Consumer Perception

6-1
 •The process by which
an individual selects,
organizes, and
interprets stimuli into a
meaningful and
Perception
coherent picture of the
world

•How we see the world

around us

6-2
 Elements of Perception
• Sensation
• Absolute threshold (The lowest level at which
an individual can experience a sensation)
• Differential threshold (The minimum
difference that can be detected between two
similar stimuli)
• Subliminal perception

6-3
 The immediate and
direct response of the
sensory organs to
stimuli.
Sensation
A perfectly unchanging
environment provides
little to no sensation at
all!

6-4
 A theory concerning the
perceived differentiation
Weber’s between similar stimuli of
Law varying intensities (i.e., the
(Differential stronger the initial stimulus,
Threshold) the greater the additional
intensity needed for the
second stimulus to be
perceived as different).

6-5
 Marketing Applications
of the JND
• Need to determine the relevant just
noticeable difference (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

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 Figure 6.2 Betty Crocker Changes Fall
Below the J.N.D.

6-7
 Figure 6.3 Gradual
Changes in Brand
Name Fall Below the
J.N.D.

6-8
 Perception of very
weak or rapid stimuli
Subliminal
received below the
Perception
level of conscious
awareness.

6-9
 Is Subliminal Persuasion
Effective?
• Extensive research has shown no evidence
that subliminal advertising can cause
behavior changes
• Some evidence that subliminal stimuli may
influence affective reactions

6-10
 Aspects of Perception

Selection

Organization

Interpretation

6-11
 Perceptual Selection
• Depends on two major factors
– Consumers’ previous experience
– Consumers’ motives

6-12
 Concepts Concerning Selective
Perception

• Selective Exposure
• Selective Attention
Gestalt • Perceptual Defense
Psychology • Perceptual Blocking

6-13
 Concepts Concerning Selective
Perception
• Selective Exposure:
Consumers actively seek out messages that they
find pleasant or with which they are sympathetic,
and they actively avoid painful or threatening
ones. They also selectively expose themselves to
advertisements that reassure them of the wisdom
of their purchase decisions.

6-14
 Concepts Concerning Selective
Perception
• Selective Attention:
Consumers exercise a great deal of selectivity in
terms of the attention they give to commercial
stimuli. They have heightened awareness of
stimuli that meet their needs or interests and
minimal awareness of stimuli irrelevant to their
needs. Some people are more interested in price,
some in appearance, and some in social
acceptability.

6-15
 Concepts Concerning Selective
Perception
• Perceptual Defense:
Consumers subconsciously screen out stimuli
that they find psychologically threatening, even
though exposure has already taken places.
For example: Stroke and Cardiac problem
happens, because of smoking…

6-16
 Concepts Concerning Selective
Perception
• Perceptual Blocking:
Consumers protect themselves from being
bombarded with stimuli by simply “tuning out” –
clocking such stimuli from conscious awareness.
For example, Changing TV channels frequently
and miss any important messages….

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 Influences of Perceptual Distortion
• Physical Appearances
• Stereotypes
• First Impressions
• Jumping to Conclusions
• Halo Effect

6-18
 Issues In Consumer Imagery
• Product Positioning and Repositioning
• Positioning of Services
• Perceived Price
• Perceived Quality
• Retail Store Image
• Manufacturer Image
• Perceived Risk

6-19
 Establishing a
specific image for a
Positioning
brand in relation to
competing brands.

6-20
 Pricing Strategies Focused on
Perceived Value

• Satisfaction-based Pricing
• Relationship Pricing
• Efficiency Pricing

6-21
 Issues in Perceived Price
• Reference prices
– Internal
– External
• Tensile and objective price claims

6-22
 Acquisition-Transaction Utility
• Acquisition utility • Transaction utility
represents the concerns the perceived
consumer’s perceived pleasure or displeasure
economic gain or loss associated with the
associated with the financial aspect of the
purchase purchase
• Function of product • Determined by the
utility and purchase difference between the
price internal reference price
and the purchase price
6-23
 Tensile and Objective
Price Claims
• Evaluations least favorable
for ads stating the
minimum discount level

• Ads stating maximum

discount levels are better
than stating a range

6-24
 Perceived Quality
• Perceived Quality of Products
– Intrinsic vs. Extrinsic Cues
• Perceived Quality of Services
• Price/Quality Relationship

6-25
 Characteristics of Services

• Intangible • Perishable
• Simultaneously Produced
• Variable and Consumed

6-26
 Table 6.3 SERVQUAL Dimensions for
Measuring Service Quality
DIMENSION DESCRIPTION

•Tangibles Appearance of physical facilities, equipment,

personnel, and communication materials
•Reliability Ability to perform the promised service
dependably and accurately
•Responsiveness Willingness to help customers and provide
prompt service
•Assurance Knowledge and courtesy of employees and
their ability to convey trust and confidence
•Empathy Caring, individualized attention the firm
provides its customers

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

6-28
 Perceived Risk
Types
The degree of
uncertainty • Functional Risk
perceived by the • Physical Risk
consumer as to the • Financial Risk
consequences • Psychological Risk
(outcome) • Time Risk
of a specific
purchase decision.
6-29
 How Consumers Handle Risk
• Seek Information
• Stay Brand Loyal
• Select by Brand Image
• Rely on Store Image
• Buy the Most Expensive Model
• Seek Reassurance

6-30