Consumers Perception

Session objective
 Elements of Perception
 Aspects of Perception
 Selection
 Organization
 Interpretation
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

Sketchers
Marketing Stimuli
 Primary/Intrinsic-Phy prop,
package & contents
 Secondary/Extrinsic-Represent the
product through symbol,
words,picture.
Stimulus affecting the
perception
 Sight-color perception
 Taste e.g Pepsi
 Smell- car purchase
 Sound
 Feel
Consumer characteristics
affecting Perception
 Ability to discriminate between the
two stimulus
 Propensity to generalize from one
stimulus to another
Elements of Perception
 Sensation
 Absolute threshold
 Differential threshold
 Subliminal perception
Sensation
 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.e.g
difference in coffee taste
Differential Threshold
 Minimal difference that can be
detected between two similar
stimuli
 Also known as the just noticeable
difference (the j.n.d.)
Weber’s Law
 The j.n.d. between two stimuli is not an
absolute amount but an amount
relative to the intensity of the first
stimulus
 Weber’s law states that the stronger
the initial stimulus, the greater the
additional intensity needed for the
second stimulus to be perceived as
different.
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
Discussion Question
 How might a cereal manufacturer
such as Kellogg’s use the j.n.d. for
Fruit Loops in terms of:
 Product decisions
 Packaging decisions
 Advertising decisions
 Sales promotion decisions.
Subliminal Perception
 Stimuli that are too weak or too
brief to be consciously seen or
heard may be strong enough to be
perceived by one or more receptor
cells.”Eat popcorn & drink Coca
Cola”
Aspects of Perception

Selection

Organization

Interpretation
Aspects of Perception

Selection

Organization

Interpretation
Perceptual Selection
 Consumers subconsciously are selective as to
what they perceive.
 Stimuli selected depends on two major factors
 Consumers’ previous experience
 Consumers’ motives
 Selection depends on the
 Nature of the stimulus-Physical attributes
 Expectations
 Motives
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?
 Perceptual Selection
Concepts

 Selective  Consumers seek

Exposure out messages
 Selective which:
Attention
 Are pleasant
 They can
 Perceptual sympathize
Defense  Reassure them of
 Perceptual good purchases
Blocking
 Perceptual Selection
Concepts

 Selective  Heightened
Exposure awareness when
 Selective stimuli meet their
Attention needs
 Perceptual
 Consumers prefer
different messages
Defense
and medium
 Perceptual
Blocking
 Perceptual Selection
Concepts

 Selective  Screening out of

Exposure stimuli which are
 Selective threatening
Attention
 Perceptual
Defense
 Perceptual
Blocking
 Perceptual Selection
Concepts

 Selective  Consumers avoid

Exposure being bombarded
 Selective by:
Attention
 Tuning out
 TiVo
 Perceptual
Defense
 Perceptual
Blocking
Aspects of Perception

Selection

Organization

Interpretation
 Organization
Principles

 Figure and  People tend to

ground organize perceptions
 Grouping into figure-and-
 Closure ground relationships.
 The ground is usually
hazy.
 Marketers usually
design so the figure is
the noticed stimuli.
 Organization
Principles

 Figure and  People group

ground stimuli to form a
 Grouping unified impression
 Closure or concept.
 Grouping helps
memory and recall.
 Organization
Principles

 Figure and  People have a need

ground for closure and
 Grouping organize perceptions
 Closure to form a complete
picture.
 Will often fill in
missing pieces
 Incomplete messages
remembered more
Discussion Question
 Do you agree you remember more
of what you have NOT completed?
 How might a local bank use this in
their advertising?
Aspects of Perception

Selection

Organization

Interpretation
 Interpretation
Perceptual Distortion

 Physical  Positive attributes

Appearances of people they
 Stereotypes know to those who
 First resemble them
Impressions
 Important for
model selection
 Jumping to  Attractive models
Conclusions are more
 Halo Effect persuasive for
 Interpretation
Perceptual Distortion

 Physical  People hold

Appearances meanings related
 Stereotypes to stimuli
 First
 Stereotypes
Impressions influence how
stimuli are
 Jumping to perceived
Conclusions
 Halo Effect
 Interpretation
Perceptual Distortion

 Physical  First impressions

Appearances are lasting
 Stereotypes  The perceiver is
 First trying to determine
Impressions which stimuli are
relevant, important,
 Jumping to or predictive
Conclusions
 Halo Effect
 Interpretation
Perceptual Distortion

 Physical  People tend not to

Appearances listen to all the
 Stereotypes information before
 First making conclusion
Impressions
 Important to put
persuasive
 Jumping to arguments first in
Conclusions advertising
 Halo Effect
 Interpretation
Perceptual Distortion

 Physical  Consumers perceive

Appearances and evaluate multiple
 Stereotypes objects based on just
 First one dimension
Impressions
 Used in licensing of
names
 Jumping to  Important with
Conclusions spokesperson choice
 Halo Effect
The halo effect
helps Adidas
break into
new product
categories.
Issues in Consumer Imagery
 Product Positioning and Repositioning
 Positioning of Services e.g Fed Ex
 Perceived Price
 Perceived Quality
 Retail Store Image
 Manufacturer Image
 Perceived Risk
Positioning
 Establishing a specific image for a
brand in the consumer’s mind
 Product is positioned in relation to
competing brands
 Conveys the concept, or meaning, of
the product in terms of how it fulfills
a consumer need
 Result of successful positioning is a
distinctive, positive brand image
Positioning Techniques
 Umbrella Positioning  Finding an
 Positioning against “Unowned”
Competition Position
 Positioning Based on a
Specific Benefit e.g
 Filling Several
Gillette hair shampoo Positions
for oily hair  Repositioning
 Perceptual
mapping
Perceptual Mapping
 A research technique that enables
marketers to plot graphically
consumers’ perceptions
concerning product attributes of
specific brands.
Issues in Perceived Price
 Reference prices – used as a basis
for comparison in judging another
price
 Internal
 External
 One study offers three types of
pricing strategies based on
perception of value.
Three Pricing Strategies
Focused on Perceived Value
Pricing Strategy Provides Value By… Implemented As…

Satisfaction-based Recognizing and reducing Service guarantees

pricing customers’ perceptions of Benefit-driven pricing
uncertainly, which the intangible Flat-rate pricing
nature of services magnifies

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 Cost-leader pricing.
savings that the company has
achieved by understanding,
managing, and reducing the
costs of providing the service
Perceived Quality
 Perceived Quality of Products
 Intrinsic vs. Extrinsic Cues
 Perceived Quality of Services-
through Extrinsic cues. SERVQUAL
Model
 Price/Quality Relationship
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
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.)
Perceived Risk
 The degree of uncertainty perceived by the
consumer as to the consequences (outcome) of a
specific purchase decision
 Types
 Functional Risk
 Physical Risk
 Financial Risk
 Psychological Risk
 Time Risk
How Consumers Handle Risk
 Seek Information
 Stay Brand Loyal
 Select by Brand Image
 Rely on Store Image
 Buy the Most Expensive Model
 Seek Reassurance
 A learned
predisposition to
behave in a
consistently
Attitudes
favorable or
unfavorable manner
with respect to a
given object.
What are Attitudes?
 The attitude “object”
 Attitudes are a learned
predisposition
 Attitudes have consistency
 Attitudes occur within a situation
Salads To
Differentia
te Itself
 A learned
predisposition to
behave in a
consistently
Attitudes
favorable or
unfavorable manner
with respect to a
given object.
What are Attitudes?
 The attitude “object”
 Attitudes are a learned
predisposition
 Attitudes have consistency
 Attitudes occur within a situation
Structural Models of
Attitudes
 Tricomponent Attitude Model
 Muliattribute Attitude Model
 The Trying-to-Consume Model
 Attitude-toward-the-Ad Model
A Simple Representation of the
Tricomponent Attitude Model

Conation

Affect
Cognition
 The Tricomponent Model
 Cognitive Component
 The knowledge and perceptions that are acquired by a

combination of direct experience with the attitude object

and related information from various sources.e.g
product attributes & benefits (Brand Beliefs)
 Affective Component
 A consumer’s emotions or feelings about a particular

product or brand.(Brand Evaluation)

 Conative Component
 The likelihood or tendency that an individual will

undertake a specific action or behave in a particular way

with regard to the attitude object.(Brand Interpretation)
 Attitude models that
examine the
Multiattribute composition of
Attitude consumer attitudes
Models in terms of selected
product attributes or
beliefs.
 Multiattribute Attitude
Models
 The attitude-toward-object model
 Attitude is function of evaluation of product-specific

beliefs and evaluations The attitude-toward-

behavior model
 Is the attitude toward behaving or acting with respect to

an object, rather than the attitude toward the object

itselfe.g purchasing of expensive Rolex watches
 Theory-of-reasoned-action model
 A comprehensive, integrative model of attitudes for

better explanation & better prediction of behavior

 A model that proposes
that a consumer’s
attitude toward a
specific behavior is a
Attitude-
function of how
Toward-
strongly he or she
Behavior
believes that the action
Model
will lead to a specific
outcome (either
favorable or
unfavorable).
 A comprehensive theory
Theory of of the interrelationship
Reasoned among
Action attitudes,intentions, and
behavior.
Theory of Reasoned Action
 Expanded model says-
 Subjective norms-Assessment of
consumers feelings as to what relevant
others (family, friends, coworkers etc) would
think of the action being anticipated
 Normative beliefs-Individuals attributes to
relevant others as well as the individuals
motivation to comply with each of the
relevant others
 An attitude theory
designed to account
for the many cases
Theory of where the action or
Trying to outcome is not certain
Consume but instead reflects
the consumer’s
attempt to consume
(or purchase).
 A model that proposes
that a consumer forms
various feelings (affects)
Attitude- and judgments
Toward- (cognitions) as the result
the-Ad of exposure to an
Model advertisement, which, in
turn, affect the consumer’s
attitude toward the ad and
attitude toward the brand.
A Conception of the Relationship among
Elements in an Attitude-Toward-the-Ad
Model

Exposure to an Ad

Judgments about Feelings from the

the Ad (Cognition) Ad (Affect)

Beliefs about the Attitude toward

Brand the Ad

Attitude toward
the Brand
Issues in Attitude
Formation
 How attitudes are learned-
repeated satisfaction
 Sources of influence on attitude
formation-Direct marketing, mass
media, Internet
Four Basic Attitude
Functions
 The Utilitarian Function e.g
Reebok shoes
 The Ego-defensive Function
 The Value-expressive
Function
 The Knowledge Function
Is it a
Utilitarian
Appeal?
Is the lady
Uses Ego
Defensive
Appeal?
what
attitude
function
this man is
showing?
Is it a
A
Knowledge
Appeal?
Contd
 Thank You For listening me
patiently.