Consumer Perception

6-1

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

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Elements of Perception

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Sensation
Absolute threshold
Differential threshold
Subliminal perception

The immediate and

direct response of the
sensory organs to
stimuli.
Sensation
A perfectly unchanging
environment provides
little to no sensation at
all!
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Absolute
Threshold

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The lowest level at

which an individual can
experience a sensation
is called the absolute
threshold.
The point at which a
person can detect a
difference between
something and nothing

Example
The distance at which a driver can note a specific
billboard on a highway is that individuals
absolute threshold.

Two people riding together may first spot the

billboard at different times (at different distances

thus, they appear to have different absolute

threshold.)
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Differential
Threshold

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The minimal difference

that can be detected
between two similar
stimuli is called the
differential threshold. It
is also called Just
Noticeable Difference
(J.N.D.)

Webers
Law

6-8

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

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Gradual Changes in
Brand Name Fall
Below the J.N.D.

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Subliminal
Perception

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

More.
Perception of stimuli that are above the

level of conscious awareness technically is

called supraliminal perception.

6-12

Subliminal Perception
1957: Drive-In Movie Theater
(Eat Pop corns and drink coca cola)
1974: Publication of Subliminal Seduction
1990s: Allegations against Disney

6-13

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

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Aspects of Perception
Selection
Organization
Interpretation

6-15

Perceptual Selection
Consumers subconsciously exercise a great
deal of selectivity as to which aspect of the
environment (which stimuli) they perceive.
An individual may look at some things,
ignore the others, and turn away from still
others.

6-16

Perceptual Selection
Depends on two major factors
Consumers previous experience
(What they are prepared or set to see)

Consumers motives
(needs, desires, interests and so on)

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Determinants of Perceptual Selection

Nature of Stimuli:
Marketing stimuli include an enormous number
of variable that affect the consumers
perception, such as: package design, the brand
name, the advertisements and commercials, the
position of a print ad or a commercial etc.

6-18

Cont
Expectations:
People usually see what they expect to see, and
what they expect to see is usually based on
familiarity,
previous
experience,
or
preconditioned set of expectations.
In a marketing context people tend to perceive
the products and product attributes according to
their own expectations.
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Example
A student who has been told by his friends that a
particular professor is interesting and dynamic will
probably perceive the processor in that manner
when the class begins.

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 Motives:
People tend to perceive the things they need or
want; the stronger the need, the greater the
tendency to ignore unrelated stimuli in the
environment.
A person who is looking for a new cell phone
provider is more likely to notice and read
carefully the ads for deals and special offers
regarding the same.

6-21

Selective Perception
Consumers

selection

of

stimuli

from

the

environment is based on the interaction of

expectations and motives with the stimulus itself.
These factors give rise to four important concepts
concerning perception.

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Concepts Concerning Selective

Perception
Selective Exposure
Selective Attention
Perceptual Defense
Perceptual Blocking

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 Selective Exposure:
Consumers actively seek out messages that they
find pleasant or with which they are
sympathetic, and they actively avoid painful or
threatening ones.
They also selectively expose themselves to the
advertisements.

6-24

 Selective Attention:
Consumers are likely to note ads for products
that would satisfy their needs and disregard
those in which they have no interest.
People also vary in terms of the kinds of
information in which they are interested and the
form of message and type of medium they
prefer.
Some people like complex, sophisticated
messages; others like simple graphics.

6-25

Cont.
Perceptual Defense:
Consumers subconsciously screen out stimuli
that they find psychologically threatening, even
though exposure has already taken place.
e.g Most of the smokers no longer pay attention
to the written warning labels on cigarette packs.

6-26

 Perceptual Blocking:
Consumers protect themselves from being
bombarded with stimuli by simply turning
out blocking such stimuli from conscious
awareness.
Zipping Channels, Just turning out the pages
without even having a look at it.

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Principles of Perceptual
Organization
Figure and ground
Grouping
Closure

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Figure and Ground

The figure is perceived more clearly
because, in contrast to its ground, it appears
to be well defined, solid, and forefront. The
ground is usually perceived as indefinite,
hazy, and continuous.
Examples: branded entertainment. Where Film or
TV show is the ground and Advertised product is
the figure.
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Still from Hasil advertising Pepsi

Still from Hasil advertising Pepsi

Fortis
Hospital

3 Idiots

Grouping
Individuals tend to group stimuli so that they
form a unified picture or impression. The
perception of stimuli as groups or chunks of
information, rather than as discrete bits of
information, facilitates their memory and

recall.

Example
An advertisement for tea may show a young
man and woman sipping tea in a beautifully
appointed room before a blazing hearth.
The overall mood implied by the grouping of
stimuli leads the consumer to associate the
drinking of tea with romance, fine living and
winter warmth.

Closure
Individuals have a need for closure. They
express this need by organizing their
perceptions so that they form a complete
picture.
If the pattern of the stimuli to which they are
exposed is incomplete, they tend to perceive
it, nevertheless, as complete; They
consciously or subconsciously fill the missing
pieces.

Perceptual Interpretations
Stereotypes

6-36

Physical Appearances
Descriptive Terms
First Impressions
Halo Effect

Stereotypes
Individuals tend to carry biased pictures in
their minds of the meanings of various
stimuli, which are termed stereotypes.

- The main factor that can trigger stereotypes

are physical appearances, descriptive terms,
first impressions and halo effect.
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Physical Appearances
Attractive men are perceived as more
successful businessmen than averagelooking men.

The physical appearance of products often

influences consumers judgment.

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Descriptive Terms
Stereotypes are often reflected in verbal
messages. Eg. Consumers who eat foods
with elaborate names such as succulent
Italian seafood filet are very likely to rate
those foods as more tasty and appealing
than those who eat the same foods with
such regular names as seafood filet

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First Impression
Youll never have a second chance to make
a first impression
In marketing stimuli, it is very difficult to
revert the first impression with which your
viewers have been exposed.

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Halo Effect
Halo effect has been used to describe
situations in which the evaluation of a
single object or person or a multitude of
dimensions is based on the evaluation of
just one or a few dimensions.
e. g: A man is trustworthy, fine and noble
because he looks you in the eyes when he
speaks.
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Issues In Consumer Imagery

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Product Positioning and Repositioning

Positioning of Services
Perceived Price
Perceived Quality
Retail Store Image
Manufacturer Image
Perceived Risk

Positioning

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Establishing a
specific image for a
brand in relation to
competing brands.

Positioning
Positioning is not what you do with your

product; it is what you do with the minds of

the consumers.
Jack Trout and Al Rise

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Positioning Techniques
Top of the Range
Upper Class, status, prestigious, posh

Services
Impressive service, personal attention, consider people as
important, friendly service.

Value for Money

Reasonable price, value for money, affordability

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Cont
Reliability
Durability, warranty, safety, reliability

Attractive
Good Aesthetics, attractive, cool, elegant

Country of origin
Patriotism, country of Origin, youth market

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Cont
The Brand Name
The brand name, leaders in the market, extra
features, choice, wide range, expensive.

Selectivity
Discriminatory, selective in the choice of
customers, high principles

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Perceptual
Mapping

6-48

A research technique
that enables
marketers to plot
graphically
consumers
perceptions
concerning product
attributes of specific
brands.

Figure 6.14 Perceptual Mapping

Fashion Coverage
Fashion
Splash

More
Copy

More
Artwork
Crash
Bash
Splash

6-49

Club Coverage

Table 6.2 Pricing Strategies

Focused on Perceived Value
Satisfaction-based Pricing
Relationship Pricing
Efficiency Pricing

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Issues in Perceived Price

Reference prices
Internal
External

Tensile and objective price claims

6-51

Acquisition-Transaction Utility
Acquisition utility
represents the
consumers perceived
economic gain or loss
associated with the
purchase
Function of product
utility and purchase
price
6-52

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
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Perceived Quality
Perceived Quality of Products
Intrinsic vs. Extrinsic Cues

Perceived Quality of Services

Price/Quality Relationship

6-54

Characteristics of Services
Intangible
Variable

6-55

Perishable
Simultaneously
Produced and
Consumed

Table 6.3 SERVQUAL Dimensions for

Measuring Service Quality
DIMENSION

Tangibles

DESCRIPTION

Appearance of physical facilities, equipment,

personnel, and communication materials
Reliability
Ability to perform the promised service
dependably and accurately
Responsiveness Willingness to help customers and provide
prompt service
Assurance
Knowledge and courtesy of employees and
their ability to convey trust and confidence
Empathy
Caring, individualized attention the firm
provides its customers
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Figure 6.16 Conceptual Model of the

Consequences of Service Quality
Service
Quality

Behavioral
Intentions

Superior

Favorable

Remain

Behavior

Inferior

Unfavorable

Focus of present study

6-57

Empirical links demonstrated in macro studies

Defect

+$
Ongoing Revenue
Increased Spending
Price Premium
Referred Customers
Financial
Consequences
-$
Decreased Spending
Lost Customers
Costs to Attract
New Customers

Price/Quality
Relationship

6-58

The perception of
price as an indicator
of product quality
(e.g., the higher the
price, the higher the
perceived quality of
the product).

Figure 6.17 Conceptual Model of the Effects of

Price, Brand Name, and Store Name on
Perceived Value
Objectiv
e Price

Perception
of Price

Perceived
Quality

Perceived
Sacrifice

Perceived
Value

Willingness
to Buy

A. Conceptual Relationship of Price Effect

6-59

Figure 6.17 continued

Brand
Name

Store
Name

Perception
of Brand

Perception
of Store

Objectiv
e Price

+
+

+
B. Extended Conceptualization
to Include Brand Name and
Store Name

6-60

Perception
of Price

Perceived
Quality

+
Perceived
Sacrifice

Perceived
Value

Willingness
to Buy

Perceived Risk
The degree of
uncertainty
perceived by the
consumer as to the
consequences
(outcome)
of a specific
purchase decision.
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Types
Functional Risk
Physical Risk
Financial Risk
Psychological Risk
Time Risk

How Consumers Handle Risk

6-62

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

Thank You

6-63