CHAPTER SIX

Consumer Perception

Learning Objectives
1. To Understand the Sensory Dynamics of Perception. 2. To Learn About the Three Elements of Perception. 3. To Understand the Components of Consumer Imagery and Their Strategic Applications.

Chapter Six Slide

Perception
The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world Elements of Perception
Sensation Absolute threshold Differential threshold Subliminal perception

Chapter Six Slide

Sensation
Sensation is the immediate and direct response of the sensory organs to stimuli
A stimulus is any unit of input to any of the senses.

The absolute threshold is the lowest level at which an individual can experience a sensation.

Chapter Six Slide

Differential Threshold (Just Noticeable Difference j.n.d.)

Minimal difference that can be detected between two similar stimuli Webers law
The j.n.d. between two stimuli is not an absolute amount but an amount relative to the intensity of the first stimulus The stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different.

Chapter Six Slide

Marketing Applications of the J.N.D.

Marketers need to determine the relevant j.n.d. for their products
so that negative changes are not readily discernible to the public so that product improvements are very apparent to consumers
Chapter Six Slide 6

Discussion Question
How might a cereal manufacturer such as Kelloggs use the j.n.d. for Frosted Flakes in terms of:
Product decisions Packaging decisions Advertising decisions Sales promotion decisions
Chapter Six Slide 7

Subliminal Perception
Stimuli that are too weak or too brief to be consciously seen or heard
They may be strong enough to be perceived by one or more receptor cells.

Is it effective?
Extensive research has shown no evidence that subliminal advertising can cause behavior changes Some evidence that subliminal stimuli may influence affective reactions
Chapter Six Slide 8

Aspects of Perception
Selection

Organization
Interpretation

Chapter Six Slide

Perceptual Selection
Selection Depends Upon:

Nature of the stimulus

Expectations

Includes the products physical attributes, package design, brand name, advertising and more

Based on familiarity, previous experience or expectations.

Motives

Needs or wants for a product or service.

Chapter Six Slide 10

Why Are Consumers Likely to Notice This Ad?

Chapter Six Slide 11

The Attention-Getting Nature of a Dramatic Image

Chapter Six Slide 12

Perceptual Selection Important Concepts

Selective Exposure
Consumers seek out messages which: Are pleasant They can sympathize Reassure them of good purchases

Selective Attention
Heightened awareness when stimuli meet their needs Consumers prefer different messages and medium

Perceptual Defense
Screening out of stimuli which are threatening

Perceptual Blocking
Consumers avoid being bombarded by: Tuning out TiVo

Chapter Six Slide 13

Organization
Principles
Figure and ground Grouping Closure

People tend to organize perceptions into figureand-ground relationships. The ground is usually hazy. Marketers usually design so the figure is the noticed stimuli.

Chapter Six Slide 14

Organization
Principles
Figure and ground Grouping Closure People group stimuli to form a unified impression or concept. Grouping helps memory and recall.

Chapter Six Slide 15

Organization
Principles
Figure and ground Grouping Closure

People have a need for closure and organize perceptions to form a complete picture. Will often fill in missing pieces Incomplete messages remembered more than complete

Chapter Six Slide 16

Interpretation
Stereotypes Stereotypes
Physical Appearances Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo Effect
Chapter Six Slide 17

People hold meanings related to stimuli

Interpretation
Stereotypes Stereotypes
Physical Appearances Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo Effect
Chapter Six Slide 18

Positive attributes of people they know to those who resemble them Important for model selection

Interpretation
Verbal messages reflect stereotypes

Stereotypes Physical Appearances Descriptive Terms First Impressions Halo Effect

Chapter Six Slide 19

Interpretation
Stereotypes Stereotypes
Physical Appearances Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo Effect
Chapter Six Slide 20

First impressions are lasting The perceiver is trying to determine which stimuli are relevant, important, or predictive

Interpretation
Stereotypes Stereotypes
Physical Appearances Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo Effect
Chapter Six Slide 21

Consumers perceive and evaluate multiple objects based on just one dimension

Product Positioning
Establishing a specific image for a brand in the consumers mind in relation to competing brands Conveys the product in terms of how it fulfills a need Successful positioning creates a distinctive, positive brand image

Chapter Six Slide 22

Which Concepts of Perception Are Applied in These Ads?

Chapter Six Slide 23

The Principle Of Contrast

Chapter Six Slide 24

Packaging as a Positioning Element

Packaging conveys the image that the brand communicates to the buyer. Color, weight, image, and shape are all important. Repositioning might be necessary because:
Increased competition Changing consumer tastes

Chapter Six Slide 25

Perceptual Mapping
An analytical technique that enables marketers to plot graphically consumers perceptions concerning product attributes of specific brands

Chapter Six Slide 26

Positioning of Services
Image is a key factor for services Services often want a differentiated positioning strategy to market several versions of their service to different markets.

Chapter Six Slide 27

Perceived Price and Perceived Quality

Reference prices used as a basis for comparison in judging another price
Internal External

Perceived Quality of Products

Intrinsic vs. Extrinsic Cues

Chapter Six Slide 28

Three Pricing Strategies Focused on Perceived Value - Table 6.4

Pricing Strategy
Satisfaction-based pricing

Provides Value By
Recognizing and reducing customers perceptions of uncertainty, which the intangible nature of services magnifies

Implemented As
Service guarantees Benefit-driven pricing Flat-rate pricing

Relationship pricing

Encouraging long-term relationships with the company that customers view as beneficial

Long-term contracts Price bundling

Efficiency pricing

Sharing with customers the cost Cost-leader pricing savings that the company has achieved by understanding, managing, and reducing the costs of providing the service

Chapter Six Slide

29

Measuring Perceptions of Brand Luxury

Chapter Six Slide 30

Perceived Quality of Services

Difficult due to characteristics of services
Intangible Variable Perishable Simultaneously Produced and Consumed

SERVQUAL scale used to measure gap between customers expectation of service and perceptions of actual service

Chapter Six Slide 31

Price/Quality Relationship
The perception of price as an indicator of product quality (e.g., the higher the price, the higher the perceived quality of the product.)

Chapter Six Slide 32

Which of the Ads Elements Conveys the Products Quality?

Chapter Six Slide 33

The Slogan on the Ads Bottom Left Reads Perfection Has Its Price

Chapter Six Slide 34

Retail Store Image

Brands carried Store ambiance Prices Level of service Product assortment

Clientele

Discounts
Chapter Six Slide 35

Manufacturers Image
Favorable image tied to new product acceptance Companies sponsor community events to enhance images Product and institutional images

Chapter Six Slide 36

Perceived Risk
The degree of uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision Types
Functional Risk Physical Risk Financial Risk Social Risk Psychological Risk Time Risk
Chapter Six Slide 37

How Consumers Handle Risk

Seek Information Stay Brand Loyal Select by Brand Image Rely on Store Image Buy the Most Expensive Model Seek Reassurance

Chapter Six Slide 38