PAPER

CONSUMER BEHAVIOR

PROCESSING INFORMATION AND

CONSUMER PERCEPTION

By:

Dhifa Apriliana Rosadi

NIM : 185030207141005

Brawijaya University

MALANG

2020
 PREFACE

Thanks to Allah SWT who has given the bless to the writer for finishing the
Consumer Behavior paper assignment entitle “Processing Information and Consumer
Perception.”

The writer also wish o express his deep and sincere gratitude for those who have
guided in completing this paper. This paper contains some information about the
factorsof environmental influences on consumer behavior and how to analyze it.
Hopefully, this paper can help the reader to expand their knowledge about the topic.

Malang, 8th March 2020

Dhifa Apriliana Rosadi

 CHAPTER I

INTRODUCTION

1.1. Background
In daily activities, senses devices have a very important role. Because through
that we can feel everything that happens to our physical. For example, thanks to the
senses of the skin, we feel the heat and the cold air. Others are like a nose that
smells, ears that hear sounds, and eyes that see objects around us. What is smelled,
heard, seen, that what is called a stimulus. When viewed from the consumer's side,
information processing on the consumer occurs when one of the five consumer
senses receives input in the form of a stimulus.
Stimulus can be in the form of products, brand names, packaging,
advertisements, manufacturer names. Producers must understand how consumers
process information. This knowledge is important for producers so that they can
design effective communication processes for consumers. There are five stages of
information process. In this paper, we will learn more about the Processing
Information and how perception of the consumer influence the behaviour of
consumer itself.

1.2. Formulation of the Problem

from that background we can take the formulation of the problems are:
1. What is the definition of perception of consumer?
2. What are the stages of Process Information?
3. How is Perception of consumer influences Consumer Behaviour?

1.3. Objective of the Research

1. To know the definition of Perception of Consumer.
2. To know the stages of Process Information.
3. To know the relationship between perception and Consumer Behaviour.
 CHAPTER II

RESULT AND DISCUSSION

2.1. Perception of Consumer

According to Schiffman & Kanuk (2010), Perception is the process by which
individuals select, organize, and interpret stimuli into a meaningful and coherent
picture of the world. It can be described as “how we see the world around us.” Two
individuals may be exposed to the same stimuli, but how each person recognizes,
selects, organizes, and interprets these stimuli is a highly individual process based
on each person’s own needs, values, and expectations.
Because perception is intertwined by gaining specific knowledge about events at
a particular moment, perception occurs whenever the stimulus moves the senses. In
this case, perception is defined as the process of knowing or recognizing objective
objects and events with the help of the senses (Chaplin, 1989: 358), as a
perspective, perception arises because of the response to stimulus.
Consumers act and react on the basis of their perceptions, not on the basis of
objective reality. For each individual, “reality” is a totally personal phenomenon,
based on that person’s needs, wants, values, and personal experiences. Thus, to the
marketer, consumer’s perceptions are much more important than their knowledge
of objective reality. For if one thinks about it, it’s not what actually is so, but what
consumers think is so, that affects their actions and their buying habits. And,
because individuals make decisions and take actions based on what they perceive to
be reality, it is important that marketers understand the notion of perception and its
related concepts to determine more readily what factors influence consumers to
buy. Perception is all about consumer’s subjective understandings and not objective
realities. Altering subjective “wisdom” is difficult, or even impossible.

2.2. Stages of Information Processing

The Process through which consumers are exposed to information, become
involved with it, attend to it, comprehend it, place it into memory, and retrieve it for
later use. (Mowen & Minor, 1998). According to (Engel, Blackwell, and Miniard.
(1995) quoting William McGuire's opinion which states that there are five stages of
information processing, namely:
1. Presentation
The first stage of the information processing process is exposure.
Exposure is an activity carried out by marketers to convey stimulus to
consumers. Consumers who feel the stimulus that comes to one of the five
senses means consumers feel the sensation.
Sensation is a direct & rapid response from the senses to the stimulus
that comes (whether in the form of advertisements, packaging, or brands).
Sensation itself depends on energy change within the environment where the
perception occurs (i.e., on differentiation of input), someone who lives in the
village and the city. It is common to a person who lives in the city with all
those noisy sounds, one honking horn more or less would never be noticed on
a street with heavy traffic. As sensory input decreases, however, our ability to
detect changes in input or intensity increases, to the point that we attain
maximum sensitivity under conditions of minimal stimulation. This accounts
for the statement, "It was so quiet. I could hear a pin drop." The ability of the
human organism to ac- commodate itself to varying levels of sensitivity as
external conditions vary not only provides more sensitivity when it is needed,
but also protects us from damaging, disruptive, or irrelevant bombardment
when the input level is high.
The sensation felt by consumers is influenced by the absolute threshold
(The Absolute Threshold) & the difference in the threshold (Differential
Threshold).
a. The absolute threshold
Absolute Threshold is the minimum amount of intensity or
stimulus energy needed by a consumer for him to feel a sensation. The
point where a consumer feels the difference "there is" & "nothing" from
a stimulus, that is what is called the absolute threshold of stimulus for
that consumer.
 b. Different threshold (the differential threshold)
A different threshold is the smallest difference that can be felt
between two similar stimuli (Schiffman & Kanuk, 2010). This different
threshold concept is also known as The Just Noticeable Difference
Threshhold (JND), which is defined by Mowen & Minor, (1998) as the
minimum amount of difference in the intensity of a stimulus that can be
detected 50% of the time. Another definition put forward by Blackwell,
Engel, & Miniard (1995), namely "the smallest change in stimulus
intensity that will be noticed"

2. Attention
Attention is the second stage of the information processing process. In
the first stage, producers explain the stimulus to consumers. Not all of the
stimulus presented and received by consumers will receive attention &
continue with the processing of the stimulus. Limited cognitive resources of
consumers to process all the information it receives is the cause. Consumers
select stimulus or information which will be noticed and will be processed
further, this process is known as Perceptual Selection. Manufacturers certainly
want that the stimulus presented is considered by consumers. Producers must
try to grab the attention of consumers so that consumers read, see, & listen to
things that are communicated by the marketers. The main factors that
influence perceptual selection or consumer attention to the stimulus that will
be noticed are:
a. Personal Factors
Personal factors are the characteristics of consumers that arise
from within consumers. This factor is outside the marketer's control. An
example is the motivation & needs of consumers. Consumers who feel
hungry will of course be very quick to pay attention to any stimulus
related to food, for example the aroma of food & restaurants they
encounter.
b. Stimulus Factor
This factor can be controlled & manipulated by marketers and
advertisers with the main objective to attract the attention of consumers.
Factors that must be considered by marketers in providing stimulus to
consumers include:
• Size, the level of consumer attention to the product can be determined
by the size of an ad. The greater the size of the ad posted, especially
in print media, the more likely consumers are to pay attention and pay
attention to the product. The greater the size of the stimulus, the more
it attracts the attention of consumers.
• Color, the use of matching colors from a stimulus can encourage
consumers to pay more attention to the products offered rather than
the use of colors that are too visible. The colors of a stimulus will
attract more attention than a black and white stimulus or an
inappropriate color.
• Intensity, advertisements that are displayed with a long duration of
time in electronic media, the use of loud sounds, and high intensity of
airing can make a product always remembered by consumers. This is
due to differences in the presentation of advertisements that invite
more observation from the consumer. Stimulus often arises due to
louder noise, longer ad duration & more frequent frequency.
• Contrast, stimulus with a color guide that contrasts between the
product & its background can look more alive and will attract the
attention of consumers.
• Position, the placement of an advertisement in print media can affect
the level of consumer attention. Ads that are on the cover of a
magazine, on a column with the main topic, or on the part of the page
that concerns consumers will be more interesting than if it is on a
column or page on the inside. The position of the advertisement that
is located between the news columns in a magazine or newspaper can
attract the attention of consumers if the concept is maximized, for
example in terms of size, color & use of images. Consumers also pay
attention to the strategic location of the stimulus from the location
factor.
• Instructions, used to show an advertisement can be a good stimulus to
attract the attention of consumers. The use of arrows is very
commonly used to communicate the objectives to be conveyed by
marketers. The eyes of consumers are often more focused on the
stimulus directed by a hint.
• Blurring, consumer curiosity about a product can also be generated
with novelty techniques as a form of marketer's creativity in
displaying advertisements. The appearance that is made serial /
continued or the appearance that is made in different page spacing
will seize the attention of consumers who want to know the concepts
that actually marketers want to convey. With this curiosity, marketers
have indirectly succeeded in embedding the image of their products
in the minds of consumers.
• Isolation, is a technique to put a stimulus in a space where the space
used by the stimulus is only very little & there is a large remaining
unused space. Some marketers have used the concept of isolation or
often called "white space" in advertising their products, namely the
use of smaller spaces for products while the remaining space is left
unused. The aim is to attract the attention of consumers to be more
focused on the products offered.
• Intentional stimuli ("learned" attention-inducing stimuli), make
consumers react quickly. Stimuli like this, for example, open the door
when the bell rings & picks up the phone when it rings. Ads that
provide stimulus that can attract our attention, such as the sound of
the bell. Giving interesting messages using public figures, celebrities
or executives can also attract consumers.
• Movement, stimulus that moves attracts attention rather than the rest.
• Giving an ignteresting message, the use of celebrities, characters, etc.
• Rapid image changes.
3. Understanding
Understanding is the third stage of information processing, is an attempt
by consumers to interpret or interpret stimulus. At this stage, consumers do a
"perceptual organization". The stimulus received by consumers amounts to tens
or even hundreds. These stimuli are not treated as separate from each other.
Consumers tend to do stimulus grouping so that they view it as a single unit
(perceptual organization or stimulus organization). This principle was
developed by the discipline of Gestalt psychology which describes how a
person organizes and integrates stimulus to obtain a holistic meaning. There are
3 principles of perceptual organization, namely:
• Pictures & Background (Figure and Ground)
The object or stimulus that is placed in a background (ground) is
called a picture (figure). Consumers tend to separate which objects
should be considered and which backgrounds. This picture is a stimulus
for individuals who see it. The tendency in every individual is not to see
a picture that does not attract his attention. They tend to separate images
that are less attractive to them and only pay attention to images that are
of interest to them. The picture they see will be perceived by the
background contained behind the picture. This theory is often used by
advertising media that place their advertisements in the form of images,
such as print media & electronic media.
• Grouping
Consumers usually classify the stimulus to form a unity of
meaning. Consumers will more easily remember information in the form
of groups or related to something than the information is fragmented. If
we ask someone to mention his telephone number then he might say 08
648 489 or 0864 84 89.
• Closure
Objects that are difficult to understand by consumers will
continue to be observed by consumers even if there are parts of objects
that are missing or incomplete. This is the principle of closure. If there is
 an incomplete object in the ad, the consumer will try to complete the
missing part.

4. Reception
Acceptance is the fourth stage of information processing. As stated
earlier, the stages of exposure, attention & understanding are consumers'
perceptions. After the consumer sees the stimulus, pays attention to, &
understands the stimulus, there comes a conclusion about the stimulus or object.
This is what is referred to as the consumer's perception of the object or product
image.
Consumer perception is the output of consumer acceptance of stimulus.
In the marketing context, consumer perception can be in the form of product
perception, brand perception, service perception, price perception, product
quality perception, store perception, or producer perception.

5. Retention
The fifth stage of the information processing is retention is the process of
moving information to long-term memory. The information stored is a
consumer's interpretation of the stimulus it receives. Furthermore, what is
stored in the consumer's memory will affect his perception of the new stimulus
(exposure, attention, and comprehension). Mowen & Minor (1998) suggested
that memory influences the attention process by directing the sensory system so
that consumers can concentrate selectively on certain stimuli. The stimulus will
trigger expectations & associations between other stimuli in memory that affect
consumer expectations. Memory consists of three storage systems:
• Sensory memory: a temporary storage area for information and its storage is
very short (less than one second).
• Short-term memory: a place to store information for a limited time and has a
limited capacity, the duration of storage is less than 30 seconds.
• Long-term memory: a place to store information for a long period of time,
has unlimited capacity and stores all consumer knowledge permanently.
 o Rehersal is a mental activity of consumers to remember the information they
receive and to link with other information that has been stored in their memory.
Example: repeating mentioning something that must be remembered.
o Encoding is the process of selecting a word or picture to express a perception
of an object. Example: the use of symbols or logos to symbolize the brand of its
products to be easily remembered by consumers.
o Retrieval is Consumers store information in long-term memory, then one day
he will call back or remember the information for consideration in decision
making.

2.3. The Role of Perception in Consumer Behaviour

The perceptions consumers have of a business and its products or service have a
dramatic effect on buying behavior. That’s why businesses spend so much money
marketing themselves, honing their customer service and doing whatever else they
can to favorably influence the perceptions of target consumers. With careful
planning and execution, a business can influence those perceptions and foster
profitable consumer behaviors.
• Influencing Consumer Perception
Consumers continually synthesize all the information they have about a
company to form a decision about whether that company offers value. In a
sense, consumer perception is an approximation of reality. Businesses
attempt to influence this perception of reality, sometimes through trickery
and manipulation but often just by presenting themselves in the best
possible light. For example, advertisements often trumpet the quality and
convenience of a product or service, hoping to foster a consumer perception
of high value, which can pay off with increased sales.
• Reaching Target Consumers
A key factor in influencing consumer perception is exposure. The more
information consumers have about a product, the more comfortable they are
buying it. As a result, businesses do all they can to publicize their offerings.
 However, this causes a problem: When every business bombards consumers
with marketing messages, consumers tend to tune out. To influence
consumer perception, a business not only must expose its product to
consumers, it also must make its product stand out from the crowd.
• Consumer Risk Perception
Consumer risk perception is another factor businesses must take into
account when trying to encourage buying behaviors. The more risky a
proposition is, the more difficult it is to get consumers to act. If consumers
aren’t familiar with a brand of product, they can’t assess the risk involved; it
could be poorly built, for instance, or too costly compared to substitutes.
Businesses can overcome this hesitancy by offering as much product
information as possible in the form of advertisements or by encouraging
product reviews. Allowing potential customers to handle the product in
stores or test it at home also decreases risk perception, as does offering a
flexible return policy.
• Customer Retention and Brand Loyalty
Successful businesses don’t relax once a customer makes a purchase.
Rather, they continue to foster perceptions that result in profitable
behaviors. Once consumers have tried a product, the task becomes
maintaining a good reputation and establishing brand loyalty. Offering
superior customer service is an effective tactic because it maintains the
perception that the business cares about its customers’ best interests.
In return, customers become loyal to the business, which secures a
consistent revenue stream for the company and makes it more difficult for
competitors to poach customers.
 CHAPTER III

CLOSURE

3.1 Conclusion
Consumer behavior is the study of how individual customers, groups or
organizations select, buy, use, and dispose ideas, goods, and services to satisfy their
needs and wants. The factor that influences the environmental in consumer
behavior are culture, family and household, the reference group, and the
environmental and situation of the consumer. The marketers obliged to understand
those factor to aim for consumer satisfaction and need for product and services. The
role of these factors is different for different products. In other words, there is a
dominant factor in purchasing a product while other factors are less influential.
Some of these factors are integrated in the minds of consumers, processed in such a
way that finally he makes a purchasing decision and the response he gives to these
driving factors in the form of buying or not buying the product offered.
 REFERENCES

Danu, Priyo. 2017. https://www.dictio.id/t/bagaimana-proses-pengolahan-

informasi-dan-persepsi-konsumen-dalam-perilaku-konsumen/13994. (accessed
on 8th may 2020)

Mack, Stan. 2019. https://smallbusiness.chron.com/role-perception-consumer-

behavior-67136.html. (Accessed on 8th May 2020)

Schiffman, Leon G and Leslie Lazar Kanuk. Consumer Behavior. Ninth

Edition. Pearson Education, Inc.Upper Saddle River, New Jersey. 2007.

Sumarwan, U. (2003). Perilaku Konsumen: Theory & Application in Marketing.

Remaja Redaskarya- Bandung.