Question
you will build a perceptual map of three online retailers, Walmart, Target, and Shopko. Using the data and the results from a survey on several
you will build a perceptual map of three online retailers, Walmart, Target, and Shopko. Using the data and the results from a survey on several attributes for each of these retailers, your main task is to identify the process of data driven concept generation of new products. Applying factor analysis, as explained in class, analyze the relevant tables given below to complete the following tasks: a) Compute the final table to determine the coordinates of each retailer on a perceptual map b) Answer the questions at the end.
The following survey questions were asked to a group of 1000 customers for three online retailers, Walmart, Target, and Shopko.
[Please indicate how much you agree or disagree with each of the following statements.
1 = Strongly disagree 2 = Disagree 3 = Neutral 4 = Agree 5 = Strongly agree
1. This retailer has good variety. | 1 2 3. 4 .5 |
2. This retailer charges reasonable prices. | 1 2 3 . 4 . 5 |
3. This retailer has good reputation. | 1 2 3 . 4 . 5 |
4. This retailer has high quality products. | 1 2 3 . 4 . 5 |
5. This retailer has free shipping. | 1 2 3 . 4 . 5 |
6. This retailer provides good value. | 1 2 3 . 4 . 5 |
7. This retailer provides fast delivery. | 1 2 3 . 4 . 5 |
8. This retailer has good service. | 1 2 3 . 4 . 5 |
9. This retailer has coupons available. | 1 2 3 . 4 . 5 |
10. This retailer has effective customer service. | 1 2 3 . 4 . 5 |
Table-1: Average rating attribute by each retailer:
| Walmart | Target | shopko |
1. -good assortment. | 5 | 3 | 2 |
2. - reasonable prices. | 5 | 2 | 4 |
3. -good reputation. | 1 | 5 | 3 |
4. -high quality products. | 1 | 4 | 3 |
5. -free shipping. | 5 | 1 | 2 |
6. -good value. | 5 | 2 | 2 |
7. -fast delivery. | 5 | 3 | 4 |
8. -good service. | 1 | 4 | 2 |
9. -coupons available. | 1 | 5 | 5 |
10. -effective customer service. | 1 | 5 | 3 |
A factor analysis was performed on the data to see if there were common underlying factors to the ten attributes. The table shown below should be completed for determining the positions of each retailer on a perceptual map. Use this table to draw a graph of three retailers on a perceptual map.
| Factor 1 | Factor 2 | Factor 3 |
Walmart |
|
|
|
Target |
|
|
|
Shopko |
|
|
|
Task: Construct a perceptual map
- Name relevant factors. Complete the above table with correct calculations.
- Build a map using the results from the table shown above. Select any two of the three factors and draw a map using the pair of points as two coordinates. Using an excel to generate this graph will make your task easier. However a hand drawn graph, converted to an image and then pasting on an MS-word file could also be uploaded. Be sure to label the axes with the factor names you may propose. Also, make sure your map pasted properly on your word file with the answers.
- What conclusions do you draw from your map? Interpret each retailers position and suggest appropriate strategy for any one retailer of your choice.
- Suggest and explain any other method of analytical attribute method as an alternative to this factor analysis method.
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