Consumer Perception

• The process by which an individual selects,

organizes, and interprets stimuli into a
meaningful and coherent picture of the
world

– How we see the world around us

CB PERCEPTION 1
 Consumer Perception
• Elements of Perception
– Sensation
– Absolute threshold
– Differential threshold
– Subliminal perception

CB PERCEPTION 2
 Consumer Perception

• Sensation
– The immediate and direct response of the
sensory organs to stimuli.

– A perfectly unchanging environment provides

little to no sensation at all!

CB PERCEPTION 3
 Consumer Perception

• Weber’s Law
– A theory concerning the perceived
differentiation between similar stimuli of
varying intensities (i.e., the stronger the initial
stimulus, the greater the additional intensity
needed for the second stimulus to be perceived
as different).

CB PERCEPTION 4
 Consumer Perception
• Marketing Applications of the JND(Just
Noticeable difference)
– 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

CB PERCEPTION 5
 Consumer Perception

• Aspects of Perception
– Selection
– Organization
– Interpretation

CB PERCEPTION 6
 Consumer Perception

• Perceptual Selection
– Depends on two major factors
• Consumers’ previous experience
• Consumers’ motives

CB PERCEPTION 7
 Consumer Perception
• Concepts Concerning Selective Perception
– Gestalt Psychology
• Selective Exposure
• Selective Attention
• Perceptual Defense
• Perceptual Blocking
– The Unexpected Attracts Attention

CB PERCEPTION 8
 Consumer Perception
• Principles of Perceptual Organization
– Figure and ground
– Grouping
– Closure

CB PERCEPTION 9
 Consumer Perception
• Interpretation: Influences of Perceptual
Distortion
– Physical Appearances
– Stereotypes
– First Impressions
– Jumping to Conclusions
– Halo Effect

CB PERCEPTION 10
 Consumer Perception

• Issues In Consumer Imagery

– Product Positioning and Repositioning
– Perceived Price
– Perceived Risk

CB PERCEPTION 11
 Consumer Perception
• Positioning
– Establishing a specific image for a brand in relation to
competing brands.
– Positioning Techniques
• Umbrella Positioning
• Positioning Against Competition
• Positioning Based on a Specific Benefit
• Taking an Unowned Position
• Positioning for Several Positions

CB PERCEPTION 12
 Consumer Perception

• Repositioning

CB PERCEPTION 13
 Consumer Perception

• Pricing Strategies Focused on Perceived

Value
– Satisfaction-based Pricing (Competition based
pricing)
– Relationship Pricing (demand based pricing)
– Efficiency Pricing (Cost based pricing).
• Customers look for fair price not low price.

CB PERCEPTION 14
 Consumer Perception

• Issues in Perceived Price

– Reference prices: a price in memory
• Internal
• External
– Tensile and objective price claims

CB PERCEPTION 15
 Consumer Perception

• Tensile and Objective Price Claims

– Evaluations least favorable for ads stating the
minimum discount level e.g. 10% or more.

– Ads stating maximum discount levels are better

than stating a range e.g. up to 50% off.

CB PERCEPTION 16
 Consumer Perception

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

CB PERCEPTION 17
 Consumer Perception
• Types of perceived risk
1. Functional Risk
2. Physical Risk
3. Financial Risk
4. Psychological Risk
5. Time Risk

CB PERCEPTION 18
 Consumer Perception

• How Consumers Handle Risk

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

CB PERCEPTION 19