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Perceptor: A Model for Product Positioning

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  • Glen L. Urban

    (Massachusetts Institute of Technology)

Abstract

A model and measurement methodology is proposed to aid managers in designing new frequently purchased consumer products. The model is structured as a trial and repeat process that produces an estimate of long-run share for a new brand. Physical and psychological product attributes are linked to the trial and repeat probabilities through multidimensional scaling procedures. Perceptual maps of existing brands with ideal brand positionings are derived. The product design determines the new brand's position in the perceptual space, and the distance from the new brand to the ideal brand specifies its probability of purchase. Measurement and estimation procedures are discussed. Predictive and structural tests of the model are reported, and a process for managerial implementation is presented. The outputs of the model are an understanding of the perception, preference, and purchase process, a framework and procedure for measurement, a structure to use in interpreting experimental results, and a tool for estimating the marketing share for alternate new brand designs.

Suggested Citation

  • Glen L. Urban, 1975. "Perceptor: A Model for Product Positioning," Management Science, INFORMS, vol. 21(8), pages 858-871, April.
    • Handle: RePEc:inm:ormnsc:v:21:y:1975:i:8:p:858-871
    DOI: 10.1287/mnsc.21.8.858
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    Citations

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    Cited by:

    1. John R. Hauser & Steven M. Shugan, 2008. "Defensive Marketing Strategies," Marketing Science, INFORMS, vol. 27(1), pages 88-110, 01-02.
    2. Hauser, John R. & Urban, Glen L., 1976. "Direct assessment of consumer utility functions : von Neumann-Morgenstern utility theory applied to marketing," Working papers 843-76A., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    3. Rajaram, Kumar, 2001. "Assortment planning in fashion retailing: methodology, application and analysis," European Journal of Operational Research, Elsevier, vol. 129(1), pages 186-208, February.
    4. Brockhoff, Klaus (Ed.), 1977. "Three papers on optimal product positioning," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 51, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    5. John R. Hauser & Steven Shugan, 1978. "Intensity Measures of Consumer Preferences," Discussion Papers 291, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    6. Hauser, John R. & Koppelman, Frank S., 1977. "Designing Transportation Services: A Marketing Apporach," Transportation Research Forum Proceedings 1970s 318674, Transportation Research Forum.
    7. Wilhelm, Wilbert E. & Xu, Kaihong, 2002. "Prescribing product upgrades, prices and production levels over time in a stochastic environment," European Journal of Operational Research, Elsevier, vol. 138(3), pages 601-621, May.
    8. Sarangi, Subrat & Chakraborty, Abhishek & Triantis, Konstantinos P., 2021. "Multimarket competition effects on product line decisions – A multi-objective decision model in fast moving consumer goods industry," Journal of Business Research, Elsevier, vol. 133(C), pages 388-398.
    9. Ali Aouad & Vivek Farias & Retsef Levi, 2021. "Assortment Optimization Under Consider-Then-Choose Choice Models," Management Science, INFORMS, vol. 67(6), pages 3368-3386, June.
    10. Hauser, John R. & Urban, Glen L., 1975. "A normative methodology for modeling consumer response to innovation," Working papers 785-75., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    11. Srikanth Jagabathula & Paat Rusmevichientong, 2017. "Nonparametric Joint Assortment and Price Choice Model," Management Science, INFORMS, vol. 63(9), pages 3128-3145, September.
    12. Silk, Alvin J. & Urban, Glen L., 1976. "Pre-test market evaluation of new packaged goods : a model and measurement methodology," Working papers 834-76., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    13. Dawn Iacobucci & Doug Grisaffe, 2018. "Perceptual maps via enhanced correspondence analysis: representing confidence regions to clarify brand positions," Journal of Marketing Analytics, Palgrave Macmillan, vol. 6(3), pages 72-83, September.
    14. Sibel Sozuer & Gregory S. Carpenter & Praveen K. Kopalle & Leigh M. McAlister & Donald R. Lehmann, 2020. "The past, present, and future of marketing strategy," Marketing Letters, Springer, vol. 31(2), pages 163-174, September.
    15. Kwong, C.K. & Luo, X.G. & Tang, J.F., 2011. "A methodology for optimal product positioning with engineering constraints consideration," International Journal of Production Economics, Elsevier, vol. 132(1), pages 93-100, July.

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