Consumer Perception CHAPTER SIX. Learning Objectives 1.To Understand Concept of Perception. 2.To...

Consumer Perception

CHAPTERSIX

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Learning Objectives

1. To Understand Concept of Perception.

2. To Learn About the Three Elements of Perception.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide

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Outline

• What is perception

• What consistutes perception

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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


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Sensation

• Sensation is the immediate and direct response of the sensory organs to stimuli– A stimulus is any unit of input to any of the senses.– Application in marketing

• The absolute threshold is the lowest level at which an individual can experience a sensation.


http://www.aromaco.co.uk/

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Discussion

• Most of the marketing communications today appeal to sight and sounds. However, smell and touch also represent considerable opportunities for targeting consumers. Could you find some examples of smell/touch that used to attract target consumers?

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Promotional Methods Aimed at Increasing Sensory Input

• Table 6.2

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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.


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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


http://www.ultrasonic-ringtones.com/

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Marketing practices of JND

• Product improvements– Example of Goddards’

• Price increase• Package change

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Packaging and the J.N.D

• Coca-Cola

• Heinz ketchup

• Tropicana pure Premium orange juice

http://www.nytimes.com/2009/02/17/business/media/17adnewsletter1.html?pagewanted=all

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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


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Aspects of Perception

Selection

Organization

Interpretation


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Perceptual Selection

• Includes the product’s physical attributes, package design, brand name, advertising and more…

Nature of the stimulus

• Based on familiarity, previous experience or expectations.Expectations

• Needs or wants for a product or service.Motives


Selection Depends Upon:

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Why Are ConsumersLikely to Notice This Ad?


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The Attention-Getting Nature of a Dramatic Image


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Discussion Questions

• What marketing stimuli do you remember from your day so far?

• What makes you notice this?

• Insert an example of Google ads


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Organization

• Figure and ground

• Grouping• Closure

• 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.

Principles


http://www.sporcle.com/games/mostvaluablebrandsii.php

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Organization



• People group stimuli to form a unified impression or concept.• Grouping helps

memory and recall.

Principles


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Grouping in Practice: Brand Extensions

• Show some successful examples of brand extensions

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Organization



• 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

Principles


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What Element of Perceptual Organization Is Featured in This Ad?


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Closure


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Discussion Question

• Insert more examples of the three aspects

• Do you agree you remember more of what you have NOT completed?

• How might a local bank use this in their advertising?


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Interpretation

Stereotypes

Physical Appearances

Descriptive Terms

First Impressions

Halo Effect

• People hold meanings related to stimuli


Stereotypes


Descriptive Terms

First Impressions

Halo Effect

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How would you interpret this ad?

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Interpretation

Stereotypes


Descriptive Terms

First Impressions

Halo Effect

• Positive attributes of people they know to those who resemble them• Important for model

selection– Example


Stereotypes


Descriptive Terms

First Impressions

Halo Effect

http://www.oddcast.com/sitepal/

http://www.oddcast.com/sitepal/

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Interpretation

• Verbal messages reflect stereotypes


Stereotypes


Descriptive Terms

First Impressions

Halo Effect

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How Does This AdDepict Perceptual Interpretation?


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It Contrasts the Powerful Durango with Less Rugged Referred to in the Ad as the “Land Of Tofu.”


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Interpretation

Stereotypes


Descriptive Terms

First Impressions

Halo Effect

• First impressions are lasting• The perceiver is

trying to determine which stimuli are relevant, important, or predictive


Stereotypes


Descriptive Terms

First Impressions

Halo Effect

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Interpretation

Stereotypes


Descriptive Terms

First Impressions

Halo Effect

• Consumers perceive and evaluate multiple objects based on just one dimension

• Examples:– Brand extensions– licensing


Stereotypes


Descriptive Terms

First Impressions

Halo Effect

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Outline: Marketing Implication of Perception

• Perceptual map• Marketing applications of understand

consumers’ perception about:– Perceived Price– Perceived quality• Product quality• Service quality

– Perceived risk

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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


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Product Positioning

• Importance of product positioning

• Example– Packaging as a positioning element

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What does the packaging say about the product?

• Distinguishing factors– Robust and massive in

the size– Low on resemblance to

natural scheme

• Brand personality features– Lower excitement– Sophistication– Higher ruggedness

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What does the packaging say about the product?

• Distinguishing factors– Muted, sleek and

delicate– Small in size and weight

• Brand personality features– Higher competence– Sophistication– Lower ruggedness

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Perceptual Mapping

• An analytical technique that enables marketers to plot graphically consumers’ perceptions concerning product attributes of specific brands


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Perceptual Mapping


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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.

Chapter Six SlideCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

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Which Elements of This Ad Convey the Restaurant’s Perceptual Position and How?


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The Steak Knife and the Reference to Vegetarians Convey The Position of the Restaurant as a

Well-Established Steakhouse


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Perceived Price

• Perceived Price: reflect the value that customer receives from the purchase.

• Perceived price fairness

• Pricing strategies based on the customer’s perception of the service value


Three Pricing Strategies Focused on Perceived Value - Table 6.4

Pricing Strategy Provides Value By… Implemented As…

Satisfaction-based pricing

Recognizing and reducing customers’ perceptions of uncertainty, 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

Chapter Six Slide 44Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

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Reference Prices

• Reference prices – used as a basis for comparison in judging another price– Internal

– External• Amazon pricing


http://www.amazon.com/s/ref=nb_sb_noss?field-keywords=watch&url=search-alias=aps&x=0&y=0

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Perceived Quality of Products

• Intrinsic cues– Important to make “rational” choice– Include color, flavor, aroma, and size.

• Extrinsic cues– Price, brand image, manufacture's image, store

image, Country of Origin effect et.


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Discussion Questions

• When have you used price as an indicator of quality?

• Were you correct?


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Which of the Ad’s Elements Conveys the Product’s Quality?


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The Slogan on the Ad’s Bottom Left Reads “Perfection Has Its Price”


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Discussion: Luxury Brands

• Think about luxury brands that you observe recently. – What makes a luxury brand?

– Discuss both tangible and intangible benefits provided by an luxury brand.

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Luxury Brand Measurement

• Non-personally-oriented perceptions– Conspicuousness– Uniqueness– Quality

• Personally-oriented perceptions– Hedonism– Extended self

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Measuring Perceptions of Brand Luxury


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Perceived Quality of Services

• Difficult due to characteristics of services– Intangible– Variable– Perishable


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SERVQUAL Scale: Measuring Service Performance

• SERVQUAL scale used to measure gap between customers’ expectation of service and perceptions of actual service

• Outcome dimension• Process dimension


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SERVQUAL

Dimensions DefinitionReliability The ability to perform the promised service

dependably and accuratelyAssurance The knowledge and courtesy of employees and

their ability to convey trust and confidenceTangibles The appearance of physical facilities, equipment,

personnel and communication materials.Empathy The provision of caring, individualized attention

to customersResponsiveness The willingness to help customers and provide

prompt service

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How Can This Ad Affect the Service’s Perceived Quality?


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It Uses a Process Dimension in Advertising a Newly-Formed Business Class on an Airline


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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– Physical Risk– Financial Risk– Social Risk– Psychological Risk– Time Risk


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How Consumers Handle Risk

• Seek Information• Stay Brand Loyal• Select by Brand Image• Rely on Store Image• Buy the Most Expensive Model• Seek Reassurance


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Seek Reassurance

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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall


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