Chapter 5 Consumer Perception

1. Chapter 5Consumer Perception Consumer Behaviour Canadian Edition Schiffman/Kanuk/Das

2. Perception

3. Perceptual Concepts Perception is the process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world. It is “how we see the world around us”. • Sensation • Absolute threshold • Sensory Adaptation • Differential threshold (jnd) • Weber’s law • Subliminal Perception Organization Interpretation Selection

4. Marketing Applications of the JND • Need to determine the relevant j.n.d. for their products in order to facilitate change

6. As a marketing manager, would you want the following changes to fall above or below the jnd? • Price increases? • Size decreases? • Quality improvements? • Brand name changes?

7. Subliminal Perception Effective? • Extensive research has shown no evidence that subliminal advertising can cause behaviour changes • 1957 - James Vicary (“Eat Popcorn” “Drink Coca-Cola”) never released study descriptives; no independent evidence • http://www.snopes.com/business/hidden/popcorn.asp • 1970s - Wilson Bryan Key “Sexploitation” • Some evidence that subliminal stimuli may influence affective reactions

8. Concepts Concerning Selective Perception • Selective Exposure • Selective Attention • Perceptual Defense • Perceptual Blocking Which stimuli get selected depends upon consumer’s previous experience as it affects their expectations and their motives at the time of stimulus exposure.

9. How can marketers overcome blocking? PANEL EXERCISE #1

10. Principles of Perceptual Organization • Figure and ground • Definition of figure depends on the background • Grouping • Information is organized into chunks • Closure • Incomplete stimuli create tension Gestalt Psychology

11. Grouping

13. Closure

14. Closure Continued

15. Perceptual Interpretation • Stereotypes • Individuals’ biased pictures in their minds of the meaning of various stimuli • Main factors that influence stereotypes are: • Physical Appearances • Descriptive terms • First Impressions • Halo Effect

16. Stereotype

17. Perceptual Interpretation • Kool-Aid Commercials What is your perception? How was it formed? Consider perceptual distortion. Perceptual distortion is the lack of correspondence between the way a stimulus is commonly perceived and the way an individual perceives it under given conditions.

18. Consumer Imagery • Product Positioning and Repositioning • Perceived Price • Satisfaction based, relationship and efficiency pricing • Perceived Quality • Reliance on extrinsic cues; SERVQUAL • Price-Quality Relationship • Image • Store and manufacturer • Perceived Risk

19. (continued)

20. Figure 5-9 (continued)

21. Positioning • Establishing a specific image for a brand in relation to competing brands • Frequently analyzed using perceptual maps Positioning Techniques • Umbrella Positioning • Positioning Against Competition • Positioning Based on a Specific Benefit • Taking an Unowned Position • Positioning for Several Positions • Repositioning

22. Perceived Risk • The degree of uncertainty perceived by the consumer as to the consequences (outcomes) of a specific purchase decision • High-risk perceivers  narrow categorizers • Low-risk perceivers  broad categorizers Types of Risk Functional Psychological Physical Financial Social Time Loss

23. How Consumers Handle Risk • Seek Information • Stay Brand Loyal • Select by Brand Image • Rely on Store Image • Buy the Most Expensive Model • Seek Reassurance

24. Perception and Marketing Strategy • Make perceptual selection work in your favour • Increase accidental exposure • Use the j.n.d • Draw attention to your ad using contrast and other principles • Find creative ways to reduce blocking • Ensure that consumers organize and interpret messages correctly • Develop suitable consumer imagery • Find ways to reduce perceived risk