Consumers Perception

Consumers Perception

Session objective  

Elements of Perception Aspects of Perception   

Selection Organization Interpretation

Perception 

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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 

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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 

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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 

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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 

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Minimal difference that can be detected between two similar stimuli Also known as the just noticeable difference (the j.n.d.)

Weber’s Law 

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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 

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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 

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Consumers subconsciously are selective as to what they perceive. Stimuli selected depends on two major factors  

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Consumers’ previous experience Consumers’ motives

Selection depends on the   

Nature of the stimulus-Physical attributes Expectations Motives

Discussion Questions 

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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 

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Selective Exposure Selective Attention Perceptual Defense Perceptual Blocking

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Consumers seek out messages which:  

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Are pleasant They can sympathize Reassure them of good purchases

Perceptual Selection Concepts 

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Selective Exposure Selective Attention Perceptual Defense Perceptual Blocking

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Heightened awareness when stimuli meet their needs Consumers prefer different messages and medium

Perceptual Selection Concepts 

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Selective Exposure Selective Attention Perceptual Defense Perceptual Blocking

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Screening out of stimuli which are threatening

Perceptual Selection Concepts 

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Selective Exposure Selective Attention Perceptual Defense Perceptual Blocking

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Consumers avoid being bombarded by:  

Tuning out TiVo

Aspects of Perception Selection Organization Interpretation

Organization Principles 

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Figure and ground Grouping Closure

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People tend to organize perceptions into figure-andground relationships. The ground is usually hazy. Marketers usually design so the figure is the noticed stimuli.

Organization Principles 

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Figure and ground Grouping Closure

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People group stimuli to form a unified impression or concept. Grouping helps memory and recall.

Organization Principles 

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Figure and ground Grouping Closure

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People have a need for closure and organize perceptions to form a complete picture. Will often fill in missing pieces Incomplete messages remembered more

Discussion Question 

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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 

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Physical Appearances Stereotypes First Impressions Jumping to Conclusions Halo Effect

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Positive attributes of people they know to those who resemble them Important for model selection Attractive models are more persuasive for

Interpretation Perceptual Distortion 

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Physical Appearances Stereotypes First Impressions Jumping to Conclusions Halo Effect

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People hold meanings related to stimuli Stereotypes influence how stimuli are perceived

Interpretation Perceptual Distortion 

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Physical Appearances Stereotypes First Impressions Jumping to Conclusions Halo Effect

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First impressions are lasting The perceiver is trying to determine which stimuli are relevant, important, or predictive

Interpretation Perceptual Distortion 

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Physical Appearances Stereotypes First Impressions Jumping to Conclusions Halo Effect

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People tend not to listen to all the information before making conclusion Important to put persuasive arguments first in advertising

Interpretation Perceptual Distortion 

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Physical Appearances Stereotypes First Impressions Jumping to Conclusions Halo Effect

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Consumers perceive and evaluate multiple objects based on just one dimension Used in licensing of names Important with spokesperson choice

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 

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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  

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Umbrella Positioning Positioning against Competition Positioning Based on a Specific Benefit e.g Gillette hair shampoo for oily hair

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Finding an “Unowned” Position Filling Several Positions 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  

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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 pricing

Recognizing and reducing Service guarantees 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 

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Intrinsic vs. Extrinsic Cues

Perceived Quality of Servicesthrough Extrinsic cues. SERVQUAL Model Price/Quality Relationship

Perceived Quality of Services 

Difficult due to characteristics of services    

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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 

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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

Attitudes

A learned predisposition to behave in a consistently favorable or unfavorable manner with respect to a given object.

What are Attitudes?  

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The attitude “object” Attitudes are a learned predisposition Attitudes have consistency Attitudes occur within a situation

Salads To Differentia te Itself

Attitudes

A learned predisposition to behave in a consistently favorable or unfavorable manner with respect to a given object.

What are Attitudes?  

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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 

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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)

Multiattribute Attitude Models

Attitude models that examine the composition of consumer attitudes in terms of selected product attributes or beliefs.

Multiattribute Attitude Models 

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The attitude-toward-object model  Attitude is function of evaluation of product-specific beliefs and evaluations The attitude-towardbehavior 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

AttitudeTowardBehavior Model

A model that proposes that a consumer’s attitude toward a specific behavior is a function of how strongly he or she believes that the action will lead to a specific outcome (either favorable or unfavorable).

Theory of Reasoned Action

A comprehensive theory of the interrelationship among attitudes,intentions, and behavior.

Theory of Reasoned Action  

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Expanded model saysSubjective 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

Theory of Trying to Consume

An attitude theory designed to account for the many cases where the action or outcome is not certain but instead reflects the consumer’s attempt to consume (or purchase).

AttitudeTowardthe-Ad Model

A model that proposes that a consumer forms various feelings (affects) and judgments (cognitions) as the result of exposure to an 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 the Ad (Cognition)

Feelings from the Ad (Affect)

Beliefs about the Brand

Attitude toward the Ad Attitude toward the Brand

Issues in Attitude Formation 

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How attitudes are learnedrepeated satisfaction Sources of influence on attitude formation-Direct marketing, mass media, Internet

Four Basic Attitude Functions 

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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.