CHAPTER

FOUR

Consumer Motivation

Prepared by : -
Prof. Ashwin Santoki
“Naranlala School of Industrial Mgt. and
Computer Science”
 Motivation as a Psychological Force
• Motivation is the driving force
within individuals that impels
them to action.
• Needs are the essence of the
marketing concept. Marketers
do not create needs but can
make consumers aware of
needs.
Motivation is produced by a state of tension, by having a need which is unfulfilled.
Consumers want to fulfill these needs and reduce the state of tension. For
example, when you are very hungry, you are extremely motivated to find food.
Perhaps when you need a new pair of pants, you are a bit less motivated to fulfill
this need as compared to your need for food. In the case of needing pants, it is
important for marketers to help increase your motivation and/or specify your need
for their products - perhaps Diesel Jeans.
 Model of the Motivation Process

This model highlights the motivation process. We can see that the “drive” toward
behavior will often end in the fulfillment of the need. The processes and effects
of previous learning tie strongly into choices made when the behavior is defined.
 Types of Needs

• Innate Needs
– Physiological (or biogenic) needs that are
considered primary needs or motives

• Acquired Needs
– Learned in response to our culture or
environment. Are generally psychological and
considered secondary needs

Prof. Ashwin Santoki

 Types of Needs

• The example of the need for food compared to a new pair of

jeans can be further described by understanding types of
needs. The need for food is more of an innate need and is
considered a primary need. The need for a pair of jeans
would be considered acquired. The need for clothing could
be considered primary, but the need specifically for a pair of
jeans is acquired, especially when they are a certain brand or
designer jean.
• Needs may have a positive or negative direction. There are in
fact some products we are NOT drawn to. For example, when
people shop for funeral services, this is not something they
are usually drawn to but rather must pursue and purchase.
 Goals
• The sought-after results of motivated behavior
• Generic goals are general categories of goals
that consumers see as a way to fulfill their
needs
• Product-specific goals are specifically branded
products or services that consumers select as
their goals
Continuing with our example of jeans, we can understand the types of goals
that exist. When a consumer states they want a pair of jeans, they have
stated a generic goal. When they announce they really want a pair of
Calvin Klein jeans, then they have stated product-specific goals.
How Does this Ad Appeal to
One’s Goals?
It Appeals to Several Physical
Appearance-related goals.
 The Selection of Goals
• The goals selected by an individual depend on
their:
– Personal experiences
– Physical capacity
– Prevailing cultural norms and values
– Goal’s accessibility in the physical and social
environment
Consumers have many possible goals when making decisions. They are
strongly influenced by their experiences, personality, and others’ opinions and
input. When choosing goals, they have to keep in mind what is socially
acceptable and what they can physically attain. Think of a recent decision you
might have made to go on a vacation. How was it influenced by personal
experiences, the accessibility of the goal, and the social environment?
 Motivations and Goals

Positive Negative

• Motivation • Motivation
• A driving force • A driving force away
toward some object from some object or
or condition condition
• Approach Goal • Avoidance Goal
• A positive goal • A negative goal from
toward which which behavior is
behavior is directed directed away
 Rational versus Emotional Motives
• Rationality implies that consumers select
goals based on totally objective criteria, such
as size, weight, price, or miles per gallon
• Emotional motives imply the selection of
goals according to personal or subjective
criteria
There has been extensive research regarding rational versus emotional motives
during purchase. Their existence has been tied to how consumers view
marketing variables, including advertisements and pricing adjustments.
Furthermore, it must be realized that the definition of emotional vs. rational
motivation differs significantly from one consumer to another and in different
situations.
 The Dynamics of Motivation
• Needs are never fully satisfied
• New needs emerge as old needs are satisfied
• People who achieve their goals set new and higher
goals for themselves
Motivation is highly dynamic and constantly changes in response to life experiences.
Motivations change as we age, interact with others, change careers, acquire wealth,
become ill, marry or divorce, or pursue education.
Humans constantly have needs. This is due in part to the fact that our needs are never
fully satisfied, or once satisfied, reappear. Hunger is a good example of a need that is
often not satisfied and reappears. As humans, we also develop new needs as we satisfy
existing needs. The hierarch of effects model shows how we meet our lower-level needs
first and then move up the hierarchy. Finally, our needs are based on the goals that we
set for ourselves. If one sets a goal to enter politics, they may feel they need a law
degree. However, if they are unsuccessful in getting accepted at law school, their needs
may change and they may want to pursue a few years of work experience first and need
to find a job.
 Substitute Goals
• Are used when a consumer cannot attain a specific goal
he/she anticipates will satisfy a need
• The substitute goal will dispel tension
• Substitute goals may actually replace the primary goal
over time
It is very common that a consumer can not attain a goal. This may be due to a
lack of money, ability, desire, or accessibility. In this instance, the consumer often
substitutes a different goal to reduce the tension created from the existence of this
need. In time, this substitute goal might replace the initial goal. For instance, if a
consumer wanted a certain cable television service, but it was not available in their
area, they might choose a satellite television provider. Over time, they may be
very satisfied with this choice and feel that they actually prefer the satellite service
over the cable television service.
 Frustration
• Failure to achieve a goal may result in
frustration.
• Some adapt; others adopt defense mechanisms
to protect their ego.
Failure to achieve a goal and the frustration that follows has been experienced
by everyone at some time or another. Marketers must realize what consumers’
responses might be and how they can address these responses. Online
education exists for those who are too far or do not have the structured time to
attend college. The table on the next slide represents several defense
mechanisms that consumers might exhibit when they are frustrated about not
meeting a goal. The understanding of these defense mechanisms will help
provide many opportunities to craft advertising messages to reach the emotional
side of the consumers.
 Defense Mechanisms
Construct Items
Aggression In response to frustration, individuals may resort to aggressive behavior
in attempting to protect their self-esteem. The tennis pro
who slams his tennis racket to the ground when disappointed with
his game or the baseball player who physically intimidates an umpire
for his call are examples of such conduct. So are consumer
boycotts of companies or stores.
Rationalization People sometimes resolve frustration by inventing plausible reasons
for being unable to attain their goals (e.g., not having enough
time to practice) or deciding that the goal is not really worth pursuing
(e.g., how important is it to achieve a high bowling score?).
Regression An individual may react to a frustrating situation with childish or
immature behavior. A shopper attending a bargain sale, for example,
may fight over merchandise and even rip a garment that another
shopper will not relinquish rather than allow the other
person to have it.
Withdrawal Frustration may be resolved by simply withdrawing from the situation.
For instance, a person who has difficulty achieving officer
status in an organization may decide he can use his time more
constructively in other activities and simply quit that organization.
 Defense Mechanisms
Construct Items
Projection An individual may redefine a frustration situation by projecting blame for
his or her own failures and inabilities on other objects or persons. E.g. –
golfer who misses a stroke may blame his golf clubs.
Daydreaming Daydreaming, or fantasizing, enables the individual to attain imaginary
gratification of unfulfilled needs. A person who is shy and lonely, for
example, may daydream about a romantic love affair.
Identification People resolve feelings of frustration by subconsciously identifying with
other persons or situations that they consider relevant.
For e.g. – after seeing the fair & lovely cream ad where a dark girl turns
fair, a female buyer purchases a tube.
Repression Another way that individual avoid the tension arising from frustration is
repressing the unsatisfied needs. For e.g. – A parent who has lost her
child may try to engage herself in other activities to forget her grief

Prof. Ashwin Santoki

 Arousal of Motives
• Physiological arousal
• Emotional arousal
• Cognitive arousal
• Environmental arousal
A consumer has a variety of needs but only some of them are aroused at
any given time and given top-of-mind priority. Motives become aroused
by the consumer’s psychological condition (they get hungry), their
emotional state (frustrated), cognitive processes (they read an ad that
made them think about their needs), or by events occurring in their
general surroundings (the weather becomes cold).
 How Does This Ad
Arouse One’s Needs?
The Ad Is Designed to Arouse One’s Yearning
for an Adventurous Vacation by Appealing to
the Sense of Touch
 Philosophies Concerned with
Arousal of Motives
There are two opposing philosophies that deal with the arousal of human
motives. The behaviorists see motivation as a mechanical process that
results from a stimulus – something prompts the behavior and people
behave or react. On the other hand, the cognitive school believes that all
behavior is directed toward a fulfilling of goals – consumers think through
their motives.
• Behaviorist School
– Behavior is response to stimulus
– Elements of conscious thoughts are to be ignored
– Consumer does not act, but reacts
• Cognitive School
– Behavior is directed at goal achievement
– Needs and past experiences are reasoned, categorized, and
transformed into attitudes and beliefs
 Maslow’s Hierarchy
of Needs

Dr. Abraham Maslow is well known for his hierarchy of needs. The web link on
this page will bring you to www.maslow.com which reports on other publications
by Dr. Maslow. The hierarchy presents five basic levels of human needs which
rank in order of importance from lower-level needs to higher-level needs. The
theory says that consumers will fill lower-level needs before the higher-level
needs – they will eat before they enroll in a Master’s program.
 To Which of Maslow’s
Needs Does This Ad Appeal?
Both Physiological and Social Needs
 To Which of Maslow’s
Needs Does This Ad Appeal?
Egoistic Needs
 To Which of Maslow’s
Needs Does This Ad Appeal?
Self-Actualization
 A Trio of Needs
• Power
– individual’s desire to control environment
• Affiliation
– need for friendship, acceptance, and belonging
• Achievement
– need for personal accomplishment
– closely related to egoistic and self-actualization
needs
Some psychologists believe that this trio of needs exists for most consumers
and that marketers can find a tie to motivation. Power refers to the individual’s
desire to control other people and objects – it is tied to a type of ego needs.
Affiliation is similar to Maslow’s social need and suggests that behavior is
influenced by the desire for social ties. Finally, the need for achievement, like
the other needs, will vary from individual to individual.
 To Which of the Trio
of Needs Does This Ad Appeal?
 The Affiliation Needs Of Young,
Environmentally Concerned Adults
 To Which of the Trio
of Needs Does This Ad Appeal?
Affiliation Need
Power And Achievement Needs
 Measurement of Motives
• Researchers rely on a
combination of techniques
• Qualitative research is widely
used
• Projective techniques are often
very successful in identifying
motives.
Motives are very difficult to identify and measure. This is in part because they are
hypothetical and not physical concepts that can be weighed and measured with a
ruler. Because they are not tangible, marketers must use a variety of measurement
techniques. Because consumers often cannot or will not express their motivations
outright, researchers use qualitative research to uncover consumer motives. Many of
these qualitative research techniques are called projective techniques because the
consumer must “project” their subconscious or hidden motives onto another stimulus.
 Motivational Research
• Term coined in the 1950s by Dr. Ernest Dichter
• Based on premise that consumers are not always aware of
their motivations
• Identifies underlying feelings, attitudes, and emotions

Prof. Ashwin Santoki

 CHAPTER
FIVE
Personality and
Consumer Behavior

Prepared by : -
Prof. Ashwin Santoki
“Naranlala School of Industrial Mgt. and
Computer Science”
 Personality and
The Nature of Personality
• The inner psychological characteristics that
both determine and reflect how a person
responds to his or her environment
• The Nature of Personality:
– Personality reflects individual differences
– Personality is consistent and enduring
– Personality can change
There are some interesting findings regarding the nature of
personality.

1. First of all, personality reflects individual differences. Because

no two people are exactly the same, marketers can look for
certain similar personality traits in different consumers. These
consumers can then be grouped together based on this
identified personality train.

2. Personality is consistent and enduring. This helps marketers

predict consumer behavior over time in terms of personality.

3. Finally, personality can change due to major life events, such as

marriage. You may notice personally that your personality has
changed somewhat as you have grown – certainly your
personality now is somewhat different then from when you were
7 years old.
 Theories of Personality
These are the three major theories of personalities. There are many more but
these three have been chosen because they are important to the relationship
between personality and consumer behavior

• Freudian theory
– Unconscious needs or drives are at the heart of human
motivation which develop personality
• Neo-Freudian personality theory
– Social relationships are fundamental to the formation
and development of personality
• Trait theory
– Quantitative approach to personality as a set of
psychological traits
Freudian Theory

• Id
– Warehouse of primitive or instinctual needs for which
individual seeks immediate satisfaction
• Superego
– Individual’s internal expression of society’s moral and ethical
codes of conduct
• Ego
– Individual’s conscious control that balances the demands of the
id and superego
Freudian Theory
Sigmund Freud was one of the most important and
influential psychiatrists of all time.

Freudian theory itself is based on the existence of

unconscious needs or drives as the heart of human
motivation and personality. According to Freud,
human personality consists of these three systems,
the id, super ego and the ego. The Id is the
“warehouse” of primitive drives, basic physiological
needs such as hunger, thirst, etc.. The superego
drives the individual to fulfill their needs in a socially
acceptable function. Finally, the ego is the internal
monitor that balances the needs of the id and the
superego.
 Snack Foods and Personality Traits
Snack Personality Traits
Foods
Potato Ambitious, successful, high achiever, impatient with less
chips than the best.
Tortilla Perfectionist, high expectations, punctual, conservative,
chips responsible.
Pretzels Lively, easily bored with same old routine, flirtatious,
intuitive, may over commit to projects.
Snack Rational, logical, contemplative, shy, prefers time alone.
crackers
Cheese Conscientious, principled, proper, fair, may appear rigid
curls but has great integrity, plans ahead, loves order.
How Does This Marketing Message
Apply the Notion of the Id?
 It Captures Some of the Mystery and The
Excitement Associated With the “Forces” of
Primitive Drives.
 Neo-Freudian Personality Theory
As opposed to Freud’s theories which were based
heavily on development, Neo-Freudian’s are concerned
with social relationships. These relationships are formed
to reduce feelings of inferiority or tension. Furthermore,
people can be classified as to how they interact with
others – are they compliant, aggressive, or detached. A
compliant individual desires attention, an aggressive
desires admirations, and a detached person desires
independence and freedom from obligation. What is
particularly interesting is how research has shown that
these different personality groups differ in their brand
usage.
 Neo-Freudian Personality Theory

• Social relationships are fundamental to personality

• Alfred Adler:
– Style of life
– Feelings of inferiority
• Harry Stack Sullivan
– We establish relationships with others to reduce tensions
• Karen Horney’s three personality groups
– Compliant: move toward others
– Aggressive: move against others
– Detached: move away from others
Why Is Appealing to an Aggressive Consumer a
Logical Position for This Product?
 Because its Consumer Seeks
to Excel and Achieve Recognition
 Trait Theory
• Focus on measurement of personality in terms of traits
• Trait - any distinguishing, relatively enduring way in which one
individual differs from another
• Personality is linked to broad product categories and NOT
specific brands

Unlike Freudian and Neo-Freudian theories, trait theory is less

qualitative and more focused on measurement of personality.
Tests can be done to measure single traits in consumers such as
how receptive they are to new experiences (innovativeness), their
attachment to worldly possessions (materialism), and their
likelihood to accept or reject foreign-made products
(ethnocentrism).
 Soup and Soup Lover’s Traits
• Chicken Noodle Soup Lovers • Vegetable/Minestrone Soup
– Watch a lot of TV Lovers
– Are family oriented – Enjoy the outdoors
– Have a great sense of humor – Usually game for trying new
– Are outgoing and loyal things
– Like daytime talk shows – Spend more money than any
– Most likely to go to church other group dining in fancy
restaurants
• Tomato Soup Lovers – Likely to be physically fit
– Passionate about reading – Gardening is often a favorite
– Love pets hobby
– Like meeting people for coffee
– Aren’t usually the life of the
party
 Personality and Understanding
Consumer Behavior

Consumer Social
Dogmatism
innovativeness character

Optimum
Need for Sensation
stimulation
uniqueness seeking
level

Variety-
novelty
seeking
How Does This Ad Target the Inner-
Directed Outdoors Person?
A Sole Person is Experiencing the Joys
and Adventure of the Wilderness
 Consumer Innovativeness
• Willingness to innovate
• Further broken down for hi-tech products
– Global innovativeness
– Domain-specific innovativeness
– Innovative behavior
Consumer innovators are the group of consumers that are very open to new
ideas and are usually the first to purchase products. Innovativeness is the
underlying trait that describes a consumer’s willingness to try new products.
Companies have found this very important when introducing brand extensions
because it is a key factor in the consumer’s likelihood to try the new product.
For hi-tech products, we see that innovativeness can be explained at three
levels. The first, global innovativeness, is the overall innovative level of the
consumer. Drilling down further, domain-specific innovativeness has to do
with the particular product category, and finally, the innovative behavior is the
actual purchase of the new product.
 Dogmatism
• A personality trait that reflects the degree of rigidity a
person displays toward the unfamiliar and toward
information that is contrary to his or her own
established beliefs

Dogmatic is a personality trait that describes how rigid or open a

person is to new and unfamiliar ideas and products. A person who
is highly dogmatic approaches the unfamiliar defensively and with
discomfort. They will rarely consider the unfamiliar and tend to be
very close minded. Marketers have realized this type of customer
appreciates advertising appeals with celebrities and other experts.
 Personality and Understanding
Consumer Behavior
• Ranges on a continuum for inner-directedness to
other-directedness
• Inner-directedness
– rely on own values when evaluating products
– Innovators
• Other-directedness
– look to others
– less likely to be innovators
Inner-directed people prefer ads that stress product features. Other-
directed individuals gravitate to ads that that show approving social
environment rather than product information – they want to look to
others to understand how to act or be accepted, and the ads give an
example of this.
 Need for Uniqueness

• Consumers who avoid conforming to

expectations or standards of others

You may be able to identify friends with greater need for

uniqueness. You can see it in their clothes and hairstyles. Similarly
to the other personality traits we have been discussing, there is a
measurement scale that researchers use to quantify an individual’s
need for uniqueness. If the respondent scores high on this scale,
then they have a higher need for uniqueness.
 Optimum Stimulation Level
• A personality trait that measures the level or amount of
novelty or complexity that individuals seek in their
personal experiences
• High OSL consumers tend to accept risky and novel
products more readily than low OSL consumers.

Optimum stimulation levels are related to how a consumer tends

to like or dislike novel, complex, and unusual experiences and
products. High optimum stimulation levels lead consumers to take
risks and try new products. Similar to a person with high
innovativeness, these consumers are important to marketers of
new products.
 Sensation Seeking

• The need for varied, novel, and complex

sensations and experience. And the willingness to
take social and physical risks for the sensations.

Sensation-seeking traits tie to the need to take risks to fulfill the

sensations of experiences which are different and extreme.
Much research has been tied to the study of teenage males who
often engage in this behavior.
 Variety-Novelty Seeking
• Measures a consumer’s degree of variety seeking
• Examples include:
– Exploratory Purchase Behavior
– Use Innovativeness
– Vicarious Exploration

1. Exploratory purchase behavior where they switch brands often

to experience new products.
2. Other consumers display variety by use innovativeness, using
an existing product in a new way.
3. Finally, vicarious exploration, which often does not involve
actual purchase about the product, refers to daydreaming or
thinking often about a new product.
 Two Cognitive Personality Factors
NFC & Visualizer sand Verbalizers
• Need for cognition (NFC)
– A person’s craving for enjoyment of thinking
– Individual with high NFC more likely to respond to
ads rich in product information
.
Researchers are aware that cognitive personality factors influence
consumer behavior. In fact, it has been realized that the level of a
consumer’s need for cognition affects how they are likely to
respond to certain types of advertisements. Those that are high in
need for cognition tend to respond to ads that supply product
information as opposed to those who are low in need for cognition
who tend to be attracted to the background of the ad, attractive
models, and cartoon characters.
 Cognitive Personality Factors

• Visualizers
• Verbalizers
Another cognitive personality factor that researchers have
isolated is whether a consumer is a visualizer who prefers visual
information or a verbalizer who prefers written or verbal
information. This difference in cognitive personality factors
would affect how they respond to a print ad.
Why Is This Ad Particularly Appealing
to Visualizers?
The Ad Stresses Strong
Visual Dimensions
Why Is This Ad Particularly
Appealing to Verbalizers?
It Features a Detailed Description
 From Consumer Materialism to
Compulsive Consumption
Consumer researchers are
interested in possession traits
and their relationship to
consumption. The first,
Acquire and show Self centered and
consumer materialism, is a off possessions selfish
personality-like trait that
describes how essential a
person finds possessions in Materialistic
relation to their identities and People
their lives.
Do not get
Seek lifestyle full greater personal
of possessions satisfaction from
possessions
 From Consumer Materialism to
Compulsive Consumption
• Fixated consumption behavior is displayed by a consumer who
seems “fixated” in consuming in a certain product category. For
instance, people who collect Star Trek memorabilia from the
original television series or comic books would display fixated
consumption behavior. Consumers fixated on certain products or
categories of products
– Characteristics
• Passionate interest in a product category
• Willingness to go to great lengths to secure objects
• Dedication of time and money to collecting
• Compulsive consumption behavior begins to enter the area of
abnormal behavior. These individuals are somewhat out of control
with their purchasing and suffer from a shopping addiction called
oniomania.
 Consumer Ethnocentrism and
Cosmopolitanism
• Ethnocentric consumers feel it is wrong to purchase
foreign-made products because of the impact on the
economy
• They can be targeted by stressing nationalistic
themes
• A cosmopolitan orientation would consider the world
to be their marketplace and would be attracted to
products from other cultures and countries. In many
ways, cosmopolitanism is the opposite of
ethnocentrism. There is an increase in Australia, for
example, due to the multiculturalism.
 Brand Personality
Brand personality can be tied to many a successful brand. If the
personality is favorable and strong, it will strengthen the brand and
lead to a more favorable attitude, brand preference, higher
purchase intention, and brand loyalty. In addition, in commodity
category, detergent for example, it can help differentiate a brand
(it’s the one with the Snuggly Teddy Bear).

• Personality-like traits associated with

brands
• Examples
– Nike and athlete
– BMW is performance driven
 Product Anthropomorphism and
Brand Personification
• Product Anthropomorphism
– Attributing human characteristics to objects
– Tony the Tiger and Mr. Peanut
• Brand Personification
– Consumer’s perception of brand’s attributes for a human-like
character
– Mr. Coffee is seen as dependable, friendly, efficient,
intelligent and smart.
Many marketers humanize their products. Research has
shown that this can be effective but the product must have
human attributes. Furthermore, brands have personalities. If
brand X were a person, can you describe them?
 A Brand Personality Framework

This is a brand personality framework that shows the five

dimensions of a brands personality
 A Brand Personality Framework

e.g. – e.g. – e.g. – e.g. – Ira e.g. –

ashirwad Thumbs up Samsung Diamonds woodland
Atta of ITC washing shoes
machine
 Product Personality Issues

• Gender
– Some products perceived as masculine (coffee and
toothpaste) while others as feminine (bath soap and
shampoo)
• Geography
– Actual locations, like Philadelphia cream cheese and
Arizona iced tea
– Fictitious names also used, such as Hidden Valley and
Bear Creek
• Color
– Color combinations in packaging and products
denotes personality (see e.g. in book)
 Self and Self-Image
• Consumers have a
variety of enduring
images of themselves
• These images are
associated with
personality in that
individuals’
consumption relates to
self-image
 One or Multiple Selves

• A single consumer will act differently in

different situations or with different people
• We have a variety of social roles
• Marketers can target products to a particular
“self”
To understand multiple selves, think of the way you present
yourself and think about yourself at a formal university function
(career fair perhaps) vs. a party with good friends. Next, think of
the clothing you would purchase for these events. It would likely
be very different as you are presenting a different “self” at each
event.
 Makeup of the Self-Image

• Contains traits, skills, habits, possessions,

relationships, and way of behavior
• Developed through background, experience,
and interaction with others
• Consumers select products congruent with this
image
 Different Self-Images
Actual Self-Image • How consumers see themselves

• How consumer would like to see

Ideal Self-Image
themselves

Social Self-Image • How consumers feel others see them

Ideal Social • How consumers would like others to

Self-Image see them
Expected • How consumers expect to see
Self-Image themselves in the future
• Traits an individual believes are in her
Out-to self
duty to possess
 Extended Self
• Possessions can extend self in a number of ways:
– Actually
– Symbolically
– Conferring status or rank
– Bestowing feelings of immortality
– Endowing with magical powers
There is a strong relationship for many consumers between some
of their possessions and their self. In this instance, the objects are
really part of the consumer’s extended self. The object might have
specific meaning to them that goes beyond what most possessions
can offer. It is many a student who must wear a lucky shirt or bring
a charm to an exam to perform at their peak in this situation.
 Altering the Self-Image

• Consumers use self-altering products to

express individualism by:
– Creating new self
– Maintaining the existing self
– Extending the self
– Conforming

Often, a consumer wishes to change themselves. Perhaps they

want a new look or to appear in a different way. Altering the self-
image can tie to personal vanity as it is involved in one’s
appearance.
 Virtual Personality

• You can be anyone…

– Gender swapping
– Age differences
– Mild-mannered to aggressive

There are many opportunities to create online “selves.” Whether

it is a chat room, a character in an online role-playing game, or a
virtual world – people often pick identities that are very different
then their true selves.
 CHAPTER
SIX
CONSUMER
PERCEPTION

Prepared by : -
Prof. Ashwin Santoki
“Naranlala School of Industrial Mgt. and Computer Science”
 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
Perception is how we see the world around us. You and your
friend might see the same person, thing, or event yet you will
interpret in different ways. This interpretation is highly
individualized and depends on each person’s own needs,
values, and expectations.
 Sensation
• Sensation is the immediate and direct response of the sensory organs
to stimuli
Sensation is the response of the sensory organs, including the eyes,
ears, nose, mouth, and skin. Most of marketing focuses on sight and
sound but much research is being done on smell and touch.
– 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.
Advertisers must reach the absolute threshold for consumers to be
able to experience their advertising tactic. It is interesting that the
absolute threshold changes over time. Consumers adapt and get
used to a certain ad or message so no longer notice it. This is one of
the reasons why advertisers change their ads frequently.
 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.
Marketers are very concerned with the differential threshold, which is also called the
just noticeable difference. It was a German scientist named Ernst Weber who
realized that this difference was not a fixed amount. The best example is when you
buy a low-priced product like a cup of coffee from Starbucks. A $1 increase in your tall
coffee would be noticed by you. But if you were buying a laptop whose price changed
from $455 to $456 you might not even notice.
 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
Marketers make changes in their products over time. Sometimes they have to make
negative changes, perhaps increase price or reduce package size. They want to make
this negative change subtle enough that most consumers will not notice. On the other
hand, a marketer might want to make positive changes to the product. They would want
to determine how small they can make this change so that it is noticeable to the end
consumer but does not cost the marketer excessive amounts of money. Marketers also
want to be careful that when they change the look of a product or packaging, that
consumers still recognize the brand and transfer their positive feelings toward the brand.
 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

Kellogg’s might want to change their ingredients, either to make the

product healthier or because they have secured lower-priced raw
materials. They might want to reduce package size to avoid a price
increase and they would not want this to be noticed. Perhaps Tony the
Tiger could look a little different. At one point, Pillsbury made a decision
to make the Pillsbury Dough Boy a bit thinner. They wanted to make sure
he still was cute but looked a bit more fit and lean.
 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
People have been fascinated by subliminal perception for over 50 years. The
question is whether stimuli that are not consciously sensed can still be perceived
and are therefore capable of altering behavior. At this point, there is no research
that shows that it directly changes attitudes or purchase behavior. No doubt, there
will continue to be research on this subject as many feel that there is indeed an
effect from subliminal perception.
 Aspects of Perception

Selection

Organization

Interpretation

Consumers are bombarded by stimuli and are therefore very selective as

to what messages and information they perceive. As new information
comes to their mind, it is organized within their mind. Finally, consumers
interpret the stimuli based on their needs, expectations, and experience
 Perceptual Selection
Selection Depends Upon:
Nature of the • Includes the product’s physical attributes,
package design, brand name, advertising and
stimulus more…

• Based on familiarity, previous experience or

Expectations expectations.

Motives • Needs or wants for a product or service.

 Why Are Consumers
Likely to Notice This Ad?
The Attention-Getting Nature of a
Dramatic Image
 Perceptual Selection
Important Concepts
Selective Selective Perceptual Perceptual
Exposure Attention Defense Blocking
• Consumers • Heightened • Screening out • Consumers
seek out awareness of stimuli avoid being
messages when stimuli which are bombarded
which: meet their threatening by:
• Are needs • Tuning out
pleasant • Consumers
• They can prefer
sympathize different
• Reassure messages
them of and medium
good
purchases
 Organization

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

Principles

• Figure and ground • People group stimuli to

• Grouping form a unified
• Closure impression or concept.
• Grouping helps memory
and recall.
 Organization

Principles • People have a need for

closure and organize
• Figure and ground perceptions to form a
• Grouping complete picture.
• Will often fill in missing
• Closure
pieces
• Incomplete messages
remembered more than
complete
 What Element of Perceptual
Organization Is Featured in This Ad?
Closure
 Interpretation

• People hold meanings

Stereotypes related to stimuli
Stereotypes
Perceptual interpretation
Physical
PhysicalAppearances
Appearances occurs because consumers
have unique motives, interests,
Descriptive
DescriptiveTerms
Terms
and experiences. How people
interpret often reveals a lot
about themselves. For
First
FirstImpressions
Impressions instance, individuals tend to
have stereotypes due to
Halo
HaloEffect
Effect
physical appearances,
descriptive terms, first
impressions, and the halo
effect.
 Interpretation
• Positive attributes of people
they know to those who
Stereotypes resemble them
Stereotypes
• Important for model selection
Physical Appearances
Physical Appearances We often make decisions
based on how people or
Descriptive
DescriptiveTerms
Terms products appear.
A beautiful spokesperson
First
FirstImpressions
Impressions might be perceived as
possessing expertise for
Halo
HaloEffect
Effect beauty products. A certain
color to a food might make
us think it is healthier.
 Interpretation
• Verbal messages reflect
stereotypes
Stereotypes
The choice of descriptive
Physical Appearances terms for names and
advertisement in services are
Descriptive Terms particularly important due to the
intangible nature of services.
First Impressions

Halo Effect
 How Does This Ad
Depict Perceptual Interpretation?
 It Contrasts the Powerful Durango with Less Rugged
Referred to in the Ad as the “Land Of Tofu.”

In this ad, the marketer has stereotyped the person who eats a cheeseburger vs. tofu
and applied them in a descriptive sense to their product.
 Interpretation

• First impressions are

Stereotypes lasting
Stereotypes
Physical Appearances • The perceiver is trying
Physical Appearances to determine which
Descriptive stimuli are relevant,
DescriptiveTerms
Terms
important, or predictive
First
FirstImpressions
Impressions
Halo
HaloEffect
Effect
 Interpretation
• Consumers perceive and
evaluate multiple objects
Stereotypes based on just one
Stereotypes
dimension
Physical Appearances
Physical Appearances With the halo effect, a person
uses just one dimension in
Descriptive
DescriptiveTerms
Terms evaluating a person, product, or
service. For instance, a
First
FirstImpressions
Impressions consumer might consider a
clean waiting room as an
indication of a good dentist. For
Halo
HaloEffect
Effect this reason, marketers use the
halo effect when licensing
names of products or choosing
spokespeople.
 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
It is important to realize that good position defines the product in
a unique place in the consumer’s mind when compared to
competing products. This place is the result of the benefits that
are offered by the product and how they are different or better
than those of the competitor’s products.
Which Concepts of Perception Are
Applied in These Ads?
The Principle Of Contrast
 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
A consumer often derives their understanding of a product and its benefits from
the packaging. A good example would be shampoo. The shape of the bottle, the
choice of colors and symbols, and even the cap can help the consumer position
the product and determine if the product’s benefits are gentle, color safe, strong
cleaning, or conditioning.
Many marketers will need to reposition their product over time due to either
market changes or consumer preference changes. This is often challenging to
marketers, especially if their product had been perceived negatively in the
marketplace.
 Perceptual Mapping

• An analytical technique that enables marketers to plot

graphically consumers’ perceptions concerning product
attributes of specific brands

Perceptual mapping helps the marketer visualize how

their product is positioned in the consumer’s mind. It is
a graph of products within a category based on two
major benefits or attributes. It allows them to see gaps
in the positioning of all the products and identify areas
for new products.
 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.
Positioning of services has extra challenges due to the
intangible nature of a service. You cannot hold it in your
hand and look at it – you must make your decision based on
visual images and tangible cues, such as delivery trucks,
storefronts, or other marketing tactics.
 Which Elements of This Ad Convey the
Restaurant’s Perceptual Position and How?
The Steak Knife and the Reference to Vegetarians
Convey The Position of the Restaurant as a
Well-Established Steakhouse
 Perceived Price and Perceived Quality
• Reference prices – used as a basis for comparison in
judging another price
– Internal
– External
Perceived price should reflect the value that the customer receives from their
purchase. It is important for customer satisfaction that the consumer sees their
price as fair. To determine fairness, consumers look at other prices that they
know. Comparative prices might be ones that the consumer knows (internal) or
prices that the marketer uses in their advertising as is the case with an ad that
states “compare to $100 at our competitor.”

• Perceived Quality of Products

– Intrinsic vs. Extrinsic Cues
 Perceived Quality of Products
Intrinsic vs. Extrinsic Cues
Consumers perceive the quality of a product by intrinsic and
extrinsic cues. Those that are intrinsic concern the physical
characteristics of the product.

These include color, flavor, aroma, and size. Many times a

consumer will use extrinsic cues, those that are not really part of
the physical product including brand name, reputation, and location
within store.

If a consumer has no experience with a product, they are more

likely to use external cues. An example of external cues is country
of origin. A chocolate is from Switzerland so it must be good even
though you know nothing of the color or taste of the chocolate.
 Three Pricing Strategies
Focused on Perceived Value
Pricing Strategy Provides Value By… Implemented As…

Satisfaction-based Recognizing and reducing Service guarantees

pricing customers’ perceptions of Benefit-driven pricing
uncertainty, 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 of Services
• Difficult due to
characteristics of
services
– Intangible
– Variable
– Perishable
– Simultaneously
Produced and
Consumed
• SERVQUAL scale used to
measure gap between The SERVQUAL scale measures the gap
customers’ expectation between customer expectations of a
of service and service before it is provided versus their
perceptions of actual perceptions after the service is provided.
service The scale measures five dimensions,
including reliability, responsiveness,
assurance, empathy, and tangibility
 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.)
Value is the trade-off between perceived benefits and perceived
sacrifice. As such, a consumer helps understand the benefits many
times in terms of the monetary sacrifice. The more they pay, the
better product or service they get.
How Can This Ad Affect the Service’s
Perceived Quality?
It Uses a Process Dimension in Advertising a
Newly-Formed Business Class on an Airline
Which of the Ad’s Elements Conveys the
Product’s Quality?
The Slogan on the Ad’s Bottom Left
Reads “Perfection Has Its Price”
 Retail Store Image

Brands Level of
Prices
carried service

Store Product
Clientele
ambiance assortment

Discounts
The image and subsequent positioning of a retail store is a result of the factors listed
above. Of considerable interest are the brands that the store carries. There is an
association formed between the retailer and their brands. Research has shown that
strong brands will improve the image of a retailer in many situations.
 Manufacturer’s Image
• Favorable image tied to new product acceptance
• Companies sponsor community events to enhance
images
• Product and institutional images

Manufacturers want their corporate image to be positive so

that their products and brands can be positively perceived in
the marketplace. Institutional advertising can do this in
addition to exhibits and sponsorship of community events.
 Perceived Risk
• The degree of uncertainty perceived by the consumer as to the
consequences (outcome) of a specific purchase decision
• Types
– Functional Risk Consumer purchase decisions are determined by the
– Physical Risk degree of risk that consumers perceive, and their
– Financial Risk tolerance for risk
– Social Risk The first, functional risk, deals with the risk that the
– Psychological Risk product will not perform as expected. Physical risk is
– Time Risk the risk to self and others. Financial risk is that the
product will not be worth its cost and social risk is
that the choice of the product might lead to social
embarrassment. Psychological risk is that a poor
product choice will hurt the consumer's ego and time
risk is that the time has been wasted in purchasing
this product.
How Consumers How consumers handle risk will differ
by their own individual strategy.
Handle Risk
1. Seek Information - The first of these is to seek information so that
they have more knowledge when they purchase.
2. Stay Brand Loyal - Consumers can also stay brand loyal, thereby
avoiding risk by sticking with a known product.
3. Select by Brand Image - Consumers can select by brand image to
reduce their risk because they may already know and trust the brand,
perhaps from buying a different product by the same brand or
company.
4. Rely on Store Image - Some consumers will rely on store image to
help them reduce risk.
5. Buy the Most Expensive Model - Some customers buy the most
expensive model assuming that the price/quality relationship will
safely deliver them the best product.
6. Seek Reassurance - Finally, consumers seek reassurance through
money-back guarantees, warranties, seals of approval and free trials.