1. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins Chapter 8Perception How consumers process information Different steps involved in information processing Factors that influence this process Implications of perception for retail, brand and communication strategies 8–18–1

2. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins The Nature of Perception Exposure Attention Interpretation Memory – short-term – long-term 8–28–2

3. 8–38–3 Information Processing for Consumer Decision Making Purchase & consumption decisions Exposure Random Deliberate Attention Low- involvement High- involvement Interpretation Low- involvement High- involvement Memory Short-term Long-term Active problem solving Stored experiences, values, decisions, rules etc. Perception

4. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins Exposure Occurs when a stimulus comes within range of our sensory receptor nerves Deliberate exposure to stimuli – consumers seek information that will help achieve certain goals  immediate  long-range Random exposure to stimuli 8–48–4

5. 8–58–5 Attention Paid to Prime-Time TV Ads 8–58–5

6. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins Attention Occurs when stimulus activates one or more sensory receptor nerves and the resulting sensations go to the brain for processing Determined by: – stimulus – individual – situation 8–68–6

7. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins Stimulus Factors Size and intensity – insertion frequency Colour and movement Position Isolation Format Contrast – adaptation level theory Compressed messages Information quantity—information overload 8–78–7

8. 8–88–8 The Impact of Advertisement Size 8–88–8

9. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins Attention (cont.) Individual factors – Interest – Need Situational factors – Involvement (see following 2 slides) Non-focused attention – Hemispheric lateralisation – Subliminal stimuli 8–98–9

10. 8–10 Involvement and Magazine Advertising Effectiveness 8–10

11. 8–11 Involvement in a Television Program and Advertising Effectiveness 8–11

12. 8–12 Determinants of Interpretation 8–12

13. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins Interpretation Cognitive interpretation – process of adding meaning – from existing knowledge  semantic meaning  psychological meaning Affective interpretation – processing and adding meaning by feeling 8–13

14. 8–14 Encouraging Cognitive Interpretation 8–14

15. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins Interpretation (cont.) Individual characteristics – learning – expectations Situational characteristics – e.g. hunger,moods, temperature etc. – proximity Stimulus characteristics – semiotics Misinterpretation of marketing messages 8–15

16. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins Perception and Marketing Strategy Retail strategy Brand name and logo development Media strategy Advertisement and package design Warning labels and package designs 8–16

17. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 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 8–17

18. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins Perception and Marketing Strategy (cont.) Perceptions of marketing messages and ethics – Ethics of the ads  e.g. Heart tick can’t be used by all ‘healthy’ foods – Advertising aimed at children  Children can’t always distinguish between ads and programs  More research required 8–18

19. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins Retail Strategy Store layout – Cold and hot zones – Traffic and islands Lighting and fitout Placement of products on shelves – Eye levels (for adults and for children!) – Number of facings to maximise visual impact 8–19

20. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins Media Strategy Random approach – to reach where the target market may be Selective approach – to reach where the target market is – focused media Advertisements – utilise stimulus characteristics Package design 8–20

21. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins Advertising Evaluation Exposure – physically reach target market Attention – attended to by the consumer Interpretation – properly interpreted Memory – stored, so it is retrieved under the proper circumstances 8–21

22. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins Next Lecture… Chapter 9: Learning and Memory 8–22