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PERCEPTION AND CONSUMER BEHAVIOUR

WHAT IS CONSUMER PERCEPTION? Consumer Perception Is How The Consumer See The World Around Them. It Is Defined As The Process By Which An Individual Selects, Organises And Interprets Stimuli Into A Meaningful Picture. Needless To Say Different People Will Interpret The Stimuli Differently And Hence Will Have Varying Perceptions Of The Stimuli Received By Them. Stimuli Are Received Through Eyes, Ears, Nose, Mouth And Skin. These Stimuli Are Sorted Out By The Brain And Stored As Information. The Receiver Applies His Own Logic, Previous Experience, If Any And Memory. Everything That Surrounds The Individual Is The Perception Of The Individual And Will Vary From Individual To Individual. Perceptions Are Formed By Individuals All The Time And Are Stored Away For Future References And Will Come Into Play When The Individual Has To Take Any Consumption Decision.

The Three Aspects Of Perception Formation Are:


Selection Organisation Interpretation Selection Selective ExposurePay Attention Only If Information Conforms To Your Interest At That Moment. Discard Communication That Is Not Consistent With The Individual's Values, Needs, Interests And Beliefs. Selective DistortionAdmit Information That May Be Inconsistent Or Conflicts With Your Feelings. E.G. Chinese Products. OR AKAI, TCL, Admit Low Cost And Distort.

Selective PerceptionRemember What You Want To Remember

ALL STIMULI DO NOT REGISTER . IN FACT, MOST STIMULI DO NOT REGISTER IN THE CONSUMERS MIND.
Non--Registration of a given stimulus is caused by Monotony and Constancy. Even if the stimulus increases or decreases, the change differential may not be noticed as the increase/decrease may not be substantial. Shut out or rejection may also result on account of exposure to overdose of any sensation for a length of time. E.g. Not noticing an oft repeated commercial or advertisement. Over-exposure may also result in formation of unfavourable perception.

PROCESS OF PERCEPTION

1.Infinite Number Of Messages 2.Select Certain Stimuli 3.Filter The Selected Stimuli Accept Or Reject 4. Amplify Accepted Stimuli for Forming Perception 5. Store the Perception for Future Recall
MARKETERS CONCERN IS TO MAKE CONSUMERS FORM POSITIVE AND FAVOURABLE PERCEPTION ABOUT THE COMPANY AND ITS PRODUCTS

OVERCOMING SHUT-OFF
In The Case Of Print Media, Do Not Keep On Repeating Adverts. Form A Series. This May Be Repeated Or Recycled. Keep On Injecting Variety Size, Colour, Position, Contrast And Even The Content Of Message. In Case Of Audio Media, Like Radios, Prelude Or Close With Varied Jingles, Male/Female Voice Alteration. In Case Of Video Advertising, Variation Is Recommended Although This May Cost More. Do Not Repeat The Same Commercial Too Often In A Given Time Frame. Repetition May Lead To Negative Feelings. The Exposure Should Be Over A Minimum Threshold To Be Effective And To Register. Make Sure Your Advert Does Not Get Lost In A Maze Of Commercials. Offer Incentives For Watching Commercials And For Recall By Consumers. Use Humour. However, Humour Based Are Prone To Become Stale And Unsuitable For Repeated Viewing. A Joke Is Not Funny If Told Over And Over Again. Four To Five Variations Are Necessary. E. G. Pidilite

WEBERS LAW OF JUST NOTICEABLE DIFFERENCEJ.N.D.


Stronger the Initial stimulus, the greater is the additional intensity needed for the second stimulus if it has to be noticed as different. When a person receives two stimuli in succession, the second stimulus may not be noticed at all, unless it has a minimal difference in intensity compared to the first. The minimal difference needed for notice is called the Just Noticeable DifferenceJ.N. D. J.N.D. Is not an absolute amount but is a function of the strength of the first stimulus. Webers Law of J.N.D. does not only apply to the Price-Value Perceptions to several parameters such a Quality, Quantity, Benefits

APPLYING WEBER'S LAW TO MARKETING SITUATIONS


1. Never To Jump To Be The First To Increase Prices Unless You Are The Undisputed Market Leader With A Substantial Market Share. 2. Do Not Increase Prices Across The Board. 3. Reduce Quantity Or Size Below The Jnd. 4. Increase Prices And Add Quantity. 5. Do Not Reduce The Size Of The Medu Wada, Increase The Size Of The Hole Below Jnd. 6. Be Discrete About Timing Of The Price Increase. 7. If Price Increase >Jnd, Provide An Explanation To Precede Price Increase>project Openness To Retain Goodwill. 8. Club Price Increase With Improved Quality To Nullify Reaction To Price Increase. 9. Give Improved Product At The Same Price. E.G. Bisleri Giving 200 Ml. Extra At 1000 Ml. Price. 10. Weak Stimuli Can Also Effect Change In Perception. E.G. Whispering A Message. Low Amplitude Audio Message. A Black And White Movie Or A Black And White Advert. Hidden Imagery, Flashed Visual Messages

RISKS PERCEIVED BY CONSUMERS

Functional Risk
Consumers Concernwhat If The Product Does Not Perform As Claimed. Marketers Responseoffer Free Samples For Trial In Case Of Fmcg,, Test Drives For Automobiles, Demonstrations For Consumer Durables. Financial Risk Consumers Concernam I Paying A Higher Price Than Necessary? Marketers Responseoffer And Provide Value Comparisons. Use Comparative Advertising. Effort And Time Risks Consumers Concernwhat Will Be The Loss If The Product Fails After A Time? Marketers ResponseOffer extended warranties/Guarantees. Money back Promises, Replacement promises. Maintenance Contracts

BRAND PERCEPTIONS
Brand Perceptions Are Thoughts, Feelings And Ideas Associated With A Brand Product Or Service Initially, Buyers Have No Perception Of Any Brand. At One Point All Brands Are Novel To The Consumers Perceptions Are Built Over A Period Of Time By:
Differences In Product Features Different Associations Created By Advertising And Product Design. E.g. Fiama Di Wills And Deepika Padukone. Vaio And Kareena Kapoor, Asian Paints And Saif Ali Khan. Different And Varied Usesarm And Hammer Baking Soda These contribute to different conclusions about an brand.

BRAND PERCEPTIONS--CONTD

MONTBLANC PENS Consumer perception is


Luxury Prestige Class Elitism Beautiful Design This perception may be due to price, Design, People using it, Channel of Distribution

BRAND PERCEPTIONS--CONTD

VOLVO CARS
CONSUMER PERCEPTION SAFE BOXY LACK OF STYLE UNEXCITING DEPENDABLE BORING PERCEPTIONS MAY BE VIEWED POSITIVELY OR NEGATIVELY

BRAND PERCEPTIONS--CONTD
Even If Brands Have Similar Association, Differences Between Brands Exist In Mind Of Buyers Due To Differences In Vividness Of Brand Associations. FOR EXAMPLESLEVIS and LEE JEANS SIMILARITIES BOTH THE BRANDS ARE CONSIDERED TO BE: RUGGED AMERICAN SIMILARLY DESIGNED AND PRICED ASSOCIATED WITH THE AMERICAN WEST HOWEVER, LEVIS IS PERCEIVED AS A SYMBOL OGF YOUTH, INDEPENDENCE,REBELLIOUS, AUTHENTIC. THESE DIFFERENCES FAVOUR LEVIS IN A COMPETITIVE SITUATION.

PERCEPTUAL DISTINCTIVENESS Pioneering Products Generally Acquire The Distinctivenesse.G. Gillette, Apple, Walkman, Xerox, IBM, Aspirin. Brands Become Synonyms For A Product Categoryfevicol, Bisleri, I-pod. This Accrues Competitive Advantage. Pioneering Products Have A Greater Recall. Pioneering Product Is Considered More Frequently By Buyers And Chosen More Often Than The Others Even If It Has No Inherent And Obvious Advantages. A Pioneer Is More Memorable, Possibly More Trusted, Considered More Robust And Reliable And Has A Much Easier Recall.

CUSTOMER VALUE
CUSTOMER VALUE IS DEFINED AS THE PERCEIVED WORTH IN MONETARY UNITS OF THE SET OF VALUES Economic Functional/Technical Psychological Benefits Received By The Consumer In Exchange For The Price Paid For As Product/ Service Offering Taking Into Consideration The Available Competitive Offering And Prices Customer value is Perceptual, Multidimensional and Contextual. ECONOMIC VALUE Ratio of Perceived Quality or benefits Price If The Denominator Is Lower And Perceived Benefits Are Identical, Lower Priced Product Will Be Chosen. This Is Also Called The FISHBEIN MODEL Of Buyer Behaviour. E.G. Nirma, Low Cost Carriers, Some Soaps, Vegetables, Fruits. Products with numerous substitutes Lexus and American Luxury cars at the time of Introduction of Lexus by Toyota.

CUSTOMER VALUECONTD.
TECHNICAL/FUNCTIONAL VALUE Due To Special Perceived Features And Application Of Products, Consumer Is Likely To Pay A Higher Price For example:
GILLETTE RAZORS

APPLE COMPUTERS
I PODS/I PHONES FROST FREE RFERIGERATORS POWER STEERING FOR CARS

CUSTOMER VALUECONTD.
PSYCHOLOGICAL VALUE Driven by Intangibles Such as:
Brand Name Trust Relationships Reputation References Customers seeking these benefits care about total satisfaction and peace of mind. For Example
SONY, IBM, APPLE, LEXUS,GILLETTE

These reduce Customers Overall Costs Make Purchasing experience pleasant Increase Switching Costs Develop Loyalty Retain Customers