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PERCEPTION & CONSUMER BEHAVIOUR

How we see the world around us !

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• Which cream is more effective ?

• Which machine is more powerful?

• Which car is new ?
PPT - Perception
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Basic concepts of Perception
• Sensation • Absolute threshold

• Differential threshold

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4 .SENSATION • Sensation – Response of sensory organs to stimuli • Sensory Receptors • Sensation depends on the quality of sensory receptors and the amount of stimuli (intensity) to which he or she is exposed 4.

5 . differentiation of input) 4.e.SENSATION Sensation depends on energy change within the environment where the perception occurs (i.

SENSATION As sensory input decreases. I could hear a pin drop” 4. our ability to detect changes in input or intensity increases to the point that we attain maximum sensitivity under conditions of minimal stimulations “It was so quite . however.6 .

• Does it depend on the distance only ? 4. • The point at which a person can detect a difference between something and nothing.7 .ABSOLUTE THREHSOLD • Lowest level at which an individual can experience a sensation.

Byco at Express way  Buying all the magazine pages e.g.g.sensory input – unusual media  Buying all the billboards on Shah-rah Faisal  Buying all the streamers e.ABSOLUTE THREHSOLD • Sensory Adaptation • Implications – + sensory input – .8 . Unilever in Dawn Lifestyles 4.

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THE DIFFERENTIAL THRESHOLD • Concept of JND • Weber’s Law – The stronger the initial stimuli . the greater the additional intensity needed for the second stimulus to be perceived as different • Lipton and JND • Changes > JND 4.11 .

d. for their products – so that negative changes are not readily discernible (noticeable) to the public – so that product improvements are very apparent to consumers 4.JND – Implications • Need to determine the relevant j.12 .n.

13 .N. Changes in Human Beings ??? 4.D. Pall Mall & Capstan . Nestle.Gradual Changes in Brand Name Fall Below the J.

14 .Perceptual Selection Dynamics Of Perception Perceptual Organization Perceptual Interpretation 4.

MOTIVES.15 .INTRODUCTION • Preceding Section: – How individual receives sensations and how human organism adapts to the level of intensity of sensory input. • This Section – Raw sensory input by itself does not product or explain the coherent picture of the work. WE SUBCONSCIOUSLY ADD TO OR SUBTRACT FROM RAW SENSORY INPUT TO PRODUCE OUR OWN PRIVATE PICTURE OF THE WORLD – Perception is a function of STIMULI and EXPECTATIONS. AND LEARNING based on PREVIOUS EXPERIENCE 4.

Yet she manages on a regular basis to visit her local supermarket. This is because she exercises selectivity in perception. and to sound from out side the store. 4. searching. to perhaps 100 people )looking. to sounds within the store (cash registers ringing. sizes and shapes. air conditioners humming. to smells (from fruit . stocking shelves). talking).000 products of different colors. meat . and clerks sweeping. walkking. shopping carts rolling. people) . mopping aisles.16 . disinfectant.PERCEPTUAL SELECTION Research: A woman in super market may be exposed to over 20.

17 .PERCEPTUAL SELECTION 4.

PERCEPTUAL SELECTION • Depends on two major factors – Consumers’ previous experience – Consumers’ motives 4.18 .

19 .PERCEPTUAL SELECTION • Other Factors affecting selection – Nature of the stimulus • Physical attributes. package design. it simply has to contrast (for ex: white background with little copy) – Consumers’ expectations & motives 4. the brand name etc • Contrast is one of the most attention compelling attributes of a stimulus (for ex: oversized ad) • Advertising does not have to be unique to achieve a high degree of differentiation.

IMPLICATIONS ?? 4.20 .

21 .UNEXPECTED ATTRACTS ATTENTION 4.

UNEXPECTED
UNEXPECTED - - - -

Ad1 Ad2

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Concepts Concerning Selective Perception
• Selective Exposure
– Stimuli --- Expectations --- Motives

• Selective Attention
– Needs

• Perceptual Defense
– Screenout or distort stimuli (eg tobacco)

• Perceptual Blocking
– Blocking or Avoiding
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PERCEPTUAL ORGANIZATION

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25 .Principles of Perceptual Organization • Figure and ground • Grouping • Closure 4.

4.FIGURE AND GROUND • The Gestalt Psychologists found that there are two main visual components necessary for a person to see an object properly • A FIGURE (the object) and A GROUND (the background or surroundings in which the object occurs).26 .

27 .FIGURE AND GROUND 4.

28 .FIGURE AND GROUND 4.

They like to categorize things and maintain some organization with most stimuli.GROUPING • Humans have a tendency to organize stimuli into some coherent groups. 4.29 .

• Continuity Patterns • Similarity Patterns • Simplicity Patterns 4.30 .

31 .GROUPING • Principal of GROUPING is the basis of most of the marketing communication ??? • Tea --.social acceptance – family relations---4.

32 .CLOSURE Closure is a Gestalt principle of perceptual organization that explains how humans fill in visual gaps in order to perceive disconnected parts as a whole object. 4.

33 .CLOSURE 4.

CLOSURE 4.34 .

• Incomplete messages or tasks are better remembered than completed ones.IMPLICATIONS • If individuals are exposed to incomplete picture. • Playing soundtrack of ad on radio will remind them of the entire ad. they tend to complete it by filling in the missing pieces.35 . 4.

PERCEPTUAL INTERPRETATION 4.36 .

37 .PERCEPTUAL INTERPRETATION • How close a person’s interpretations are to reality. depends on the following things – Clarity of the stimulus. – Past experiences of the perceiver – His or her motives and interests 4.

INFLUENCES OF PERCEPTUAL DISTORTION • Physical Appearances • Stereotypes • First Impressions • Jumping to Conclusions • Halo Effect 4.38 .

39 .INFLUENCES OF PERCEPTUAL DISTORTION • Physical Appearances • Stereotypes • First Impressions • Jumping to Conclusions • Halo Effect 4.

INFLUENCES OF PERCEPTUAL DISTORTION • Physical Appearances • Stereotypes • First Impressions • Jumping to Conclusions • Halo Effect 4.40 .

INFLUENCES OF PERCEPTUAL DISTORTION • Physical Appearances • Stereotypes • First Impressions • Jumping to Conclusions • Halo Effect 4.41 .

42 .INFLUENCES OF PERCEPTUAL DISTORTION • Physical Appearances • Stereotypes • First Impressions • Jumping to Conclusions Licensing is based on Halo Effect • Halo Effect 4.

Marriott took over the Righa Royal Hotel. an upscale hotel in New York City. Finally. the company discovered that scores of regular. When the new name signs went up.43 . and renamed it the JW Marriott New York. the Marriott hotel chain’s upscale brand. upscale customers who always stayed at the Righa when visiting New York City canceled their reservations because they did not want to tell colleagues to contact them at the Marriot. the company restored the Righa Hotel name 4.Halo Effect In an attempt to enhance the image of JW Marriott.

44 .CONSUMER IMAGERY • Product Positioning – Umbrella Positioning – Positioning Against the Competition – Positioning based on specific benefits – Finding an “Unowned” Position – Filling several positions 4.

CONSUMER IMAGERY • Product Positioning – Umbrella Positioning – Positioning Against the Competition – Positioning based on specific benefits – Finding an “Unowned” Position – Filling several positions Competitive Ad 4.45 .

CONSUMER IMAGERY • Product Positioning – Umbrella Positioning – Positioning Against the Competition – Positioning based on specific benefits – Finding an “Unowned” Position – Filling several positions 4.46 .

47 .CONSUMER IMAGERY • Product Positioning – Umbrella Positioning – Positioning Against the Competition – Positioning based on specific benefits – Finding an “Unowned” Position – Filling several positions 4.

48 .CONSUMER IMAGERY • Product Positioning – Umbrella Positioning – Positioning Against the Competition – Positioning based on specific benefits – Finding an “Unowned” Position – Filling several positions 4.

CONSUMER IMAGERY • Product Repositioning – Kentucky Fried Chicken to KFC – Dettol – Johnson and Johnson • Positioning of Services – Tangible Cues 4.49 .

PERCEIVED PRICE • Reference prices – Internal – External • Tensile and objective price claims 4.50 .

51 .Tensile and Objective Price Claims RESEARCH Ads that state a maximum discount level (“Save up to 40%”) are more effective than ads stating the minimum discount level (“save 10% or more”) and ads stating a discount range (“save 10 to 40%) 4.

PERCEIVED QUALITY • Perceived Quality of Products – Intrinsic cues – Extrinsic cues RESEARCH Consumer Reports found that consumers often cannot differentiate among various cola beverages and that they base their preferences on such extrinsic cues as packaging. manufacturer’s image. In the absence of actual experience with a product. or even the country of origin. 4.52 . and even peer pressure. pricing. retail store image. advertising. consumers often evaluate quality on the basis of cues that are external to the product itself. such as price brand image.

PERCEIVED QUALITY • Perceived Quality of Services – Extrinsic Cues – Major Problem with Services 4.53 .

Ad Emphasizing Tangible Cues 4.54 .

PERCEIVED QUALITY • Retail Store Image 4.55 .

PERCEIVED QUALITY RESEARCH A study of retail store image based on comparative pricing strategies found that consumers tend to perceive stores that offer a small discount on a large number of items (i.e. frequency of price advantage) as having lower prices over all than competing stores that offer larger discounts on a smaller number of products (i. magnitude of price advantage) 4.56 .e.

57 . Types • • • • • Functional Risk Physical Risk Financial Risk Social Risk Psychological Risk (ego) • Time Risk 4.PERCEIVED RISK The degree of uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision.

58 .PERCEIVED RISK • Class discussion on perceived risk 4.

59 .How Consumers Handle Risk • • • • • • Seek Information Stay Brand Loyal Select by Brand Image Rely on Store Image Buy the Most Expensive Model Seek Reassurance 4.

PRESENTATION • Presentation – Buyology 4.60 .

61 .GOOD NEWS • QUIZ • Term Project Topic / Group Names are due today !!! 4.

NEXT SESSION • Learning • Presentation – Buyology 4.62 .