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Consumer Perception. Consumer Perception. Perception Process via which consumers select and organize stimuli, so as to provide themselves with a meaningful and coherent view of the world More than sensing something Assigning meaning and incorporating it into their world
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Consumer Perception • Perception • Process via which consumers select and organize stimuli, so as to provide themselves with a meaningful and coherent view of the world • More than sensing something • Assigning meaning and incorporating it into their world • Part of the “Information Processing” process
Consumer Perception • Consumer’s Processing of Information • Exposure • Attention • Comprehension -- Working Memory • Acceptance • Retention -- Permanent Memory • Perception • Deals with the first two steps
Consumer Perception • Exposure Information • Consumers are exposed to virtually an infinite amount of information • Non-marketing • Marketing • Consumers self select the information for which they come into contact • Some consumers never watch CNN – will never be come into contact commercials (marketing stimuli) that run on this network
Consumer Perception • Is it difficult to achieve exposure? • What percent of individuals watching TV actually watch the commercials? • Estimates range from 20% to 80% (best guess is 41%) • Radio estimates are even slightly lower (i.e., about 40% listeners actually listen to a commercial) • How do consumers decide? • Sensation (raw sensory response to a stimulus), is needed to facilitate exposure • Must notice something before you allow exposure • P(Sensation) = f (absolute threshold) • Absolute threshold -- minimal amount of stimulus intensity necessary for sensation to occur • j.n.d. -- smallest amount of a change required to allow the C to notice • Examples -- sales prices, price increases
Consumer Perception • Weber’s Law • Ability to note a change in a stimulus, depends on its initial level • Example: • $500 increase in the price of a car • $500 increase in the price of a personal computer • P (notice a stimulus change) = Change in stimulus /Initial level of stimulus
Consumer Perception • Attention • Definition -- allocation of processing capacity to an incoming stimulus • Dimensions • Direction -- object of focus • Intensity -- amount of capacity • Importance -- Use of humor (or emotion) in an ad • C’s may be intense, but be directed to the emotion (“Mikey”)
Consumer Perception • Attention • Ad Clutter -- Even when forced to focus on ads, C’s best remember first & last ads in a pod, well; best remember stand alone ads • Does attention guarantee success? • Shadowing experiment results – say not necessarily • C’s could tell that human’s were talking • C’s could detect male and/or female voice • C’s could not tell the content of the message • Key is not to tradeoff direction for intensity
Consumer Perception • Application – Perceived Risk • Consumers assessment of potential consequences which may result from the purchase or usage of a product or service • PR = f (Uncertainty, Consequences) • Why do Cs perceive risk? • Limited experience • Limited knowledge • Past dissatisfaction
Consumer Perception • Application – Perceived Risk • Types of Perceived Risk • Functional • Physical • Financial • Social Psychological • Even if unwarranted, Marketers must deal with it • Belgium’s scare with Coca-Cola