Perception Total Module

Consumer Behaviour
NPD
PERCEPTION
Part 1
D. Sangeeta
Apr 2014
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D. Sangeeta. Apr 2014. All rights reserved
Consumer Behaviour. Perception
Perceptions
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Perception
Perception Perception V/S Sensation
- Perception is defined as the process by which -Sensation is the bottom up process by which
an individual selects, organizes, interprets our senses like vision, hearing and smell,
stimuli into a meaningful and coherent picture receive and relay outside stimuli.
of the world.
- Perception is the top down process, where our
- It can be described as “how we see the world brain processes the stimuli, organizes and
around us”. interprets the information and puts it into
context.
- Two individuals may be exposed to the same
stimuli under the same apparent conditions,
but how each person selects, organizes and
interprets these stimuli is dependant on the
person’s own needs, values and expectations.
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Perception - Stimuli
Is there a
.
perceptible
. difference?
.
There is actually
a difference of 1
size – which is
.
. not very clearly
perceived.
.
Absolute
Threshold?
. . .
. Is there a There is a
perceptible difference of 12
difference? sizes. Thus
. . easily perceived
Absolute This is called the
Threshold? Differential
Threshold
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Perception – Stimuli
Absolute Threshold
- It is the lowest level at which an individual can experience a sesation.
Sensory Adaptation
- This term refers to “getting used to” to a sensation.
“Finding the Purple Cow” challenge for Marketers.

The Differential Threshold
- This term refers to the minimal difference that can be detected between two similar stimuli.
- This is also known as “Just noticeable difference” or “JND”.
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Perception – Stimuli (JND)
The difference in each new

packaging of Cadbury was
JND. And over time, they
have changed completely.
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Perception – Stimuli (JND)
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Perception – Stimuli (Subliminal)
Subliminal : Inadequate to produce a sensation.

- Relating to things that influence your mind in a way that you do not notice it.
- Experiments with Subliminal Advertising started way back in 1950s.
- Subliminal advertising was banned in 1958 in the US.
- However marketers continue to use this form of advertising ever so subtly.
- Subliminal messages in ads is especially prevalent in the form of in-program branding, or

in-movie branding.
- The Heart of Gold campaign of Brittannia.
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Perception – Previous Experience
Individuals are very selective as to which stimuli they ‘recognize’. They subconsciously
organize the stimuli they do not recognize and they interpret it subjectively in accordance
with their personal needs, expectations, and experiences.
Am going to speak some words, and write some words on the board now….
Each of us would react to these words differently, have different images in our mind for
each of these words. Why?
That is because, while the physical stimuli of seeing or hearing the word is similar for all
of us, each of interpret as per our personal needs, expectations and past experiences.
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Perception – Previous Experience
Dynamics of Perception
Perceptual Selection Perceptual Organization Perceptual Interpretation

We select the stimuli we After selectively receiving Once these stimuli are
stimuli, our brain organized, we interpret
want to perceive. The organizes these these stimuli. Individuals
: basis of selection is thoughts in way that it are subject to a number
• Nature of Stimulus finds easy to of perceptual distortions
.understand .basis experience
– )Concept of contrast(
Purple cow in message,
• Figure and ground : All • Physical appearance:
.packaging, color etc our senses are Looks play an important
organized in the form of role in how we perceive
• Expectation : Basis past “Foreground and things.
experience. Background”. This
changes with • Streotypes
• Current motivations (or experience. • First Impressions
motives). • Grouping : Our mind • Jumping to
• Selective Perception: tends to group Stimuli
into “groups”; conclusions
- Selective Exposure
• Closure : Our mind • Halo Effect
- Selective attention needs sense of closure.
- Perceptual Defense Often half messages act
as stronger stimuli, as
- Perceptual Blocking we then apply our mind
to get a closure.
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Perceptual Organization
Figure and Ground Effect Grouping Effect
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Perceptual Organization
Need for closure
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Perceptual Interpretation
Jumping to conclusions Physical Appearance / First

Impression
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Consumer Behaviour
NPD
PERCEPTION
Part 2
D. Sangeeta
Apr 2014
14
Perception and Product Positioning
The essence of successful marketing is to create the desired image of your product in
the minds of the consumer. This is Product Positioning.
Positioning conveys the concept, or meaning, of the product ot service in terms of how
it fulfills consumer’s needs.
Positioning Strategy is the essence of the marketing mix; it complements the

company’s definition of the competition, its segmentation strategy, and is selection of
target markets.
A good Positioning Strategy is a 2

pronged approach.
It is congruent (or in line with) with the It occupies a specific position in

customers needs. comparison to its competitors.
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1. Umbrella Positioning
Tata follows an Umbrella Positioning….i.e, it has
positioned the “Tata” brand as “Trustworthy” and
“Socially Responsible”. The positioning of all
products under the Tata brand is derived out of
that.
From Tata Salt & Tata Tea to Tata Motors

& Tata Steel to Tata Consultancy to Tata
AIG…….What is Common?
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2. Positioning against Competition

Avis has positioned itself as a company that ‘tries
harder’ because it is No.2. While Hertz has
responded by comparing itself to Avis with reasons
for why it is No.1. Both have positioned themselves
on against Competition.
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3. Positioning based on Specific Benefit

These could be real/tangible benefits provided by
the product / service (like Pureit’s “purity indicator’)
OR could be intangible benefits (like Electrolux’s
‘luxury’) which the marketer achieves through the
positioning.
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A Perceptual Map plots then relative comparison of different Competitors in the

Customer’s Mind
Unoccupied
position
4. Positioning an ‘un-owned’ Position

Finding a positioning which has not been occupied
by competitors as yet.
??
??
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5. Filling several positions

Unilever has several soap brands that occupy
different positions. This is the company’s way of
ensuring that they fill several positions.
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Kentucky Fried Chicken repositioned itself as

KFC – so that it removes the word “fried” from
its name, as it was having a negative impact
on health conscious people.
Product Repositioning
Regardless of how well positioned a product is, the
marketer may be forced to change its positioning due to
either changes in consumer preferences, or changes in Tata Nano repositioned itself from
market (e.g. too many competitors talking of the same “Khushiyon ki chaabi” to
attribute) or realization that the initial positioning is not “Awesomeness unveiled” to get rid
of the “cheap car” positioning.
working.
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Perception
Perceived Price
How a customer perceives prices – as high, as low, as fair – has a strong influence on both
purchase intentions and purchase satisfaction.
Pricing Strategy Provides Value by….. Implemented as…..

Satisfaction Based Recognizing and reducing Service gaurantess, Benefit-
Pricing customer’s perceptions of driven pricing, flat-rate
uncertainity, which the intangible pricing.
nature of services magnifies
Relationship Pricing Encourages long-term Long term contracts, Price

relationships with the company bundling
that customers view as
beneficial.
Efficiency Pricing Sharing the benefits of cost Cost Leader pricing
savings achevied by the
company with their customers.
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Perception – Perceived Price
Reference Price
Not more
I think I can 1P per min
pay about for this plan
Rs.500 for this
t-shirt
Reference Price - External Reference Price - Internal
Acquisition Utility Transaction Utility

Product Utility – Purchase Price = Acquisition Utility
Internal Reference Price – Purchase Price = Transaction Utility
Plausible - Low Plausible - High Implausible - High
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Tensile and Objective Price Claims
Tensile Price Claim : A range of Price discounts
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Tensile and Objective Price Claims
Objective Price Claim : a single discount claim – either absolute value or

percentage discount.
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Other Pricing / Discounting methods and their impact on Perceived Price
Product Bundling
Time Based Discounts
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Consumer Behaviour
NPD
PERCEPTION
Part 3.2
D. Sangeeta
Apr 2014
28
Perception – Perceived Quality
Which of these Products has better Quality?
Perceived Quality on the basis of

or Physical attributes. Intrinsic and
Extrinsic

or Country of Origin.

Brand. Could also be on the basis of
or the Manufacturer. ( ‘Pioneer Brand’
image and ‘stealth parentage’.
Perceived Quality on the Retail Store

Image
or
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Perception – Perceived Quality
Perceived Price and Perceived Quality
Brand Name Perception

of Brand
Retail Store Perception

Name of Store
Perceived
Quality
Objective Perception Willingness to

Perceived
Price of Price buy
Value
Perceived
Sacrifice
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Perception – Perceived Risk
Perceived Risk is defined as the uncertainty that consumers face when they cannot
foresee the consequences of their purchase decision.
Functional Physical Financial Social Psychological Time Risk

Risk Risk Risk Risk Risk
I hope this Are the What if the I hope this I hope I might get
shoe doesn’t heels of this same shoes shoe is pointed the same
start biting shoe going are availble durable and shoes are shoes at a
me. to damage for 50% of doesn’t tear still formal discount if I
my ankle?. this amount when am enough for wait for the
in some going to an the next sale.
other interview. interview.
market!
Customer try to reduce these risks by:

1. Seeking Information 3. Selecting by Brand Image 5. Buying the most expensive model
2. Being Brand Loyal 4. Relying on Store Image 6. Seeking reassurance
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Perception – Perceived Quality (Service)
What are the Physical Attributes that a consumer would look for in a Service
Industry?
How is the issue of “Quality Control” different between Product and Services?
What are the attributes that a consumer looks for in service delivery – which
contribute to their perception about quality of service? (SERVQUAL)
How are perceived quality of service linked with financial benefits for the company?
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See you soon!
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Consumer Behaviour

Perception Perception V/S Sensation

“Finding the Purple Cow” challenge for Marketers.

The difference in each new

Subliminal : Inadequate to produce a sensation.

- Experiments with Subliminal Advertising started way back in 1950s.

- Subliminal advertising was banned in 1958 in the US.

- However marketers continue to use this form of advertising ever so subtly.

- Subliminal messages in ads is especially prevalent in the form of in-program branding, or

- The Heart of Gold campaign of Brittannia.

Perceptual Selection Perceptual Organization Perceptual Interpretation

Figure and Ground Effect Grouping Effect

Need for closure

Jumping to conclusions Physical Appearance / First

Positioning Strategy is the essence of the marketing mix; it complements the

A good Positioning Strategy is a 2

It is congruent (or in line with) with the It occupies a specific position in

From Tata Salt & Tata Tea to Tata Motors

2. Positioning against Competition

3. Positioning based on Specific Benefit

A Perceptual Map plots then relative comparison of different Competitors in the

4. Positioning an ‘un-owned’ Position

5. Filling several positions

Kentucky Fried Chicken repositioned itself as

Pricing Strategy Provides Value by….. Implemented as…..

Relationship Pricing Encourages long-term Long term contracts, Price

Reference Price - External Reference Price - Internal

Acquisition Utility Transaction Utility

Internal Reference Price – Purchase Price = Transaction Utility

Plausible - Low Plausible - High Implausible - High

Tensile and Objective Price Claims

Tensile Price Claim : A range of Price discounts

Tensile and Objective Price Claims

Objective Price Claim : a single discount claim – either absolute value or

Other Pricing / Discounting methods and their impact on Perceived Price

Time Based Discounts

Which of these Products has better Quality?

Perceived Quality on the basis of

Perceived Quality on the basis of

Perceived Quality on the basis of

Perceived Quality on the Retail Store

Perceived Price and Perceived Quality

Brand Name Perception

Retail Store Perception

Objective Perception Willingness to

Functional Physical Financial Social Psychological Time Risk

Customer try to reduce these risks by:

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