Chapter 6 Consumer Perception

Consumer Behavior, Ninth Edition Schiffman & Kanuk

Chapter Outline
Elements of Perception Aspects of Perception
Selection Organization Interpretation

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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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Elements of Perception
Sensation Absolute threshold Differential threshold Subliminal perception

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Sensation
The immediate and direct response of the sensory organs to stimuli A stimulus is any unit of input to any of the senses. The absolute threshold is the lowest level at which an individual can experience a sensation.

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Differential Threshold
Minimal difference that can be detected between two similar stimuli Also known as the just noticeable difference (the j.n.d.)

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Webers Law
The j.n.d. between two stimuli is not an absolute amount but an amount relative to the intensity of the first stimulus Webers law states that the stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different.

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Marketing Applications of the J.N.D.

Marketers need to determine relevant j.n.d. for their products the
so that negative changes are not readily discernible to the public so that product improvements are very apparent to consumers

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Discussion Question
How might a cereal manufacturer such as Kelloggs use the j.n.d. for Fruit Loops in terms of:
Product decisions Packaging decisions Advertising decisions Sales promotion decisions.

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Subliminal Perception
Stimuli that are too weak or too brief to be consciously seen or heard may be strong enough to be perceived by one or more receptor cells.

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Is Subliminal Persuasion Effective?

Extensive research has shown no evidence that subliminal advertising can cause behavior changes Some evidence that subliminal stimuli may influence affective reactions

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Aspects of Perception

Selection Organization

Interpretation

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Aspects of Perception

Selection Organization

Interpretation

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Perceptual Selection
Consumers subconsciously are selective as to what they perceive. Stimuli selected depends on two major factors
Consumers previous experience Consumers motives

Selection depends on the

Nature of the stimulus Expectations Motives

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Discussion Questions
What marketing stimuli do you remember from your day so far? Why do you think you selected these stimuli to perceive and remember?

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Perceptual Selection
Concepts
Selective Exposure Selective Attention Perceptual Defense Perceptual Blocking Consumers seek out messages which:
Are pleasant They can sympathize Reassure them of good purchases

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Perceptual Selection
Concepts
Selective Exposure Selective Attention Perceptual Defense Perceptual Blocking Heightened awareness when stimuli meet their needs Consumers prefer different messages and medium

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Perceptual Selection
Concepts
Selective Exposure Selective Attention Perceptual Defense Perceptual Blocking Screening out of stimuli which are threatening

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Perceptual Selection
Concepts
Selective Exposure Selective Attention Perceptual Defense Perceptual Blocking Consumers avoid being bombarded by:
Tuning out TiVo

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Aspects of Perception

Selection Organization

Interpretation

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Organization
Principles
Figure and ground Grouping Closure People tend to organize perceptions into figure-and-ground relationships. The ground is usually hazy. Marketers usually design so the figure is the noticed stimuli.
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Lacostes campaign uses a very plain ground so the symbol really shows.

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Organization
Principles
Figure and ground Grouping Closure People group stimuli to form a unified impression or concept. Grouping helps memory and recall.

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Organization
Principles
Figure and ground Grouping Closure People have a need for closure and organize perceptions to form a complete picture. Will often fill in missing pieces Incomplete messages remembered more than complete
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Discussion Question
Do you agree you remember more of what you have NOT completed? How might a local bank use this in their advertising?

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Aspects of Perception

Selection Organization

Interpretation

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Interpretation
Perceptual Distortion
Physical Appearances Stereotypes First Impressions Jumping to Conclusions Halo Effect Positive attributes of people they know to those who resemble them Important for model selection Attractive models are more persuasive for some products
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Doves campaign stresses the everyday woman.

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Interpretation
Perceptual Distortion
Physical Appearances Stereotypes First Impressions Jumping to Conclusions Halo Effect People hold meanings related to stimuli Stereotypes influence how stimuli are perceived

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Putting a Face on Customer Service

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Interpretation
Perceptual Distortion
Physical Appearances Stereotypes First Impressions Jumping to Conclusions Halo Effect First impressions are lasting The perceiver is trying to determine which stimuli are relevant, important, or predictive

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Interpretation
Perceptual Distortion
Physical Appearances Stereotypes First Impressions Jumping to Conclusions Halo Effect People tend not to listen to all the information before making conclusion Important to put persuasive arguments first in advertising
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Interpretation
Perceptual Distortion
Physical Appearances Stereotypes First Impressions Jumping to Conclusions Halo Effect Consumers perceive and evaluate multiple objects based on just one dimension Used in licensing of names Important with spokesperson choice
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The halo effect helps Adidas break into new product categories.

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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 the consumers mind Product is positioned in relation to competing brands Conveys the concept, or meaning, of the product in terms of how it fulfills a consumer need Result of successful positioning is a distinctive, positive brand image
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Positioning Techniques
Umbrella Positioning Finding an Unowned Position Positioning against Competition Filling Several Positions Positioning Based on a Specific Benefit 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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Perceptual Mapping Figure 6.14

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Issues in Perceived Price

Reference prices used as a basis for comparison in judging another price
Internal External

Acquisition and transaction utility One study offers three types of pricing strategies based on perception of value.

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Three Pricing Strategies Focused on Perceived Value (Table 6-1)

Pricing Strategy
Satisfaction-based pricing

Provides Value By

Implemented As

Recognizing and reducing Service guarantees customers perceptions of Benefit-driven pricing uncertainly, which the Flat-rate pricing intangible nature of services magnifies Encouraging long-term Long-term contracts relationships with the company Price bundling that customers view as beneficial Sharing with customers the cost Cost-leader pricing. savings that the company has achieved by understanding, managing, and reducing the costs of providing the service

Relationship pricing

Efficiency pricing

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Acquisition-Transaction Utility
Acquisition utility
The consumers perceived economic gain or loss associated with the purchase Function of product utility and purchase price

Transaction utility
The perceived pleasure or displeasure associated with the financial aspect of the purchase Determined by the difference between the internal reference price and the purchase price

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Perceived Quality
Perceived Quality of Products
Intrinsic vs. Extrinsic Cues

Perceived Quality of Services Price/Quality Relationship

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Perceived Quality of Services

Difficult due to characteristics of services
Intangible Variable Perishable Simultaneously Produced and Consumed

SERVQUAL scale used to measure gap between customers expectation of service and perceptions of actual service

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A Scale Measuring Customers Perception of Call Center Employees (Table 6-4)

ATTENTIVENESS 1. The agent did not make an attentive impression. 2. The agent used short, affirmative words and sounds to indicate that (s)he was really listening. PERCEPTIVENESS 1. The agent asked for more details and extra information during the conversation. 2. The agent continually attempted to understand what I was saying. 3. The agent paraphrased what had been said adequately. RESPONSIVENESS 1. The agent offered relevant information to the questions I asked. 2. The agent used full sentences in his or her answers instead of just saying yes or no. 3. The agent did not recognize what information I needed. TRUST 1. I believe that this company takes customer calls seriously. 2. I feel that this company does not respond to customer problems with understanding. 3. This company is ready and willing to offer support to customers. 4. I can count on this company to be sincere.

Table 6-4 (continued)

SATISFACTION I am satisfied with the level of service the agent provided I am satisfied with the way I was spoken to by the agent. I am satisfied with the information I got from the agent. The telephone call with this agent was a satisfying experience. CALL INTENTION I will very likely contact this company again. Next time I have any questions I will not hesitate to call again. I would not be willing to discuss problems I have with this company over the phone.

Price/Quality Relationship
The perception of price as an indicator of product quality (e.g., the higher the price, the higher the perceived quality of the product.)

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Perceived Risk
The degree of uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision Types
Functional Risk Physical Risk Financial Risk Psychological Risk Time Risk

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How Consumers Handle Risk

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

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