CHAPTER EIGHT Perception McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

2 CHAPTER 8 Information Processing for Consumer Decision Making

3 CHAPTER 8 The Nature of Perception Exposure: when a stimulus comes within range of our sensory receptor nerves Random vs. Deliberate Attention: when the stimulus activates one or more sensory receptor nerves and the resulting sensations go to the brain for processing Low vs. High Involvement Interpretation: the assignment of meaning to sensations Low vs. High Involvement

4 CHAPTER 8 Consumer Insight 8-1 What ethical questions, if any, do you see in using product placement as a marketing tool? Are your feelings the same across all product categories? Are there unique issues and perhaps rules that should govern product placements in movies targeting children? How could a marketer determine how much to pay for a brand placement in a particular movie or television program episode?

5 CHAPTER 8 Stimulus Factors Size and Intensity – influence the probability of paying attention Color and Movement – serve to attract attention Position – placement of the object in a person’s visual field

6 CHAPTER 8 The Impact of Size on Advertising Readership

7 CHAPTER 8 Color and Size Impact on Attention

8 CHAPTER 8 Stimulus Factors Isolation – the separation of a stimulus object from other objects Format – manner in which the message is presented Contrast – the tendency to attend more closely to stimuli that contrast with their background

9 CHAPTER 8 Use of Isolation and Contrast

10 CHAPTER 8 Individual Factors Interest – a reflection of overall lifestyle and the ability to attend to information Need – reflection of long-term goals and plans and their short-term needs

11 CHAPTER 8 Situational Factors Program Involvement:

12 CHAPTER 8 Involvement with a Magazine and Advertising Effectiveness

13 CHAPTER 8 Nonfocused Attention Hemispheric Lateralization – activity that takes place on each side of the brain Subliminal Stimuli – a message that is presented so fast that one is not aware of seeing or hearing it

14 CHAPTER 8 Determinants of Interpretation Individual characteristics Gestalt Interpretation: Cognitive Affective Stimulus characteristics Situational characteristics

15 CHAPTER 8 Interpretation The assignment of meaning to sensations Cognitive interpretation – process whereby stimuli are placed into existing categories of meaning Affective interpretation – the emotional or feeling response triggered by a stimulus such as an ad

16 CHAPTER 8 Interpretation Characteristics Individual: Learning Expectations Situational: Contextual Priming Stimulus: Sensory Discrimination

17 CHAPTER 8 Interpretation Extended… Interpreting Images – What does this mean? Consumer Inferences – the process by which consumers assign a value to an attribute or item not contained in an ad on the basis of other data in the ad

18 CHAPTER 8 Impact on Marketing Strategy Impact on Retailers Brand Name and Logo Development Effective Media Strategy Advertisement and Package Design Warning labels and Disclaimers Evaluating Advertising effectiveness Ethical Concerns

19 CHAPTER 8 Logos Influence on Image

20 CHAPTER 8 Group Exercise: Discussion questions #37 & 38 Break into groups of three Present your brand name and logos of the five items to the group Have the group discuss their perceptions of your brand Discuss differences in your intentions and perceptions

21 CHAPTER 8 Exposure to Magazines

22 CHAPTER 8 Consumer Insight 8-2 How does ambush marketing work? Ambush marketing does what harm, if any? What ethical issues, if any, arise in ambush marketing?