Chapter 4
Consumer Perception
Chapter Outline
Elements of Perception
Aspects of Perception
• Selection
• Organization
• Interpretation
2
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
3
Elements of Perception
Sensation
Absolute threshold
Differential threshold
Subliminal perception
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Sensation
The immediate and direct response of the
sensory organs to stimuli
A stimulus (product, package, brand name etc) is
any unit of input to any of the senses or sensory
receptor (eyes, nose, ears…….)
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Threshold
The absolute threshold is the lowest level at which an
individual can experience a sensation (the difference
between…….something and nothing….. changing billboard
in the street).
Sensory adaptation is “getting used to” certain
sensations; that is, becoming accommodated to a certain
level of stimulation and becoming less able to notice a
particular stimulus.
Differential Threshold: Minimal difference that can be
detected between two similar stimuli (price change…..from
Taka 9.25 to 9.50)
Also known as the just noticeable difference (J.N.D. or
Psychological Pricing)
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 (IBM to LEXMARK Printer)
• so that product improvements are very
apparent to consumers
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WEBER’S LAW
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.
For Example: During economic downturn,
consumers become very price sensitive and are
likely to note even small changes in price.
If a marketer of a 500gm bag of PASTA raises the price from
$3.99 to $4.25, most consumers will notice.
New Marketing Concepts
AMBUSH MARKETING consists of placing ads in places where
consumers do not expect to see them and cannot readily avoid
them.
New Marketing Concepts
EXPERIENTIAL MARKETING allows customers to engage and
interact with brands, products, and services in sensory ways in
order to create emotional bonds between consumers and
marketing offerings.
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 (In
1957….EAT POPCORN and DRINK COKE).
The opposite is SUPRALIMINAL PERCEPTION
Aspects of Perception
Selection
Organization
Interpretation
Perceptual Selection
Consumers subconsciously are selective as to
what they perceive.
Stimuli selected depends on two major factors
• Consumers’ previous experience
• Consumers’ motives (needs, desire and interest)
Selection depends on the
• Nature of the stimulus (package, shape, contrast, brand
name)
• Expectations (Heard that teacher is good…….or bad)
• Motives (needs and wants……purchase
computer…notice computer advertisement)
Perceptual Selection
Concepts
Selective Exposure Consumers seek out
Selective Attention messages which:
• Are pleasant
Perceptual • They can sympathize
Defense • Reassure them of good
Perceptual purchases
Blocking
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Perceptual Selection
Concepts
Selective Exposure Heightened awareness
Selective Attention when stimuli meet
Perceptual their needs (computer
Defense purchase)
Perceptual Consumers prefer
Blocking different messages
and medium (select
medium)
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Perceptual Selection
Concepts
Selective Exposure Screening out of
Selective Attention stimuli which are
Perceptual threatening (RED SHOE
Ferrari)
Defense
Perceptual
Blocking
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Perceptual Selection
Concepts
Selective Exposure Consumers avoid
Selective Attention being bombarded by:
• Tuning out
Perceptual • TiVo
Defense
Perceptual
Blocking
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Aspects of Perception
Selection
Organization
Interpretation
Organization
Principles
Figure and ground People tend to organize
perceptions into figure-and-
Grouping ground relationships (contrast
Closure in color….sound louder or
softer).
The ground is usually hazy.
Marketers usually design so
the figure is the noticed
stimuli.
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FIGURE AND GROUND
FIGURE AND GROUND
Organization
Principles
Figure and ground People group stimuli to
Grouping form a unified
impression or concept
Closure (advertisement of tea show
relax environment).
Grouping helps
memory and recall
(Telephone number of
GROUP4 in their security
vehicle).
GROUPING
GROUPING
Organization
Principles
People have a need for
Figure and ground closure and organize
Grouping perceptions to form a
Closure complete picture.
Will often fill in missing
pieces
Incomplete messages
remembered more than
complete (mobile phone and
changing background of the
stage……Banana Chips)
CLOSURE
CLOSURE
Aspects of Perception
Selection
Organization
Interpretation
Interpretation
Perceptual Distortion
Positive attributes of
Physical people they know to those
Appearances who resemble them
Stereotypes
Important for model
First Impressions selection for Lipstick,
Jumping to perfume
Conclusions
Attractive models are more
Halo Effect persuasive for some
products (Shampoo and
nice hair)
PHYSICAL APPEARANCE
Dove’s campaign
stresses the
everyday woman.
Interpretation
Perceptual Distortion
Physical People hold meanings
Appearances related to stimuli
Stereotypes
First Impressions Stereotypes influence
how stimuli are
Jumping to perceived (Beef burger of
Conclusions McDonald with vegetables
Halo Effect and cheese……….)
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STEREOTYPES
Interpretation
Perceptual Distortion
First impressions are
Physical
lasting (Poster of Kentucky
Appearances Fried Chicken)
Stereotypes
The perceiver is trying to
First Impressions determine which stimuli are
Jumping to relevant, important, or
Conclusions predictive
Halo Effect
FIRST IMPRESSION
Interpretation
Perceptual Distortion
Physical People tend not to
Appearances listen to all the
Stereotypes information before
First Impressions making conclusion
(Sharif Melamine BLUE
Jumping to BERRY)
Conclusions
Halo Effect Important to put
persuasive arguments
first in advertising
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Interpretation
Perceptual Distortion
Physical Consumers perceive and
Appearances evaluate multiple objects
based on just one
Stereotypes dimension (Brand name or
First Impressions Spokesperson)
Jumping to
Used in licensing of
Conclusions
names (Hotel Sheraton)
Halo Effect
Important with
spokesperson choice 40
HALO EFFECT
The halo effect
helps Adidas
break into new
product
categories.
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Positioning
Establishing a specific image for a brand in the consumer’s
mind
Product is positioned in relation to competing brands (I am
also offering same benefit does not have any positioning in the
mind)
Conveys the concept, or meaning, of the product in terms
of how it fulfills a consumer need (nutritious and balanced
food)
Result of successful positioning is a distinctive, positive
brand image
Positioning Techniques
Umbrella Positioning Finding an “Unowned”
(nobody can do it like McDonald can) Position (finding a niche not
Positioning against to target….mobile phone for
Competition old people)
(Pepsi with lime, -490 Beer)
Positioning Based on a Filling Several Positions
Specific Benefit (FedEx, (Crest
Gillette Razor ) toothpaste…..whitening,
refreshing mouth, cavity
protection, sensitive tooth
protection)
Repositioning
(high priced car gives
status….not the cheap car)
Perceptual Mapping
A research technique that enables marketers to
plot graphically consumers’ perceptions
concerning product attributes of specific brands
(Love Hotel in Japan and other Hotels)
Perceptual Mapping of Car
Issues in Perceived Price
Reference prices – used as a basis for comparison
in judging another price
• Internal (consumer can judge based on their memory)
• External (sold elsewhere at………..)
Acquisition (perceived economic gain or loss associated
with purchase) and transaction utility (difference
between internal reference price and purchase price)
One study offers three types of pricing strategies
based on perception of value.
Three Pricing Strategies
Focused on Perceived Value
Pricing Provides Value By… Implemented
Strategy As…
Satisfaction- Recognizing and reducing Service guarantees
based pricing customers’ perceptions of Benefit-driven pricing
uncertainly, which the Flat-rate pricing
intangible nature of
services magnifies
Relationship Encouraging long-term Long-term contracts
pricing relationships with the Price bundling
company that customers
view as beneficial
Efficiency pricing Sharing with customers Cost-leader pricing.
the cost savings that the
company has achieved by
understanding, managing,
and reducing the costs of
providing the service
Perceived Quality
Perceived Quality of Products
• Intrinsic (size, color flavor) vs. Extrinsic Cues
(outside image like package, pricing, advertising)
Perceived Quality of Services
Price/Quality Relationship
Perceived Quality of Services
Difficult due to characteristics of services
• Intangible
• Variable
• Perishable
• Simultaneously Produced and Consumed
SERVQUAL scale (Reliability, responsiveness,
reliability, empathy, tangible dimension) used to
measure gap between customers’ expectation of
service and perceptions of actual service
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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.)
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Perceived Risk
The degree of uncertainty perceived by the
consumer as to the consequences (outcome) of a
specific purchase decision
Types
• Functional Risk (product will not perform as expected)
• Physical Risk (cell phone and physical damage in brain)
• Financial Risk (product will not be worth its cost)
• Psychological Risk (old stereo and inviting friend)
• Time Risk (time spend may be wasted)
• Social Risk (Social embarrassment: blond hair cut)
