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Perception-Based Analysis:
An innovative approach for
brand positioning assessment
Received (in revised form): 21st December 2009
Edar Anana
got his Master’s degree in Business Administration (Finance) from the Universidade Federal do Rio Grande do Sul (Brazil) and his
PhD from the same university. Now he is Professor at Universidade Federal de Pelotas (Brazil).
Walter Nique
got his Master’s degree in Business Administration from the University of Chile and his PhD in Sciences de Gestion from Pierre
Mendès University (Grenoble – France). Now he is Professor at Ecole Supérieure de Commerce of Troyes (France) and
Professor at Universidade Federal do Rio Grande do Sul (Brazil).
ABSTRACT The work discusses the Perception-Based Analysis (PBA) and its
adequacy for evaluating brands positioning from the point of view of the consumers.
PBA is a relatively new post hoc segmentation method, based on a topology
representing neural network, able to identify homogeneous segments of perceptions
in an indiscriminate mass of data. The ‘Neural Gas’ algorithm was used to find clusters
in a sample of 376 students who evaluated the Nike brand across 42 items of Brand
Personality Scale. Discriminant Analysis was performed to check the ability of PBA to
form homogeneous segments, and an Exploratory/Confirmatory Factor Analysis
(E/CFA) was carried out to confirm the validation. Five prototypes of perception were
identified and described according to the importance respondents put on brand
attributes. Four (among five) prototypes demonstrate a significant relationship (positive
or inverse) with two or more dimensions of brand perception. Homogeny of the
segments was attested, both, by Discriminant and by the E/CFA. Results suggest that
PBA was both valid and reliable for capturing output brand positioning, once it
succeeded in performing two important segmentation tasks: (a) identifying clusters
relatively homogeneous in terms of brand perception, and (b) portraying the general
opinion prevailing in every group of consumers about the brand assessed.
Journal of Database Marketing & Customer Strategy Management (2010) 17, 6–18. doi:10.1057/dbm.2009.32;
published online 18 January 2010
© 2010 Macmillan Publishers Ltd. 1741-2439 Database Marketing & Customer Strategy Management Vol. 17, 1, 6–18
www.palgrave-journals.com/dbm/
Perception-Based Analysis
Brands, on the other hand, act as shorthand sign, symbol, or design, or combination
in the consumers’ minds, of the set of of them, intended to identify the goods
functional and emotional associations and or services of one seller or group of sellers
of trust, so that they do not have to think and to differentiate them from those of
much about their purchase decision.2 competitors’. This definition has been
Brands are powerful entities because they criticized for stressing the importance of
blend functional, performance-based values visual features as the basis for differentiation
with emotional values.3 Therefore, while and for being too mechanical and
the Jaguar may compete with other brands excessively concerned with the physical
of cars on rationally evaluated performance product.2
value, it may be bought because of the Research has shown that brands are a
emotional value of prestige. A brand can multifaceted concept, and to talk about ‘a
be defined from a dyadic perspective, the brand’ sometimes overlooks the richness of
manufacturers’ (input) perspective or the this concept. A useful tool for understanding
consumers’ imaginary (output) perspective. the nature of brands is the ‘brand iceberg’.
From the input perspective the notion of An iceberg is drawn with 15 per cent
a brand is encapsulated in ideas portraying visible above the water and 85 per cent
a brand as a legal instrument, as a logo, a invisible beneath the water; the visible parts
company and as an identity system; from are logo and name and the invisible are
the output perspective a brand can be an values, intellect and culture.3 ‘Brands are
image in consumers’ minds, a personality, complex offerings that are conceived in
a relationship, an adding value or an brand plans, but ultimately they reside in
evolving entity. However, ‘the number of consumers’ minds’ (p. 27). Brands exist
authors adhering to the concept of brands mainly by virtue of a continuous process
as associations in consumers’ minds attests whereby organizational activities are
the growing support for consumer-centered interpreted and internalized by customers
perspective on the meaning of brands’ as a cluster of values.
(p. 91).2 Brand personality is a metaphoric way
This work analyzes the brand from of portraying a brand that facilitates the
the output, more specifically from the attribution of emotional values to brands,
consumers’ imaginary description, using especially when advertising involves celebrity
Perception-Based Analysis (PBA)4 to endorsement. Consumers show no difficulty
evaluate consumers’ perceptions about a in assigning personal qualities to inanimate
well-known brand. The work is exploratory brand objects,7 in thinking about brands
in nature and a Topology Representing as if they were human characters8 or to
Network (TRN) algorithm is employed animate products of their own.
both to identify groups of consumers with The vitality of a brand can be realized
relatively homogeneous perceptions and to by different forms of animism. A brand
typify their perceptions. Results suggested can be perceived as an animated entity by
that PBA succeeded in correctly typifying the assumption that it somehow possesses
the post hoc segments5,6 with acceptable the spirit of an endorser (for example
fit measures and minimum overlaps, thus a celebrity), or of a person whose image
constituting an attractive alternative for can be associated with it (for example a
brand perception evaluation. grandmother and a chocolate brand she
used to gift us). The association between
BRAND PERSONALITY a brand and a person can be so strong
According to the American Marketing that the person’s spirit is evoked in one’s
Association, a ‘brand’ is as ‘a name, term, mind when using the brand.9 Another
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Anana and Nique
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Perception-Based Analysis
of patterns can be done using a cluster Our data were interval-type resultant
analysis procedure like K-means or from ‘NIKE’ evaluation using the 42 items
vector quantization (VQ) method.12 of the Brand Personality Scale (BPS),7
The TRN was the alternative of choice reduced to five factors during the work
in this work as being superior to simple to improve interpretability. A previous
K-means in reproducing intricate cluster logarithmic transformation had been
structures.13 performed to reduce the skewness and
In the PBA inferential step the brand kurtosis.15
names are then incorporated and used for According to the PBA, during the
cross-tabulating the joint distribution of exploratory step perceptions are analyzed at
perceptual positions of any pair of brands the generic level and compressed into typical
the analyst is interested in. This procedure profiles. These profiles represent typical
required some adaptation to be employed combinations of attributes (prototypes)
in this work: instead of identifying consumers have on their minds. If, for
a general perception about each brand, example, consumers have four typical images
as Mazanec and Strasser10 did, we were of a brand, then respondents’ reactions can
interested in getting different perceptions be recoded into a single feature variable like
about the same brand. As a consequence, A, B, C and D or simply P1 (Perception 1),
instead of portraying consumers’ views P2, P3 and P4.
about brands A, B, C,…, N we were
interested in capturing the patterns A, B, PROTOTYPING
C,…, N, representing different positions Before prototyping data an earlier step
of a brand in the consumers’ minds. was carried out to assess the best number
Another reason for choosing TRN was of clusters to be formed. This was based
its ability to evaluate the best number of on the improvement of the uncertainty
segments existing in data. As5 ‘a general reduction index (per cent UR)14 for
problem of the nonhierarchical methods is solutions ranging from two to ten clusters.
the determination of the number of cluster The per cent UR suggested five clusters
present in the data’ (p. 19), the percentage as the best solution. The clustering process
of uncertainty reduction index (per cent was handled with TRN software, which
UR) incorporated in TRN conveys an implements the Neural Gas Algorithm.
intuitively appealing piece of information The model introduced under the name
to decide on the best number of clusters of ‘Topology Representing Network’,13
to identify.14 The per cent UR is based employs the competitive learning principle
on pairs of data points misplaced across in which the prototypes rival one against
replicated VQ runs; the few data each other in attempting to approximate
misplacements over replications, the higher the frequency distribution of empirical data.
per cent UR. However, unlike other networks4 ‘the
training rule adjusts not only the winning
BRAND PERCEPTION prototype but all prototypes according
The identification of different brand to the rank of distances between data
perceptions was based on PBA,4,10,11 point and the first winner, second winner,
which, in a technical sense, corresponds etc.’ (p. 49).
to identifying latent segments in an Two measures were saved during the
indiscriminate mass of data. According to classification process: parameter estimation
that model the term perception corresponds and cluster labels. Parameter estimation is
to the attributes that respondents valuate a TRN output resulting from the network
the most in a set of choice alternatives. training and represents the importance of
© 2010 Macmillan Publishers Ltd. 1741-2439 Database Marketing & Customer Strategy Management Vol. 17, 1, 6–18 9
Anana and Nique
each variable for cluster identification: the Cluster 5; and others, such as ‘real’ marked
higher a variable load in a cluster, the more for loading weakly in Clusters 2 and 3.
important it is for the respondents in that To improve prototype interpretability,
cluster.16 Cluster labels is another output the cluster identification was done in two
of the same algorithm and correspond to rounds: a first round including all the 42
a vector representing each cluster as a variables of the original scale, and a second
category (say clusters no. 1, 2, 3…, n). with a more distinctive set of variables. The
Interpretation of prototypes characteristics reduced set of five dimensions (Cronbach
can be done visually but is not an easy s > 0.77) was identified throughout an
task. According to Dolnicar et al14 ‘the Exploratory Factor Analysis from the
interpretation of these prototypes is left original 26 variables, explaining 57.7 per
to the researcher and thus to a great extent cent of variance. Results of both rounds
is subjective (making this procedure more did not differ significantly (Wilcoxon signed
objective is obviously an important future ranks test z = − 1.324, Sig. 0.185; sign
research task)’ (p. 29). For them, the test z = − 0.651, Sig. 0.515), and therefore
meaning of every perceptual position can be the reduced set of variables was adopted
inferred from the loads of marker variables to facilitate the prototypes’ description.
in every prototype. In this work some Clusters’ size and prototypes’ loads are
variables have been considered marker for reported in Table 1. The terms ‘clusters’
loading distinctively (highly or poorly) in and ‘prototypes’ are assumed as equivalents
one or another cluster. Attributes such in this work, as they represent the same
as ‘successful’ and ‘leader’, for example, groups of respondents: the former refers
distinguished for loading heavily in to the people in the groups and the
10 © 2010 Macmillan Publishers Ltd. 1741-2439 Database Marketing & Customer Strategy Management Vol. 17, 1, 6–18
Perception-Based Analysis
0.9
0.8
0.7
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Cl 1 Cl 2 Cl 3 Cl 4 Cl 5
latter describes the characteristics of the fits’ group, because some attributes
groups. suggesting sincerity (sincere, real and
wholesome) or sophistication (feminine
INTERPRETATION OF and smooth) loaded around 0.6, which
PROTOTYPES can be interpreted as a sign of relative
After evaluating the latent positions existing criticism.
in complex data and prototyping them Clusters 2, 3 and 5 share the space
labels have been added to every case between the extreme perceptions of
according to the group they fit better. Five Clusters 1 and 4. In general terms, it is
distinct groups have been identified. At a possible to say that people in Clusters 2, 3
first glimpse on the parameter estimation and 5 are less generous about Nike than
it was possible to recognize a minor group those in Cluster 1, but not too critical as
(7 per cent) expressing severe criticism those in Cluster 4. Some differences
about the brand. In general terms, it was between these three clusters are quite subtle
possible to see that for members of Cluster and not easily perceived. To make the
4 ‘almost nothing fits’ Nike. Even the more differences more evident loads pertaining
pronounced attributes, such as down to to the Clusters 2–5 were standardized in
earth, cheerful, trendy and successful, load a 0–1 interval using the normal distribution,
around 0.55 in a 0–1 range, as shown in and plotted on a two-axis graph (Figure 4).
Figures 2 and 3. Among the three ‘intermediary’ clusters,
Contrasting with the ‘almost nothing fits’ perceptions regarding Nike reliability,
group, people in Cluster 1 (16 per cent) glamour, energy and competence can be
manifested a relatively favorable view interpreted by the loads of some variables in
about Nike, as 18 of 26 items in this every cluster. Nike reliability (expressed by
group loaded over 0.9 in a 0–1 range. As variables like real, sincere and wholesome),
we can see in Figure 3, while Cluster 1 for example, is better perceived in Cluster 5
concentrates most of the personality traits’ than in Clusters 2 and 3. Or say, Nike is
loads at the top of scale (between 0.8 and fairly reliable for people in Clusters 2 and 3
1.0), Cluster 4 concentrates the loads but is quite trustworthy for Cluster 5s.
around 0.5. But even showing the most Results can be interpreted both by
favorable view about Nike, Cluster 1 the clusters’ lines proximity (a sign of
cannot be characterized as an ‘everything importance) and by the clusters’ lines
© 2010 Macmillan Publishers Ltd. 1741-2439 Database Marketing & Customer Strategy Management Vol. 17, 1, 6–18 11
Anana and Nique
up_to_date family_oriented
1.00 contemporary successful
confident technical
intelligent young trendy
Western sentimental
exciting down_to_earth
good_looking tough leader
cheerful
imaginative original
charming
0.80 glamorous hard_working
wholesome
daring
real
Cl 1
sincere
0.60
small_town
feminine smooth
0.40
12 © 2010 Macmillan Publishers Ltd. 1741-2439 Database Marketing & Customer Strategy Management Vol. 17, 1, 6–18
Perception-Based Analysis
Cluster 1 – Nike is almost an ideal brand The most favorable view about the brand. For this group of people
Nike is up to date, successful, charming and original, a brand
that irradiates power and excitation. However, some important
restrictions remain in relation to its reliability and tenderness.
Cluster 2 – Nike is a valuable but not Nike is relatively up to date, successful and original; a brand that
reliable brand irradiates some power and excitation. It is a glamorous, successful
and a rather energetic brand but it is not reliable or sincere.
Cluster 3 – A brand with no distinctive Like Cluster 2, Nike is relatively up to date, successful, original and
attributes, but is neither reliable nor irradiates some power and excitation. It is relatively contemporary
glamorous and young, but is neither reliable nor too glamorous.
Cluster 4 – Nike has no attributes at all The most critical view about Nike. For this group the brand is seen
as down to earth but without any glamour or excitation.
Cluster 5 – Nike is a valuable but not Like Clusters 2 and 3, Nike is relatively up to date, successful and
glamorous brand irradiates some power and excitation. Reliability is not a strong
point of Nike, but it is not too weak as evaluated by people
in Clusters 2 and 3. It is successful and energetic but not a
glamorous brand.
objective of the Discriminant Analysis, Since an EFA had been carried out
in this work, was to produce a spatial during the prototyping procedure, the
map to visualize the main dimensions; exploratory step was considered superfluous.
not a statistical inference. The resulting The dimensions identified on that previous
Figure 5 shows that the algorithm procedure, explaining 57.7 per cent of
succeeded in producing homogenous variance, were assumed as the underlying
groups of respondents according to their structure existing in data and variables
perceptions with minimum overlapping. with highest factor loads taken as factors’
It also confirmed that Cluster 4 is not anchors. The confirmatory step assumed
only a minor group but that perceptions that each variable had non-zero loading
of its members are fairly dispersed and are on the factor it was assigned to measure,
difficult to typify. and zero loading on all other factors.
An E/CFA was used for being a useful Three of the five factors (sincerity,
precursor to CFA, which allows the competence and sophistication) were
researcher to explore measurement assumed as equivalent to the original
structures more fully before moving into dimensions, as most of the variables
a confirmatory framework.17 It represents coincided. Excitement and ruggedness
an intermediary step between EFA factors mixed variables from different
and CFA, which provides substantial dimensions and had to be re-specified.
information, important in the development Excitement received some variables from
of realistic confirmatory solutions. The the sincerity dimension and therefore was
E/CFA purpose in this work was twofold: re-specified as conventional modernity, for
(a) to verify data ability to reproduce expressing actuality and affectivity at the
BPS original dimensions in a Brazilian same time, or say: a factor suggesting
context, and (b) to estimate the parameters up-to-dateness but not young wildness.
and dimensions to be compared with Ruggedness mixed some of its own
perceptions produced from PBA clusters original variables with excitement’ and was
loads. re-specified as vanguardism, for mixing
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Anana and Nique
2
Function 2
-2
-4
-10 -8 -6 -4 -2 0 2 4
Function 1
fashion tendency (trendy) and adventure. somewhat expected as both the re-specified
As we can see in Table 3, all the variables factor received variables from excitement (E)
used in the measurement model were very original dimension. The high correlation
significant (Estimate/Standard Error > 2) (0.92) involving challenge and sophistication
to explain the dimensions they had been was not expected, as the first one comprises
assigned to, and except for ‘smooth’ variables from the ruggedness original
and ‘feminine’ – two attributes of factor, an idea almost opposite to
sophistication – all variables counted more sophistication. Even conceding that both
than 30 per cent of their variance for the dimensions suggest some energy the high
latent corresponding factor (R2). Brand correlation was considered surprising here.
dimensions were allowed to correlate, The structural model was specified
according to the original work.7 Factors’ with all the five prototypes of perception
correlations are shown in Table 4. as dependent on brand dimensions. As the
Except for brand sincerity, which seems prototypes were binary-type, the Robust
to be less associated, all the latent factors Weighted Least Square (WLSMV) estimator
show correlations over 0.5. The two factors was chosen for being the most appropriate
resulting from re-specification (Challenge estimator for categorical indicators.17,18
and Cheerfulness) showed high correlation Fit measures (TLI = 0.915; RMSEA = 0.076)
(0.89), which can be interpreted as a sign were considered acceptable for that
of proximity in terms of meaning. This was purpose.17
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Perception-Based Analysis
Original dimensions: Sincerity (SI), Excitement (E), Competence (C), Sophistication (SO) and Ruggedness (R).
Standardized coefficients (StdYX) computes the variance of continuous latent variables and the outcome
variables (perceptions) as well.
Conventional 1.000 — — — —
modernity
Sincerity 0.497 1.000 — — —
Sophistication 0.680 0.436 1.000 — —
Vanguardism 0.891 0.668 0.919 1.000 —
Competence 0.792 0.599 0.581 0.785 1.000
Some segments, but not all, showed is not a good facet of Nike. Prototype 2
a significant relationship with brand has a positive view in relation to
dimensions probit regression coefficients, cheerfulness and sophistication but a
confirming that every prototype has negative view in relation to challenge.
a different view about Nike. Prototype 1, Prototype 3 shows a negative view about
for example, sees positively sincerity and Nike cheerfulness and sincerity. Prototype 4
challenge, but the latter is more than did not show significant dependency from
double the former, confirming that sincerity any dimension. And Prototype 5 sees
© 2010 Macmillan Publishers Ltd. 1741-2439 Database Marketing & Customer Strategy Management Vol. 17, 1, 6–18 15
Anana and Nique
Table 5: Brand perceptions standardized probit regression coefficients across brand dimensions
Brand dimensions Protot. 1 Protot. 2 Protot. 3 Protot. 4 Protot. 5
16 © 2010 Macmillan Publishers Ltd. 1741-2439 Database Marketing & Customer Strategy Management Vol. 17, 1, 6–18
Perception-Based Analysis
dimensions could be used to estimate for brand managers. It does not matter
parameters for prototypes. Most of the whether the scale describes real traits of
significant relationships found coincided personality or just reflects some facets of
with the PBA-based description. The brand identity. It was most important
release of some variables that could not for the purpose of this work to confirm
be used for not fitting the model was not PBA as an adequate tool to interpret the
considered problematic once the data were brands’ output positioning.
collected in a country other than USA.
According to Aaker,7 the scale might ACKNOWLEDGEMENTS
not be appropriate for measuring brand The authors thank the Vienna University
personality in different cultural contexts of Economics and Business Administration
and ‘with the use of the Brand Personality (Wirtschaftsuniversität Wien) for providing
Scale, the variables can be manipulated the software, and Professor Josef Mazanec
systematically and their impact on brand’s for his comments and suggestions about
personality measured’ (p. 354). this study.
Four of five prototypes demonstrate
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