YELLOW BLUE ORANGE

BLACK RED GREEN

PURPLE YELLOW RED
ORANGE GREEN BLACK
BLUE RED PURPLE
GREEN BLUE ORANGE
Consumer Perception
Chapter Outline

 Elements of Perception
 Aspects of Perception
 Selection
 Organization
 Interpretation
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

Can you find the hidden message in this

company logo?
The Nature and Process of Perception
Elements of Perception

 Sensation
 Absolute threshold
 Differential threshold
 Subliminal perception
Sensation

 The immediate and direct response of the

sensory organs to stimuli
 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.
Differential Threshold

 Minimal difference that can be detected

between two similar stimuli
 Also known as the just noticeable difference
(the j.n.d.)
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.
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
Some marketing examples of the
Just-Noticeable-Difference (JND)
Area of Application Example of Use

 Pricing  When raising the price, try to move less than a JND

 Make coupons larger than the JND

 Sales promotion

 Make decreases in size of food product less than

 Product JND (chocolate bars)
 When the word new is used, make sure the product
change is greater than the JND

 To update package styling & logo keep within the

JND
 Packaging  To change image, make styling changes greater than
the JND
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.
 Extensive research has shown no evidence
that subliminal advertising can cause
behavior changes
 Some evidence that subliminal stimuli may
influence affective reactions.
Dynamics of Perception
Perception depends on two major inputs:
•Physical Stimuli
•Consumers’ previous experience

Selection

Organization

Interpretation
Attention
 Attention is the extent to which processing activity is
devoted to a particular stimulus
 Attention economy
- the internet has transformed the
focus of marketers in the industrialised world from
attracting money to attracting eyeballs
 Perceptual selection
- People attend to only a small
portion of the stimuli to which they are exposed
Perceptual Selection
 Consumers subconsciously are selective as to what
they perceive.

 Selection depends on the

 Nature of the stimulus (physical attributes, brand,
packaging, Advertising – contrast, advertorials,
infomercials)
 Expectations
 Motives
Perceptual Selection
Concepts
 Selective Exposure  Consumers seek out
 Selective Attention messages which:
 Are pleasant
 Perceptual  They can sympathize
Defense  Reassure them of good
 Perceptual purchases
Blocking
Perceptual Selection
Concepts

 Selective Exposure  Heightened awareness

 Selective Attention when stimuli meet their
needs
 Perceptual  Consumers prefer
Defense different messages and
 Perceptual medium
Blocking
Perceptual Selection

Concepts

 Selective Exposure  Screening out of stimuli

 Selective Attention which are threatening
 Perceptual
Defense
 Perceptual
Blocking
Perceptual Selection

Concepts

 Selective Exposure  Consumers avoid being

 Selective Attention bombarded by Tuning
out
 Perceptual
Defense
 Perceptual
Blocking
Aspects of Perception

Selection

Organization

Interpretation
Organization
Principles
 Figure and ground  People tend to organize
 Grouping perceptions into figure-
and-ground relationships.
 Closure
 The ground is usually
hazy.
 Marketers usually design
so the figure is the noticed
stimuli.
Lacoste’s campaign uses a very plain ground
so the symbol really shows.
Organization
Principles

 Figure and ground  People group stimuli to

 Grouping form a unified
impression or concept.
 Closure
 Grouping helps memory
and recall.
Organization
Principles

 People have a need for

 Figure and ground closure and organize
perceptions to form a
 Grouping
complete picture.
 Closure  Will often fill in missing
pieces
 Incomplete messages
remembered more than
complete
Discussion Question

 Do you agree you remember more of what

you have NOT completed?
Aspects of Perception

Selection

Organization

Interpretation
Interpretation
Perceptual Distortion

 Physical  Positive attributes of

Appearances people they know to those
 Stereotypes who resemble them
 Important for model
 First Impressions
selection
 Jumping to  Attractive models are
Conclusions more persuasive for some
 Halo Effect products
 Lux, Fair & Lovely
Interpretation
Perceptual Distortion
 Physical  People hold meanings
Appearances related to stimuli
 Stereotypes  Stereotypes influence
how stimuli are
 First Impressions
perceived
 Jumping to  United colors of Benetton
Conclusions campaign
 Halo Effect
Interpretation

Perceptual Distortion

 Physical  First impressions are

Appearances lasting
 Stereotypes  The perceiver is trying
 First Impressions to determine which
stimuli are relevant,
 Jumping to important, or predictive
Conclusions
 Halo Effect
Interpretation

Perceptual Distortion

 Physical  People tend not to listen

Appearances to all the information
 Stereotypes before making
 First Impressions conclusion
 Important to put
 Jumping to persuasive arguments
Conclusions first in advertising
 Halo Effect
Interpretation

Perceptual Distortion

 Physical  Consumers perceive and

Appearances evaluate multiple objects
 Stereotypes based on just one
 First Impressions dimension
 Important with
 Jumping to spokesperson choice
Conclusions
 Halo Effect
Issues in Consumer Imagery
 Product Positioning and Repositioning
 Positioning of Services
 Perceived Price
 Perceived Quality
 Retail Store Image
 Manufacturer Image
 Perceived Risk
Positioning
 Establishing a specific image for a brand in
the consumer’s mind
 Product is positioned in relation to competing
brands
 Conveys the concept, or meaning, of the
product in terms of how it fulfills a consumer
need
 Result of successful positioning is a
distinctive, positive brand image
Positioning Techniques
 Umbrella Positioning  Finding an “Unowned”
 Positioning against Position
Competition  Filling Several
 Positioning Based on a Positions
Specific Benefit  Repositioning
Perceptual Mapping

 A research technique that enables marketers

to plot graphically consumers’ perceptions
concerning product attributes of specific
brands
Issues in Perceived Price

 Reference prices – used as a basis for

comparison in judging another price
 Internal
 External
 Acquisition and transaction utility
 One study offers three types of pricing
strategies based on perception of value.
Three Pricing Strategies
Focused on Perceived Value
Pricing Strategy Provides Value By… Implemented As…
Satisfaction-based Recognizing and reducing Service guarantees
pricing customers’ perceptions of Benefit-driven pricing
uncertainly, which the Flat-rate pricing
intangible nature of services
magnifies
Relationship pricing Encouraging long-term Long-term contracts
relationships with the company Price bundling
that customers view as
beneficial
Efficiency pricing Sharing with customers the Cost-leader pricing.
cost savings that the company
has achieved by
understanding, managing, and
reducing the costs of providing
the service
Acquisition-Transaction Utility
 Acquisition utility  Transaction utility
 The consumer’s  The perceived pleasure
perceived economic gain or displeasure associated
or loss associated with with the financial aspect
the purchase of the purchase
 Function of product utility  Determined by the
and purchase price difference between the
internal reference price
and the purchase price
Perceived Quality

 Perceived Quality of Products

 Intrinsic vs. Extrinsic Cues
 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
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
Questions??