CONSUMER

PERCEPTION

PERCEPTION 1
Consumer 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

PERCEPTION 2
Consumer Perception

 Elements of Perception
 Sensation

 Absolute threshold

 Differential threshold

 Subliminal perception

PERCEPTION 3
Consumer Perception

 Sensation
 The immediate and direct response of the sensory
organs to stimuli.

 A perfectly unchanging environment provides little

to no sensation at all!

PERCEPTION 4
Consumer Perception

 Weber’s Law
 A theory concerning the perceived differentiation
between similar stimuli of varying intensities (i.e.,
the stronger the initial stimulus, the greater the
additional intensity needed for the second
stimulus to be perceived as different).

PERCEPTION 5
Consumer Perception

 Marketing Applications of the JND(Just

Noticeable difference)
 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

PERCEPTION 6
Consumer Perception

 Aspects of Perception

 Selection
 Organization
 Interpretation

PERCEPTION 7
Information Processing for
Consumer Decision Making

PERCEPTION 8
The Nature of Perception
 Exposure: when a stimulus comes within
range of our sensory receptor nerves
 Random vs. Deliberate

 Attention: when the stimulus activates one or

more sensory receptor nerves and the
resulting sensations go to the brain for
processing
 Low vs. High Involvement

 Interpretation: the assignment of meaning to

sensations
 Low vs. High Involvement

PERCEPTION 9
Consumer Perception

 Perceptual Selection
 Depends on two major factors
 Consumers’ previous experience

 Consumers’ motives

PERCEPTION 10
Consumer Perception

 Concepts Concerning Selective Perception

 Gestalt Psychology

 Selective Exposure

 Selective Attention

 Perceptual Defense

 Perceptual Blocking

 The Unexpected Attracts Attention

PERCEPTION 11
Determinants of Interpretation
Individual
characteristics

Stimulus
Interpretation:
characteristics
Gestalt Cognitive
Affective

Situational
characteristics

PERCEPTION 12
Consumer Perception

 Principles of Perceptual Organization

 Figure and ground

 Grouping

 Closure

PERCEPTION 13
Use of Isolation and Contrast

PERCEPTION 14
Stimulus Factors

 Size and Intensity – influence the

probability of paying attention

 Color and Movement – serve to attract

attention

 Position – placement of the object in a

person’s visual field

PERCEPTION 15
Stimulus Factors
 Isolation – the separation of a stimulus
object from other objects

 Format – manner in which the message is

presented

 Contrast – the tendency to attend more

closely to stimuli that contrast with their
background

PERCEPTION 16
Interpretation
The assignment of meaning to
sensations

 Cognitive interpretation – process

whereby stimuli are placed into existing
categories of meaning

 Affective interpretation – the

emotional or feeling response triggered
by a stimulus such as an ad

PERCEPTION 17
Interpretation Characteristics
 Individual:
 Learning
 Expectations
 Situational:
 Contextual Priming
 Stimulus:
 Sensory Discrimination

PERCEPTION 18
Interpretation Extended…
 Interpreting Images – What does this
mean?

 Consumer Inferences – the process

by which consumers assign a value to
an attribute or item not contained in an
ad on the basis of other data in the ad

PERCEPTION 19
Interpretation: Influences of
Perceptual Distortion

 Physical Appearances
 Stereotypes
 First Impressions
 Jumping to Conclusions
 Halo Effect

PERCEPTION 20
Consumer Perception

 Issues In Consumer Imagery

 Product Positioning and Repositioning
 Perceived Price
 Perceived Risk

PERCEPTION 21
Consumer Perception

 Positioning
 Establishing a specific image for a brand in relation to
competing brands.
 Positioning Techniques
 Umbrella Positioning

 Positioning Against Competition

 Positioning Based on a Specific Benefit

 Taking an Unowned Position

 Positioning for Several Positions

PERCEPTION 22
Perceptual Map for Automobiles

PERCEPTION 23
Consumer Perception

 Repositioning

PERCEPTION 24
Consumer Perception

 Pricing Strategies Focused on Perceived

Value
 Satisfaction-based Pricing (Competition based
pricing)
 Relationship Pricing (demand based pricing)
 Efficiency Pricing (Cost based pricing).
 Customers look for fair price not low price.

PERCEPTION 25
Consumer Perception

 Issues in Perceived Price

 Reference prices: a price in memory
 Internal

 External

 Tensile and objective price claims

PERCEPTION 26
Consumer Perception

 Tensile and Objective Price Claims

 Evaluations least favorable for ads stating the
minimum discount level e.g. 10% or more.

 Ads stating maximum discount levels are better

than stating a range e.g. up to 50% off.

PERCEPTION 27
Consumer Perception

 Perceived Risk
 The degree of uncertainty perceived by the
consumer as to the consequences (outcome) of a
specific purchase decision.

PERCEPTION 28
Consumer Perception

 Types of perceived risk

1. Functional Risk
2. Physical Risk
3. Financial Risk
4. Psychological Risk
5. Time Risk

PERCEPTION 29
Consumer Perception

 How Consumers Handle Risk

 Seek Information
 Stay Brand Loyal
 Select by Brand Image
 Rely on Store Image
 Buy the Most Expensive Model
 Seek Reassurance

PERCEPTION 30
Impact on Marketing Strategy
 Impact on Retailers
 Brand Name and Logo Development
 Effective Media Strategy
 Advertisement and Package Design
 Warning labels and Disclaimers
 Evaluating Advertising effectiveness
 Ethical Concerns

PERCEPTION 31