Information Processing

Information Processing Involves acquisition of Stimulus Inputs, Manipulation of these Inputs to derive meaning and use of this information to think about Products & Services

Use of Information
To understand & evaluate Products and Services. An attempt to justify previous product purchases. To resolve conflict between buying or postponing

purchases.
To satisfy need of being informed. To serve as a reminder to purchase products that

must be regularly replenished.

Information Processing Framework

System
Sensations Stimuli Information

Exposure Sensory Process Attention Internal Process

Consumer Characteristics

Situational Characteristics

Information Acquisition
Set of activities or means by which consumers are exposed to various environmental stimuli and begin to process them. Exposure
Active Search Passive Reception

Sensory Process: Filtering of Stimuli

Absolute Threshold Differential Threshold

Attention: Additional Points of Selectivity

Voluntary Attention Involuntary Attention

 The Absolute Threshold

The lowest level which can initiate a sensation in an

individual is called the absolute threshold. It is a marketers attempt to get noticed.

The Differential Threshold
The minimum level of difference that can be

detected by an individual or that generates a stimulus is called Differential Threshold/Just Noticeable Difference (JND).

Perceptual Encoding
The process of assigning meaning to Sensations Stages of Encoding Process Feature Analysis
Arranging sensations into coherent/meaningful patterns. Factors Influencing Feature Analysis Figure-Ground Proximity Similarity Closure

Stages of Encoding Process Synthesis Stage

Additional factors that influence how consumers assign meaning to sensations.
Factors Influencing Synthesis Stage Learning Personality/Attitude Adaptation Motivation

Marketing Implications
Brand Positioning Positioning conveys the concept of the product as

to how it fulfills consumers needs.

Perceived Price Perception should be that the price is Justified Perceived Quality Judging quality based on various aspects

 Perceived Risks
Functional Risk: Product will not perform as

expected Physical Risk: Physical harm that the usage may cause Financial Risk: Product may not be worth its cost Social Risk: Social embarrassment due to poor product choice Time Risk: Waste of time in gaining product knowledge Psychological Risk: Effecting self ego with Poor Product choice

How consumers handle the Risk Collecting Information Brand Loyalty Brand Image Retail Store Image Purchase of Expensive Variants Seeking Reassurance