Bivariate Analysis & Perceptual Mapping in Marketing Research

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  • 0:04 Bivariate Analysis
  • 1:09 Importance-Performance…
  • 2:19 Perceptual Mapping
  • 3:13 Lesson Summary
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Lesson Transcript
Instructor: Scott Tuning

Scott has been a faculty member in higher education for over 10 years. He holds an MBA in Management, an MA in counseling, and an M.Div. in Academic Biblical Studies.

Bi-variate analysis is one of the most basic and straightforward statistical methodologies used in a number of different disciplines including market research. This lesson explores the fundamental components of a bivariate analysis.

Bivariate Analysis

Imagine for a moment that you are an entrepreneur considering developing and marketing a mobile phone hands-free app designed to reduce the number of people who engage in texting and driving. But before you begin developing your product, it would be important to understand if texting and driving is actually a real problem. To establish this, you might commission a market researcher to perform a bivariate analysis. A bivariate analysis is one of the most straightforward statistical calculations that is generally used for the purpose of establishing a relationship between X and Y, the two variables). In consideration of the app you might develop, several research questions may be worth investigating.

In your first test, you evaluate the attribute variables of cost and convenience. These data points are considered attributes because they do not speak specifically about your brand. Brand dissimilarity speaks to the ability of your product to stand apart from your competitors.

Importance-Performance Analysis

The term importance-performance analysis refers to the next step in the process of transforming a great idea into a great business. The importance component of this example refers to how important potential customers feel that it is to not drive and text at the same time. There is a clear relationship between importance to a customer and the performance of your business. The relationship is parallel because the more important your product is to a particular customer, the more likely that customer is to buy it. And the more likely they are to buy your product, the more likely it is that you will see better than expected performance in your company.

You may have noticed that one of the variables is a subjective variable and the other is an objective variable. Your business' performance is the objective variable. You can gauge this performance with concrete numbers proving that things are working. The importance factor is a subjective variable in that there is no black-and-white definition of importance. To bring these two concepts together so that we are comparing apples to apples requires a technique called perceptual mapping.

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