PERCEPTION
2014
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BEAUTY
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?
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Sheila
Sheila
Sheila
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PERCEPTION
Our senses ( vision, hearing and smelling,touch)
are more wide ranging, complex, delicate and
sensitive.
Process of perception: Sense organs provide
our brain with a steady flow of information about
our environment and the brains task is to take
this raw material and use it to help us make
sense of the environment.
Perception is a mechanism by which an individual
receives, selects, organizes, and interprets
stimuli into meaningful coherent picture of the
world
2014
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Sensory Thresholds
So the lowest Intensity of a Stimulus that
Consumers are capable of perceiving are:
Absolute Threshold
refers to the
minimum amount
of stimulation that
can be detected on
a sensory channel.
Marketing Stimuli
2014
Differential Threshold
refers to the ability
of a sensory system
to detect changes or
differences between
two stimuli. ([Link] Noticeable
Difference &
Webers Law)
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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
There are wide individual differences in threshold
levels
Advertisers lack control over consumers distance
and position from a screen
The consumer must be paying absolute attention
to the stimulus
Even if the desired effect is induced, it operates
only at a very general level
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Marketing Variables Influencing
Consumer Perception
2014
Nature of Product
Physical Attributes of Product
Package Design
Brand Name
Advertisements & Commercials
Editorial Environment
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Marketing Variables Influencing
Consumer Perception
2014
Nature of Product
Physical Attributes of Product
Package Design
Brand Name
Advertisements & Commercials
Editorial Environment
Price.
Logistics & distribution.
Sales outlets & sales personnel..
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ELEMENTS OF PERCEPTION
Sensation
The human organs (eyes, ears, nose, mouth, skin) that receive
sensory inputs.
The absolute threshold
The lowest level at which an individual can experience a sensation.
Sensory adaptation
Getting used to certain sensations; becoming accommodated to a
certain level of stimulation.
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The minimal difference that can be detected between two stimuli.
Also known as the j.n.d. (just noticeable difference).
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Perception of very weak or rapid stimuli received below the level of
conscious awareness
2014
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ELEMENTS OF PERCEPTION
Sensation
The human organs (eyes, ears, nose, mouth, skin) that receive
sensory inputs.
The absolute threshold
The lowest level at which an individual can experience a sensation.
Sensory adaptation
Getting used to certain sensations; becoming accommodated to a
certain level of stimulation.
The differential threshold
The minimal difference that can be detected between two stimuli.
Also known as the j.n.d. (just noticeable difference).
Subliminal perception
Perception of very weak or rapid stimuli received below the level of
conscious awareness
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PERCEPTION CONTD
External Factors of Stimuli: * Intensity & Size *
Position * Contrast * Novelty * Repetition *
Movement.
Internal Factors of Stimuli: *selective attention *
selective exposure* selective reception* selective
comprehension* selective retention
Stimulus can be assortment of sensory inputs like
products; packaging; adverts; impact of visuals.
Result is: All of us have a tendency to view the
same phenomenon or situation differently.
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Various references to Perception
I. Perceptual Blocking:
Blocking out stimuli consciously when too much information
is Bombarded.
II. Perceptual Organization:
The way the stimuli are organized around principles of
Figure & Ground; Grouping; Closure.
[Link] Interpretation:
Dependent on individual expectations in the light of
previous experience or intuition or motives or interest at the
time of perception.
2014
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Various references to Perception
IV. Perceptual Distortions:
Due to Personality or physical experience; stereotypes;
Halo effect; Irrelevant cues; First impression; hasty conclusions.
V. Perceptual Mapping:
A technique to help understand and estimate how products
& services appear to the consumer in relation to competition.
2014
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Stimulus Organization
Closure Principle
People Tend to Perceive an
Incomplete Picture as
Whole.
Principle of Similarity
Consumers Tend to Group
Objects That Share Similar
Physical characteristics.
Figure-Ground Principle
One Part of the Stimulus Will
Dominate (the Figure) While
Other Parts Recede Into
the Backdrop
(the Ground)
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Perceptual Organization
Grouping & closure
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Model of the Effects of Price, Brand Name, and
Store Name on Perceived Value
Brand
Name
Store
Name
Perception
of Brand
Perception
of Store
Objectiv
e Price
+
+
Perception
of Price
Perceived
Quality
Perceived
Sacrifice
Perceived
Value
Willingness
to Buy
2014
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Price Perception
Consumers perceive a price as either
high or low on the basis of a
comparison with an internal price (or
referent price).
Price perceptions and the social
judgment theory regions
Assimilation (acceptable)
and contrast (too high or low)
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Perceived Value
The trade-off between product benefits
and product costs.
Perceived value = perceived benefits / perceived costs
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Understanding Consumers
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Information Processing Model of CB
Individual
Consumer:
Personality (intro/extro)
information
Stimuli
Selection
Environmental
Characteristics:
Culture (color)
beliefs
Interpretation
Memory/Prior Knowledge
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Attitudes:
Like/Dislike
Choice
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Usually, you cant get voluntary
attention (hard to make ads
personally relevant for all
consumers)
Then you have to rely on
involuntary attention-getting
techniques
2014
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Information Processing at Work
Select certain stimuli which stand out in the ad
Plane
Brand names: Forbes, Economist
Interpret: advertiser is trying to compare the brands
(you know Economy class is cheaper; Business is more
expensive; First class is most expensive MEMORY)
Belief: Forbes is for the most up-market passengers
Attitude: Favorable attitude towards Forbes
May buy the magazine (Choice)
Individual differences: Expensive = good?
Environment: comparative ad: good?
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Interpretation (Perception)
Interpretation = next stage
after selection
Reaching subjective conclusions based on
the information
i.e., forming beliefs
The key process that we use for interpretation:
Inferencing
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Involuntary attention-getting
techniques
Contrast.
Big difference between two adjacent
stimuli
Novelty
Color
Size
Humor
Sex
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Inference: Forming Beliefs Through
Simple Association
Some concepts are naturally associated
together in consumers minds
Example: high price = quality/status
Marketers create inferences about brand
image by using these associations
Color of product or package
Blue: ?? (detergent)
Green: ?? (toothpaste)
Drink and Detergent (colorless vs. yellow).
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Inference: Forming Beliefs Through
Simple Association
Brand name
Alphanumeric (ASCENT XYS)
Country of origin (where the product is made often
has associations)
Clothing: which country = status associations?
Brand extensions also use inferencing principles
Surf excel = what associations?
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Explain
A famous Harvard professor of decision sciences was once retained
by a retailer to suggest ways to improve sales efficiency in its store.
When he arrived, he became especially concerned with the women's
blouse sub department in the "bargain basement." This area seemed
to be extremely inefficient. Blouses were strewn about in a jumble
and shoppers wasted many minutes attempting to find their correct
size. Upon mentioning this to the management, the professor was
invited to return the next morning to observe the entire process from
scratch. He noted that prior to the store opening hour, employees
neatly arranged also the blouses by size. Then, however, they threw
them on the encounter and thoroughly mixed them up! WHY?
2014
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Explain
A famous Harvard professor of decision sciences was once retained
by a retailer to suggest ways to improve sales efficiency in its store.
When he arrived, he became especially concerned with the women's
blouse sub department in the "bargain basement." This area seemed
to be extremely inefficient. Blouses were strewn about in a jumble
and shoppers wasted many minutes attempting to find their correct
size. Upon mentioning this to the management, the professor was
invited to return the next morning to observe the entire process from
scratch. He noted that prior to the store opening hour, employees
neatly arranged also the blouses by size. Then, however, they threw
them on the encounter and thoroughly mixed them up! For some
reason, this technique seemed to increase total sales of the blouses.
2014
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Leads us to Perceptual Positioning
Positioning Strategy Uses Elements of the Marketing Mix to
Influence the Consumers Interpretation of Its Meaning.
Quality
Lifestyle
Users
Price Leadership
Positioning
Dimensions
Occasions
Competitors
2014
Attributes
Product Class
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Positioning: Create a Perception
Two aspects of successful positioning
The belief/perception you create must be about an
attribute that matters
Coke and taste
You should be perceived differently from
competition!
Pepsi vs. Coke
Cars: again, helps to have a distinctive position
Which brand has the cute car position?
Which brand has the safe car position?
2014
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General Takeaway for Consumer Behavior
Consumer Perceptions are very important!
The objective product (diamonds) may not really have value; but
people can perceive it as having value. This is where your
positioning strategy comes in.
Positioning = make consumers perceive the product
in a certain way (e.g., gift of love)
Positioning strategies have to be designed with
regard to what perceptions will sell.
E.g., romantic love is important in West
Not so much in East: Success / harmony / prosperity much
more important
So position accordingly (and be ready to change
positioning once values change)
2014
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LETS REFRESH..
POSITIONING
Establishing a defined image for a brand in
relation to competing brands.
REPOSITIONING
Changing the way a product is perceived by
consumers in relation to other brands or product
uses
REFERENCE PRICE
Any price that a consumer uses as a basis for
comparison in judging another price.
2014
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How Businesses Shape Consumers
Opinions
Product name
Product packaging
Colors
Price perceptions
Free product samples
Advertising
Product endorsers
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The Products Name Influences
Opinion Formation
The meaning derived from the name may influence
the opinion formed about the product
When it conveys the wrong meaning, sales can suffer
Research on composite branding shows the brand
name appearing first has the strongest influence on
attributes associated with that name
Descriptive names and labels have also been seen to
influence consumers opinions and behaviors
2014
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Product Packaging Influences Opinion
Formation
Product packaging creates expectations of the product and
its capabilities including impressions of how much product is
inside the package
Packages are effective at drawing attention particularly when
they have an unusual shape or are taller and thinner as
opposed to shorter but wider packaging
Me-too product packaging, which imitates packaging of a
leading brand, tries to create favorable opinions with
consumers
Stimulus generation occurs when, for an existing stimulusresponse relationship, the more similar a new stimulus is to
the existing one, the more likely it will evoke the same
response
2014
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Color Influences Opinion Formation
Consumer opinions are often tied to the products color (which
conveys meaning)
Color granules in detergents and cold capsules serve as a
visual cue for products effectiveness
Pastel colored vacuum cleaners are perceived to be lighter in
weight rather than dark colored tones
Colors of foods may change expectations of flavor and also
change perceived flavor (vanilla pudding that is colored
chocolate)
Websites that use blue screens are seen as more relaxing
with faster download times than those with yellow screens
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Price Perceptions
Nine-ending prices: when the last digit of the price is the
number 9, it signals a lower price or is mentally rounded
down ..Given a price of Rs 49.99, it can be viewed as Rs
49.00 instead of Rs 50.00
Reference pricing: information about a price other than that
actually charged for the product is provided
Price tag may carry actual price and manufacturer
recommended price or price previously charged
Designed to encourage consumers to form a favorable
opinion about the reasonableness of the price
Free samples (gifting) can be effective when introducing a
new product
They encourage trial and help foster positive opinions
2014
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Advertising Influences Opinion
Formation- Advertising Appeals
Informational advertising appeals attempt to influence consumers
beliefs about the advertised product
Emotional advertising appeals try to influence consumers feelings
about the advertised product
Utilitarian advertising appeals aim to influence consumers opinions
about the advertised products ability to perform its intended function
Value-expressive advertising appeals attempt to influence consumers
opinions about the advertised products ability to communicate
something about the use of the product.
The appropriateness of using a particular type of appeal depends on whats
important to consumers as they form their product opinions
Products can be valued for both their utilitarian and value-expressive
properties
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Advertising Influences Opinion
Formation- Claims
Stronger claims create more favorable product opinions
Relevancy makes claims stronger
Strength also depends on what the ad conveys about the
products characteristics and benefits
Ad claim substantiation is important in opinion formation
Search claims: claims that can be validated before purchase
by examining information readily available in the marketplace
Testimonials and product demonstrations are effective ways
to substantiate claims
Advertising execution elements, pictures, camera angles etc.
2014
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Product Endorsers Influence Opinion
Formation
Endorsers can help shape product opinions in several ways:
Association with brand may be reason enough to buy it
Endorsers may embody meanings that companies want attached to
their brands
Match-up hypothesis: endorsers are more effective when perceived
as appropriate for the product
Endorsers may give testimonials and provide evidence of products
attributes (make-up on a model)
Endorsers may serve as a peripheral cue
Endorsers trustworthiness is critical in increasing the
believability of the ad claim
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