Chapter 6

Consumer perception

What is perception?
Perception is defined as: Proses yg dilakukan oleh individu untuk memilih, mengatur, dan menafsirkan stimuli ke dalam gambar yg berarti dan masuk akal mengenai Catatan: Stimulus adalah setiap unit masukan yg diterima oleh setiap indra
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Sensation
n Sensasi adalah respon yg segera & langsung dari alat pancaindera thdp stimuli yg sederhana (iklan, kemasan, merk) Nose Ears Mouth

Eyes

Sensory receptors

Skin
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Thresholds
n The lowest level at which we can experience a sensation is called the absolute threshold (ambang absolut) n The minimal difference that can be detected between two stimuli is called the differential threshold (ambang differensial), or the just noticeable difference (j.n.d.)

Webers Law
n Weber was a 19th century German scientist n He discovered that the just noticeable difference was relative to the intensity of the first stimulus n This is now known as Webers law n It holds true to all the senses and at almost all intensities

(Which ones are you likely to notice?)

Examples of Webers law

iPods sale just $299

Great deal on iPods from $250

We sell iPods for less than $300

Save on iPods - $199

iPod discounters $249

Assume normal iPod price was $300

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Marketing applications of the j.n.d

Try to make any negative changes in the product not readily discernible
Examples: increasing price or reducing quality Changes should be minor and fall below the j.n.d

Try to make any improvements in the product easily discernible Examples: new packaging, larger sizes
Changes should exceed the j.n.d.
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Figure 5.2: Sequential changes in the Redhead symbol

Slow, progressive changes to the packaging in an attempt to remain below the j.n.d.

Subliminal perception
n People are also stimulated below their level of conscious awareness n This process is called subliminal perception

Stimulus is below the threshold of awareness

Some research suggests that constant repetition of very weak stimuli has a minor incremental effect over time

Another theory suggests the use of sexual embeds should trigger subconscious motivations to persuade consumers to buy the products
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Perpetual selection
n Consumers subconsciously select the stimuli that they will perceive n This helps them cope with the enormous quantities of stimuli that they are exposed to during the day n People are more likely to select is stimuli that:
Contains attention getting devices Is consistent with their previous experience or expectations Is related to their motives at the time

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Examples of attention-getting devices

n Ads in contrast to other ads n The use of lots of white space in print advertising n Colour in black and white ads n Infomercials n Print ads that fold out and become oversized n Unusual images or use of strong colours n Use of popular songs n Use of celebrities n Use of stimuli that conflicts with expectations
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Figure 5.6

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Various marketing stimuli affect overall consumers perception

Attributes of the product

Packaging

Advertising

Overall consumer perception

Brand name

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Selective perception concepts

Selective exposure Selective attention Perceptual defence Perceptual blocking
Consumers actively seek out some messages and seek to avoid others (perhaps through choice of media) Consumers will be selective in the amount of attention they give to commercial stimuli Some people screen out stimuli or distort information that is inconsistent with their values and beliefs Some consumers deliberately tune-out out from too much stimuli
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Perceptual organisation
n Consumers organise stimuli into groups and perceive them as unified wholes n This principle is often referred to as Gestalt psychology n The three most basic principles of perceptual organisation are:

- - -

Figure and ground Grouping Closure

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Perceptual organisation principles

Figure and ground Grouping Closure

Uses stimulus in contrast with the environment That is, a figure against a background The grouping of stimuli to form a unified impression That is, using stimuli as chunks of information (not individually) Filling in the missing pieces to form a complete picture The Zeigernik effect = incomplete tasks may be more easily remembered
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Distorting influences
(Perceptual distortion)
Physical appearance Stereotypes Irrelevant cues First impressions Jumping to conclusions The halo effect
Example: attractive models in ads are more persuasive Peoples stereotypes determine how some messages are perceived Looking to irrelevant stimuli when faced with a complex choice First impressions tend to be lasting and may outweigh subsequent information Drawing a conclusion based on limited (early) information An evaluation based on a single important dimension only
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Positioning
n Positioning is the relative image that a product or service has in the mind of the consumer n Positioning strategy is the essence of the marketing mix n Positioning conveys the concept of the product, in terms of how it fulfils a consumer need n Marketers try to create positioning consistent with the relevant self-image of the target market

This is considered more important to the success of the products than its actual characteristics

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Major positioning strategies

Umbrella
Creating an overall company image, where products may be featured individually

Against the competition

Highlighting major advantages over the specific competitors

Based on a specific benefit

Focusing on a key benefit of the brand

Finding an unowned position

Finding a niche unfilled by other companies
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Product repositioning

New competitors Poor implementation of positioning goals

Reasons to reposition
Changes in market needs

Too close to competitor position

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Perceptual mapping
n A technique designed to show how products and services are perceived, in the minds of consumers, relative to competitive brands, based on a number of attributes n It allows marketers to determine their current image, as well as to identify gaps, which may represent market opportunities of unfulfilled consumer needs n Perceived image is very important to service firms because their product is intangible, which means image is often a differentiating factor
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Figure 5.14: Perceptual map for an Australian iced coffee study

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Perceived price
n Strategies that reduced price unfairness will enhance perceived value...

Satisfactionbased pricing Relationship pricing

Reducing customers perceptions of uncertainty Can use guarantees and flat-rate pricing

Encouraging long-term relationships

Efficiency pricing

Sharing cost savings with customers

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Reference price
n A reference price is any price that consumers use as a basis for comparison in judging another price n External reference prices is the normal displayed price n Internal reference prices are those learned over time by the consumer

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Effect of reference prices

(Assimilation)

Advertised price is within the consumers acceptable price range

Price is considered plausible and assimilated

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Effect of reference prices

(Contrast)

Advertised price is outside the consumers range of acceptable prices

(either higher or lower)

Price will be contrasted and considered implausible and not considered a valid external reference point

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Dissonance reduction when encountering unexpected prices

Reduce dissonance by one of the following: Seeking consonant information
Obtain further information from alternate suppliers or substitute products

Changing attitude
Attribute higher prices to highquality, general price increases

Trivialising

Reducing the importance of saving money, good deals, etc

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Tensile and objective price claims

n Tensile price claims involve a range of discounts

- -

Example: save up to 60%, will save 40 to 60% Example: Save 25%

n Objective price claims provide a single discount n These price claims, which refer to a range of merchandise, are typically more effective than a claim for a single product n Consumer evaluation is least favourable ads stating the minimum discount level (save 10% or more) n Bundle pricing (packaging products together) have a greater impact on perceived value than savings/ discounts on individual items alone
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Prospect theory
n Purchase choices are evaluated in two stages:

EDITING STAGE
Where information is simplified, and where gains and losses are assigned according to a reference point (framing)

EVALUATION STAGE
Where the consumer works out the best value alternative

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Perceived quality of products

n Consumers often use various informational cues to judge the quality of a product

Intrinsic cues
Physical characteristics of the product Includes size, flavour, colour, aroma

Extrinsic cues
External to the product Includes price, store image, brand, countryof-origin

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Services are more difficult to evaluate because of their...

Intangibility

Variability

Simultaneous production and consumption

Perishability

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SERVQUAL
Reliability Responsiveness Assurance Empathy Tangibility
Providing the service as promised

Prompt service, willing to help

Instilling confidence in customers Caring, understanding, individual attention Equipment, facilities, appearance
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Figure 5.17: Conceptual model of the components of transaction satisfaction

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Figure 5.18: Conceptual model of the behavioural and financial consequences of service quality

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Price/quality relationship
n Some studies suggest that consumers often rely on price as an indicator of quality

- -

Therefore, some marketers deliberately highlight a high price to communicate quality Discounted products may need to be supported by a brand or other product information to avoid association with poor quality

n Other studies highlight that consumers also rely on well-known brands to indicate quality

These brands can either be the stores image and/or the manufacturers image

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Store image is affected by...

Frequency of price advantage Service levels

Magnitude of price advantage Physical appearance

Width of product assortment Locations

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Manufacturers image
n Consumers have greater confidence in wellknown brands n Ongoing advertising supports the perception of higher quality n Television advertising, in particular, is very reassuring to consumers as it associated with higher quality (i.e. a more successful firm) n Pioneer brands (first in product category) also tend to have favourable images

Therefore, some large firms will introduce new brands that have the appearance of small, independent firms
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Types of perceived risks

Functional risk

Physical risk

Financial risk

Social risk

Psychological risk

Time risk

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How consumers handle risk

They seek information

They are brand loyal They buy the most expensive model

They select by brand image

They rely on store image

They seek reassurance

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