Consumer Perception

The process by which an

individual selects, organizes,
Perception and interprets stimuli into a
meaningful and coherent
picture of the world.
 Elements of Perception
• Sensation
• The absolute threshold
• The differential threshold
• Subliminal perception
 The human organs (eyes,
Sensory
ears, nose, mouth, skin) that
Receptors
receive sensory inputs.
 The lowest level at which an
Absolute
individual can experience a
Threshold
sensation.
 “Getting used to” certain
Sensory sensations; becoming
Adaptation accommodated to a certain
level of stimulation.
 The minimal difference that
can be detected between two
Differential
stimuli. Also known as the
Threshold
j.n.d. (just noticeable
difference).
 A theory concerning the
perceived differentiation
between similar stimuli of
varying intensities (i.e., the
Weber’s Law stronger the initial stimulus,
the greater the additional
intensity needed for the
second stimulus to be
perceived as different).
Marketing Applications of the
JND
• 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
 Perception of very weak or
Subliminal rapid stimuli received below
Perception the level of conscious
awareness.
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
 Aspects of Perception

Selection Organization

Interpretation
Perceptual Selection
• Depends on two major
factors
– Consumers’ previous
experience
(expectations)
– Consumers’ motives
 Some Marketing Variables
Influencing Consumer Perception
• Nature of Product
• Physical Attributes of Product
• Package Design
• Brand Name
• Advertisements & Commercials
• Position of Ad
• Editorial Environment
Concepts Concerning Selective
Perception

• Selective Exposure
• Selective Attention
• Perceptual Defense
• Perceptual Blocking
 Principles of Perceptual
Organization

• Figure and ground

• Grouping
• Closure
– Zeigernik effect
 A person beginning a task
needs to complete it. When
he or she is prevented from
Zeigernik
doing so, a state of tension is
Effect
created that manifests itself
in improved memory for the
incomplete task.
Distorting Influences
• Physical Appearances
• Stereotypes
• Irrelevant Cues
• First Impressions
• Jumping to
Conclusions
• Halo Effect
 Issues In Consumer Imagery
• Product Positioning and Repositioning
• Positioning of Services
• Perceived Price
• Perceived Quality
• Retail Store Image
• Manufacturers Image
• Perceived Risk
 Establishing a specific image
Positioning for a brand in relation to
competing brands.
 Changing the way a product
is perceived by consumers in
Reposition
relation to other brands or
product uses.
 A research technique that
enables marketers to plot
Perceptual graphically consumers’
Mapping perceptions concerning
product attributes of specific
brands.
 Perceptual Mapping
Fashion Coverage

Fashion
Splash

More More
Copy Artwork
Crash
Bash
Splash

Club Coverage
 Perceptual Map
Gentleness

Pain Relievers  Tylenol

(perceptual map)
Effectiveness

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

 Excedrin
Perceptual Map (continued)
Situation Analysis For Beverage Study:
Perceptual Map
Non-Diet
*
* Sprite Seven-up
*
Cherry Coke * Crush
* * * Mello Yello
* Shasta Minute
Pepsi
* Maid
Coke

Cola Non-Cola

*
Diet Pepsi *
Diet Sprite
*
Diet Coke *
Diet Mello Yello

Diet
 The Service Environment:
Environmental Variables Most
Important to Bank Customers
• Privacy
• Efficiency/Convenience
• Ambient Background
Conditions
• Social Conditions
• Aesthetics
 Issues in Perceived Price
• Reference prices
• Tensile and objective price claims
 Any price that a consumer
Reference uses as a basis for
Price comparison in judging
another price.
 Reference Prices
• External Reference Price
• Internal Reference Price
 Tensile and Objective Price
Claims
• Evaluations least favorable
for ads stating the minimum
discount level

• Ads stating maximum

discount levels are better
than stating a range
 Perceived Quality
• Perceived Quality of Products
– Intrinsic vs. Extrinsic Cues
• Perceived Quality of Services
• Price/Quality Relationship
 Physical characteristics of
the product (such as size,
color, flavor, or aroma) that
Intrinsic Cues
serve to influence the
consumer’s perceptions of
product quality.
 Cues external to the product
(such as price, store image,
or brand image) that serve to
Extrinsic Cues
influence the consumer’s
perception of a product’s
quality.
 Characteristics of Services
• Intangible
• Variable
• Perishable
• Simultaneously
Produced and
Consumed
SERVQUAL Dimensions for Measuring
Service Quality

DIMENSION DESCRIPTION

•Tangibles Appearance of physical facilities, equipment,

personnel, and communication materials
•Reliability Ability to perform the promised service
dependably and accurately
•Responsiveness Willingness to help customers and provide
prompt service
•Assurance Knowledge and courtesy of employees and their
ability to convey trust and confidence
•Empathy Caring, individualized attention the firm
provides its customers
A Conceptual Model of the Components
of Transaction Satisfaction

Evaluation
Evaluationofof
Service
ServiceQuality
Quality
(SQ)
(SQ)

Evaluation
Evaluationofof Transaction
Transaction
Product
ProductQuality
Quality Satisfaction
Satisfaction
(PQ)
(PQ) (TSAT)
(TSAT)

Evaluation
EvaluationofofPrice
Price
(P)
(P)
 Conceptual Model of the Behavioral
Consequences of Service Quality

Service Behavioral
Quality Intentions +$
Ongoing Revenue
Superior Favorable Remain Increased Spending
Price Premium
Referred Customers
Financial
Behavior
Consequences
-$
Decreased Spending
Inferior Unfavorable Defect Lost Customers
Costs to Attract
New Customers
Focus of present study
Empirical links demonstrated in macro studies
 The perception of price as an
indicator of product quality
Price/Quality
(e.g., the higher the price,
Relationship
the higher the perceived
quality of the product).
 Conceptual Model of the Effects of Price,
Brand Name, and Store Name on Perceived
Value
Objectiv
e Price

+ Perception +
of Price

Perceived Perceived
Quality Sacrifice
Perceived
+ Value -
+ -
Willingness
to Buy
A. Conceptual Relationship of Price Effect
 Brand Store
Name Name Objectiv
e Price

Perception Perception + Perception +

of Brand of Store of Price
+ Perceived Perceived
Quality Sacrifice
+
+ Perceived -
Value
+ -
B. Extended Conceptualization Willingness
to Include Brand Name and to Buy
Store Name
 The degree of uncertainty
perceived by the consumer
Perceived
as to the consequences
Risk
(outcome) of a specific
purchase decision.
Types of Perceived Risk

• Functional Risk
• Physical Risk
• Financial 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