1. Chapter 6
Consumer Perception

2. Perception
The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world.

3. Elements of Perception
Sensation
The absolute threshold
The differential threshold
Subliminal perception

4. Sensory Receptors
The human organs (eyes, ears, nose, mouth, skin) that receive sensory inputs.

5. The lowest level at which an individual can experience a sensation.
Absolute Threshold
The lowest level at which an individual can experience a sensation.

6. Sensory Adaptation
“Getting used to” certain sensations; becoming accommodated to a certain level of stimulation.

7. Differential Threshold
The minimal difference that can be detected between two stimuli. Also known as the j.n.d. (just noticeable difference).

8. Weber’s Law
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).

9. 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

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

11. 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

12. Aspects of Perception
Selection
Organization
Interpretation

13. Perceptual Selection Depends on two major factors
Consumers’ previous experience (expectations)
Consumers’ motives

14. Some Marketing Variables Influencing Consumer Perception
Nature of Product
Physical Attributes of Product
Package Design
Brand Name
Advertisements & Commercials
Position of Ad
Editorial Environment

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

16. Principles of Perceptual Organization
Figure and ground
Grouping
Closure
Zeigernik effect

17. Zeigernik Effect
A person beginning a task needs to complete it. When he or she is prevented from doing so, a state of tension is created that manifests itself in improved memory for the incomplete task.

18. Distorting Influences
Physical Appearances
Stereotypes
Irrelevant Cues
First Impressions
Jumping to Conclusions
Halo Effect

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

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

21. Reposition
Changing the way a product is perceived by consumers in relation to other brands or product uses.

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

23. Perceptual Mapping Fashion Coverage More More Copy Artwork
Splash
More
Copy
More
Artwork
Crash
Bash
Splash
Club Coverage

24. Efficiency/Convenience Ambient Background Conditions Social Conditions
The Service Environment: Environmental Variables Most Important to Bank Customers
Privacy
Efficiency/Convenience
Ambient Background Conditions
Social Conditions
Aesthetics

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

26. Reference Price
Any price that a consumer uses as a basis for comparison in judging another price.

27. Was $199 Sale! $89 Now $99 Reference Prices External Reference Price
Internal Reference Price
Was $199
Now $99
Sale!
$89

28. 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%

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

30. Intrinsic Cues
Physical characteristics of the product (such as size, color, flavor, or aroma) that serve to influence the consumer’s perceptions of product quality.

31. Extrinsic Cues
Cues external to the product (such as price, store image, or brand image) that serve to influence the consumer’s perception of a product’s quality.

32. Characteristics of Services
Intangible
Variable
Perishable
Simultaneously Produced and Consumed

33. Table 6.1 SERVQUAL Dimensions for Measuring Service Quality
DIMENSION DESCRIPTION
Tangibles Appearance of physical facilities, equipment, personnel, and communication materials
Reliability Ability to perform the promised service dependably and accurately
Responsiveness Willingness to help customers and provide prompt service
Assurance Knowledge and courtesy of employees and their ability to convey trust and confidence
Empathy Caring, individualized attention the firm provides its customers

34. Figure 6.11 A Conceptual Model of the Components of Transaction Satisfaction
Evaluation of Service Quality
(SQ)
Evaluation of Product Quality
(PQ)
Transaction Satisfaction
(TSAT)
Evaluation of Price
(P)

35. Figure 6.12 Conceptual Model of the Behavioral Consequences of Service Quality
Intentions +$
Ongoing Revenue
Increased Spending
Price Premium
Referred Customers
Superior
Favorable
Remain
Behavior
Financial Consequences -$
Decreased Spending
Lost Customers
Costs to Attract
New Customers
Inferior
Unfavorable
Defect
Focus of present study
Empirical links demonstrated in macro studies

36. 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).

37. A. Conceptual Relationship of Price Effect
Figure Conceptual Model of the Effects of Price, Brand Name, and Store Name on Perceived Value
Objective Price + +
Perception of Price
Perceived Quality
Perceived Sacrifice
Perceived Value - + - +
Willingness to Buy
A. Conceptual Relationship of Price Effect

38. Figure 6.13 continued + + + + - + B. Extended Conceptualization
Brand Name
Store Name
Objective Price + +
Perception of Price
Perception of Brand
Perception of Store +
Perceived Quality
Perceived Sacrifice + - +
Perceived Value
B. Extended Conceptualization
to Include Brand Name and
Store Name - +
Willingness to Buy

39. Perceived Risk
The degree of uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision.

40. Types of Perceived Risk
Functional Risk
Physical Risk
Financial Risk
Psychological Risk
Time Risk

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