CHAPTER SIX

Consumer Perception
 Learning Objectives

1. To Understand the Sensory Dynamics of

Perception.
2. To Learn About the Three Elements of
Perception.
3. To Understand the Components of Consumer
Imagery and Their Strategic Applications.

Chapter Six Slide

 Perception

• The process by which an

individual selects, organizes,
and interprets stimuli into a
meaningful and coherent
picture of the world
• Elements of Perception
– Sensation
– Absolute threshold
– Differential threshold
– Subliminal perception

Chapter Six Slide

 Sensation

• Sensation is 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.
 Differential Threshold
(Just Noticeable Difference – j.n.d.)
• Minimal difference that can be detected
between two similar stimuli
• Weber’s law
– The j.n.d. between two stimuli is not an absolute
amount but an amount relative to the intensity of
the first stimulus
– The stronger the initial stimulus, the greater the
additional intensity needed for the second
stimulus to be perceived as different.
 Marketing Applications
of the J.N.D.
• Marketers need to
determine the
relevant j.n.d. for
their products
– so that negative
changes are not
readily discernible to
the public
– so that product
improvements are
very apparent to
consumers
 Aspects of Perception

Selection

Organization

Interpretation
 Perceptual Selection
Selection Depends Upon:
Nature of the • Includes the product’s physical attributes,
package design, brand name, advertising and
stimulus more…

• Based on familiarity, previous experience or

Expectations expectations.

Motives • Needs or wants for a product or service.

 Why Are Consumers
Likely to Notice This Ad?

The Attention-Getting Nature of a Dramatic Image

 Perceptual Selection
Important Concepts
Selective Selective Perceptual Perceptual
Exposure Attention Defense Blocking
• Consumers • Heightened • Screening out • Consumers
seek out awareness of stimuli avoid being
messages when stimuli which are bombarded
which: meet their threatening by:
• Are needs • Tuning out
pleasant • Consumers • TiVo
• They can prefer
sympathize different
• Reassure messages
them of and medium
good
purchases
 Organization

Principles
• People tend to organize
perceptions into figure-
• Figure and ground and-ground relationships.
• Grouping • The ground is usually hazy.
• Closure • Marketers usually design
so the figure is the noticed
stimuli.
 Organization

Principles

• Figure and ground • People group stimuli to

• Grouping form a unified
• Closure impression or concept.
• Grouping helps memory
and recall.
 Organization

Principles • People have a need for

closure and organize
• Figure and ground perceptions to form a
• Grouping complete picture.
• Will often fill in missing
• Closure
pieces
• Incomplete messages
remembered more than
complete
 Interpretation

• People hold meanings

Stereotypes related to stimuli
Stereotypes
Physical
PhysicalAppearances
Appearances
Descriptive
DescriptiveTerms
Terms
First
FirstImpressions
Impressions
Halo
HaloEffect
Effect
 Interpretation

• Positive attributes of
Stereotypes people they know to
Stereotypes
Physical Appearances those who resemble
Physical Appearances them
Descriptive • Important for model
DescriptiveTerms
Terms
selection
First
FirstImpressions
Impressions
Halo
HaloEffect
Effect
 Interpretation

• Verbal messages reflect

Stereotypes stereotypes

Physical Appearances

Descriptive Terms

First Impressions

Halo Effect
 Interpretation

• First impressions are

Stereotypes lasting
Stereotypes
Physical Appearances • The perceiver is trying
Physical Appearances to determine which
Descriptive stimuli are relevant,
DescriptiveTerms
Terms
important, or predictive
First
FirstImpressions
Impressions
Halo
HaloEffect
Effect
 Interpretation

• Consumers perceive and

Stereotypes evaluate multiple
Stereotypes
Physical Appearances objects based on just
Physical Appearances one dimension
Descriptive
DescriptiveTerms
Terms
First
FirstImpressions
Impressions
Halo
HaloEffect
Effect
 Product Positioning

• Establishing a specific image for a brand in the

consumer’s mind in relation to competing
brands
• Conveys the product in terms of how it fulfills
a need
• Successful positioning creates a distinctive,
positive brand image
Which Concepts of Perception Are
Applied in These Ads?

The Principle Of Contrast

 Packaging as a Positioning Element

• Packaging conveys the image that the brand

communicates to the buyer.
• Color, weight, image, and shape are all
important.
• Repositioning might be necessary because:
– Increased competition
– Changing consumer tastes
 Positioning of Services

• Image is a key factor for services

• Services often want a differentiated
positioning strategy to market several
versions of their service to different markets.
Perceived Price and Perceived Quality

• Reference prices – used as a basis for

comparison in judging another price
– Internal
– External
• Perceived Quality of Products
– Intrinsic vs. Extrinsic Cues
 Three Pricing Strategies
Focused on Perceived Value
Pricing Strategy Provides Value By… Implemented As…

Satisfaction-based Recognizing and reducing Service guarantees

pricing customers’ perceptions of
uncertainty, which the intangible
nature of services magnifies
Relationship pricing Encouraging long-term
relationships with the company
that customers view as beneficial
Benefit-driven pricing
Flat-rate pricing
Long-term contracts
Price bundling

Efficiency pricing 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
 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
 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.)
 Retail Store Image

Brands Level of
Prices
carried service

Store Product
Clientele
ambiance assortment

Discounts
 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
– Social Risk
– Psychological Risk
– Time Risk
 How Consumers Handle Risk

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