PERCEPTION

Definition
Elements of perception
Dynamics of perception
Marketing implication
 Perception is
 The process by which individuals select, organize and interpret stimuli to have a meaningful picture of
the world
 How we see the world around us
 Occurs when stimuli are registered by one of our five senses: vision, hearing, taste, smell, and touch
 How we express reality, which is a totally personal phenomenon
 Based on a person’s needs, wants, values and personal experiences
ELEMENTS OF PERCEPTION
 Sensation
 The immediate & direct response of the sensory organs to a stimuli.
 Stimulus is any unit of input to any of the senses

 Sensory adaptation
 When continuously exposed to stimulus, sensory organs cease to sense it.

 Absolute threshold
 The minimal difference that can be detected between two similar stimuli

 Differential Threshold (just noticeable difference)

 The intensity difference needed between two stimuli before one can perceive that the stimuli are
different
DYNAMICS OF PERCEPTION
 Why do we recognise(perceive) some stimuli and not others?
 Perception is not a result of sensory input alone
 Perception is the result of 2 different kinds of inputs that interact to form the personal pictures- i.e. the
perceptions that each one of us experiences:
 Physical stimuli from the environment
 Previous experiences
 These 2 inputs produces for each one of us a very private, very personal picture of the world around
us.
 Each one of us has unique experiences, needs, wants, desires & expectation
 Hence each one of us is unique
 Each one of us is very selective as to which stimuli to recognise
 We subconsciously organise the stimuli to give them meaning in accordance with our personal need,
expectations and experiences
PERCEPTION SELECTION
 Which stimuli we select depends on 3 major factors:
 Nature of the stimuli
 Previous experience as it affects our expectations – what we are prepared or set to see.
 Motives at the time including needs, desires, interests etc
NATURE OF STIMULUS
 Marketing stimuli that affect consumer’s perception:
 Physical attributes of the product
 The package design
 The brand name
 The ads
 The position of a print ad or a commercial
 The editorial environment

 Contrast – the most attention–getting attributes of a marketing stimuli

 Ads must achieve maximum contrast to penetrate the consumer’s perceptual screen
 An ad does not have to be unique to achieve a high degree of differentiation and merit consumer’s
attention.
 It simply has to contrast with the environment in which it is run
EXPECTATIONS & MOTIVES
 We usually see what they expect to see
 What we expect to see is based on
 Familiarity
 Previous experience
 Preconditioned set or expectations

 People perceive the things they need or want

 The stronger the need , the greater the tendency to perceive a stimulus.
SELECTIVE PERCEPTION
 Consumer’s selection of stimuli is based on the interaction of expectations and motives with
the stimulus itself. This results in four important concepts relating to perception:
 Selective exposure
 We actively seek out messages that we find pleasant or to which they are sympathetic and avoid unpleasant ones
 Selective attention
 We have heightened awareness of stimuli that meets our needs or interests than those that are irrelevant
 Perceptual defence
 We subconsciously screen out stimuli that we find psychologically threatening. We also unconsciously distort
information that is not consistent with our needs, values and beliefs.
 Perceptual blocking
 We protect ourselves from being bombarded with stimuli by block out such stimuli
PERCEPTUAL
INTERPRETATION^&
DISTORTION
 Like perception the interpretation of stimuli is also uniquely individual
 It depends on clarity of the stimulus, previous experience, motives and interests.

 Perceptual distortion occurs due to:

 Physical appearance- e.g. attractive models tend to be more persuasive than average models
 Stereotypes – e.g. We carry pictures in our minds of the meanings of various kinds of stimuli.
 First impressions – First impression last. Yet the first impression may not be a true reflection of later
behaviour
 Jumping to conclusions
 The halo effect-evaluation of a single object or person with a multiple dimension based on just one or
a few dimensions. E.g. Although product quality has multiple dimensions, consumers often evaluate
product quality based on just one or few dimensions such as price, size or durability.
MARKETING APPLICATIONS
OF PERCEPTION
 Product Positioning or Repositioning
 Perceptual mapping
 Perceived price
 Perceived Quality
 Price /quality relationship
 Perceived Risk
PRODUCT POSITIONING OR
REPOSITIONING
 The success/failure of products is ultimately due to how it is perceived by consumers than its
actual characteristics
 The core of effective positioning is a unique position that the product occupies in the mind of
the consumers.
 Most new products fail because they are perceived as “me too” offerings that do not offer
consumers any advantages or unique benefits over competing products.
 Positioning conveys the concept or meaning of a product or service in terms of how it fulfils
the consumer’s need(s).
 An effective positioning strategy must reflect both its ability to meet the consumer’s needs and
its ability to outperform competition.
REPOSITIONING
 Regardless of how well positioned a product may appear, at some point it must be repositioned
 There are two main reasons for repositioning
 responding to changes in the market events such as when too many competitors start to stress the
same attribute.
 To satisfy changing consumer preferences. When Health oriented consumers begin to avoid high-fat
foods, fast food chains swiftly repositioned their images by offering salads and other health-oriented
foods.
PERCEPTUAL MAPPING
 Perceptual mapping –a technique that helps marketers determine just how their products or
services compares with competitors’ brands in the minds of consumers on one or more
attributes or product dimensions.
 Uses of Perceptual mapping
 Helps marketers see the gaps in the positioning of all brands in the product or service class e.g. SUVs
 Helps marketers identify areas in which consumer needs are not being adequately met.
 Helps marketers identify a new market niche
 Facilitates repositioning of products
PERCEIVED PRICE
 Whether a consumer perceives a price as high, low or fair has strong influence on both the
purchase intentions and the purchase satisfaction.
 Nobody wants to pay more than they have to.
 Perception of price as unfair affects consumers’ perception of product value and ultimately,
their willingness to patronise a shop or aservice.
PERCEIVED QUALITY
 Consumers often judge the quality of a product or service on the basis of a variety of
informational cues that they associate with the product. These include:
 Intrinsic cues – the physical characteristics of the product itself such as colour, size, taste, flavour etc
 Extrinsic cues – characteristics that are not part of the product itself such as price, packaging, colour,
brand image, manufacturer’s image, store image or country of origin.
PRICE/QUALITY
RELATIONSHIP
 Perceived product value - a trade off between the product’s perceived benefits (or quality)
and the perceived sacrifice (both monetary and no-monetary) necessary to acquire it.
 Consumers often rely on price as an indicator of product quality
 Consumers attribute different qualities to identical products that carry different price tags.
 In addition to price, consumers use cues such as the brand and the shop in which the product is
bought to evaluate its quality.
 Consumers use price as a surrogate indicator of quality whenever they have little information
to use or if they have little confidence in their own ability to make the right choice.
SHOP IMAGE
 Shops have images of their own that serve to influence
 the perceived quality of products they carry and
 the decision of consumers as to where to shop

 Shop image stem from its:

 Design and physical environment
 pricing strategies
 Product assortment
MANUFACTURERS’ IMAGE
 Consumer imagery extends beyond perceived price or store image to producers
 Consumers generally have favourable perceptions pf pioneer brands (the first in a product
category)
 Consumers more readily accept products of manufacturers whom they have favourable image
of.
PERCEIVED RISK
 Consumers perceive some degree of risk whenever they are making a purchase decision.
 Risk perception is due to the fact that the outcomes or consequences of a purchase decision are often
uncertain. Hence perceived risk is defined as
 The uncertainty that consumers face when they cannot foresee the consequences of their purchase
decisions.
 The degree of risk perceived and the consumer’s tolerance for risk taking influence their purchase
strategies.
TYPES OF RISKS CONSUMERS
PERCEIVE
 Functional risk- the risk that the product will not perform as expected.
 Physical risk-the risk to self and others that the product may pose
 Financial risk-the risk that the product will not be worth its cost
 Social risk-the risk that a poor product choice may result in social embarrassment.
 Psychological risk-the risk that a poor product choice will bruise the byer’s ego.
 Time risk- the risk that the time spent in the product search may be wasted if the product does
not perform as expected.
HOW CONSUMERS MITIGATE
AGAINST RISK
 To mitigate against risk consumer rely on the following:
 Additional information
 Brand loyalty-consumers avoid risk by remaining loyal to a brand with which they have been satisfied
instead of purchasing a new or untried brands
 Brand Image-when consumers have no experience with the product, they tend to trust a favoured or
well known brand name.
 Store image-faced with no other information about the product, consumers often trust the judgement
of the merchandise buyers of a reputable shop
 Most expensive model-when in doubt consumers often feel that the most expensive model is probably
the best in quality
 Seek reassurance – money back guarantees, warranties, gvt & private test results