Consumer Perception

1. Vice is a monster of so frightful mien, As to be hated needs but to be seen; Yet seen too oft, familiar with her face, we first endure, then pity, then embrace --Alexander Pope

2. Consumer Perception CHAPTER SIX

3. Learning Objectives • 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. Chapter Six Slide

4. 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 Chapter Six Slide

5. 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. Chapter Six Slide

6. Absolute Thresholds

7. Differential Threshold (Just Noticeable Difference – j.n.d.) • Minimal difference that can be detected between two similar stimuli • 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 • The stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different. Chapter Six Slide

8. 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 Chapter Six Slide

9. Discussion Question • How might a cereal manufacturer such as Kellogg’s use the j.n.d. for Frosted Flakes in terms of: • Product decisions • Packaging decisions • Advertising decisions • Sales promotion decisions Chapter Six Slide

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

11. Aspects of Perception Chapter Six Slide

12. Perceptual Selection Selection Depends Upon: Chapter Six Slide

13. Why Are ConsumersLikely to Notice This Ad? Chapter Six Slide

14. 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? Chapter Six Slide

15. Perceptual SelectionImportant Concepts Chapter Six Slide

16. Figure and ground Grouping Closure People tend to organize perceptions into figure-and-ground relationships. The ground is usually hazy. Marketers usually design so the figure is the noticed stimuli. Organization Principles Chapter Six Slide

17. Figure and ground Grouping Closure People group stimuli to form a unified impression or concept. Grouping helps memory and recall. Organization Principles Chapter Six Slide

18. 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 Organization Principles Chapter Six Slide

19. What Element of Perceptual Organization Is Featured in This Ad? Chapter Six Slide

20. Closure Chapter Six Slide

21. Discussion Question • Do you agree you remember more of what you have NOT completed? • How might a local bank use this in their advertising? Chapter Six Slide

22. People hold meanings related to stimuli Interpretation Chapter Six Slide

23. Positive attributes of people they know to those who resemble them Important for model selection Interpretation Chapter Six Slide

24. Verbal messages reflect stereotypes Interpretation Chapter Six Slide

25. How Does This AdDepict Perceptual Interpretation? Chapter Six Slide

26. It Contrasts the Powerful Durango with Less Rugged Referred to in the Ad as the “Land Of Tofu.” Chapter Six Slide

27. First impressions are lasting The perceiver is trying to determine which stimuli are relevant, important, or predictive Interpretation Chapter Six Slide

28. Consumers perceive and evaluate multiple objects based on just one dimension Interpretation Chapter Six Slide

29. Product Positioning • Establishing a specific image for a brand in the consumer’s 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 Chapter Six Slide

30. Which Concepts of Perception Are Applied in These Ads? Chapter Six Slide

31. The Principle Of Contrast Chapter Six Slide

32. 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 Chapter Six Slide

33. Perceptual Mapping • An analytical technique that enables marketers to plot graphically consumers’ perceptions concerning product attributes of specific brands Chapter Six Slide

34. Perceptual Mapping Figure 6.9 Chapter Six Slide

35. 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. Chapter Six Slide

36. Which Elements of This Ad Convey the Restaurant’s Perceptual Position and How? Chapter Six Slide

37. The Steak Knife and the Reference to Vegetarians Convey The Position of the Restaurant as a Well-Established Steakhouse Chapter Six Slide

38. Perceived Price and Perceived Quality • Reference prices – used as a basis for comparison in judging another price • Internal • External • Perceived Quality of Products • Intrinsic vs. Extrinsic Cues Chapter Six Slide

39. Three Pricing Strategies Focused on Perceived Value - Table 6.4 39 Chapter Six Slide

40. Measuring Perceptions of Brand Luxury Chapter Six Slide

41. 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 Chapter Six Slide

42. 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.) Chapter Six Slide

43. How Can This Ad Affect the Service’s Perceived Quality? Chapter Six Slide

44. It Uses a Process Dimension in Advertising a Newly-Formed Business Class on an Airline Chapter Six Slide

45. Discussion Questions • When have you used price as an indicator of quality? • Were you correct? Chapter Six Slide

46. Which of the Ad’s Elements Conveys the Product’s Quality? Chapter Six Slide

47. The Slogan on the Ad’s Bottom Left Reads “Perfection Has Its Price” Chapter Six Slide

48. Retail Store Image Chapter Six Slide

49. Manufacturer’s Image • Favorable image tied to new product acceptance • Companies sponsor community events to enhance images • Product and institutional images Chapter Six Slide

50. 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 • Social Risk • Psychological Risk • Time Risk Chapter Six Slide