Chapter06 Perception

8/6/2019 Chapter06 Perception

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Chapter 6

Consumer Perception



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PerceptionPerception

The process by which anindividual:

SELECTS ,

ORGANIZES ,

and

INTERPRETS STIMULI

into a meaningful andcoherent picture of theworld.



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Elements of Perception• Some basic concepts relating to

PERCEPTUAL PROCESS (within theframe-work of Consumer Behavior)– Sensation– The absolute threshold– The differential threshold

– Subliminal perception



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Elements of Perception– Sensation– The absolute threshold– The differential threshold– Subliminal perception



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SensationSensation

•The immediate & directresponse of sensory organs to

stimuli (e.g. advertisements / packaging / brand name)

•Stimulus = any unit of inputto any of the senses

•Sensory receptors = eyes, ears,nose, mouth, & skin

•An unchanging environmentprovides little or no sensationat all

•E.g. effect of honking inBangalore



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AbsoluteAbsoluteThresholdThreshold

•The lowest level at which anindividual can experience a

sensation•In other words, it is the “point”

at which a person can detect adifference between “something”and “nothing”- this is thatperson’s absolute threshold forthat stimulus



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“G tti d t ” t i ti



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SensorySensory

AdaptationAdaptation

•“Getting used to” certain sensations;becoming accommodated to a certainlevel of stimulation

•For advertisers sensory adaptation

concept is very important- i.e.consumer gets “used to “ an advt.and hence, the advt. will no longer

provide sufficient sensory input to benoted. That explains the need tochange the advts. Frequently

•Analogy : “getting used” to a hotbath / cold bath / bright sun – after

the initial response the individualgets conditioned to the stimulus andhence no further res onse is elicited



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SensorySensory

AdaptationAdaptation

•Marketers have two options to overcome“advertisement clutter”, either by :

•Increasing the sensory inpu t byflooding consumers with a plethora of ads (e.g Advertisement of Colgate

Toothpaste on Mumbai’s local trains) –the exposure is so high that a person hasto be blind if she/he has to miss the ad•Decreasing the sensory input usingunexpected “features” (e.g. using“silence” for TV ads – the absence of music or audio effects) to gain attention•Marketers seek unusual media to attainthe “Absolute Threshold”

•E.g. Mailing perfume samples, balloon

advertsements, using elephants to promoteHERO (cigarette brand) in rural areas, etc.

Increasing the



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Increasing theSensory Input

(example)

The ad depicts

the use of aplethora of ads

for increasedsensory input



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Decreasing the Sensory Input (example)

ONIDA HAS WASHED THE

NATION CLEAN

AIRTEL



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DifferentialDifferential

ThresholdThreshold

•The minimal difference

that can be detectedbetween two similar

stimuli.

•Also known as the j.n.d.(just noticeable difference) .



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WeberWeber ’’s Laws Law

A theory concerning theperceived differentiation

between similar stimuli of varying intensities (i.e., the

stronger the initialstimulus, the greater theadditional intensity neededfor the second stimulus tobe perceived as different).



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(Example)(Example)

•If the price of a SkodaOctavia is increased by Rs.1000/-, it may not havemuch of an impact (i.e. theincrement would fall belowthe j.n.d.)

•But, if the price of petrol is

increased by Rs. 10/- it willhave a tremendous impact (because it is a significant %

of the base cost of petrol)



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(A Paradox)(A Paradox)

•Company X has a hair dyethat’s positioned as “Lastslonger”•Competing brands offerlasting duration of 15 days•If Company X offers 40 days,then repeat purchase rate willreduce•If company X offers 12 days,then “lasts longer” perception

won’t last long•But, if Company X offers 18days, then consumers may

notice the difference withcompeting brands



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Marketing Applications of the JND

• Need to determine the relevant j.n.d. for their products– so that Negative Changes

(reduction in product size, increasein product price etc.) are notreadily discernible to the public

(i.e. keeping such negative changesbelow the j.n.d.) e.g. web transaction fee

– So that Positive Changes (product

improvements like lower price,increased quantity etc.) becomeapparent to the consumers without

being extravagant (i.e. keeping thePositive changes at the j.n.d. level)



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Marketing Applications of the JND

Anything below the j.n.d. is wasted effort

Anything above the j.n.d. is extravagant& wasteful



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Application of j.n.d.

•Marketers often want to update their symbolswithout losing the ready recognition of consumers who have been exposed to years of cumulative advertising impact

•In such cases, they usually make a number of small changes, each carefully designed to fall

below the j.n.d., so that consumers will perceiveminimal difference between succeeding versions

Application of j n d (example 1)



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Application of j.n.d. (example 1)

Betty Crocker, the General Mills symbol, has beenupdated seven times from 1936 to 1996



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Application of j n d



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Application of j.n.d.(example 2)

•LEXMARKbought the office

supplies & eqpt.line from IBM inMarch’91 &agreed torelinquish IBM

name by ’96•Accomplished in a

4-stage process

Application of j n d



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Application of j.n.d.(example 2)

TransitionComplete :

LEXMARKstands alone




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Elements of Perception– Sensation

– The absolute threshold– The differential threshold

– Subliminal perception

P l i ti li



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SubliminalSubliminal

PerceptionPerception

•People can perceive stimuliwithout being consciouslyaware that they are doing so

•Perception of very weakor rapid stimuli receivedbelow the level of conscious

awareness

•Stimuli that are too weak ortoo brief to be consciously seenor heard may nevertheless be

strong enough to be perceivedby one or more receptor cells

Case of the 1950’s



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• Widely reported that consumers were being exposed to

subliminal ad messages they were not aware of receiving• These messages were meant to persuade products

indirectly• In 1957, an experiment was conducted in New Jersey,

USA in a movie theater

• Messages like ‘Eat Popcorn’ & ‘Drink Cola’ wereflashed on-screen : these messages had very shortexposure time and viewers were unaware of having seen

an ad• In a span of 6 weeks popcorn sales went up by 58% and

Coke sales went up by 18% - thereby confirming thepotency of subliminal perception as an advertisingconce t!



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• However, there is a debate on using subliminal

perception as an advertising tool because they make theconsumers make unconscious acts of purchase

• The debate on whether to ban subliminal perception asan advertising tool still rages on in the USA……..

Dynamics of Perception



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•Perception study is a study of what we subconsciously addto OR subtract from raw sensory inputs to produce ourown private picture of the world•Perception is not a function of sensory inputs alone, BUT

Perception = f(2 different types of inputs that interactto form the personal picture that each individualexperiences)

•Type 1 : physical stimuli from outside environment•Type 2 : in the form of certain predispositions(expectations, motives & learning) based on previous

experience•Hence, perceptions are unique:

•E.g. “Only 2% people in Africa wear shoes” wasperceived as a weakness by many but for Mr. Bataperceived this as an opportunity !



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Aspects of Perception

Selection Organization

Interpretation



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Selection

Perceptual Selection



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• Consumers subconsciously exercise a great deal of

selectivity as to which aspects of the environment (i.e.which stimulus) they perceive– Example : A woman in a supermarket is exposed to

thousands of stimuli:• different number of products of different colors, sizes etc.

• different number of people (looking, walking, searching,

talking etc.)• different smells (fruits, perfumes, disinfectants, etc.)

• different sounds (A/C, talking, etc.)

– Yet, she manages to select the items she needs, pay for themand leave the place, all within a short period of time –HOW?

• Because of her SELECTIVITY IN PERCEPTION!



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Which stimuli gets selected?

• Depends on two majorfactors– Consumers’ previous

experience (affects theirexpectations)– Consumers’ motives at

that time (their needs,desires etc.)



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Some Marketing Variables InfluencingConsumer Perception

• Nature of Product• Physical Attributes of Product• Package Design

• Brand Name• Advertisements &

Commercials• Position of Ad• Editorial Environment

Nature of the Stimulus



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Nature of the Stimulus

• Marketing Stimuli include severalvariables that affect consumer’sperception (package, brand name, adsetc.)

• Marketers often use “CONTRAST”as a differentiator in the clutter of ads

• E.g. Hutch ads – just the word ”Hi”

printed at the top of the page

Application of



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Contrast

An illustration of the attention-

getting nature of adramatic product

in an ad

Dramatic Images& Contrast

Attract Attention

Application of



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Contrast

Attention-getting natureof white space

in

advertisements

Expectations



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Expectations

• People usually see what they expect to see

• What they expect to see = f( familiarity,previous experience, expectations)

• E.g. : If a person’s friend tells him that“Yellow Fields food” is bad, he may also feel

the same after eating - not because the foodis bad but maybe he perceives that it will bebad

Application of“E i ”



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“Expectation”

Stimuli thatconflict sharply

with expectationsreceive more

attention

The UnexpectedAttracts Attention

Unexpected

Application of“U d”

http://unexpected.asf/

http://unexpected.asf/



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“Unexpected”

The UnexpectedAttracts Attention



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Concepts Concerning SelectivePerception

• Selective Exposure• Selective Attention

• Perceptual Defense• Perceptual Blocking

•Consumers seek out



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Selective

Exposure

Consumers seek outmessages that they findpleasant andpurposefully avoid

painful or threateningmessages (e.g. greyinghair, decaying teeth etc.)

•They also selectively

expose themselves to adsthat reassure them of thewisdom of their purchasebehavior



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Selective

Attention

•Consumers display a greatdeal of selectivity in terms of attention they give tocommercial stimuli

•E.g. some give more attentionto pricing, some give moreattention to appearance, etc.

•Consumers subconsciously



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Perceptual

Defense

Consumers subconsciouslyscreen out stimuli that theyfind psychologicallythreatening

•E.g. a smoker will blockout stimuli that carries themessage that “smokingcauses cancer”



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Perceptual

Blocking

•Consumers block out stimuli

from conscious awareness

•E.g. Zapping of TVcommercials with remote

control



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Organization

Principles of Perceptual Organization



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• People don’t experience the numerous stimuli asseparate and discrete sensations– They tend to organize them into groups and perceive

them as unified wholes

• The specific principles underlying perceptual

organizations are called GESTALT PSYCHOLOGY• 3 most basic principles of perceptual organization:

– Figure and ground– Grouping– Closure

• Zeigernik effect

C t t th



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FigureFigure&&

GroundGround

•Concentrates on the

background &foreground of admessages

•E.g Advertisersneed to be carefuland ensure thatmusic(background)never becomesmore than the

voice (foreground)

Application ofFigure & Ground



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Figure & Ground

Print advertisersoften silhouette

their productsagainst a whitebackground to

make sure that thefeatures they want

are noted clearlyperceived

•Individuals tend to groupstimuli so that they form a

http://martini.asf/

http://martini.asf/

http://martini.asf/

http://martini.asf/



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GroupingGrouping

stimuli so that they form a

unified picture / impression•Marketers use this conceptextensively:

•An ad for a tea brand,showing a man & womansipping tea in front of afireplace in a tastefullydecorated room•The overall mood implied bythe Grouping of stimuli leadsthe consumer to associate

drinking of tea with romance,fine living and warmth

http://martini.asf/

http://martini.asf/

http://martini.asf/

http://martini.asf/

http://martini.asf/

http://martini.asf/

http://martini.asf/

http://martini.asf/

http://martini.asf/

http://martini.asf/

http://martini.asf/

http://martini.asf/

http://martini.asf/

http://martini.asf/

http://martini.asf/

http://martini.asf/

http://martini.asf/

http://martini.asf/

http://martini.asf/



Classic Example of Closure



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ClosureClosure

• A video on TV showingbacon frying in an iron potand a voice-over in cowboyaccent with a soft cowboysong as a backdrop

• After 24 hours,telephone surveys indicatedthat people remembered

much more from the video –horses standing in thebackground and the flamesreflecting on the faces of thecowboys !!!



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ZeigernikZeigernik

EffectEffect

A person beginning a task

needs to complete it. Whenhe or she is prevented fromdoing so, a state of tensionis created that manifests

itself in improved memory

for the incomplete task.



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ImplicationsImplicationsof Closureof Closure

(failed love story!!)(failed love story!!)

Marketing Implication forClosure

Incomplete ad messages“BEG” for completion byconsumers – this involvesthem more deeply into themessage, thereby leading togreater degree of recall

Application ofClosure



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Using the need forCLOSURE to

increase attention



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Interpretation

•Interpretation is “uniquely



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InterpretationInterpretation

p q y

individual”

•Since stimuli is often highly

ambiguous (brief burst of noise, etc.), it leads toindividual interpretation

•This is what forms the basisfor projective techniques ( likeincomplete sentences, captioncontests etc.) for Consumer

Research



Distorting Influences• Physical Appearances



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y pp

– Selection of models become important for persuasiveness• E.g. Sachin for “Boost” & Aishwarya for “Lux”

• Stereotypes– Individuals tend to carry “pictures” in their minds of the

meanings of various kinds of stimuli (i.e. expectations of

what specific situations, people and events will be like)• E.g. T-Series cassettes are always perceived as “pirated”

stuff

• Irrelevant Cues– Consumers often respond to irrelevant cues

• E.g. A person may buy a Skoda based on the luxury optionsrather than on the technical superiority

Distorting InfluencesFi I i



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• First Impression– “You never get a second chance for a first

impression” - i.e. first impressions are long-

lasting!• Jumping to Conclusions

– Many people jump to conclusions withoutseeing the whole thing (form opinionsbeforehand)

– Hence, for such persons – advertisers givetheir most persuasive arguments first

Distorting InfluencesH l Eff



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• Halo Effect– Evaluation of an object on a multitude of

dimensions is based on the evaluation of just one

or a few dimensions• E.g. “A man is considered trustworthy because he

looks in the eye and speaks”

– Marketing Implication: Marketers take advantageof the Halo Effect when they extend a brand nameassociated with one product line to another

– E.g. “Reliance Infocomm” from the Reliancestable !!!



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CONSUMER IMAGERY



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ConsumerConsumer

ImageryImagery

•Products and brands have

symbolic value forindividuals, who evaluatethem on the basis of theirconsistency with theirpersonal pictures of

themselves



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ConsumerConsumer

ImageryImagery

Using Imagery to conveya product benefit



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The ad uses thesymbolism of a

widely recognizedlandmark, as a

negative goal, topromote thebenefits of a

calciumsupplement



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Issues In Consumer Imagery

• Product Positioning and Repositioning• Positioning of Services• Perceived Price

• Perceived Quality• Retail Store Image• Manufacturers Image• Perceived Risk



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PositioningPositioning

Establishing a specificimage for a brand in

relation to competingbrands.



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RepositioningRepositioning

Changing the way aproduct is perceived byconsumers in relation toother brands or product

uses.

Repositioning



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In the renewedemphasis on home &

hearth that followedthe tragedy of 9/11,

Berkshire repositionedits blankets as a cozy

nesting place







Issues in Perceived Price



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Issues in Perceived Price

• Reference prices• Tensile and objective price claims



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ReferenceReference

PricePrice

•Any price that a consumeruses as a basis for

comparison in judginganother price

•Two kinds of referenceprices exist – External &Internal

Reference Prices



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Reference Prices

• External Reference Price– e.g. - a dealer claims : “elsewhere this same

product is sold for Rs.100 whereas I amselling for Rs. 75”

• Internal Reference Price

– e.g. - Consumer says “I saw the other dealerselling this same product for Rs. 75”



Tensile and Objective Price Claims(contd.)



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• Objective Price Claims :• Such claims are used to promote

a single discount

• Important : Research shows that

Tensile & Objective Price claimshave greater effect on consumershopping than a reference priceadvertisement

Perceived Quality



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Q y

• Perceived Quality of Products– Intrinsic vs. Extrinsic Cues

• Perceived Quality of Services

• Price/Quality Relationship



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Intrinsic CuesIntrinsic Cues

Physical characteristics of the product (such as size,color, flavor, or aroma)

that serve to influence theconsumer’s perceptions of product quality.



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ExtrinsicExtrinsic

CuesCues

Cues external to the

product (such as price,store image, or brandimage) that serve to

influence the consumer’sperception of a product’s

quality.

Characteristics of Services



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• Intangible• Variable• Perishable

• SimultaneouslyProduced andConsumed

Perceived Quality of Services



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• More difficult for consumers to evaluate the qualityof services than the quality of products. This isbecause services are intangible / variable / perishable

/ simultaneously produced and consumed

• Some researchers believe that consumer’s evaluationof service quality = f (magnitude and gap betweencustomer’s expectations of service and his perceptionof the service actually delivered)

Quality of Service



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An ad centeredaround customer

expectations

Brussels Airlines

Conceptual Model of the Behavioral &Financial Consequences of Service Quality

http://customerservice.mpeg/

http://customerservice.mpeg/



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Superior

Inferior

Favorable

Unfavorable

Remain

Defect

+Rs.•Ongoing Revenue•Increased Spending•Price Premium

•Referred CustomersFinancial

Consequences-Rs.

•Decreased Spending•Lost Customers•Costs to AttractNew Customers

Service

Quality

Behavioral

Intentions



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Price/QualityPrice/Quality

RelationshipRelationship

The perception of price as

an indicator of productquality (e.g., the higher the

price, the higher theperceived quality of theproduct).



Types of Perceived Risk



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• Functional Risk

• Physical Risk• Financial Risk• Social Risk• Psychological Risk• Time Risk

Types of Perceived Risk

F i l Ri k Th d f



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• Functional Risk : The product may not perform asexpected or claimed (e.g. “Will I really get 100Km/Litre if I buy a TVS Centra?”)

• Physical Risk : The risk to self and others that theproduct may pose (e.g. “Is using a mobile phone

really safe?”)• Financial Risk : The risk that the product will not

be worth its price (e.g. “If I purchase a PC for Rs.40,000 today, will it become obsolete in the next oneyear?”)

S i l Ri k

Types of Perceived Risk (contd.)

Th i k th t th d t h i



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• Social Risk : The risk that the product choice mayresult in social embarrassment (e.g. “If I buy aReva will my neighbors laugh at me?’)

• Psychological Risk : The risk that a poor productchoice may hurt the consumer’s ego (e.g. Will I be

embarrassed to invite my “rich” friends to my newtiny flat ?”)

• Time Risk : The risk that the time spent in productsearch may be wasted if the product doesn’tperform as expected (e.g. ‘Will I have to go

through the shopping effort all over again?”)

How Consumers Handle Risk

• Consumers characteristically develop their



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own strategies for reducing perceived risk

• Some of the risk-reducing strategiesadopted by the consumers are as follows:– Seek Information

– Stay Brand Loyal– Select by Brand Image– Rely on Store Image

– Buy the Most Expensive Model– Seek Reassurance

How Consumers Handle Risk (contd.)

• Consumers seek information



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– This is the most straightforward, logical andcommon method adopted by consumers. They

search for information from whatever sourcethey can lay their hands on

• Consumers become brand loyal– Consumers avoid risk by remaining loyal to a

brand which they have used before and havebeen satisfied with the performance

How Consumers Handle Risk (contd.)

• Consumers select by brand image

When consumers have no previous experience with



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– When consumers have no previous experience witha product, they tend to “trust” a well-known brandname

• Consumers rely on store image– If consumers have no information on a product they

may rely on the image of the store• Consumers buy the most expensive model

– When in doubt, consumers may feel that the mostexperience model is probably the best in terms of quality (i.e. they equate price with quality)



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Chapter06 Perception