What is Perceptual Legibility in the BCI framework?

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Core Variable · BCI Lexicon

Perceptual Legibility

Perceptual Legibility (PL) measures how easily a brand's value proposition can be read, understood, and replicated by the broader market.

Canonical source: BSIP v4.0 §3.2 · White Paper v4.0

Canonical Direction

Higher PL means lower cognitive friction, easier acquisition, and greater commoditization — an unfavorable direction for an asset whose pricing power depends on scarcity. Coefficient, range [0, 1]. Sits in the denominator of the master formula.

Primary Proxy (DRG-A)

PL = SG&A ÷ Revenue

Favorable [0.3–0.5] · High-risk >0.8

Secondary Proxy (DRG-B)

Global store/city distribution density, SKU count; semantic entropy (the rate at which a brand's keyword coupling with “value” or “dupe” terminology is rising).

Known Limitation

BCI's default PL proxy does not, on its own, distinguish genuine brand-driven pricing discipline from a self-retail / direct-distribution business model that structurally depresses SG&A/Revenue independent of brand strength. This is an active, disclosed limitation — see BSIP v4.0 §9.1.

Definitional Authority — This term is defined canonically in BSIP v4.0 and the White Paper v4.0. This page restates that definition on its own address for reference; it is not an independent source and does not diverge from it.

Rating Limitation — Nothing on this page constitutes a credit rating, valuation opinion, or investment instruction of any kind.