Consumer behavior

Third session

Lecture notes are available at:

http://Arash-
management.blogspot.com

Arash 1
Consumer behavior (CB)

Arash Najmaei

Arash.unity@gmail
Arash.unity@yahoo.com
H/P : 0172116875

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 Consumer
perception…

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 Synopsis of Consumer
perception…
• What is perception
2.The importance f perception
3.Negative and positive
perception
4.Exposure and perception
5.Selective exposure
6.Selective comprehension
7.Selective retention
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 Exposure, Attention, and
Perception
• What is necessary to reach
consumers?

1. Exposure (e.g., consumer must see

your billboard).
2. Attention (e.g., consumer must
look at ad message).
3. Perception (e.g., consumer must
“take in” message).
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Behavior and perception
• Behavior elements ( beliefs, values
,attitudes, assumption)
• Perception ( positive and negative)
• Attitude toward product and brand,
reflected in CDP

Goals of advertising and

promotion.
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 AIDA
• Attention or awareness: to draw
customers attention toward your
product or brand.
• Intention : to make customers intend
purchase
• Desire: to make customers to desire
your product or demand your
product
• Action: by doing so they take action
and make final decision .
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 AIDA
• This logical
mechanism is
built upon
customer
psychology .

• The essence of
any
advertisement
and promotional
activity is AIDA Arash 8
 Consumer Decision
Process
Decision Process Stages Psychological Processes

Problem Recognition Motivation

Information Search Perception

Alternative Evaluation Attitude Formation

Purchase Decision Integration

Postpurchase Evaluation Learning

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 Perception
• Perception is the way in which an
individual gathers, processes, and
interprets information from the
environment.
• Perception is the process of making
sense out of an experience - the
imputing of meaning to
experience(Burgoon 1994).
• Two views of consumer perception
– Sensory perception
– Gestalt theory of Arash
perception 10
 Perception
Definition:
The process of selecting, integrating and
organizing stimuli from the environment
into meaningful patterns in order to make
sense of the world.

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 Information Processing for
Consumer Decision Making
EXPOSURE
Random______________Deliberate
PERCEPTION

ATTENTION
Low involvement—High Involvement

INTERPRETATION
Low involvement—High Involvement

MEMORY
Short term____________Long Term

PURCHASE /CONSUMPTION
DECISIONS
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 Factors Impacting
Perception
Internal: External:
Sensory Abilities Stimulus(I) Characteristics:
Comprehension Skills Motion, Intensity, Shape,
Memory Capacity Format, Color, Contrast,
Needs Location, Size
Experience/Knowledge
Involvement Competing Stimuli
Confidence
Pre-dispositions Setting Characteristics
(Attitudes, Beliefs, Mood)

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 Selective perception
The various elements of selective
perception are:
selective exposure
selective attention
selective comprehension
selective retention

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The Selective Perception Process

Selective Exposure

Selective Attention

Selective Comprehension

Selective Retention

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 Selective exposure

• Exposure: the process by which the

consumer comes in physical contact
with a stimulus.

• Selective exposure: From the

variety of communication
experiences available to them,
people choose to expose
themselves to communication that
reaffirms preexisting ideas and
attitudes, thereby bolstering their
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 Selective exposure
• Such behavior is founded on a
basic aspect of human nature:
The rationale behind almost all
human activity is the strong
need to protect, maintain, and
enhance one’s self-concept or
self-image (Burgoon 1994)

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 Selective attention
• Selective Attention: Attention is
the taking possession by the mind,
in clear and vivid form, of one out
of what seem several
simultaneously possible objects or
trains of thought. Focalization,
concentration, of consciousness
are of its essence. It implies
withdrawal from some things in
order to deal effectively with
others. This stage results in
greater awareness of supportive
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Selective comprehension
• Selective comprehension: This
stage involves interpreting
discrepant information so that it
is consistent with beliefs and
attitudes (Assael 1981)

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 Selective retention
• Selective retention: The key
question is what information is
retained in memory to influence
future behavior (Assael 1981). The
principle of selective retention
states that people remember more
accurately messages that are
favorable to their self-image than
messages that are unfavorable.
• In short, people remember the
good things and forget the bad.
Selective retention thus reinforces
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 Information Processing Components

Random Exposure Deliberate

Perception

Low High
Attention Involvement
Involvement

Low High
Involvement Interpretation Involvement

Short Long
Term
Memory Term

Purchase and Consumption Decisions

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 Information Processing is
Selective
Stimuli
Selective Exposure
Consumers have a choice of what stimuli they get

Selective Attention
Info Overload forces attention to be < << 100%
Habituation negatively attentiveness
Selective
Beliefs, Attitudes & Involvement
Strongly Impact Comprehension Comprehension

Selective
Not all Comprehended Messages
Make it to Memory
Retention

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 Perceived Value
• The trade-off between product
benefits and product costs.

Perceived value = perceived benefits / perceived costs

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 Perception and application
in ADs
• It has been estimated that the
average consumer is exposed to
from 300 to 600 advertisements
in a normal day (Assael 1981).
• These ads range from TV
commercials, radio spots,
magazine ads, newspaper ads,
posters bulletins, brochures,
flyers, t-shirts, online banner ads
and much more. Arash 24
 Perception and application
in ADs
• Advertisers search for more and
more places to display their
product or service ads where
consumers may selectively
perceive. However, this certainly
does not mean that consumers will
be able to selectively perceive and
recall them.
• Consumers perceive marketing
stimuli selectively because each
individual is unique in the
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 Understanding selective
perception
• Understanding selective perception
is useful in the following ways.

3.Choosing Message Type

4.Building Brand Image
5.Communicating to Target
Markets
6.Reinforcing Current Perceptions
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 summary
• The selective perception process:

Selective exposure: consumers select which promotional messages

they will expose themselves to.

Selective attention: consumers select which promotional messages

they will pay attention to.

Selective comprehension: consumer interpret messages in line with

their beliefs, attitudes, motives and experiences.

Selective retention: consumers remember messages that are more

meaningful or important to them

You should consider the implications of this process on the

development of an effective promotional strategy. 

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 The process by which
an individual selects,
organizes, and
Perception interprets stimuli into
a meaningful and
coherent picture of
the world.

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 Elements of Perception
1. Sensation
2. The absolute threshold
3. The differential threshold
4. Subliminal perception

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 The human organs (eyes,
Sensory ears, nose, mouth, skin)
Receptors that receive sensory
inputs.

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 The lowest level at which
Absolute
an individual can
Threshold
experience a sensation.

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 “Getting used to” certain
sensations; becoming
Sensory
accommodated to a
Adaptation
certain level of
stimulation.

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 The minimal difference
that can be detected
Differential
between two stimuli. Also
Threshold
known as the JND (just
noticeable difference).

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Marketing Applications
of the JND
• Need to determine
the relevant JND for
their products.

– so that negative
changes are not
readily discernible
to the public
– so that product
improvements are
very apparent to
consumers
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 Perception of very weak
Subliminal or rapid stimuli received
Perception below the level of
conscious awareness.

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Aspects of Perception

Selection
Organization

Interpretation

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Perceptual Selection
• Depends on two
major factors.

1. Consumers’
previous
experience
(expectations)
2. Consumers’
motives

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Some Marketing Variables
Influencing Consumer
Perception
1. Nature of Product
2. Physical Attributes of
Product
3. Package Design
4. Brand Name
5. Advertisements &
Commercials
6. Position of Ad
7. Editorial Environment

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Principles of Perceptual
Organization

• Figure and ground

• Grouping
• Closure
– Zeigernik effect

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

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

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 Risk Perception/Risk
Reduction
• It refers to a perceptual process and
behavior outcomes generated from the
perception of risk in the purchase or a
product or service
• Components of risk:
1. Severity of consequences (how bad will it be)
2. Uncertainty related to those consequences
(what are the chances the consequence will
occur)
• Risk reduction strategies: behaviors to
reduce their perception of risk in purchase
situations
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 Perceptual Map
Gentleness

Pain Relievers  Tylenol

(perceptual map)
Effectiveness

 Bayer
 Advil
 Private-label
Aspirin  Anacin  Nuprin

 Excedrin

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 Physical characteristics of
the product (such as size,
Intrinsic color, flavor, or aroma)
Cues that serve to influence the
consumer’s perceptions of
product quality.

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 Cues external to the
product (such as price,
store image, or brand
Extrinsic
image) that serve to
Cues
influence the consumer’s
perception of a product’s
quality.

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

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 The degree of uncertainty
perceived by the
Perceived consumer as to the
Risk consequences (outcome)
of a specific purchase
decision.

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 Types of Perceived Risk

1. Functional
Risk
2. Physical
Risk
3. Financial
Risk
4. Psychologic
al Risk
5. 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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 summary
• Perception and behavior
• Selective perception
• Application of studying consumer
perception
• Concept of JND and its advertising
application
• Perceived value
• Perceptual map
• Risk and handling of risk
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