Perception and CB

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Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Chapter 4 Learning Objectives
4.1 To understand the elements of perception

and their role in consumer behavior.
4.2 To understand why consumers process only
a small amount of the information they receive.
4.3 To understand how consumers organize
consumption-related information.
4.4 To understand why and how consumers
“add” biases to stimuli and the implications of
this tendency for marketing.
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 2 of 32
Chapter 4 Learning Objectives
4.5 To understand the elements of consumers’

imagery.
4.6 To understand how consumers determine
the quality of products and services.
4.7 To understand consumers’ perceived risks
and how they handle and reduce those risks.

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Perception
The process by which individuals
select, organize, and interpret stimuli
into a meaningful and coherent
picture of the world. It can be
described as “how we see the world
around us.”

Learning Objective 4.1
4.1 To understand the elements of perception

and their role in consumer behavior.
Perception is all about consumers’ subjective

understandings and not objective realities. Raw
sensory input is processed selectively based on
other stimuli from the external environment and
internal factors like expectations and motives.

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Sensation
The immediate and direct response of the sensory organs to
stimuli (units of input to the senses, as captured by the
sensory receptors).
Examples of stimuli (i.e., sensory inputs) include products,
packages, brand names, advertisements, and commercials.
Sensory receptors are the human organs (the eyes, ears,
nose, mouth, and skin) that receive sensory inputs. As sensory
input decreases, however, our ability to detect changes in
input or intensity increases, to the point that we attain
maximum sensitivity under conditions of minimal stimulation

Applications
• Hedonism- the Sensory Trigger

• Culture and Sensory Branding
• Involuntary Attention and Brand Awareness
• Sensation- Sensory Aspects of Experience
and Brand Association

Discussion Questions
What is the difference

between the absolute
threshold and the
differential threshold
(JND)?
Why do marketers care

about sensory
adaptation?

• The image shows how Betty Crocker changed
over the years.
• Sensory adaptation is becoming
accommodated to a certain level of
stimulation and becoming less able to notice a
particular stimulus.
• Marketers care because consumers stop
paying attention to their communications
when they adapt to them.

absolute threshold and differential threshold
• The lowest level at which an individual can experience a

sensation is called the absolute threshold. The point at
which a person can detect a difference between
“something” and “nothing” is that person’s absolute
threshold for that stimulus.
• The minimal difference that can be detected between two

similar stimuli is called the differential threshold or the just
noticeable difference (JND).
• Propounded by German scientist named Ernst Weber

• Weber Law suggests the stronger the
stimulus, the greater the additional intensity
needed for the second stimulus to be
perceived as different
• For eg. During economic downturn,
consumers become very price sensitive and
likely to note even small change in price.

• Most leading brands of tea, detergents,
shampoo in India have adjusted the weight
of SKU taking into consideration price rise.
• This is to ensure that the reduction in
respective weight of the stock keeping unit
is not readily noticeable to consumers.

JND’s implications for Product Pricing and
Improvement
• Manufacturers and marketers endeavor to

determine the relevant JND for the products
for two reasons.
• 1. they want to prevent changes( reduction
in product size or quality, or increase in
product price) from becoming readily
discernible to the public (i.e. remain below
the JND)

• 2. they want product improvements are
apparent to consumers, but without being
wastefully extravagant (they are at or just
above the JND)
• For eg. When Apple came up with some new
products for which it claimed sharper
displays, many consumers were disappointed
because improvements were below the JND
and therefore unperceived

JND’s implications for Logos and Packaging
• Marketers want to update their existing

package design without losing the
recognition of loyal consumers.
• They effect small changes so that design fall
below the JND, and consumers perceive only
minimal difference between succeeding
versions.

Xerox

Pepsi

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Ambush Marketing
Placing ads in places where consumers do not expect to see
them and cannot readily avoid them.
Eg. Brand names stamped on eggs in a supermarket,
featured on video screens in taxis, placed in subway tunnels,

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Experiential Marketing
Allows customers to engage and
interact with offerings in sensory ways
in order to create emotional bonds
between consumers and marketing
offerings. Eg. NASCAR’s race cars in
Times Square, NY

Discussion Question
• How might a cereal

manufacturer such as
Kellogg’s use the j.n.d. for
Frosted Flakes in terms of:
– Product decisions
– Packaging decisions
– Advertising decisions
– Sales promotion decisions

• Kellogg’s might want to change their ingredients, either to
make the product healthier or because they have secured
lower-priced raw materials. They might want to reduce
package size to avoid a price increase and they would not
want this to be noticed.
• Perhaps Tony the Tiger could look a little different. At one

point, Pillsbury made a decision to make the Pillsbury
Dough Boy a bit thinner. They wanted to make sure he still
was cute but looked a bit more fit and lean.

Subliminal Perception
• What is subliminal perception?
• Is it effective?

Subliminal perception
• Stimuli that are too weak or too brief to be consciously seen or heard.
They may be strong enough to be perceived by one or more receptor
cells. People have been fascinated by subliminal perception for over 50
years. The question is whether stimuli that are not consciously sensed
can still be perceived and are therefore capable of altering behavior. At
this point, there is no research that shows that it directly changes
attitudes or purchase behavior.
• Extensive research has shown no evidence that subliminal advertising

can cause behavior changes. There is some evidence that subliminal
stimuli may influence affective reactions. No doubt, there will continue
to be research on this subject as many feel that there is indeed an effect
from subliminal perception.

Subliminal perception
• For eg. Effectiveness of so-called subliminal

advertising was reportedly first tested at a drive-in
movie theater in New Jersey in 1957, words “ eat
popcorn” and “ drink coca-cola” was flashed in
screen during movie.
• Exposure times were so short that viewers were
unaware of seeing any message.
• During 6 weeks testing period, popcorn sales
increased 58%, and coke by 18%, but later these
findings were reported to be false

• Though “COKE” served to arouse thirst,
subliminal command “ DRINK COKE” did not
have greater effect, nor did it have any
behavioral consequences
• Despite years of research, very less evidence
that subliminal advertising persuades people to
buy goods or services.
• Subliminal perception has no effect on attitudes
towards products and consumption behavior

Selective Perception
4.2 To understand why consumers process only a small amount of the
information they receive.
Subconsciously, consumers are very selective when exposed to stimuli. An

individual may look at some things, ignore others, and turn away from still
others. In actuality, people receive (i.e., perceive) only a small fraction of the
stimuli to which they are exposed.
Which stimuli get selected depends on two major factors, in addition to the
nature of the stimulus itself: (1) consumers’ previous experience as it affects
their expectations (what they are prepared, or “set,” to see), and (2) their
motives at the time (their needs, desires, interests, and so on).

The Stimulus
• Contrast
• Shocking or unrealistic images

• Physical stimuli that affect consumers’ perceptions of
products and evoke attention include the product itself, its
attributes, package design, brand name, advertisements, and
commercials (including copy claims, choice and sex of model,
positioning of model, size of ad, and typography), and
placement of promotional messages within the advertising
space.
• Ads that contrast with their environments are very likely to be

noticed. Contrast is one of the most attention-compelling
attributes of a stimulus. Shocking and unrealistic images
provoke attention.

• The ads are from a campaign created by the
Children’s Defense Fund, an advocacy group.
It depicts the potential tragic, long-term
costs of cutting government-financed
initiatives for children. The images
combining infant faces with adult bodies are
shocking and make the ads highly noticeable

Discussion Questions
• What marketing stimuli do you remember from your day so

far?
• Why do you think you selected these stimuli to perceive and
remember?
• If you think about it, you might be surprised at what you

have seen today. Did you go online to Google? If so, you
probably had many contextual search ads appearing on
your screen. Also consider outdoor advertisements you
may have seen, including billboards, taxi tops, and rail
advertising.

Perceptions are affected by…
• Expectations
• Motives
• Selective Perception
– Selective Exposure
– Selective Attention
– Perceptual Defense
– Perceptual Blocking

• Expectations: People usually see what they expect to see,
and what they expect to see is usually based on familiarity,
previous experience, or a preconditioned set of
expectations. In a marketing context, a person tends to
perceive products and product attributes according to his
or her own expectations.
• Motives: People tend to perceive the things they need or

want: The stronger the need, the greater the tendency to
ignore unrelated stimuli in the environment.

• The consumer’s selection of stimuli from the environment is based on
the interaction of expectations and motives with the stimulus itself.
Selective exposure occurs when consumers tune out messages that
they find pleasant or with which they are sympathetic, and they actively
avoid painful or threatening ones. They also selectively expose
themselves to advertisements that reassure them of the wisdom of
their purchase decisions.
• Selective attention is consumers’ heightened awareness of stimuli that
meet their needs or interests and minimal awareness of stimuli
irrelevant to their needs. Thus, consumers are likely to note ads for
products that would satisfy their needs and disregard those in which
they have no interest. People also vary in terms of the kinds of
information in which they are interested and the form of message and
type of medium they prefer.

• Perceptual defense takes place when consumers
subconsciously screen out stimuli that they find
psychologically threatening, even though exposure has
already taken place. Furthermore, individuals sometimes
unconsciously distort information that is not consistent
with their needs, values, and beliefs.
• for eg. Smokers don’t pay attention to the written warning
labels on cigarette packs,

• Consumers often protect themselves from
being bombarded with stimuli by simply
“tuning out”—blocking such stimuli from
conscious awareness. They do so out of self-
protection, because of the visually
overwhelming nature of the world in which
we live.

Perceptual Organization
4.3 To understand how consumers organize

consumption-related information.

• Gestalt psychology
• Figure and ground
• Grouping
• Closure

• Gestalt psychology suggests the whole is greater than the
sum of its parts, and it looks for patterns and configurations
that affect the interpretation of information. Three
principles that affect how patterns are perceived are figure
and ground, grouping, and closure.
• Figure and ground refers to the interrelationship between

the stimulus itself (i.e., figure) and the environment or
context within which it appears (i.e., ground). Contrast is
an application of figure and ground. Product placement
tries to obscure the difference between figure and ground.

• Grouping refers to people’s instinctive tendency to group stimuli
together so that they become a unified picture or impression. The
perception of stimuli as groups or chunks of information, rather
than as discrete bits of information, facilitates memory and recall.
• Closure is people’s instinct to organize pieces of sensory input

into a complete image or feeling. Individuals need closure, which
means that if they perceive a stimulus as incomplete, they are
compelled to figure out its complete meaning. If a message they
receive is incomplete, they consciously or subconsciously fill in the
missing pieces (like answering the questions in the ad shown in
Figure 4.10).

Perceptual Organization Application
What Element of
Is Featured in This Ad?

4.4 To understand why and how consumers
“add” biases to stimuli and the implications of this tendency for
marketing.
The interpretation of stimuli is uniquely individual because it is

shaped by the individual’s experiences, motives, expectations,
and external stimuli. When stimuli are highly ambiguous, an
individual will usually interpret them in such a way that they
serve to fulfill personal needs, wishes, interests, and so on.

Perceptual Interpretation
• Stereotyping
• Triggers
– Physical appearance
– Descriptive terms
– First impressions
– Halo Effect

• Individuals carry biased pictures in their minds of the
meanings of various stimuli, which are termed stereotypes.
Sometimes, when presented with sensory stimuli, people
“add” these biases to what they see or hear and thus form
distorted impressions.
• Generally, people stereotype because it makes the

processing of sensory input quicker and easier. The triggers
of stereotyping are physical appearance, descriptive terms,
first impressions, and the halo effect.

Physical appearance
• We often make decisions based on how people or products

appear. A beautiful spokesperson might be perceived as
possessing expertise for beauty products. A certain color
to a food might make us think it is healthier. Stereotypes
are often reflected in verbal messages/descriptive terms.
• First impressions are lasting so a marketer should be careful
how they advertise new products. The perceiver is trying to
determine which stimuli are relevant, important, or
predictive.

• The Halo effect refers to the overall
evaluation of an object that is based on the
evaluation of just one or a few dimensions.
In marketing, the term refers to a
prestigious image of a product “rubbing off
on” other products marketed under the
same brand name.

How Does This Ad Depict Perceptual
Interpretation?

4.5 To understand the elements of consumers’

imagery.
Consumer imagery refers to consumers’ perceptions of

all the components of products, services, and brands,
and to how consumers evaluate the quality of
marketers’ offerings. Products and brands have images
and symbolic values for consumers based on the
unique benefits that these products claim they provide.

Brand Image
• Positioning
• Brand image updates
• Package image
• Service image

• The desired outcome of effective positioning is a distinct
“position” (or image) that a brand occupies in consumers’
minds. This mental “position” must be unique and
represent the core benefit the brand provides. Table 4.2
shows the positioning of different detergent brands.
• Occasionally, a brand’s image must be updated. Consumers

often view products that have been around for a long time
as boring, especially when newer alternatives are
introduced. Examples in Table 4.3 include Dell, StarKist,
Quaker Oats, and Google.

• In addition to the product’s name, appearance, and features, packaging also
conveys the brand’s image. For example, to buyers of perfumes, the only
tangible evidence of the product’s nature and quality is the packaging, the
cost of which often accounts for up to 50% of the total cost of the perfume.
• Because services are intangible, image becomes a key factor in

differentiating a service from its competition. Thus, the marketing objective
is to enable the consumer to link a specific image with a specific brand
name. Many service marketers have developed strategies to provide
customers with visual images and tangible reminders of their service
offerings (e.g. distinctive service environments, delivery vehicles painted in
distinct colors, restaurant matchbooks, packaged hotel soaps and
shampoos, featuring real service employees in their ads (as tangible cues)
and using people-focused themes to differentiate themselves).

Because services are intangible, image becomes a key factor in
differentiating a service from its competition. Thus, the marketing
objective is to enable the consumer to link a specific image with a specific
brand name.
Many service marketers have developed strategies to provide customers

with visual images and tangible reminders of their service offerings (e.g.
distinctive service environments, delivery vehicles painted in distinct
colors, restaurant matchbooks, packaged hotel soaps and shampoos,
featuring real service employees in their ads (as tangible cues) and using
people-focused themes to differentiate themselves).

Perceived Price

• Perceived price is the customer’s view of the value that he
or she receives from the purchase. How a consumer
perceives a price—as high, low, or fair—strongly influences
both purchase intentions and post-purchase satisfaction.
• A reference price is any price that a consumer uses as a

basis for comparison in judging another price. Reference
prices can be external or internal. Internal reference prices
are those prices (or price ranges) retrieved by the consumer
from memory.

4.6 To understand how consumers determine

the quality of products and services.

Quality
• Product quality
– Intrinsic cues
– Extrinsic cues
• Service quality
• Price/quality relationship
• Store image
• Manufacturer image

• Intrinsic cues are physical characteristics of the product
itself, such as size, color, flavor, or aroma. In some cases,
consumers use physical characteristics (e.g., the flavor of
ice cream or cake) to judge product quality. Consumers like
to believe that they base their evaluations of product
quality on intrinsic cues, because that enables them to
justify their product decisions (either positive or negative)
as being “rational” or “objective” choices.

• More often than not, however, consumers
use extrinsic cues—that is, characteristics
that are not inherent in the product (e.g.
color, packagin, brand image, price,
manufacturer’s image)—to judge quality.

Discussion Question
Provide an example where a viral message

impacted consumer perceptions of a
company’s image. In your opinion, how did
the viral message affect consumer perceptions
of the quality of the product or service
provided by the company?

4.7 To understand consumers’ perceived risks

and how they handle and reduce those risks.

Perceived Risk
The degree of uncertainty perceived by the consumer

as to the consequences (outcome) of a specific
purchase decision

• Consumer purchase decisions are determined by the degree
of risk that consumers perceive, and their tolerance for risk.
The major types of risk are listed in this slide. The first,
functional risk, deals with the risk that the product will not
perform as expected. Physical risk is the risk to self and
others.
• Financial risk is that the product will not be worth its cost
and social risk is that the choice of the product might lead
to social embarrassment. Psychological risk is that a poor
product choice will hurt the consumer's ego and time risk is
that the time has been wasted in purchasing this product.

How Consumers Handle Risk

• How consumers handle risk will differ by their own
individual strategy. That being said, there are a
handful of strategies that people tend to use when
dealing with risk.
• The first of these is to seek information so that

they have more knowledge when they purchase.
Consumers can also stay brand loyal, thereby
avoiding risk by sticking with a known product.

• Consumers can select by brand image to reduce their risk
because they may already know and trust the brand,
perhaps from buying a different product by the same brand
or company.
• Some consumers will rely on store image to help them

reduce risk. Some customers buy the most expensive
model assuming that the price/quality relationship will
safely deliver them the best product. Finally, consumers
seek reassurance through money-back guarantees,
warranties, seals of approval and free trials.

Discussion Question
Think of a recent purchase that you

considered risky. What type(s) of risk was
(were) involved? How did you handle the risk?
Explain.

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r 4

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

4.1 To understand the elements of perception

4.5 To understand the elements of consumers’

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 3 of 32

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 4 of 32

4.1 To understand the elements of perception

Perception is all about consumers’ subjective

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 5 of 32

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• Hedonism- the Sensory Trigger

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What is the difference

Why do marketers care

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• The lowest level at which an individual can experience a

• The minimal difference that can be detected between two

• Propounded by German scientist named Ernst Weber

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• Manufacturers and marketers endeavor to

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• Marketers want to update their existing

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• How might a cereal

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• Perhaps Tony the Tiger could look a little different. At one

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• What is subliminal perception?

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• Extensive research has shown no evidence that subliminal advertising

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• For eg. Effectiveness of so-called subliminal

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 24 of 32

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Subconsciously, consumers are very selective when exposed to stimuli. An

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• Ads that contrast with their environments are very likely to be

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• What marketing stimuli do you remember from your day so

• If you think about it, you might be surprised at what you

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• Motives: People tend to perceive the things they need or

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4.3 To understand how consumers organize

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• Figure and ground refers to the interrelationship between

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• Closure is people’s instinct to organize pieces of sensory input