CHAPTER SIX Consumer Perception Learning Objectives 1 To
CHAPTER SIX Consumer Perception
Learning Objectives 1. To Understand the Sensory Dynamics of Perception. 2. To Learn About the Three Elements of Perception. 3. To Understand the Components of Consumer Imagery and Their Strategic Applications. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 2
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6. 1 Perception • The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world • Elements of Perception 1 - Sensation 2 - Absolute threshold 3 - Differential threshold 4 - Subliminal perception Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 5
1. Sensation • Sensation is the immediate and direct response of the sensory organs to stimuli – A stimulus is any unit of input to any of the senses. Marketing Applications: Applications Sight Sound Smell Touch https: //www. youtube. com/wat ch? v=zyhks 7 Qu 5 A 0 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 6
2 - The absolute Threshold 7
2 - The absolute Threshold • The absolute threshold is the lowest level at which an individual can experience a sensation. Implication to marketing: - To change the advertising to avoid absolute threshold to decrease. • To use methoods that will increase sensory input. E. g: experiential marketing, sophisticated scented ads, Sophisticated inserts and pop ups, Ambush advertising, Product placement Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 8
2 - Absolute Threshold Marketing Implications • • • Experiential Marketing Sophisticated scented ads Sophisticated inserts and pop ups Ambush advertising Product placement James Bond Xperia Replacement https: //www. youtube. com/watch? v=Yyg. WUF 3 ufu. E https: //www. youtube. com/watch? v=auq 549 l. Ti. A Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 9
XPERIA Z 3 LAUNCH EVENT- PS 4 JOKE VIRAL VIDEO Concept : Unexpected Performance, Different Joke describing PS 4 integration of Xperia Z 3 It is easy, even a kid can play with Xperia Z 3
2 dimensional chalk drawing 11
3 - Differential Threshold (Just Noticeable Difference – j. n. d. ) • Minimal difference that can be detected between two similar stimuli (perception is relative and comparable) • Weber’s law – The j. n. d. between two stimuli is not an absolute amount but an amount relative to the intensity of the first stimulus – The stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 12
Marketing Applications of the J. N. D. • Marketers 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 Betty Crocker symbol of General Mills Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 13
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 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 14
3 - 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. • Is it effective? – Extensive research has shown no evidence that subliminal advertising can cause behavior changes – Some evidence that subliminal stimuli may influence affective reactions Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 15
6. 2 Aspects of Perception 1 - Selection 2 - Organization 3 - Interpretation Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 16
1 - Perceptual Selection Depends Upon: Nature of the stimulus • Includes the product’s physical attributes, package design, brand name, advertising and more… Contrast Expectations • Based on familiarity, previous experience or expectations. Motives • Needs or wants for a product or service. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 17
q Which white square is smaller? Contrast: According to the principles of contrast, the stimuli that contradict most with the background or the expectations of people receive maximum attention
Some other attention factors Intensity: q q q q Contrast Intensity Size Repetition Motion Novelty and familiarity Light Colour Brights Colour Size God is great 19
Why Are Consumers Likely to Notice This Ad? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 20
The Attention-Getting Nature of a Dramatic Image Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 21
Discussion Questions • What marketing stimuli do you remember from your weekend so far? • Why do you think you selected these stimuli to perceive and remember? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 22
Perceptual Selection Important Concepts Selective Exposure Selective Attention Perceptual Defense Perceptual Blocking • Consumers seek out messages which: • Are pleasant • They can sympathize • Reassure them of good purchases • Heightened awareness when stimuli meet their needs • Consumers prefer different messages and medium • Screening out of stimuli which are threatening • Consumers avoid being bombarded by: • Tuning out • Ti. Vo • e. g: smokers towards cigarette advertisements Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 23
2 - Organization Principles • Figure and ground • Grouping • Closure • People tend to organize perceptions into figure-and -ground relationships. • The background is usually perceived as hazy, indefinite, and continious. • Marketers usually design so the figure is the noticed stimuli. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 24
Organization Principles • Figure and ground • Grouping • Closure • People group stimuli to form a unified impression or concept. • Grouping helps memory and recall. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 25
Grouping of Image The mind forms shapes that don't exist 26
Organization Principles • Figure and ground • Grouping • Closure • 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 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 27
What Element of Perceptual Organization Is Featured in This Ad? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 28
Closure Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 29
3 - Interpretation Stereotypes People tend to carry biassed pictures in their mind of the meanings or various stimuli, called stereotypes. • People add their biased pictures to the received sensory stimuli and form distorted impressions. • People hold meanings related to stimuli • Triggers of strereotypes: Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall – – Physical appearences Descriptive terms First impressions Halo effect Chapter Six Slide 30
Interpretation Physical Appearances Descriptive Terms First Impressions • Positive attributes of people they know to those who resemble them • Important for model selection Halo Effect Halo Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 31
Interpretation Physical Appearances Descriptive Terms • Verbal messages reflect stereotypes First Impressions Halo Effect Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 32
How Does This Ad Depict Perceptual Interpretation? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 33
It Contrasts the Powerful Durango with Less Rugged Referred to in the Ad as the “Land Of Tofu. ” Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 34
Interpretation Physical Appearances Physical Descriptive Terms Descriptive First Impressions First • First impressions are lasting • The perceiver is trying to determine which stimuli are relevant, important, or predictive Halo Effect Halo Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 35
Interpretation Physical Appearances Descriptive Terms First Impressions First Halo Effect Halo Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall • Consumers perceive and evaluate multiple objects based on just one dimension e. g: Brand name, spokepers, waiting room of denstist Chapter Six Slide 36
6. 3 Consumer Imagery • Consumers have a number of enduring images or perceptions towards products or services or brands. • Products and brands have symbolic value for individuals, who evaluate them with their personal pictures of themlseves. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 37
Product Positioning • Establishing a specific image for a brand in the consumer’s mind in relation to competing brands • Poisitining is the unique position of a product that occupies in consumers’ minds • Conveys the product in terms of how it fulfills a need • Successful positioning creates a distinctive, positive brand image Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 38
Which Concepts of Perception Are Applied in These Ads? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 39
The Principle Of Contrast Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 40
Packaging as a Positioning Element • Packaging conveys the image that the brand communicates to the buyer. • Color, weight, image, and shape are all important. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 41
Product Repositioning • Repositioning might be necessary because: – Increased competition, increased number of products with same attributes – Changing consumer tastes and preferencies Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 42
Perceptual Mapping • Perceptual Mapping enables marketers to determine how tehy want ther product or services to appear to cınsumers in relation to competitors’ brands on one or more relevant characteristics. • An analytical technique that enables marketers to plot graphically consumers’ perceptions concerning product attributes of specific brands Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 43
Brand Positioning Map TV MARKET High Strong Equity Growing Equity TOTAL Olympic Specialist Limited Classic Little Tiger Fighter 0 Clean Sheet Defender Weak Fading Star Little Low Equity Declining Equity Low High Growing Equity Strong Equity 15 -24 High 0 Olympic Specialist Classic Little Tiger 0 Defender Clean Sheet Low Weak Fading Star Little Equity Low Declining Equity 0 Presence % relative to category average High Chapter Six Slide 44
Positioning of Services • As services are intangible, image becomes a key factor when positioning services • Visuals • Tangible reminders of offerings • Services often want a differentiated positioning strategy to market several versions of their service to different markets. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 45
Which Elements of This Ad Convey the Restaurant’s Perceptual Position and How? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 46
The Steak Knife and the Reference to Vegetarians Convey The Position of the Restaurant as a Well-Established Steakhouse Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 47
Perceived Price Peceived price should reflect the value that the customer receives from the purchase • Reference prices – used as a basis for comparison in judging another price – Internal: Consumer’s own experience – External: the advertised price Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 48
Three Pricing Strategies Focused on Perceived Value - Table 6. 4 Pricing Strategy Provides Value By… Implemented As… Satisfaction-based pricing Recognizing and reducing customers’ perceptions of uncertainty, which the intangible nature of services magnifies Service guarantees Benefit-driven pricing Flat-rate pricing Relationship pricing Encouraging long-term relationships with the company that customers view as beneficial Long-term contracts Price bundling Efficiency pricing Sharing with customers the cost Cost-leader pricing savings that the company has achieved by understanding, managing, and reducing the costs of providing the service Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 49
Perceived Quality • Perceived Quality of Products – Intrinsic: Physical characteristics, colour, flavor, aroma, size) – Extrinsic Cues: Brand name, reputation, location within store, country of origin Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 50
Measuring Perceptions of Brand Luxury Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 51
Perceived Quality of Services • Difficult due to characteristics of services – – Intangible Variable Perishable Simultaneously Produced and Consumed • SERVQUAL scale used to measure gap between customers’ expectation of service and perceptions of actual service Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 52
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 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 53
How Can This Ad Affect the Service’s Perceived Quality? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 54
It Uses a Process Dimension in Advertising a Newly-Formed Business Class on an Airline Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 55
Discussion Questions • When have you used price as an indicator of quality? • Were you correct? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 56
Which of the Ad’s Elements Conveys the Product’s Quality? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 57
The Slogan on the Ad’s Bottom Left Reads “Perfection Has Its Price” Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 58
Retail Store Image Brands carried Store ambiance Prices Level of service Clientele Product assortment Discounts Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 59
Manufacturer’s Image • Favorable image tied to new product acceptance • Companies sponsor community events to enhance images • Product and institutional images Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 60
Perceived Risk • The degree of uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision • Types – – – Functional Risk Physical Risk Financial Risk Social Risk Psychological Risk Time Risk Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 61
How Consumers Handle Risk • • • Seek Information Stay Brand Loyal Select by Brand Image Rely on Store Image Buy the Most Expensive Model Seek Reassurance Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 62
Homework Dead Line: 2 May 2016, after the course Style: Printed hand out. Max 10 slides Subject: Write and discuss Hofstede’s Cultural Dimensions Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 63
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