CHAPTER SIX Consumer Perception Copyright 2010 Pearson Education, Inc.
Learning Objectives 1. To Understand the Sensory Dynamics of Perception. 2. To Learn About the Three Elements of Perception. 3. To Understand the Components of Consumer Imagery and Their Strategic Applications. Chapter Six Slide 2
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 Chapter Six Slide 3
Sensation Sensation is the immediate and direct response of the sensory organs (5 senses) to stimuli Mainly sight & sound > smell (SIA e.g) A stimulus is any unit of input to any of the senses. The absolute threshold is the lowest level at which an individual can experience a sensation. Consumers adapt and get used to a certain ad or message so no longer notice it Chapter Six Slide 4
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. Wine Tasting Purchase of coffee @ starbucks with increase $ (High J.N.D) Buying of PC @ increase $ (Low J.N.D) Chapter Six Slide 5
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 or get notice to the public Negative changes : increase in price/packaging etc.. Positive changes : changes that are noticeable so that product improvements are very apparent to consumers Copyright 2010 Pearson Education, Inc. Chapter Six Slide 6
Discussion Question How might a cereal manufacturer such as Kellogg s use the J.N.D for Frosted Flakes in terms of: Product decisions Packaging decisions Advertising decisions Sales promotion decisions Copyright 2010 Pearson Education, Inc. Chapter Six Slide 7
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 Copyright 2010 Pearson Education, Inc. Chapter Six Slide 8
Aspects of Perception selective as to what messages and information they perceive new information comes to their mind, it is organized within their mind interpret the stimuli based on their needs, expectations, and experience Copyright 2010 Pearson Education, Inc. Chapter Six Slide 9
Perceptual Selection Selection Depends Upon: Copyright 2010 Pearson Education, Inc. Chapter Six Slide 10
Why Are Consumers Likely to Notice This Ad? Copyright 2010 Pearson Education, Inc. Chapter Six Slide 11
The Attention Getting Nature of a Dramatic Image Copyright 2010 Pearson Education, Inc. Chapter Six Slide 12
Discussion Questions What marketing stimuli do you remember from your day so far? Why do you think you selected these stimuli to perceive and remember? Chapter Six Slide 13
Perceptual Selection Important Concepts Copyright 2010 Pearson Education, Inc. Chapter Six Slide 14
Organization 3 Principles of Perceptual Organization Figure and ground Grouping Closure Contrast effect People tend to organize perceptions into figure andground relationships. The ground is usually hazy. Marketers usually design so the figure is the noticed stimuli. Chapter Six Slide 15
Organization Principle 2 Figure and ground Grouping Closure People group stimuli to form a unified impression or concept. Grouping helps memory and recall. Copyright 2010 Pearson Education, Inc. Chapter Six Slide 16
Organization Principle 3 Figure and ground Grouping 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 Chapter Six Slide 17
What Element of Perceptual Organization Is Featured in This Ad? Copyright 2010 Pearson Education, Inc. Chapter Six Slide 18
Closure Copyright 2010 Pearson Education, Inc. Chapter Six Slide 19
What Element of Perceptual Organization Is Featured in This Ad? Chapter Six Slide 20
Discussion Question Do you agree you remember more of what you have NOT completed? How might a local bank use this in their credit card advertising? Copyright 2010 Pearson Education, Inc. Chapter Six Slide 21
Interpretation Perceptual interpretation occurs because consumers have unique motives, interests, and experiences Stereotypes People hold meanings related to stimuli Physical appearances Descriptive terms First impressions Hallo effect Chapter Six Slide 22
Interpretation Positive attributes of people they know to those who resemble them Beautiful show host Color to food Celebrities Important for model selection Chapter Six Slide 23
Interpretation Verbal messages reflect stereotypes names and advertisement in services are particularly important due to the intangible nature of services Restaurants (Michelin Star) Ambience Hospitality Home away from home Health food Chapter Six Slide 24
How Does This Ad Depict Perceptual Interpretation? Chapter Six Slide 25
It Contrasts the Powerful Durango with Less Rugged Referred to in the Ad as the Land Of Tofu. Copyright 2010 Pearson Education, Inc. Chapter Six Slide 26
Interpretation First impressions are lasting The perceiver is trying to determine which stimuli are relevant, important, or predictive Copyright 2010 Pearson Education, Inc. Chapter Six Slide 28
Interpretation Consumers perceive and evaluate multiple objects based on just one dimension Chapter Six Slide 29
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 Copyright 2010 Pearson Education, Inc. Chapter Six Slide 30
Which Concepts of Perception Are Applied in These Ads? Copyright 2010 Pearson Education, Inc. Chapter Six Slide 31
The Principle Of Contrast Chapter Six Slide 32
Packaging as a Positioning Element Packaging conveys the image that the brand communicates to the buyer. Color, weight, image, and shape are all important Shampoo for example Repositioning might be necessary because: Increased competition Changing consumer tastes Copyright 2010 Pearson Education, Inc. Chapter Six Slide 33
Perceptual Mapping An analytical technique that enables marketers to visualize how their product is positioned in the consumer s mind To plot graphically consumers perceptions concerning product benefits or attributes of specific brands Chapter Six Slide 34
Perceptual Mapping Figure 6.9 Slogans used to position new condos in New York City Chapter Six Slide 35
Positioning of Services The intangibility nature of a service 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 Slide 36
Which Elements of This Ad Convey the Restaurant s Perceptual Position and How? Copyright 2010 Pearson Education, Inc. Chapter Six Slide 37
The Steak Knife and the Reference to Vegetarians Convey The Position of the Restaurant as a Well Established Steakhouse Copyright 2010 Pearson Education, Inc. Chapter Six Slide 38
Perceived Price and Perceived Quality Perceived price should reflect the value that the customer receives from their purchase Reference prices used as a basis for comparison in judging another price Internal Ones that the consumer knows External Perceived Quality of Products Intrinsic Cues concern the physical characteristics of the product. These include color, flavor, aroma, and size vs. Extrinsic Cues not really part of the physical product, including brand name, reputation, and location (country of origin as well) Chapter Six Slide 39
Three Pricing Strategies Focused on Perceived Value Table 6.4 Chapter Six Slide 40
Measuring Perceptions of Brand Luxury Chapter Six Slide 41
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 The scale measures five dimensions, including reliability, responsiveness, assurance, empathy, and tangibility Chapter Six Slide 42
Value is the trade off between perceived benefits and perceived sacrifice (monetary or time) 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.) Chapter Six Slide 43
How Can This Ad Affect the Service s Perceived Quality? Copyright 2010 Pearson Education, Inc. Chapter Six Slide 44
It Uses a Process Dimension in Advertising a Newly Formed Business Class on an Airline Copyright 2010 Pearson Education, Inc. Chapter Six Slide 45
Discussion Questions When have you used price as an indicator of quality? Were you correct? Copyright 2010 Pearson Education, Inc. Chapter Six Slide 46
Which of the Ad s Elements Conveys the Product s Quality? Copyright 2010 Pearson Education, Inc. Chapter Six Slide 47
The Slogan on the Ad s Bottom Left Reads Perfection Has Its Price Copyright 2010 Pearson Education, Inc. Chapter Six Slide 48
Retail Store Image Chapter Six Slide 49
Manufacturer s Image Manufacturers want their corporate image to be positive so that their products and brands can be positively perceived in the marketplace Favorable image tied to new product acceptance Companies sponsor community events to enhance images Product and institutional images (Exhibitions & Sponsorships) Chapter Six Slide 50
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 the risk to self and others Financial Risk product will not be worth its cost Social Risk product might lead to social embarrassment Psychological Risk poor product choice will hurt the consumer's ego Time Risk the time has been wasted in purchasing this product Chapter Six Slide 51
How Consumers Handle Risk Seek Information more knowledge when they purchase Stay Brand Loyal avoiding risk by sticking with a known product Select by Brand Image reduce their risk because they may already know and trust the brand Rely on Store Image Nice shop front or well decorated Buy the Most Expensive Model price/quality relationship will safely deliver them the best product Seek Reassurance money back guarantees, warranties, seals of approval and free trials Chapter Six Slide 52