Chapter 6

Consumer Perception

Consumer Behavior,Consumer Behavior,99thth Edition Edition

SCHIFFMAN & KANUK

What do you see?

What do you see now?

What colour comes to mind?

What’s in the picture?

So….what then is perception?

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

• How we see the world around us

Elements of Perception

• Sensation• Absolute threshold• Differential threshold• Subliminal perception

Sensation

The immediate and direct response of the sensory

organs to stimuli.

A perfectly unchanging environment provides little

to no sensation at all!

As sensory input decreases, our ability to detect changes in input or intensity increases.

Absolute Threshold

The lowest level at which an individual can experience a sensation.

The point at which a person can detect a difference between something and nothing

Sensory Adaptation• As our exposure to stimulus increases, we

notice it less.• Factors leading to adaptation:– Intensity, duration, discrimination, exposure,

relevance

• Promotional methods aimed at increasing sensory input:– Experiential marketing, Sophisticated scented ads,

inserts and pop-ups, ambush advertising, Product placement

Increased Sensory Input increased intensity

Increased Sensory Input3D/digital billboard

Stimulus Factors

• Size

• Intensity

• Attractive visuals

• Color and movement

• Position

• Isolation

• Format

• Contrast & expectations

• Remarkability

• Information Quantity

Differential Threshold

The minimal differences that can be detected between two similar stimuli

Weber’s Law

A theory concerning the perceived differentiation

between similar stimuli of varying intensities (i.e., the stronger the initial stimulus,

the greater the additional intensity needed for the second stimulus to be

perceived as different).

Marketing Applications of the JND

• 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

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

Changes in Brand Name Fall Below the

J.N.D.

Subliminal Perception

Perception of very weak or rapid stimuli received below the level of conscious

awareness.

Subliminal Perception

• 1957: Drive-In Movie Theater• 1974: Publication of Subliminal Seduction• 1990s: Allegations against Disney

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

Aspects of Perception

Selection

Organization

Interpretation

Perceptual Selection

• People receive only a small fraction of the stimuli to which they are exposed.

• Depends on two major factors–Consumers’ previous experience –Consumers’ motives

Concepts Concerning Selective Perception

• Selective Exposure• Selective Attention• Perceptual Defense• Perceptual Blocking

Principles of Perceptual Organization

• Referred as Gestalt psychology– Figure and ground– Grouping– Closure

Influences of Perceptual Distortion

• Stereotypes– Physical Appearances– Descriptive Terms– First Impressions– Jumping to Conclusions– Halo Effect……………………….

The iPod has had positive effects on perceptions of Apple's other products

Use of cultural habits to formulate imagery involving steriotypes associated with product category

“Safed Teeka”

Issues In Consumer Imagery

• Product Positioning and Repositioning• Positioning of Services• Perceived Price• Perceived Quality• Retail Store Image• Manufacturer Image• Perceived Risk

Using Imagery

Positioning & Repositioning

Positioning• Establishing a specific image

for a brand in relation to competing brands.

Repositioning• Involves changing the

identity of the product relative to the identity of the competing brands in the collective minds of the target market

• If a brand does not reposition at the right time , it may not get a second chance

Repositioning of Cadbury Dairy Milk

• “Kid in all of us”• “Spontaneous Joy”-

– (girl dancing in the cricket field)

• “Real Taste of Life”-– A girl is shown breaking the security barriers and entering thecricket

field to celebrate the victory of the country in the crickedmatch under the tag line “Kuch Khaas Hai Zindagi mein”. Thiscampaign went on to be awarded The Campaign of theCentury, in India at the Abby (Ad Club, Mumbai) awards.

Different Ad Campaigns by Cadbury Dairy Milk

• “Khaane Waalon Ko Khaane Ka Bahana Chahiye”• “Kuch Meetha Ho jaye”• “Pappu Paas Ho gaya”• “Radha Miss Palampur ban gaye “• “Meetha hai Khaana aaj pehli tarrekh hai”• “Is Diwali aap kise khush kar rahe hain”

– Sister tying rakhi to her brother and receiving a box of chocolates in return

• “Shubh Aaarambh”

Positioning Techniques• Umbrella

Positioning• Positioning Against

Competition• Positioning Based

on a Specific Benefit

• Conveying a Product Benefit

• Taking an Unowned Position

• Positioning for Several Positions

• Repositioning

Apple’s 1984 Ad Positions Against the Competition

Click icon to reach ad

Perceptual Mapping

A research technique that enables

marketers to plot graphically consumers’ perceptions

concerning product attributes of specific

brands.

Perceptual Mapping

Perceptual Mapping

Pricing Strategies Focused on Perceived Value

• Satisfaction-based Pricing• Relationship Pricing• Efficiency Pricing

Issues in Perceived Price

• Reference prices– Internal– External

• Tensile and objective price claims

Acquisition-Transaction Utility• Acquisition utility

represents the consumer’s perceived economic gain or loss associated with the purchase

• Function of product utility and purchase price

• Transaction utility concerns the perceived pleasure or displeasure associated with the financial aspect of the purchase

• Determined by the difference between the internal reference price and the purchase price

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

Perceived Quality

• Perceived Quality of Products– Intrinsic vs. Extrinsic Cues

• Perceived Quality of Services• Price/Quality Relationship

Price/Quality Price/Quality RelationshipRelationship

The perception of price as an indicator of product quality

(e.g., the higher the price, the higher the perceived quality of

the product).

Perceived RiskTypes• Functional Risk• Physical Risk• Financial Risk• Psychological Risk• Time Risk• Social Risk

The degree of uncertainty

perceived by the consumer as to the

consequences (outcome)

of a specific purchase decision.

How Consumers Handle Risk

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