Consumer Behavior: Consumer Perception and Positioning
Consumer Behavior: Consumer Perception and Positioning
Chapter 4
Consumer Perception and Positioning
Perception
Defined
The process by which individuals select, organize, and interpret
stimuli into a meaningful and coherent picture of the world. It
can be described as “how we see the world around us.”
Example: Visual Identity
Source: Boring, E. (1930). A New Ambiguous Figure. The American Journal of Psychology, 42(3),
444-445. doi:10.2307/1415447. From American Journal of Psychology. Copyright 1930 by the
Board of Trustees of the University of Illinois. Used with permission of the University of Illinois
Press.
Product Placement
Defined
A form of promotion where marketers “disguise” promotional
cues by integrating products (i.e., “figures”) into TV shows films,
or other entertainment content (i.e., “grounds”) or building
entertainment content around products
Intrinsic and Extrinsic Cues
• Intrinsic – physical
characteristics of the
product
• Extrinsic – not inherent in
the product
Perceptual Interpretation
• Stereotyping
• Triggers
– Physical appearance
– Descriptive terms
– First impressions
– Halo Effect
Perceived Value
• Reference price
• Price-quality relationship
• Positioning
• Image and quality
Physical risk Product can harm self and Is organic unpasteurized milk safe to drink?
others; risk to self and (Many states do not permit unpasteurized milk, but many
others. greenmarkets carry it because it is organic.)
The electric car’s breaks are excellent.
Financial risk Product will not be worth its Will a new and cheaper model of an L ED TV monitor
cost. become available six months from now? Will I save money
on gas if I buy an electric car?
Psychological and social risk Poor product choice will bruise Will I be embarrassed when my friends see me with a
the consumer’s ego. mobile phone that is not a smartphone? If I buy an electric
car, I will not be polluting the environment.
Time risk Time spent in product search Will I be forced to compare all the different
may be wasted if the product carriers’ calling plans again if I experience a lot of dropped
does not perform as expected. calls with the one I selected? I will save time by not having
to buy gas if I but the electric car.
How Consumers Handle Risk
• Information
• Brand loyalty
• Store image
• Price-quality relationship
Positioning
Defined
The process by which a company creates a distinct image and
identity for its products, services, or brands in consumers’ minds.
Positioning Process
1. Define the market, buyers and competition.
2. Identify key attributes and research consumers’ perceptions
3. Research consumers’ perceptions on competing offerings.
4. Determine preferred combination of attributes.
5. Develop positioning concept that communicates attributes as
benefits.
6. Create a positioning statement and use it to communicate with
the target audiences.
Umbrella Positioning