Consumer Behavior, 9th Edition SCHIFFMAN & KANUK Chapter 6 Consumer Perception

What do you see?

What do you see now?

What colour comes to mind? RED

What’s in the picture?

So….what then is 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

Elements of Perception Sensation Absolute threshold Differential threshold Subliminal perception

The immediate and direct response of the sensory organs to stimuli. Sensation The immediate and direct response of the sensory organs to stimuli. A perfectly unchanging environment provides little to no sensation at all! As sensory input decreases, our ability to detect changes in input or intensity increases.

Absolute Threshold The lowest level at which an individual can experience a sensation. The point at which a person can detect a difference between something and nothing

Sensory Adaptation As our exposure to stimulus increases, we notice it less. Factors leading to adaptation: Intensity, duration, discrimination, exposure, relevance Promotional methods aimed at increasing sensory input: Experiential marketing, Sophisticated scented ads, inserts and pop-ups, ambush advertising, Product placement

Increased Sensory Input increased intensity

Increased Sensory Input 3D/digital billboard

Stimulus Factors Size Intensity Attractive visuals Color and movement Position Isolation Format Contrast & expectations Remarkability Information Quantity

The minimal differences that can be detected between two similar stimuli Differential Threshold

A theory concerning the perceived differentiation between similar stimuli of varying intensities (i.e., the stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different). Weber’s Law

Marketing Applications of the JND 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 Changes Fall Below the J.N.D.

Changes in Brand Name Fall Below the J.N.D.

Subliminal Perception Perception of very weak or rapid stimuli received below the level of conscious awareness.

Subliminal Perception 1957: Drive-In Movie Theater 1974: Publication of Subliminal Seduction 1990s: Allegations against Disney

Is Subliminal Persuasion Effective? Extensive research has shown no evidence that subliminal advertising can cause behavior changes Some evidence that subliminal stimuli may influence affective reactions

Aspects of Perception Selection Organization Interpretation

Perceptual Selection People receive only a small fraction of the stimuli to which they are exposed. Depends on two major factors Consumers’ previous experience Consumers’ motives

Concepts Concerning Selective Perception Selective Exposure Selective Attention Perceptual Defense Perceptual Blocking

Principles of Perceptual Organization Referred as Gestalt psychology Figure and ground Grouping Closure

Influences of Perceptual Distortion Stereotypes Physical Appearances Descriptive Terms First Impressions Jumping to Conclusions Halo Effect………………………. The iPod has had positive effects on perceptions of Apple's other products

“Safed Teeka” Use of cultural habits to formulate imagery involving steriotypes associated with product category

Issues In Consumer Imagery Product Positioning and Repositioning Positioning of Services Perceived Price Perceived Quality Retail Store Image Manufacturer Image Perceived Risk

Using Imagery

Positioning & Repositioning Establishing a specific image for a brand in relation to competing brands. Involves changing the identity of the product relative to the identity of the competing brands in the collective minds of the target market If a brand does not reposition at the right time , it may not get a second chance

Repositioning of Cadbury Dairy Milk “Kid in all of us” “Spontaneous Joy”- (girl dancing in the cricket field) “Real Taste of Life”- A girl is shown breaking the security barriers and entering thecricket field to celebrate the victory of the country in the crickedmatch under the tag line “Kuch Khaas Hai Zindagi mein”. Thiscampaign went on to be awarded The Campaign of theCentury, in India at the Abby (Ad Club, Mumbai) awards.

Different Ad Campaigns by Cadbury Dairy Milk “Khaane Waalon Ko Khaane Ka Bahana Chahiye” “Kuch Meetha Ho jaye” “Pappu Paas Ho gaya” “Radha Miss Palampur ban gaye “ “Meetha hai Khaana aaj pehli tarrekh hai” “Is Diwali aap kise khush kar rahe hain” Sister tying rakhi to her brother and receiving a box of chocolates in return “Shubh Aaarambh”

Positioning Techniques Umbrella Positioning Positioning Against Competition Positioning Based on a Specific Benefit Conveying a Product Benefit Taking an Unowned Position Positioning for Several Positions Repositioning

Apple’s 1984 Ad Positions Against the Competition Click icon to reach ad

Perceptual Mapping A research technique that enables marketers to plot graphically consumers’ perceptions concerning product attributes of specific brands.

Perceptual Mapping

Perceptual Mapping

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

Issues in Perceived Price Reference prices Internal External Tensile and objective price claims Was $199 Now $99 Sale! 20% to 70% Off!

Acquisition-Transaction Utility Transaction utility concerns the perceived pleasure or displeasure associated with the financial aspect of the purchase Determined by the difference between the internal reference price and the purchase price Acquisition utility represents the consumer’s perceived economic gain or loss associated with the purchase Function of product utility and purchase price

Tensile and Objective Price Claims Evaluations least favorable for ads stating the minimum discount level Ads stating maximum discount levels are better than stating a range Save 10% or more Save upto 50%

Perceived Quality Perceived Quality of Products Intrinsic vs. Extrinsic Cues Perceived Quality of Services Price/Quality Relationship

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).

Perceived Risk Types The degree of Functional Risk uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision. Types Functional Risk Physical Risk Financial Risk Psychological Risk Time Risk Social Risk

How Consumers Handle Risk Seek Information Stay Brand Loyal Select by Brand Image Rely on Store Image Buy the Most Expensive Model Seek Reassurance