Consumer Perception

CHAPTER SIX

Learning Objectives
1.

2.

3.

To Understand the Sensory Dynamics of Perception. To Learn About the Three Elements of Perception. To Understand the Components of Consumer Imagery and Their Strategic Applications.

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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

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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.

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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.
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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
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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

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

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Aspects of Perception

Selection
Organization Interpretation

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Perceptual Selection Selection Depends Upon: Nature of the stimulus Expectations Motives
Includes the products physical attributes, package design, brand name, advertising and more Based on familiarity, previous experience or expectations.

Needs or wants for a product or service.

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Why Are Consumers Likely to Notice This Ad?

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The Attention-Getting Nature of a Dramatic Image

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Discussion Questions

What marketing stimuli do you remember from your day so far? Why do you think you selected these stimuli to perceive and remember?

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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

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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.
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Organization Principles

Figure and ground Grouping Closure

People group stimuli to form a unified impression or concept. Grouping helps memory and recall.

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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
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What Element of Perceptual Organization Is Featured in This Ad?

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Closure

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Discussion Question

Do you agree you remember more of what you have NOT completed? How might a local bank use this in their advertising?

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Interpretation

People hold meanings related to stimuli

Stereotypes Stereotypes Physical Appearances Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo Effect

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Interpretation

Stereotypes

Stereotypes
Physical Appearances

Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo Effect

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

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Interpretation

Stereotypes
Physical Appearances

Verbal messages reflect stereotypes

Descriptive Terms
First Impressions

Halo Effect

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How Does This Ad Depict Perceptual Interpretation?

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It Contrasts the Powerful Durango with Less Rugged Referred to in the Ad as the Land Of Tofu.

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Interpretation

Stereotypes

Stereotypes
Physical Appearances

Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo Effect

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

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Interpretation

Stereotypes

Stereotypes
Physical Appearances

Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo Effect

Consumers perceive and evaluate multiple objects based on just one dimension

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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

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Which Concepts of Perception Are Applied in These Ads?

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The Principle Of Contrast

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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

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Perceptual Mapping

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

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Perceptual Mapping Figure 6.9

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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.

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Which Elements of This Ad Convey the Restaurants Perceptual Position and How?

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The Steak Knife and the Reference to Vegetarians Convey The Position of the Restaurant as a Well-Established Steakhouse

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Perceived Price and Perceived Quality

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

Internal External Intrinsic vs. Extrinsic Cues

Perceived Quality of Products

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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 Long-term contracts relationships with the company Price bundling that customers view as beneficial

Efficiency pricing

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

Cost-leader pricing

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Measuring Perceptions of Brand Luxury

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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
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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.)

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How Can This Ad Affect the Services Perceived Quality?

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It Uses a Process Dimension in Advertising a Newly-Formed Business Class on an Airline

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Discussion Questions

When have you used price as an indicator of quality? Were you correct?

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Which of the Ads Elements Conveys the Products Quality?

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

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Retail Store Image Brands carried Store ambiance Level of service Product assortment

Prices

Clientele

Discounts
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Manufacturers Image

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

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