CHAPTER OUTLINE• Dynamics of Perception– Sensation– The Absolute Threshold– The Differential Threshold– Subliminal Perception
• Elements of Perception– Selection– Organization– Interpretation
• Consumer Imagery
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
DYNAMICS OF PERCEPTION
SensationThe
Absolute Threshold
The Differentia
l Threshold
The Sublimina
l Perception
SENSATION• Sensation – The immediate
and direct response of the sensory organs to stimuli
• Stimulus – A stimulus is any unit of input to any of the senses.
• Sensory receptors – The human organs i.e. Eyes, Ears, Nose, Mouth and Skin
SENSATION AND PERCEPTION• Sensation is the immediate
response of our sensory receptors (eyes, ears, nose, mouth, and fingers) to basic stimuli (light, color, sound, odor, and texture)
• Perception is the process by which sensations are selected, organized, and interpreted
SENSATION• Sensation itself depends on energy change within the
environment where the perception occurs(i.e. on differentiation of input).
• As sensory input decreases, however our ability to detect changes in input or intensity increases, to the point @ maximum sensitivty and minimal stimulation.
• Ex. “It was so quiet I could hear a pin drop.”
THE ABSOLUTE THRESHOLD• The lowest level at which an
individual can experience a sensation. Detecting difference between “something and nothing”
Ex. • People who live by busy
roads typically don't even notice that there is the sound of constant traffic outside their window.
Ex.• People who smoke no
longer notice the odor of cigarette smoke
• Sensory adaptation: is a problem that concerns many national advertisers, which is they try to change their advertising campaigns regularly.
• Ex. Airtel 4g advertise.
THE DIFFERENTIAL THRESHOLD
• The ability of a sensory system to detect changes or differences between two stimuli
–Minimum difference between two stimuli is the j.n.d. (just noticeable difference)
Ex. packaging updates must be subtle enough over time to keep current customers
German Scientist Ernst Weber
Weber’s law:• He discovered that the j.n.d. between
two stimuli was not an absolute amount, but an amount relative to the intensity of the first stimuli.
• 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– so that negative changes are not readily
discernible to the public(i.e. remain below the j.n.d.)
– so that product improvements are very apparent to consumers(i.e… they are at or just above the j.n.d)
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.
• Message below the threshold level– Takes place in movies:
• Nokia Lumia Mobile Phone with Shah Rukh Khan in Chennai Express
• John Abhraham using Sony Vaio in Kaal• All Tata cars in Singham returns• Aston Martin in James Bond
IS SUBLIMINAL PERSUASION EFFECTIVE?
• Extensive research has shown no evidence that subliminal advertising can cause behavior changes
• Some evidence that subliminal stimuli may influence affective reactions
Elements of Perception
• Human Beings stimuli change during every minute and every hour of every day..
The selection, organization, and interpretation of perceptions can differ among different people . Therefore, when people react differently in a situation, part of their behavior can be explained by examining their perceptual process, and how their perceptions are leading to their responses.
PERCEPTUAL SELECTION• Consumers subconsciously are selective as to what
they perceive.• Stimuli selected depends on two major factors– Consumers’ previous experience – Consumers’ motives
• Selection depends on the– Nature of the stimulus– Expectations – Motives
SELECTIVE PERCEPTION• Selective exposure:- – People look for pleasant and sympathetic messages and avoid
painful or threatening ones• Selective attention:- – People look into ads which will satisfy their need
• Perceptual Defense:-– People avoid psychologically threatening ones. Hence constantly
change the ad nature. [ Smoking – warning with words, and now with images ]
• Perceptual Blocking:-– Consumers avoid being bombarded by:
• Tuning out• TiVo
PERCEPTUAL ORGANIZATION
• People see everything as a whole• There are three most basic principles of perceptual
Organization are also referred by the name Gestalt psychology. (Gestalt, in German, means “pattern or configuration.”)– Figure and Ground – Grouping– Closure
Figure and Ground• It is a type of perceptual grouping which is a vital
necessity for recognizing objects through vision. In Gestalt psychology it is known as identifying a figure from the background.
• People tend to organize perceptions into figure-and-ground relationships.
• The ground is usually hazy.• Marketers usually design so the figure is the noticed
stimuli
Grouping• People group stimuli to form a unified impression or
concept.• Grouping helps memory and recall.• Humans naturally perceive objects as organized
patterns and objects. Gestalt psychologists argued that these principles exist because the mind has an innate disposition to perceive patterns in the stimulus based on certain rules.
Closure
• People have a need for closure and organize perceptions to form a complete picture.• Will often fill in missing pieces• Incomplete messages remembered more than
complete
PERCEPTUAL INTERPRETATION
• Stimulus are often highly ambiguous or weak
Types of Perceptual Interpretations
Stereotypes
Physical Appearances
Descriptive terms
First Impression
Halo Effect
STEREOTYPES• People hold meanings related to stimuli• Stereotypes influence how stimuli are perceived– People carrying biased pictures in their minds of
the meanings of various stimuli.
PHYSICAL APPEARANCES • Positive attributes of people they know to those who
resemble them• Attractive models are more persuasive for some
products – People associate quality with people in the ads– Attractive models have positive influence – Colors of juices– Shape of the package– Average men are not considered as businessman
DESCRIPTIVE TERMS
– McDonald – Happy price (targeting Indians who are price conscious
– KFC – Spicy Chicken
FIRST IMPRESSION
• First impressions, last long
• The perceiver is trying to determine which stimuli are relevant, important, or predictive
Halo Effect• Consumers perceive and evaluate product or service
or even product line based on just one dimension.• For example, a man is trustworthy, fine, and noble
because he looks you in the eye when he speaks.• Important with spokesperson choice• Tampering the halo effect is detrimental to the
organization.
• Toyota – Quality• Ford – Safety• Sony - Music
The halo effect helps Adidas
break into new product
categories
Marketers takes advantages of the halo effect when they extended a brand name associated with one line of products to another.
CONSUMER IMAGERY• Consumers perceived images about product, services,
prices, product quality, retail stores and manufacturers.
• People buy product to enhance their self image (relating themselves to the product).
POSITIONING• Image of the product in the minds of the customer is
called Positioning.
• Image of your product gear up your sales, but the product should also deliver its performance.
• Product BENEFITS should be focused more than it’s physical attributes.
POSITIONING TECHNIQUES• Positioning Based on a Specific Benefit
For example, the activity of washing clothes, where the benefit provided to customer is clean clothes- a straightforward and obvious benefit.
• Product PositioningPositioning is more important to the ultimate success of a product than are its actual characteristics , but products are poorly made will not succeed in the long run and image alone not benefited.
POSITIONING TECHNIQUES• Product Repositioning
The marketer may be forced to reposition it in response to market events, such as competitors cutting into the brand’s market share or too many competitors stressing the same attributes. Another reason to reposition a product or service is to satisfy changing consumer preferences.
• Umbrella positioning suzuki , the maker of many car model, is using the
same slogan to describe the consumer benefits that its products provided. Another example, Amul.
POSITIONING PRODUCTS AND SERVICES
• Model of Strategic Positioning:
Positioning Aim(s)
Positioning Objectives
Positioning Strategy
(ies)
Communications
Consumer Perceptions
Typology of Strategic Positioning• Top of the range – Upper class –
Rolls Royce
• Service – Impressive service – Pizza hut – 30 mins
• Value for money – Affordability –Megamart, The dollar shoppe
• Reliability – Durability – Allwyn Fridge - 7yrs warranty
Typology of Strategic Positioning
• Attractive – Cool, Elegant – Mercedes, Bournville
• Country of Origin – Patriotism- Amul- The Taste of India
• The Brand Name – Leaders in the market – Apple, Sony
• Selectivity – Discriminatory – Nano, Macbook Air
PRODUCT REPOSITIONING
• To face the competitors, who offer new products or services
• Changing lifestyle of people - need to suit the current trend. Eg. Evolution of Tabs and Apple
• When brand need to change their target segment (happens rarely) Eg. Gems
• When motivation to buy the category is low among customers
Why repositioning is required?
ISSUES IN PERCEIVED PRICE• Perceived price – It should reflect the value that the customer
receives from the purchase. For example, low price for fast food meal and high price for restaurant meal.
• Reference price – any price that a consumer uses as a basis for comparison in judging another price
– Internal reference prices are those prices or price ranges retrieved by the consumer from memory.
– External reference prices are in an ad offering a lower sales price, to persuaded the consumer that the product is really good buy.
Three Pricing Strategies Focused on Perceived Value
Pricing Strategy Provides Value By… Implemented As…
Satisfaction-based pricing
Recognizing and reducing customers’ perceptions of uncertainly, which the intangible nature of services magnifies
Service guaranteesBenefit-driven pricingFlat-rate pricing
Relationship pricing Encouraging long-term relationships with the company that customers view as beneficial
Long-term contractsPrice bundling
Efficiency pricing Sharing with customers the cost savings that the company has achieved by understanding, managing, and reducing the costs of providing the service
Cost-leader pricing.
PERCEIVED QUALITY• Perceived Quality of Products– Intrinsic concerns physical attributes– Extrinsic concerns to judge quality
• 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 used to measure gap between customers’ expectation of service and perceptions of actual service delivered.
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• 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
Chapter Outline• The Elements of Consumer Learning• Behavioral Learning Theories• Cognitive Learning Theory• Measures of Consumer Learning
Learning• The process by which individuals acquire the
purchase and consumption knowledge and experience that they apply to future related behavior
• Marketers must teach consumers:– where to buy– how to use– how to maintain– how to dispose of products
ELEMENTS OF LEARNING THEORIES
• Motivation :Uncovering consumer motivates is the prime tasks of marketers, who then try to teach motivated consumer segments why and how their products will fulfill the consumers’ needs. Unfilled needs lead to motivation.
• Cues :The ad is the cue, or stimulus, that suggests a
specific way to satisfy a salient motive.
• Response :
How individuals reacts to a drive or cue- how they behave- constitute their response.
• Reinforcement :Reinforcement increases the likelihood that a
specific response will occur in the future as the result of particular cues or stimuli.
Learning Theories
Behavioral LearningTheory
Cognitive Learning Theory
Theories based on the basis that learning takes place as the result of observable responses to external stimuli. Also know as stimulus response theory.
A theory of learning based on mental information processing. Often in response to problem solving.
BEHAVIORAL LEARNING THEORY
• Classical Conditioning• Instrumental Conditioning• Modeling or Observational Learning
CLASSICAL CONDITIONING
Pavlovian Model of
Classical Conditioning
Analogous Model of
Classical Conditioning
Paviovian Model of Classical Conditioning
AFTER REPEATED PAIRINGS
Unconditioned StimulusMeat Paste
Conditioned StimulusBell
Conditioned StimulusBell
Unconditioned ResponseSalivation
Conditioned ResponseSalivation
Unconditioned StimulusDinner aromas
Conditioned Stimulus6o’clock news
Conditioned Stimulus6o’clock news
Unconditioned ResponseSalivation
Conditioned ResponseSalivation
Analog Model of Classical Conditioning
AFTER REPEATED PAIRINGS
Instrumental Conditioning• A behavioral theory of learning
based on a trial-and-error process, with habits forced as the result of positive experiences (reinforcement) resulting from certain responses or behaviors.
What am Ipurchase
“I’m Hungry”
Model of Instrumental Conditioning
StimulusSituational(need good
looking jeans)
Try Brand
A
Try Brand B
Try Brand C
Try Brand D
UnrewardedLegs too loose
UnrewardedTight in seat
UnrewardedBaggy in seat
RewardedPerfect fit
Modeling or Observational Learning• Modeling is the process
through which individuals learn behavior by observing the behavior of other and the consequences of such behavior.
COGNITIVE LEARNING THEORY
• Holds that the kind of learning most characteristic of human beings is problem solving, which enables individuals to gain some control over their environment.
INFORMATION PROCESSING• Relates to cognitive ability and the complexity of the
information• Individuals differ in imagery – their ability to form
mental images which influences recall
Issues in Involvement Theory
1. Consumer Relevance2. Central and Peripheral Routes to Persuasion3. Measure of Involvement
1. Consumer Relevance• Involvement depends on degree of personal
relevance.• High involvement is:– Very important to the consumer – Provokes extensive problem solving
2. Central and Peripheral Routes to Persuasion
• Central route to persuasion– For high involvement purchases– Requires cognitive processing
• Peripheral route to persuasion– Low involvement– Consumer less motivated to think– Learning through repetition, visual cues, and
holistic perception
3. Measures of Consumer Learning
Recognition and Recall Measures
Recognition and recall tests are conducted to determine whether consumers remember seeing an ad and extent to which they have read it or seen it and can recall its content.
Brand Loyalty• Function of three groups of influences– Consumer drivers– Brand drivers– Social drivers
• Four types of loyalty– No loyalty– Covetous loyalty– Inertia loyalty– Premium loyalty
Brand Equity• Refers to the value inherent in a well-known brand
name• Value stems from consumer’s perception of brand
superiority• Brand equity reflects learned brand loyalty• Brand loyalty and brand equity lead to increased
market share and greater profits