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Consumer Perception
Session 618th September 2008
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In 1967 Gablingers Beer low calorie
In 1972 Miller Lite less filling
Everything you want in a beer..and
less
Positioning
Product attribute Gablingers
Product benefit Miller Lite
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Elements of Perception
Definition The process by which an
individual selects, organizes, interprets
stimuli into a meaningful and coherentpicture of the world.
How we see the world around us.
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Sensation
It is an immediate and direct response of
the sensory organs to stimuli.
Sensory Receptors (eyes, ears, nose,
mouth and skin)
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Absolute threshold The lowest level at which
an individual can experience sensation. This is the point at which a person can
detect the difference something and nothing
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Sensory Adaptation The used to habit of the
consumer the reason why there iscontinuous change in advertising campaigns.
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Differential threshold The difference that
can be detected between two similarstimuli.
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Also called just noticeable difference (JND)
Ernst Webber German scientist 19th century.
Webbers Law
Stronger the initial stimuli greater the additional intensity for second
stimuli.
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Marketing Applications of the
JND Marketers endeavor to determine the relevant
JND for their products for 2 very different
reasons That negative changes are not readily discernable to
the consumer. [reduction in size of toothpaste at
same price]
That product improvements are very apparent toconsumers without being wastefully extravagant. [
Pepsodent dishum dishum to Pepsodent complete]
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Subliminal perception Stimulation below the
level of conscious awareness.
Because the stimuli is beneath the thresholdlevel of conscious awareness though obviously
not beneath the absolute threshold of the
receptors involved.
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Supraliminal perception Stimuli that are
above the level of conscious awareness.
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Evaluating the effectiveness ofsubliminal perception Two theoretical approaches
Constant repetition of very weak stimuli has
an incremental effect
Subliminal arouse unconscious motivations.
Summarily subliminal stimuli may
influence affective reactions but may notinfluence consumption motives and
actions.
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Dynamics of perception
Selection
Organization
Interpretation of stimuli
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Perceptual selection
Individuals may look at some things
Ignore others
Turn away from still others
Example of women shopping in a mall.
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Nature of stimuli
Physical attributes
Package design
Brand name
Advertisement and commercial
Position of a print ad Editorial environment
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Expectations
Usually see what they expect to see
Based on familiarity, previous experience
Pre-conditioned sets
E.g.- Usage of women in advertisement
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Motives
People tend to perceive the things they need
or want
The stringer the need, the greater the
tendency to ignore unrelated stimuli in the
environment
Example: Seeing ad of cell phone
provider.
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Closure
Consumers listen to first half of the message
and conclude the rest
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Perceptual interpretation
Perceptual distortion
Physical appearance tendency to attribute
quality, characters to similar resemblingpeople.
Stereotypes Individuals tend to carrypictures in their mind of meanings of various
kind of stimuli Example: United colours of Benneton white
man, black man handcuffed together.
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Perceptual interpretation
First impression tend to be lasting
Jumping to conclusion- tend to jump to
conclusion before examining the relevantevidence
Halo effect- situations in which the evaluationof a single object or person on a multitude of
dimensions is based on the evaluation of justone or a few dimension. Man looking at your eyes- noble.
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ConsumerImagery
Product positioning
Actual characteristics
Product attributes
Product Image
Product strategy
What positioning conveys
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Umbrella positioning
Positioning against the competition.
Positioning based on a specific benefit
Finding an Unowned position.
E.g. Castrol- Liquid engineering.
Filling several positions
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Product repositioning
Perceptual mapping helps marketers to
determine just how their products or
services appear to consumers in relationto competitive brands on one or more
relevant characteristics.
E.g. The Telegraph E.g. The Statesman
E.g. Blanket with chicks to project warmth
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Fashion Coverage
More Copy
Club Coverage
More Artwork
Fashion Splash
Splash
Bash
Crash
Perceptual Mapping
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Positioning of Services
Tourism
Hotels
Post
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Perceived Price
Reference price Any price that a consumer uses as a basis for
comparison in judging another price Internal Reference price
External reference price
Acquisition utility represents the consumersperceived economic gain or loss associated withthe purchase, function of product utility andpurchase price.
Transaction utility the perceived pleasure /
displeasure associated with the financial aspectsof the purchase, determined by the differencebetween internal reference price and purchaseprice
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Tensile price claims
Used to promote a range of price discount
for a product line, and entire department,or an entire store
Objective price claim
Provides a single price claim
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Perceived Quality
Perceived quality of products
Intrinsic characteristics
Extrinsic characteristics
Consumer Reports
Country of origin
Perceived quality of services
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A scale measuring Customers Perception of Call-center
Employees.
Attentiveness
1. The agent did not make an attentive impression.*
2. The agent used short, affirmative words and sounds to indicate
that (s)he was really listening.
Perceptiveness
1. The agent asked for more details and extra information duringthe conversation.
2. The agent continually attempted to understand what I was
saying
3. The agent paraphrased what had been said adequately
Responsiveness
1. The agent offered relevant information to the questions I asked.
2. The agent used full sentences in his or her answers instead of
saying just yes or no.
3. The agent did not recognize what information I needed.*29
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Trust
1. I believe that this company takes customer calls seriously
2. I feel that this company doesnt respond to customer problems
with understanding.*3. This company is ready and willing to offer support to customers.
4. I can count on this company to be serious
Satisfaction
1. I am satisfied with the level of service this agency provided.2. I am satisfied with the way I was spoken to by the agent
3. I am satisfied with the information I got from the agent
4. The telephone call with the agent was a satisfying experience.
Call Intention1. I will very likely contact this company again
2. Next time I have any questions I will not hesitate to call again
3. I wouldnt be willing to discuss problems I have with this company
over phone.**Negatively phrased item30
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Reliability Providing the service as promised, at the promised timeand doing it right the first time; handling customer
problems in a dependable manner and keeping
customers informed
Responsiveness Prompt service, willingness to help customers and
readiness to respond to customer requests.
Assurance Instilling confidence in customers and making them feelsafe in their transactions; consistently courteous
employees with the knowledge to answer customers
questions.
Empathy Employees who deal with customers in a caring fashionand understand their needs; giving customers individual
attention and having their best at heart.
Tangibility Modern equipment, visually appealing facilities andmaterials related to the service, employees with
professional appearance, and convenient operating
SERVQUAL
Dimensions for measuring Service Quality
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Service
Quality
Behaviourial
Intentions
Superior
UnfavorableInferior
FavorableRemain
Behavior
Defect
+$
Ongoing Revenue
Increased
Spending
Price Premium
Referred CustomerFinancial
Consequences
-$
Decreased
Spending
Lost Customers
Costs toAttract
New Customers
Empirical links demonstrated in macro studies
Focus on present study
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IMAGE - Perception
Retail store image
Manufacturers image
Perceived risks
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How consumers handle risk
Consumers seek information
Consumers are brand loyal
Consumers select by brand image
Consumer rely on store image
Consumer buy the most expensive model
Consumers seek reassurance
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CASE I
NIRMA adopted a market penetration
strategy according to which the price ofits washing powder was fixed
approximately 40% below than that of
the highest price product in the market.
It was distributed in West and NorthZones The strategy was so successful
that it made the Industry Leader to lose
its market share substantially in thosezones where the product was promoted
aggressively.
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Case II
AMUL products were launched in the
market by the KDCMPULtd The Unionchose AMUL as the brand name avariant ofAMULYA which meanspriceless in Sanskrit. The product was
initially advertised only on hoardings asthe main medium. The Utterly Butterlyad campaign soon became popular. In1973 an apex organization was formed
GCMMF which integrated the activitiesof district union to oversee themarketing of their dairy products.
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Maggie Noodles for the first time brought the
concept of convenient food within the reach
of middle class household in India Theproduct was easy to prepare. It was
attractively packed. The company
emphasized intensive distribution strategy
backed up by heavy advertising and
promotion. The high pressure advertisement
campaign launch in print media and on TV
was highly successful. The campaign soldthe idea of a snack food and a quick meal
with remarkable success.
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