Five principles of Gestalt psychology We organize things into meaningful units using Proximity: we group by distance or location Similarity:

ty: we group by type Symmetry: we group by meaning Continuity: we group by flow of lines (alignment) Closure: we perceive shapes that are not (completely) there

Organization
Closure: Taking existing information from our memory and relating it to new information to make sense of incomplete messages
People have a need for closure and organize
perceptions to form a complete picture. Will often fill in missing pieces Incomplete messages remembered more than complete

Closurer

Proximity

similarity

Perception theories that guide marketing decisions

Absolute threshold
Lowest point that we perceive stimuli Adaption - the process of flipping through the pages and ignoring the advertisements Marketers need to break through the clutter
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 5-10

Perception theories that guide marketing decisions

Webers concept of Just Noticeable Difference (JND)
Just Noticeable Difference - the minimum level of change to a stimulus that is required in order for the change to be noticed Webers law states: the stronger the initial stimulus, the greater the change required for the stimulus to be seen as different Some things you want your customers to notice e.g. specials, improvements Others you dont - changes in packaging, size
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

5-11

Perception theories that guide marketing decisions

Selective exposure We dont notice everything! We filter out unwanted information Selective distortion We add preconceived ideas or attitudes to interpret new information that enters the sensory store of the memory Selective retention We remember information that we find meaningful and interesting Selective attention We dont take in all the information around us Marketers need to identify what their customers will notice and pay attention to
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 5-12

Perception theories that guide marketing decisions

Stimulus generalisation When a conditioned response occurs to stimuli that are similar to the conditioned stimulus When you find it hard to tell the difference between two stimuli e.g. me-too products Stimulus discrimination Ability to see a distinct difference between stimuli What marketers want to achieve from their products

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

5-13

Stimulus Discrimination

Stimulus Discrimination

Perception theories that guide marketing decisions

The influence of colour on perception Colours have different meanings, which can vary from culture to culture What do these colours mean to you? Blue Red White Green Choose colours carefully for advertising, signage and packaging as it can influence what they mean to your target audience The influence of semantics on perception Words can have double meanings - choose them carefully
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 5-16

Perception theories that guide marketing decisions

Perceptual categorisation
Personal constructs - we categorise related information into sets in our mind Applications for marketers
Family branding

Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

5-17

Perception and Marketing Strategy

Retail strategy Brand name and logo development Media strategy Advertisement and package design Warning labels and package designs Advertising evaluation Regulation of advertising and packaging
819

Retail Strategy
Store layout to increase exposure Lighting and fitout Placement of products on shelves
Eye levels (for adults and for children!) Number of facings to maximise visual impact

Use of referent pricing

820

Brand name & logo development

Affects the way the product/service is perceived Concrete terms with relevant, established visual images tend to be easier to recognise and recall Consistency seems to be important

Media Strategy
Selective approach
to reach where the target market is focused media

Advertisements & package design

Must capture attention & convey meaning utilise stimulus characteristics Tie message to topic target market is interested in

822

Perception and Marketing Strategy (cont.)

Advertising evaluation; measures of:
Exposure
It must reach the consumer

Attention
It must be attended to by the consumer

Interpretation
It must be interpreted correctly

Memory
It must be stored and retrievable
823

Next Lecture
Learning and Memory

824

Develop a Brand Name and a Logo for a local fast food vegetarian restaurant and justify your brand name and logo on the basis of what you have learned in perception

Perception and Marketing Strategy

Retailing: Increase total exposure by spacing out frequently brought items Place high margin items in high traffic area Display of products to draw attention Brand Name & Logo Development Allows consumers to associate the product with Quality Price Expected Performance Self Image Differentiation
Have you seen the movie 3000? Pretty Woman

Perception and Marketing Strategy

Media Planning: TRP and OTS important for planning Larger ads tend to draw more attention Advertisement Use of humor, Sex Appeal, Bright Colors preferred Usage should be coordinated with product usage Insurance Ads sold by glamorous model Package Design Task to capture attention and convey information Needs to be carefully designed to meet legal rules of the country

Evaluation of Advertising
Measure of Exposure: Verification, circulation, readership used in print to compute OTS People Meter used in television to compute TRP Click-through rate used in internet Measure of Attention: Eyeball tracking devices Day after Recall (DAR) Recognition Test Starch Test Noted: Percentage of people who recall seeing the advertisement Seen-Associated: Percentage of people who recall reading some part of the advertisement

Ambush Marketing
Involves any communication or activity that implies, or from which one could reasonably infer, that an organization is associated with an event, in fact when it is not Forms of ambush marketing: Sponsor Media Coverage of the Event Sponsor a small part of the event and advertise heavily Advertise heavily during the event

Coke / Pepsi tends to advertise heavily during cricket matches even when They are not the official sponsors of the match