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The story of the candy shop: There are two candy shops next to a school. One shop charges a slightly higher price than the other, but still gets most of the students (i.e., higher sales). When the children are asked why they purchase from the higher priced candy shop, they say, The other store takes candy away from us.
It turns out that the lower price shop owner piles candy on a scale and then removes from the pile to arrive at the desired weight. On the other hand, the higher price shop owner starts with little candy and adds to it to until the desired weight is reached. This shows that even though the same amount is sold in both shops, the buyers perception of value is very different. Even though the price is slightly higher at one shop, the children think they are getting a better value for their buck. The bottom line is, do some market research to understand how your buyers perceive your product/service. How do they see it in comparison to a competitors products/services? Determining buyer perception is essential to increasing sales, and in turn, increasing profits.
CHANGES AROUND US
Taste (Gustatory)
Marketing Quality Circle
Figure 2.1
Sensory Systems
Vision
human eye is only capable of perceiving light at wavelengths between 390 and 750 nanometers.
Smell
human ear is usually cited as 20 20,000 Hz./ In actuality, the average hearing threshold is, in fact, between 0 and 5 decibels.
Touch
Taste
Hearing
Marketing Quality Circle
Perception:
The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world.
Exposure
A stimulus comes within range of someones sensory receptors
Deliberate Exposure Random Exposure
Absolute Threshold:
Differential Threshold:
The minimum amount of stimulation that can be detected on a given sensory channel.
The ability of a sensory system to detect changes or differences between two stimuli. The minimum difference that can be detected between two stimuli is known as the j.n.d. (just noticeable difference).
Subliminal Perception:
Occurs when the stimulus is below the level of the consumers awareness.
2-13
Exercise
Attention
Occurs when stimulus activates one or more sensory receptor nerves and the resulting sensations go to the brain for processing. Determined by: 1. Stimulus Size Colour Position Novelty Isolation Format Contrast Compressed messages Information quantity
2. Individual Interest Need Personal Selection factors Experience Perceptual vigilance Perceptual defense Adaptation 3. Situation Program involvement
Marketing Quality Circle
Interpretation
Assignment of meaning to stimuli
1. Cognitive interpretation 2. Affective interpretation
Determinants of interpretation
Determinants of Interpretation
Individual characteristics
Learning Expectation
Situational Characteristics
Stimulus Characteristics
Determinants of Interpretation
1. Individual characteristics
Expectation Past Learning
2. Situational Characteristics
a. Temporary characteristics of individual b. Time available c. Physical characteristics (arrangements) d. Semiotics
Object
3. Stimulus Characteristics
1. Closure Principle L ke y ur b ain, the n w L nd Rov r autom tic lly adj sts to anyth ng 2. Principle of Similarity
Perceptual Positioning
Positioning Strategy A fundamental part of a companys marketing efforts as it uses elements of the marketing mix to influence the consumers interpretation of its meaning. Many dimensions can establish a brands position in the marketplace:
Lifestyle Competitors