Perceptual maps are visual tools that help businesses understand how customers perceive their products or brands compared to competitors. It shows how people perceive products or services based on specific attributes.

The process of creating a perceptual map involves:

• Identifying Key Attributes: First, businesses must determine what essential qualities or attributes matter to customers in their industry. For example, if the business sells smartphones, important attributes include price, camera quality, and battery life.
• Collecting Data: Companies collect data from surveys, customer feedback, or market research to understand how customers perceive different brands or products regarding these key attributes.
• Plotting the Data: A visual map is created using the collected information, where each brand or product is placed on the map according to how customers perceive these attributes.

Perceptual maps can be categorized into two-dimensional maps, which compare two attributes like price and quality for smartphones; three-dimensional maps, which assess three attributes, such as taste, price, and packaging for food products; and multi-dimensional maps, which are more complex and evaluate perceptions across multiple attributes using statistical techniques like factor analysis.

Perceptual maps are helpful for competitor analysis, identifying market gaps, determining marketing strategy, and gaining customer insights.