Chapter 5 Consumer Perception Consumer Behaviour Canadian Edition

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Chapter 5 Consumer Perception Consumer Behaviour Canadian Edition Schiffman/Kanuk/Das Copyright © 2006 Pearson Education

Chapter 5 Consumer Perception Consumer Behaviour Canadian Edition Schiffman/Kanuk/Das Copyright © 2006 Pearson Education Canada Inc.

Opening Vignette n Good Carbs, Bad Carbs – Pasta, white bread, beer are ‘bad

Opening Vignette n Good Carbs, Bad Carbs – Pasta, white bread, beer are ‘bad carbs’ n Beer is perceived as high in bad carbs – Only 11 to 17 gms per bottle – Consumers overestimate carbs in beer – Perceptions have to change – Labatt’s campaign – http: //www. labatt. ca Copyright © 2006 Pearson Education Canada Inc. 2

Perception The process by which an individual selects, organizes, and interprets stimuli into a

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 Copyright © 2006 Pearson Education Canada Inc. 3

Elements of Perception n Absolute threshold n Differential threshold Copyright © 2006 Pearson Education

Elements of Perception n Absolute threshold n Differential threshold Copyright © 2006 Pearson Education Canada Inc. 4

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

Sensation n The immediate and direct response of the sensory organs to stimuli. n A perfectly unchanging environment provides little to no sensation at all! Copyright © 2006 Pearson Education Canada Inc. 5

Differential Threshold or j. n. d n The minimal difference that can be detected

Differential Threshold or j. n. d n The minimal difference that can be detected between two similar stimuli Copyright © 2006 Pearson Education Canada Inc. 6

Weber’s Law n the stronger the initial stimulus, the greater the additional intensity needed

Weber’s Law n the stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different Copyright © 2006 Pearson Education Canada Inc. 7

Marketing Applications of the JND n Need to determine the relevant j. n. d.

Marketing Applications of the JND n 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 Copyright © 2006 Pearson Education Canada Inc. 8

Subliminal Perception n Perception of very weak or rapid stimuli received below the level

Subliminal Perception n Perception of very weak or rapid stimuli received below the level of conscious awareness http: //www. thoughtscan. com/ Copyright © 2006 Pearson Education Canada Inc. 9

Subliminal Perception n 1957: Drive-In Movie Theater n 1974: Publication of Subliminal Seduction n

Subliminal Perception n 1957: Drive-In Movie Theater n 1974: Publication of Subliminal Seduction n 1990 s: Allegations against Disney http: //www. snopes. com/business/hid den/popcorn. htm Copyright © 2006 Pearson Education Canada Inc. 10

Is Subliminal Persuasion Effective? n Extensive research has shown no evidence that subliminal advertising

Is Subliminal Persuasion Effective? n Extensive research has shown no evidence that subliminal advertising can cause behaviour changes n Some evidence that subliminal stimuli may influence affective reactions Copyright © 2006 Pearson Education Canada Inc. 11

Aspects of Perception Selection Organization Interpretation Copyright © 2006 Pearson Education Canada Inc. 12

Aspects of Perception Selection Organization Interpretation Copyright © 2006 Pearson Education Canada Inc. 12

Perceptual Selection n Conscious and unconscious screening of stimuli Copyright © 2006 Pearson Education

Perceptual Selection n Conscious and unconscious screening of stimuli Copyright © 2006 Pearson Education Canada Inc. 13

Perceptual Selection n Depends on three major factors – Consumer’s previous experience – Consumer’s

Perceptual Selection n Depends on three major factors – Consumer’s previous experience – Consumer’s motives – Nature of the stimulus Copyright © 2006 Pearson Education Canada Inc. 14

Concepts Concerning Selective Perception n Selective Gestalt Psychology Exposure n Selective Attention n Perceptual

Concepts Concerning Selective Perception n Selective Gestalt Psychology Exposure n Selective Attention n Perceptual Defense n Perceptual Blocking Copyright © 2006 Pearson Education Canada Inc. 15

Perceptual Selection – Cont’d n Selective exposure – Consumers actively choose stimuli that they

Perceptual Selection – Cont’d n Selective exposure – Consumers actively choose stimuli that they want to see n Selective attention – Consumers decide how much attention they will pay to a stimulus Copyright © 2006 Pearson Education Canada Inc. 16

Perceptual Selection – Cont’d n Perceptual defence – Consumers screen out psychologically threatening stimuli

Perceptual Selection – Cont’d n Perceptual defence – Consumers screen out psychologically threatening stimuli n Perceptual blocking – ‘tuning out’ of stimuli Copyright © 2006 Pearson Education Canada Inc. 17

Copyright © 2006 Pearson Education Canada Inc. 18

Copyright © 2006 Pearson Education Canada Inc. 18

Principles of Perceptual Organization n Figure and ground – Definition of figure depends on

Principles of Perceptual Organization n Figure and ground – Definition of figure depends on the background n Grouping – Information is organized into chunks n Closure – Incomplete stimuli create tension Copyright © 2006 Pearson Education Canada Inc. 19

Influences of Perceptual Distortion n Physical Appearances n Stereotypes n First Impressions n Jumping

Influences of Perceptual Distortion n Physical Appearances n Stereotypes n First Impressions n Jumping to Conclusions n Halo Effect Copyright © 2006 Pearson Education Canada Inc. 20

Issues In Consumer Imagery n Product Positioning and Repositioning n Perceived Price n Perceived

Issues In Consumer Imagery n Product Positioning and Repositioning n Perceived Price n Perceived Quality n Price-Quality Relationship n Perceived Risk Copyright © 2006 Pearson Education Canada Inc. 21

Positioning n Establishing a specific image for a brand in relation to competing brands

Positioning n Establishing a specific image for a brand in relation to competing brands Copyright © 2006 Pearson Education Canada Inc. 22

Positioning Techniques n Umbrella Positioning n Positioning Against Competition n Positioning Based on a

Positioning Techniques n Umbrella Positioning n Positioning Against Competition n Positioning Based on a Specific Benefit n Conveying a Product Benefit n Taking an Un-owned Position n Positioning for Several Positions n Repositioning Copyright © 2006 Pearson Education Canada Inc. 23

Copyright © 2006 Pearson Education Canada Inc. 24

Copyright © 2006 Pearson Education Canada Inc. 24

Perceptual Mapping n. A research technique that enables marketers to plot graphically consumers’ perceptions

Perceptual Mapping n. A research technique that enables marketers to plot graphically consumers’ perceptions concerning product attributes of specific brands. Copyright © 2006 Pearson Education Canada Inc. 25

Research Insight n Attribute-based approach – Identify attributes that consumers use – Rate brands

Research Insight n Attribute-based approach – Identify attributes that consumers use – Rate brands on these attributes – Identify ideal level of these attributes Copyright © 2006 Pearson Education Canada Inc. 26

Research Insight Copyright © 2006 Pearson Education Canada Inc. 27

Research Insight Copyright © 2006 Pearson Education Canada Inc. 27

Internet Insight n Non-attribute-based approach – List all brands; identify all pairs – Arrange

Internet Insight n Non-attribute-based approach – List all brands; identify all pairs – Arrange pairs in order of similarity – Identify underlying dimensions Copyright © 2006 Pearson Education Canada Inc. 28

Research Insight Copyright © 2006 Pearson Education Canada Inc. 29

Research Insight Copyright © 2006 Pearson Education Canada Inc. 29

Pricing Strategies Focused on Perceived Value n. Satisfaction-based Pricing n. Relationship Pricing n. Efficiency

Pricing Strategies Focused on Perceived Value n. Satisfaction-based Pricing n. Relationship Pricing n. Efficiency Pricing Copyright © 2006 Pearson Education Canada Inc. 30

Issues in Perceived Price n Reference prices – Internal – External n Tensile and

Issues in Perceived Price n Reference prices – Internal – External n Tensile and objective price claims Copyright © 2006 Pearson Education Canada Inc. 31

Tensile and Objective Price Claims n Evaluations least favorable for ads stating the minimum

Tensile and Objective Price Claims n Evaluations least favorable for ads stating the minimum discount level n Ads stating maximum discount levels are better than stating a range Copyright © 2006 Pearson Education Canada Inc. 32

Perceived Quality n Perceived Quality of Products – Intrinsic vs. Extrinsic Cues n Perceived

Perceived Quality n Perceived Quality of Products – Intrinsic vs. Extrinsic Cues n Perceived Quality of Services n Price/Quality Relationship Copyright © 2006 Pearson Education Canada Inc. 33

Price/Quality Relationship The perception of price as an indicator of product quality (e. g.

Price/Quality Relationship The perception of price as an indicator of product quality (e. g. , the higher the price, the higher the perceived quality of the product). Copyright © 2006 Pearson Education Canada Inc. 34

(continued) Copyright © 2006 Pearson Education Canada Inc. 35

(continued) Copyright © 2006 Pearson Education Canada Inc. 35

Figure 5 -9 (continued) Copyright © 2006 Pearson Education Canada Inc. 36

Figure 5 -9 (continued) Copyright © 2006 Pearson Education Canada Inc. 36

Perceived Risk n The degree of uncertainty perceived by the consumer as to the

Perceived Risk n The degree of uncertainty perceived by the consumer as to the consequences (outcomes) of a specific purchase decision § High-risk perceivers are narrow categorizers § Limit their choices to safe alternatives § Low-risk perceivers are broad categorizers § Wide range of alternatives preferred Copyright © 2006 Pearson Education Canada Inc. 37

Types of Risk n Functional Risk n Physical Risk n Financial Risk n Psychological

Types of Risk n Functional Risk n Physical Risk n Financial Risk n Psychological Risk n Time Risk Copyright © 2006 Pearson Education Canada Inc. 38

How Consumers Handle Risk n Seek Information n Stay Brand Loyal n Select by

How Consumers Handle Risk n Seek Information n Stay Brand Loyal n Select by Brand Image n Rely on Store Image n Buy the Most Expensive Model n Seek Reassurance Copyright © 2006 Pearson Education Canada Inc. 39

Perception and Marketing Strategy n Make perceptual selection work in your favour – Increase

Perception and Marketing Strategy n Make perceptual selection work in your favour – Increase accidental exposure – Use the j. n. d – Draw attention to your ad using contrast and other principles – Find creative ways to reduce blocking » continued Copyright © 2006 Pearson Education Canada Inc. 40

Perception and Marketing Strategy n Ensure that consumers organize and interpret messages correctly n

Perception and Marketing Strategy n Ensure that consumers organize and interpret messages correctly n Develop suitable consumer imagery n Find ways to reduce perceived risk Copyright © 2006 Pearson Education Canada Inc. 41