Module 2

Consumer Perception
Meaning
- Process by which an individual selects, organizes, and interprets
stimuli into a meaningful & coherent picture of the world.
- Depends on individual’s needs, values, & expectations.
Elements of Perception
- Sensation
• Immediate & direct response of the sensory organs to simple stimuli.
• Sensory input > Stimulus
• Sensory receptors > Human organs
- Absolute Threshold
• Lowest level at which an individual can experience a sensation.
• Difference between ‘something’ & ‘nothing’.

- Sensory Adaptation
- Differential Threshold or j.n.d.
• So that negative changes are not noticeable easily.
• So that product improvements are given prominence.
Elements of Perception
- Subliminal Perception
• Stimulated below conscious level
• Stimuli are too weak or too brief
• No proof of being influential in persuading consumer to purchase

- Supraliminal Perception
• Stimulated above conscious level
 Dynamics of Perception
 Two types of inputs
1. Physical stimuli – external environment
1. Predispositions – previous experience

 Perceptual Selection
• Depends on: • Important concepts
i. Previous experience a. Selective Exposure
i. Motives at time a. Selective Attention
• Nature of the Stimulus a. Perceptual Defense
• Expectations a. Perceptual Blocking
• Motives
Dynamics of Perception
 Perceptual Organization
1. Figure & Ground
1. Grouping
1. Closure – Zeigernik effect

 Perceptual Interpretation
• Distorting Influences
a. Physical Appearances
a. Stereotypes
a. Irrelevant Cues
a. First Impressions
a. Jumping to Conclusions
a. Halo Effect
Consumer Imagery
 Product Positioning & Repositioning
1. Perceptual
1. Repositioning
1. Perceptual mapping
 Positioning of Services
 Perceived Price
1. Reference Price
1. Tensile & objective Price
 Perceived Quality
1. Price / Quality Relationship
 Retail Store Image
 Manufacturers’ Image
Consumer Imagery
 Perceived Risk
• The uncertainty that consumers face when they cannot foresee
the consequences of their purchase decisions.

• Types of Perceived Risk

1. Functional Risk
1. Physical Risk
1. Financial Risk
1. Social Risk
1. Psychological Risk
1. Time Risk
• Perception of Risk Varies
• High-risk perceivers – ‘narrow categorizers’
• Low-risk perceivers – ‘broad categorizers’
Consumer Imagery
• How Consumers Handle Risk
1. Consumers seek Information
1. Consumers are Brand Loyal
1. Consumers select by Brand Image
1. Consumers rely on Store Image
1. Consumers buy the Most Expensive Model
1. Consumers seek Reassurance