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Consumer Perception

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Perceptual Process
Sensory Stimuli Sights Sounds Smells Taste Textures
EXPOSURE

Sensory Receptors Eye Ears Nose Mouth Skin

INTERPRETATION

ATTENTION

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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

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The Nature of Perception

Exposure: When a stimulus comes within range of our sensory receptor nerves
Random vs. planned

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

Information Processing for Consumer Decision Making

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EXPOSURE
Random Deliberate

ATTENTION
Low Involvement High Involvement

INTERPRETATION
Low Involvement High Involvement

MEMORY
Short Term Active Problem Solving Long Term Stored Experiences, Hope, Values, Decisions, Feelings

PURCHASE AND CONSUMPTION DECISIONS

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Involvement
Symbolic Meanings Regarding the Self (e.g., clothes) Social Visibility (e.g., iPod) Time Commitment to the Purchase (e.g., hot water heater) Price (e.g., cars) Potential Harm to Self or Others (e.g., mountain climbing equipment) Potential for Poor Performance (e.g., aerobic shoes)

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Elements of Perception
Sensation : The immediate and direct response of the sensory organs to stimuli. Absolute threshold : It is the lowest level at which an individual can experience a sensation. Eg. Message written of Billboard. Differential threshold : The minimal difference that can be detected between two similar stimuli is called the differential threshold or just noticeable difference. Increase of Rs 5 on premium juice (Rs 150 / liter) and on petrol.

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Marketing Applications of the JND

Need to determine the relevant j.n.d. for their products. Below jnd level : To hide the negative changes. (Reduction in product size or quality, increase in price). Above j.n.d. level : To highlight the product improvements ( improved or updated packaging, larger sizes or lower price)

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Subliminal Perception

Perception of very weak or rapid stimuli received below the level of conscious awareness.

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Subliminal Perception
1957: Drive-In Movie Theater
Eat popcorn and Drink Coca Cola were flashed on the screen. (58% and 18% inc.)

1990s: Allegations against Disney

In Aladdin movie, hero allegedly whispers good teenagers, take off your clothes in a sub-audible voice.)

Extensive research had shown no evidence that subliminal advertising can cause behavior changes.

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Webers 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).

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Aspects of Perception
Selection Organization

Interpretation

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Perceptual Selection
People attend to only a small portion of the stimuli to which they are exposed. Consumers choose on the basis of Personal & Stimulus factors. Personal factors are Consumers experience Perceptual Filters Consumers motives

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Perceptual Vigilance Consumers are more likely to be aware of stimuli that relate to their current needs. Perceptual Defense People see what they want to see. Adaptation (Becomes habitual) Degree to which consumers continue to notice a stimulus over time. Depends on Intensity Less intense stimuli (soft sounds or dim color)habituate as they have less sensory impact. Duration Stimuli that require relatively lengthy exposure in order to be processed Discrimination Simple stimuli habituate as they do not require attention to detail.

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Stimulus Selection Factors

Stimuli that differs from others around them are more likely to be noticed (Webers Law). This contrast can be created as :
Size and Intensity Influence the probability of paying attention Color and Movement Serve to attract attention Position Placement of the object in a persons visual field 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

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Individual Factors
Interest a reflection of overall lifestyle and the ability to attend to information Need reflection of long-term goals and plans and their short-term needs

Nonfocused Attention
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Hemispheric Lateralization activity that takes place on each side of the brain Left Side primarily responsible for rational thought including verbal information, symbolic representation, sequential analysis, conscious thought.

Right side deals with pictorial, geometric, timeless and nonverbal information without the individual being able to verbally report it. Works with impressions and images.

Determinants of Interpretation
Individual characteristics

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SStimulus
characteristics

Interpretation: Gestalt

Cognitive Affective

SSituational
characteristics

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Interpretation
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

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Interpretation Characteristics
Individual:
Learning accumulation of life experiences Expectations

Situational:
Contextual Priming impact that the content of the material surrounding an ad will have on the interpretation of the ad. (e.g., Coke and the news)

Stimulus:
Sensory Discrimination ability to distinguish between similar stimuli. Just-Noticable-Difference (ie., jnd) the minimal amount that one stimuli can differ from another with the difference still being noticed. Individuals typically do not notice relatively small differences between brands or changes in brand attributes (e.g., candy bars).

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Interpreting Images What does this mean?

Proximity Principle refers to the tendency to perceive objects or events that are close to one another as being related or as sharing attributes.

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

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Impact on Marketing Strategy

Impact on Retailers Store interiors; shelf position; POP displays; reference prices Brand Name and Logo Development Linguists and computers often used to develop Co-branding giving two brand names to a single product Effective Media Strategy Selective Exposure Advertisement and Package Design Capture attention and convey meaning Strategies: Utilize stimulus characteristics; tie message to a topic the target audience is interested in.

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Warning labels and Disclaimers Evaluating Advertising effectiveness Exposure must physically reach the consumer; measures: people meters, diaries, clickthrough Attention consumer must attend to message; measures: Day-after recall; recognition tests; Starch scores Interpretation Must be properly interpreted; measures: focus groups, survey research Memory must be stored in memory in a manner that will allow retrieval under the proper circumstances Ethical Concerns Presenting a brand in a favorable light or completely accurately. Ambush marketing involves any communication or activity that implies, or from which one could reasonably infer, that an organization is associated with an event, when in fact it is not.

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Logos Influence on Image

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Principles of Perceptual Organization

Figure and ground
(Product Placement)

Grouping (multiple
benefit)

Closure (incomplete
picture, complete the sequence)

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Issues In Consumer Imagery

Product Positioning and Repositioning Positioning of Services Perceived Price Perceived Quality Retail Store Image Manufacturer Image Perceived Risk

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Positioning

Establishing a specific image for a brand in relation to competing brands.

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Positioning Techniques
Umbrella Positioning Positioning Against Competition Positioning Based on a Specific Benefit Conveying a Product Benefit Taking an Unowned Position Positioning for Several Positions Repositioning

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Perceptual Mapping

A research technique that enables marketers to plot graphically consumers perceptions concerning product attributes of specific brands.

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Parametres for perceptual Mapping mapping Attributes Features of the product

Non-Attributes Competitors availability in the market

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Perceptual Mapping
Style & design
Contemporary looks, Seating & luggage space

Price

Quality
Datasun

Maruti Suzukis new car YL7 (B/W Zen estillo & Astar)

Durability Reliability Fuel efficiency Cost of Spares

Trust