Perceptual maps are powerful tools that provide visual insights into consumer perceptions of different brands or products within a market. In this blog post, we'll explore what a perceptual map of the European insurance market can reveal, and what it cannot, emphasizing the need for additional tools like preference maps for a more comprehensive understanding.
What is a Perceptual Map?
A perceptual map plots products or brands based on various attributes as perceived by consumers. For the insurance market, common dimensions might include price, quality, customer service, brand image, and other relevant attributes.
Perceptual Map of the European Insurance Market
Below is a perceptual map featuring 20 popular European insurance brands. The map plots insurance providers on two dimensions: "Price" (from Budget to Premium) and "Service Quality" (from Low to High).
Insurance Brands on the Map:
What Can We See in This Map?
1. Competitive Positioning:
2. Market Segmentation:
3. Gaps in the Market:
4. Brand Clusters:
What Can We Not See in This Map?
1. Consumer Preferences:
2. Purchase Intent:
3. Market Share:
4. Nuanced Attributes:
The Need for a Preference Map
A preference map adds a layer of consumer preference data to the perceptual map. This combination can show not only how brands are perceived but also how much they are liked and chosen by consumers.
For example:
Conclusion
A perceptual map of the European insurance market provides valuable insights into competitive positioning, market segmentation, and potential gaps. However, to gain a comprehensive understanding of consumer behavior and market dynamics, it's essential to complement perceptual maps with preference maps. Preference maps incorporate consumer preferences and purchase intentions, providing a more complete picture of the market.
By using both perceptual and preference maps, marketers can craft more effective strategies, identify opportunities, and better meet consumer needs in the dynamic European insurance market.