‘Consumers act on the basis on their perceptions,

not on the basis of reality’

Consumer
Perception
SBUP-SemI-Batch-21-23-CB-KC
Consumer Behavior
Session V & VI
Monday, 29th November 2021

Course Facebook Page:

SBUP Marketing Management 2021

Text Reference:
Chapter 4, Consumer Perception,
Consumer Behavior- Schiffman -Wisenblit -Ramesh Kumar, Pearson India
 Learning Objectives

Consumer Perception
1. Sensation & Sensory Dynamics of Perception

2. Perceptual- Selection, Organization & Distortion

1. Three Elements of Perception

2. Subjectivity in Perception Formation

3. Consumer Perception & Sensory Thresholds

1. Four Sensory Thresholds & Marketing Applications

4. Consumer Imagery, Perceptual Risks & Mitigation

 Sensation & Sensory Dynamics of Perception
Objective Reality Vs Subjective Understanding

Sight Eye

Sound Ear

Exposure Attention Interpretation

Smell Nose

Taste Tongue

Touch Skin
Sensation: immediate Sensory Receptors: Stimulus: is any
and direct response of Human organs unit of input to
the sensory organs to receiving sense inputs any of the senses
stimuli
 Selectivity in Perception Formation

Perception Decision Decision

Frame Making

Selective Exposure/
Attention
Selective Distortion
Selective Retention

Attention Organiza Recall Evaluating Evaluating Choosing &

Environment Rejecting
tion Probabilities Outcomes
Alternatives

Wagner & Hollenbeck- OB Securing Competitive Advantage

Perception Formation: Three Elements of Perception
Perceptual Selection
Stimuli’s features
• Needs to be clutter breaking &
outstanding- Contrast
Personal Expectations
Cons. Motives & Involvement
Perceptual Selectivity
•Selective Exposure
•Selective Attention
•Perceptual Defense
• Perceptual Blocking
Perceptual Organization Perceptual
Interpretation/ Distortion
Figure & Ground Stereotypes
•Physical Appearances
Grouping •Descriptive Terms
Closure •First Impressions
[ Patterning- Gestalt- •Halo Effect
Formation of Patterns]
‘Configuration’
“Gestalt Psychology”
Why Are Consumers Likely to Notice This Ad?
 Aroma as enticer

Coffee Chains Fashion Chains

Starbucks Shoppers Stop
Barista Westside
Café Coffee Day Lifestyle
Coffee House Globus
Roadside Tea Stall BB Fashion Bazar
 Perception & Sensory Thresholds
• 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?’

• Consumer Perception
• Consumers awareness and interpretation of reality
• Perceptions matter more than reality!
• Consumer Perceptions is largely the study of what they subconsciously add to or subtract
from raw sensory inputs to produce their own private picture of the world

• Sensory Thresholds
• Sensation
• Absolute Threshold
• Differential Threshold
• Subliminal Perception
 Sensory Thresholds
• Sensation is the immediate and direct response of the sensory organs to stimuli
• A stimulus is any unit of input to any of the (five) senses
• Smallest unit of input on senses

• The Absolute Threshold is the lowest level at which an individual can

experience a change in sensation
• The difference between nothing & something
• Sensory Adaptation (‘Used to’ sensory stimulus) is a common problem for marketers
• Clutter breaking/ attention seeking ad- input differentiation, applied in:
• Experiential Marketing
• Making use of senses more than A/V
• Ad inserts & others
• Ambush Marketing
• Ambush Advertising- We cannot readily avoid them- Captive Audience
 Subliminal Perception

• Subliminal Perception & Mere Exposure Effect

Stimuli that are too weak or too brief to be consciously seen or heard
– Message masked by other messages
– that one is not aware of seeing or hearing it
– Product Placements- Logo’s at places we do not expect to see them

• Is it effective?
– Extensive research has shown no evidence that subliminal advertising can cause behavior
changes
– Some evidence suggests that subliminal stimuli may influence affective reactions
– Concept used in-
– Product placement-seamless or obtrusive (Cricketers sleeves, Bat etc) (Figure & Ground)
 Differential Threshold
(Just Noticeable Difference – J.N.D.)

• Differential Threshold:
Minimal difference that can be detected between two similar stimuli
How much strong a stimulus has to be relative to other to be seen as different?

• Ernst Weber’s law :

– The j.n.d. between two stimuli
– is not an absolute amount
– but an amount relative to the intensity of the first stimulus

– The stronger the initial stimulus,

– the greater the additional intensity needed
– for the second stimulus to be perceived as different
 Marketing Applications: J.N.D.

• Marketers need to determine the

relevant j.n.d. for their products,
so that:

– Negative changes are not readily

discernible to the public (below jnd)
– Price increase, Weight reduction

– Product improvements are very

apparent to consumers (above jnd)
– Price reduction, Weight addition

– Repositioning happens just around

JND & not beyond requirement
– Logo/ packaging change
– Optimal- ‘New & Improved’ features
 Consumer’s Perceived Risks

• The degree of uncertainty perceived by the consumer as to the

consequences (outcome) of a specific purchase decision

Risks Mitigation
Functional Rely on Store image
Physical Seek Reassurance
Financial Staying Brand Loyal
Social Buy Most Expensive Model
Psychological Select by Brand Image
Time Seeking Information