900
growth in last few years. It has become integral crores in FY2009-10. For FY2010-11, Nokia had
part of human daily life and personal a market share of 39 per cent. It has lost market
communication across the globe. Kshetri and share to domestic players such as Micromax and
Cheung (2002) identified that rapid increase in other Chinese brands in the low-end handset
mobile phone usage can be attributed due to segment. In the high end phone segment too,
access to quality telecommunication Nokia faced tough competition from Samsung,
infrastructure, cheaper mobile phone services, Blackberry and LG brands.
innovative pricing schemes and increasing Table 1
income levels. According to Gartner (2011) India
is the second largest mobile handset market in Market of Leading Brands of Mobile
the world after China and is poised to become an Handsets in India, June 2011
even larger market with unit shipment of INR S No Brand Name Market Share
208.4 million in 2016 at a compound annual (in Percent )
growth rate of 11.8 per cent from 2010 to 2016.
1 Nokia 39.00
With maturing and advancement of technology
of the mobile handset markets, the Indian
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2 Samgsung 17.20 competitive arena it is very easy to imitate the

product features and position the product to
cannibalize brand of leading competitors. Kotler
3 Micromax 6.90 (2002) define brand positioning as the act of
designing the company’s offer and image so that
4 Blackberry 5.90 it occupies a distinct and valued place in the
target customer’s mind. Brand positioning
involves establishing key brand associations in
5 Others(inclu 31.0 the minds of customers and other important
constituents to differentiate the brand and
ding Chinese establish competitive superiority (Keller et al
2002). Keller (2003) defined brand positioning
Brands) as creation of optimal location in the minds of
existing and potential customers so that they
think of the brand in the “right way.” Brand
positioning requires thoughtful analysis of
Source:http://techcircle.vccircle.com/500/micro competitors and consumers to determine the
max-rises-to-no-3-indian-handset-maker- desired image for the brand to maximize its
voicedata/ last viewed on September 10, 2011 chances for success in different product
categories. Although a number of different
Samsung followed Nokia with revenues of Rs approaches and methodologies for positioning
5,720 crores and the company captured market are possible, they all typically define the nature
share of 17.2 percent. Samsung’s revenues rose of the target market and relevant competitors and
21.7 per cent in FY2010-11. Micromax captured the means by which the brand should be seen as
the third position mainly due its low cost and similar as well as distinct from those
availability of multiple features similar to high competitors. Schnedler (1996) stated that
end business phones.Research in Motion’s stays positioning products in a complex market can be
at fourth position. Blackberry maker RIM one of a company’s most difficult decisions. The
garnered revenues of Rs 1,950 crores in FY2010- result of positioning is the successful creation of
11, up 61.2 per cent in FY2009-10. a customer focused value proposition. Brand
positioning sets the direction of marketing
activities and programs what the brand should
Need of Positioning for Mobile
and should not do with its market positioning.
Handset Brands: An Indian Perceptual mapping is important as rising noise
Prospective levels in the media and extensive advertising by
different companies lead to a clutter in the
The Indian mobile handset market, that was led consumer’s mind. If brand awareness and
by few players like Nokia, Samsung, Motorola recognition is good, the brand will fall in the
are now crowded with multiple handset consideration set of the consumer but may fail to
manufacturers, both from India and abroad. With build customer loyalty without a unique brand
increased intensity of competition among position. An important aspect of a brand's
different brands of mobile handset manufacturers position in a product category is how similar or
have compelled handset industry to enhance their different the brand is perceived to be in
application ecosystem and introduce innovative comparison with other brands in the product
products to their customers. It becomes difficult category. For positioning a new brand, especially
for handset makers to position brands in the one that is in some way different from present
minds of the customer. Customers value brands in the category of mobile handsets,
hierarchy of attributes among competing brands several choices are available to the marketer.
and consequently link to goal for user Marketers can choose the position of the brand
requirements. Right positioning of brand and there product offerings differentiated. Brand
resulting in significant reduction in cost and in is positioned so that it is seen as sharing
turn result in reduction on advertisements. important attributes or product characteristics
Attribute based brand positioning of mobile hand with other brands in the category and as being
set brands is used to identify the unique and superior on the differentiating or distinguishing
distinctive place of consumer’s mind. In attributes (Dickson and Ginter 1987). The unique
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features of the mobile handset industry include used by buyers in making purchase decisions
rapid technological changes and negligible and advocating the brand among the reference
difference among the products innovation and group. Attribute based perceptual mapping is a
imitation of the same by the competitors. Under powerful graphic simplicity appeals to senior
such a situation, branding would ensure securing management and can stimulate discussion and
and retaining customers in the competitive strategic thinking at all levels of all types of
market place. organizations. Perceptual mapping has been
used to satisfy marketing and advertising
Literary Contributions information needs related to product
positioning (DeSarbo and Rao, 1984; Wind
1982), competitive market structure , consumer
Srivastava (2005) stated that the mobile handset preferences and brand perceptions (Cooper,
has shifted from being a ‘technological 1983; Pegels and Sekar, 1989) justified that
object’ to a key ‘social object’ as communication attribute based perceptual maps satisfy
with others is the main purpose for mobile information needs of marketers by analyzing
handset purchasing. However, facilitating and translating consumers numeric ratings.
reference group coordination and intensifying The output of attribute based perceptual mapping
social interaction are the crucial factors for using can be used to evaluate consumer’s view with
a mobile handset (Urry, 2007). Grant and respective brands in the light of prominent
O’Donohoe (2007) proposed five factors for attributes. Perceptual maps can be used to
owning a mobile handset namely convenient determine similarities and differences across
entertainment, social stimulation, experiential groups of consumers. Attribute based
learning, escapism, and purchase information approaches, used in this study, require a
and advice. Das (2012) discussed the prime respondent to evaluate a set of brands on a
factors influencing customer perception large number of specific attributes, typically
regarding mobile handset includes those attributes felt to influence how
advertisement, variety of usage, low maintenance consumers perceive, evaluate and distinguish
cost, new added features, price discount, free among brands and products. When choosing
accessories are the prime factors considered in between different mobile phone models,
the selection of brand. Kasesniemi and consumers value familiar brands. Price of the
Rautiainen (2002) observed that a variety of phone has been identified as a critical factor in
attributes of the handsets enabled the users to the choice of the mobile phone model, especially
organize and schedule their everyday activities. among younger people Kivi(2006).Hauser and
Handsets enable the users to know the news Koppelman (1979) stressed that perceptual
headlines, TV and movie listings, horoscopes, mapping is an important marketing research tool
directory and address, weather forecasting, sports used in new product planning, advertising
scores, and dictionaries. Moreover, users can development, product positioning, and many
also make inquires about banking and flight or other areas of marketing. Strategies based on
train schedule. It was found that SMS was perceptual maps have led to increased profits,
embedded as the mode of cultural better market control, and more stable growth.
communication among young generation. People They also advocated attribute based perceptual
use their mobile handsets to copy their messages mapping using factor analysis in comparison
into calendars, dairies or special notebooks other popularly adopted statistical tools. Aaker
designed by the handset manufacturers to store (1996) defines brand position as the brand
SMS messages. The study concluded that identity and value proposition that is to be
inadequate storage capacity of the handset actively communicated to the target audience
compelled them to delete some interesting and that demonstrates an advantage over
messages. Product attributes influence consumer competing brands He emphasized the importance
perceptions of the personal relevance of a of not only selecting a suitable positioning
product or service to their needs (Zhu, 2009). strategy for a target segment but also on the
Green and Wind (1975) advocated that importance of updating the brand over a period
perceptual mapping can be used as a strategic of time, to ensure that the brand stays relevant at
management tool to communicate market all times. Aaker and Shansby (1982) proposes
structure analysis i.e. the complex relationships six approaches to positioning strategy namely
among marketplace competitors and the criteria attributes, price quality, use or applications,
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product user, product class and the competitors. Objectives
Chadha and Kapoor, (2008) conducted
perceptual mapping of selected insurance The objective is to develop a sustainable
companies in the Insurance and justified the competitive advantage for selected brands of
importance of perceptual tools importance for product attributes in the consumer’s mind
the marketers. Kim (1996) investigated the following objectives were formulated
attributes and customer preferences of eleven
deluxe hotels and F&B in various dining-out
situation using factor analysis and Multi 1 To identify the key dimension underlying the
Dimensional Scaling .Das(2012) stressed on the customer evaluation of brands.
importance of advertisement through multiple
media playa a important role in the selecting 2 The basic cognitive dimension consumer use to
particular brand of mobile hand sets. Sujan and. evaluate selected brands of mobile hand sets.
Bettaaan (1989) studies demonstrate that
perceptions of how different a brand is from 3 To find out the brand positioning of different
other brands in the product category affect brands of mobile handsets with attribute based
perceptions of the brand's position within the perceptual mapping using discriminant analysis.
category. Perceptual mapping has been
historically regarded as one of the most 4 To draw out the implications in the light of
important analytical tools in marketing research above study.
(Green et. al., 1975) and it is essentially suited
for the analysis of brand equity’s sources.
Perceptual mapping is concerned with describing Research Methodology
the consumer’s perceptions of objects on one or
a series of spatial maps, so that the relationship Data Collection and Sample
between the objects can be easily seen. Attribute-
based perceptual mapping can be done using Five private mobile handset brands were selected
different approaches like factor analysis, for the study on the basis of their premium
correspondence analysis and discriminant income in June to august 2012. A total of 300
analysis. These methods can identify the number respondents were selected from Rohtak , Jind,
of dimensions that the consumers use to Bhadurgarh, Bhiwani from Haryana were
distinguish the objects and determine a preferred selected. Convenience sampling was used to
location of an object on each of the dimensions select the sample of the study. Before conducting
and provide information on the nature and a final survey pilot test was conducted on 20
characteristics f these dimensions (Hauser and respondents to identify gaps and finalize the
Frank, 1979). Perceptual mapping technique is questionnaire. The questionnaire was prepared
widely used by professionals and academicians keeping in view the objectives of the study. The
in assessing the current positions of brands data was collected through ‘the personal contact’
against their competitors in the market and for after approaching the respondents personally and
focusing on the new positioning opportunities. explaining in detail about the survey objectives
Perceptual maps are two or three dimensional and purpose of the study. Attributes and brand
shows how brands and products are perceived by preferences of each variable were measured
consumers through qualitative and quantitative through questions designed on a 5-point Likert
techniques (Myres, 1996). Similar to the cities type scale ranging from strongly agree to
located on geographical maps, the brands are strongly disagree. The resulting sample was 63
shown on the perceptual maps in a way that per cent male and 37 per cent female. The
some are close to and some are far from each demographic profile of the respondents is shown
other (Altuna, 2010). The distances between the in table 2. Attribute based perceptual mapping
brands show how similarly those brands are was selected using discriminant analysis is used
perceived by consumers. Besides the proximities as discriminant analysis determines by the linear
and dimensions via the gaps on them, maps also combinations of attributes that best discriminate
present the market opportunities for new entrants among brands. So, significant differences among
and for those brands to be repositioned (Arslan the brands can be revealed through discriminant
et.al, 2001). analysis. The ratings of brands on attributes are
used to develop the perceptual map. Perceptual
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maps provide a visual picture of the brand identify the attributes that were best associated
positioning activity and help brand managers with the mobile handset brands. Number of
understand the position of the brand in groups that are generated is five. The
comparison to competing brands (Venkatesh and discriminant analysis output will give Eigen
Nargundkar, 2006) values of each function and amount of variance
would explain from the original data. The
Statistical Technique Used discriminate function represents the axes on
In order to achieve the objective of which the brands are first located and then
discriminating different dimension of brand and attributes are located.
attributes discriminant analysis had been used to

Analysis of Results

Table 2
Demographic Profile of Sample Respondents

Age Figure in Percent (%)

25-35 27.0
35-45 35.0
45 and Above 38.0
Gender
Male 63.0
Female 37.0
Education
10 3.1
10+2 4.0
Graduation 8.2
Post graduation 73.5
Others 11.2
Occupation
Salaried 57.7
Business 16.5
Others 25.8
Annual Income
Less than 3 Lakhs 43.2
3-5 lakhs 25.0
5 lakhs and above 31.8
Brands of Handset Presently Using
Samsung 36.8
Nokia 40.2
Micromax 8.0
LG 3.0
Blackberry 6.0
Others 7.0
Duration of Using Present brand of Mobile Handset
Less than 1 year 25.0
1-3 Year 52.1
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3 years and above 22.9

Table 3
Relative Importance of Different attributes of Mobile Hand sets

Factors Percentage of
Sample Respondents

Cost 26.2

Perceived Quality of Mobile 22.3

Handset
Advertisement Exposure through 18.3
Multiple Media
Fidelity 15.2

Post Sale Support & Availability 12.0

of Spares
Visual Appealing Smart Appearance 6.0

Source: Field Data

Table 4
Brands of Handsets Used For Group Centroids

Code Brand Name

1 Nokia
2 Blackberry
3 Samsung
4 Micromax
and other
Chinese
Brands

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Table 5
Preference of Brands according to ascending value of Mean of Sample Respondents

Brands Mean
Nokia 1.62
Samsung 1.29
Micromax and 0.48
other Chinese
Product Brands
Blackberry 0.47

Total Number of
300
Respondents

Table 6

Group Statistics

Valid N (listwise)

Brand Mean Std. Deviation Unweighted Weighted

1 Cost 2.25 .500 4 4.000

Perceived Quality of Mobile 2.50 1.291 4 4.000

Handset

Fidelity 3.50 1.291 4 4.000

Post Sale Support and 3.00 .816 4 4.000

Availability of Spares

Visual Appealing and Smart 3.25 2.062 4 4.000

Appearance

2 Cost 2.29 1.380 7 7.000

Perceived Quality of Mobile 2.86 1.676 7 7.000

Handset

Fidelity 2.71 1.380 7 7.000

Post Sale Support and 2.29 1.496 7 7.000

Availability of Spares

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Visual Appealing and Smart 1.86 1.464 7 7.000

Appearance

3 Cost 2.83 1.835 6 6.000

Perceived Quality of Mobile 1.83 .753 6 6.000

Handset

Fidelity 3.50 1.049 6 6.000

Post Sale Support and 2.83 1.472 6 6.000

Availability of Spares

Visual Appealing and Smart 2.33 .816 6 6.000

Appearance

4 Cost 2.00 .816 4 4.000

Perceived Quality of Mobile 2.25 1.258 4 4.000

Handset

Fidelity 2.00 .816 4 4.000

Post Sale Support and 1.75 .500 4 4.000

Availability of Spares

Visual Appealing and Smart 2.50 .577 4 4.000

Appearance

Total Cost 2.38 1.284 21 21.000

Perceived Quality of Mobile 2.38 1.284 21 21.000

Handset

Fidelity 2.95 1.244 21 21.000

Post Sale Support and 2.48 1.250 21 21.000

Availability of Spares

Visual Appealing and Smart 2.38 1.322 21 21.000

Appearance

Source: Output generated by SPSS 17

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Table 7

Eigenvalues

Canonical
Function Eigenvalue % of Variance Cumulative % Correlation

1 1.104a 76.6 76.6 .724

2 .245a 17.0 93.6 .443

3 .092a 6.4 100.0 .290

a. First 3 canonical discriminant functions were used in the analysis.

Source: Output generated by SPSS 17

Table 8

Wilks' Lambda

Test of
Function(s) Wilks' Lambda Chi-square df Sig.

1 through 3 0.350 16.281 15 0.364

2 through 3 0.136 4.754 8 0.384

3 0.216 1.360 3 0.415

Source: Output generated by SPSS 17

Table 9

Standardized Canonical Discriminant Function Coefficients

Function

1 2 3

Cost .907 .465 -.383

Perceived Quality of Mobile -.939 .547 .732

Handset

Fidelity .194 .548 .412

Post Sale Support and 1.186 -.035 -.040

Availability of Spares

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Standardized Canonical Discriminant Function Coefficients

Function

1 2 3

Cost .907 .465 -.383

Perceived Quality of Mobile -.939 .547 .732

Handset

Fidelity .194 .548 .412

Post Sale Support and 1.186 -.035 -.040

Availability of Spares

Visual Appealing and Smart .624 -.969 .265

Appearance

Source: Output generated by SPSS 17

Table 10

Structure Matrix

Function

1 2 3

Visual Appealing and Smart .211 -.611* .539

Appearance

Perceived Quality of Mobile -.227 .178 .770*

Handset

Post Sale Support and .337 .198 .484*

Availability of Spares

Fidelity .469 .348 .475*

Cost .180 .271 -.307*

Note :Pooled within-groups correlations between discriminating variables

and standardized canonical discriminant functions
Variables ordered by absolute size of correlation within function.

Source: Output generated by SPSS 17

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Table 11

Functions at Group Centroids

Function

Brand 1 2 3

1 .818 -.392 .450

2 -.868 .443 .111

3 1.098 .206 -.264

4 -.946 -.692 -.248

Unstandardized canonical discriminant functions

evaluated at group means

Source: Output generated by SPSS 17

Graph 1

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Note: Coding of Brands is as per table 4

Figure 1

Perceptual Map of Mobile Handsets and Attribute using Excel from SPSS output

1.5
* Advertisement Perceived
exposure Quality
through multiple 1
media
X Blackberry
0.5 X Samgsung
Visual Appealing

0
-0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1

-0.5 *Fidelity
X Micromax and
Other Chinese
brands -1 X Nokia
*Post Sale Support and
*Cost Availability of Spares

-1.5

Note X indicate different brands of mobile handset

* indicate attributes considered for the study on the basis of which customer evaluate different
Brands

Analysis and Results contributing more to the interpretation of that

dimension . Looking at all variables that
Figure 1 represents the vectors for each of the contribute to a given axis (dimension), we can
attributes cost, perceived quality of mobile label the dimension as a combination of those
handset and advertisement through multiple variables. Table 3 shows factors influencing the
media, post sale support and availability of customers while purchasing the mobile handsets.
spares, fidelity, visual appealing and smart The result shows that cost, perceived quality of
appearance. These vectors represent the effect of mobile handset, and advertisement through
discriminating on each dimension. Longer multiple media are important criterion for
arrows pointing more closely towards a given selecting the product. To draw perceptual map
group centroid, represents variables most sample respondents were asked to rate selected
strongly associated with that particular group or mobile operators on six attributes namely cost,
Brand, in this case). Vectors pointing in the perceived quality of mobile handset, and
opposite direction from a given group centroid advertisement through multiple media, post sale
represent lower association with the concerned support and availability of spares, fidelity, visual
group variables with longer vectors in a given appealing and smart appearance table 3. All
dimension, and those closer to a given axis are attributes were measured using five point rating

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scale (1 -Strongly Agree to 5-Strongly Disagree). and Blackberry are possessing unique position
Discriminant analysis was used with the help of on figure 1
SPSS 17 software and results have been • Customers identify Nokia brand on
tabulated from table 5 to table 10. Pooled with fidelity and attribute of post sale
the group statistics in table 5 indicates high support and availability of spares as
variation in the standard deviation implies the customer perceive that hand sets are
attributes chosen for analyzing different mobile durable and reliable. It is also
handsets brands are distinct. Eigen values in perceived by the customers that brand
table 6 shows that first two functions represent have good support after post sales of
93.6% of the cumulative variance. Hence these handsets.
two functions have been used for further
interpretation .From table 7 low value of wiki’s • Attribute of perceived quality attribute
lambda indicate greater difference among the is highly weighted for Samsung brand.
group indication appropriate adoption of For Micromax and other Chinese
discriminant analysis as a tool in perceptual brands this attribute is in opposite
mapping in present study. First three canonical direction showing poor quality
discriminates were used in the analysis. From the perceived by customers regarding
standardized canonical discriminant function brands.
coefficients (table 8), it appears that there are
three different functions based on five attributes. • Blackberry brand is perceived better
Function 1 consists of cost, perceived quality of on the attribute of advertisement
mobile handset and post-sale support and exposure through multiple media and
availability of spares. Function 2 consists of visual appealing smart appearance of
visual appealing and smart appearance attribute its mobile handsets. It is perceived to
and strength. Perceptual map was drawn using be costlier in comparison to other
Excel by using SPSS output of the discriminant leading brands.
analysis. Figure 2 shows the perceptual map of
the selected mobile handset brands and different • Micromax and other Chinese brands
attributes. Mobile handset brands operators compete on cost factor as these brands
plotted on the map are on the basis of value of are negatively perceived in terms of
group centroids on function 1 and 2 using quality.
table10. All five mobile handset brands have
their unique position on the map. Using the
standardized coefficients of attributes on Conclusion and Managerial
function 1 and 2 are incorporated in figure 1 Implication of Research
using table 8, the plot of different brands has
been plotted in figure 1 using canonical
discriminant functions and the same has been Mobile handset industry would depend heavily
incorporated in figure 3. Unstandardized on how effectively the firms are able to introduce
canonical discriminant functions are evaluated with the new and innovative product designs and
by group means. Vector pointing in the opposite their convergence with future variety of
gives low degree of association. applications. The branding strategies regarding
mobile handsets should be more focused
effectively with changing mindset and perception
Mobile handsets and their Association of the Indian consumers. To create a
differentiating in mobile handset marketers of
with Attributes/Dimension mobile handsets should create a separate
submarket or niche for their brand. With this
strategy the differentiating attributes should be
The position of different brands of mobile used to create a strong perception of difference
handsets are plotted with respect to different in the brand or category by itself. The brands
attribute influencing customers in selection of should be focused on the perceived quality of
brand .Four brands of mobile handsets are Nokia their products as it was concluded in research
, Samsung, Micromax and other Chinese brands study. Marketers of different brands should focus
on post sale support, resulting branding promise
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