CONSUMER

PERCEPTION
Consumer 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

◦ Perception is all about consumers’ subjective understandings and not

objective realities. Raw sensory input is processed selectively based on other
stimuli from the external environment and internal factors like expectations
and motives
Consumer Perception
Elements of Perception
◦ Sensation
◦ Absolute threshold
◦ Differential threshold
◦ Subliminal perception
 e d
fi n
e
D Sensation
The immediate and direct response of the
sensory organs to stimuli (units of input to
the senses, as captured by the sensory
receptors).
Examples of stimuli (i.e., sensory inputs)
include products, packages, brand names,
advertisements, and commercials.
Sensory receptors are the human organs (the
eyes, ears, nose, mouth, and skin) that
receive sensory inputs.

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 4 of 32

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.
Use of Scents
In retail shops
Enhances shopping experience
Smell and touch
Absolute Threshold
The absolute threshold is the lowest level at which an individual can
experience a sensation.
Point where you can detect difference between ‘something’ and
‘nothing’
Why advertisements are frequently changed?
Tend to get used to and may not see them.
 e d
fi n
e
D Ambush Marketing
Placing ads in places where consumers do
not expect to see them and cannot readily
avoid them.

Experiential Marketing
Allows customers to engage and interact
with offerings in sensory ways in order to
create emotional bonds between
consumers and marketing offerings
Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall Slide 7 of 32
Differential Threshold
(Just Noticeable
Difference – j.n.d.)
•Minimal difference that can be detected between two similar stimuli
•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.

How might a cereal manufacturer such as Kellogg’s use the j.n.d. for
Frosted Flakes in terms of:
◦ Product decisions
◦ Packaging decisions
◦ Advertising decisions
◦ Sales promotion decisions
Kellogg’s might want to change their ingredients, either to make the
product healthier or because they have secured lower-priced raw
materials.
They might want to reduce package size to avoid a price increase and
they would not want this to be noticed.
Perhaps Tony the Tiger could look a little different.
At one point, Pillsbury made a decision to make the Pillsbury Dough Boy
a bit thinner.
They wanted to make sure he still was cute but looked a bit more fit
and lean.
Consumer Perception
Marketing Applications of the JND(Just Noticeable
difference)
◦ 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
 Subliminal
Perception
• Stimuli that are too weak or too brief to be consciously seen or heard
– They may be strong enough to be perceived by one or more receptor cells.
• Is it effective?
– Extensive research has shown no evidence that subliminal advertising can cause behavior changes
– Some evidence that subliminal stimuli may influence affective reactions
Vaio
This cool logo for Sony's computers represents the brand's integration of analog and digital
technology. The 'VA' is designed as an analog waveform, the 'IO' is binary code.
Baskin Robbins
This logo, introduced in 2005, cleverly uses the company's initials to advertise its number of ice cream
flavors (31).
Amazon.com
The cleverness of this logo is twofold. The arrow points from a to z, referring to all that is available on
Amazon.com, and it doubles as a satisfied smile (with dimple).
Aspects of Perception
Consumers are bombarded by stimuli and are therefore very selective
as to what messages and information they perceive.
As new information comes to their mind, it is organized within their
mind. Finally, consumers interpret the stimuli based on their needs,
expectations, and experience.
Aspects of
Perception
Perceptual Selection
Walking in a retail store
exposed to many products
Notice few
Ignore many
How it is decided
Consumer Perception
Perceptual Selection
◦ Depends on two major factors
◦ Consumers’ previous experience
◦ Consumers’ motives
 Perceptual Selection
Selection Depends Upon:
Why Are Consumers
Likely to Notice This
Ad?
The Attention-Getting
Nature of a Dramatic
Image
Perceptual Selection
Why advertisements are changed
Black and white ads
Stand in contrast to environment
Provide sufficient sensory stimulus.
Perceptual Selection
Important Concepts
These four concepts are very important to consider when
understanding how consumers select which stimuli they will perceive.
In general, they are selective as to what they are exposed to – what
messages they seek out.
 Organization
Principles People tend to organize perceptions
into figure-and-ground relationships.
Figure and ground The ground is usually hazy.
Marketers usually design so the figure
Grouping is the noticed stimuli.
Closure

Chapter Six Slide

The first, figure and ground, has to do with contrast.
An advertiser wants just enough contrast so that the figure is noticed
but that the background adds a sensory effect.
Product placement, when a product appears in a movie or television
show, can be considered a figure and ground issue.
The advertiser wants the product (figure) to be noticed as it blends in
with the ground (character in the show).
 Organization
Principles
Figure and ground People group stimuli to form a
unified impression or concept.
Grouping Grouping helps memory and recall.
Closure

Chapter Six Slide

Grouping is common in perceptual organization.
Whether it is numbers (phone numbers) that are grouped in 3 or 4
digits OR images in an ad, consumers will group stimuli together to
organize them.
This grouping helps memory and recall.
Organization
Hyundai
Santro
Family oriented mass car that has advantage like cost of ownership,
mileage
i10
Compact car for working professionals and nuclear families in earlier
area
 Organization
People have a need for closure and
Principles organize perceptions to form a
complete picture.
Figure and ground Will often fill in missing pieces
Incomplete messages remembered
Grouping more than complete
Closure

Chapter Six Slide

Closure
Consumer Perception
Interpretation: Influences of Perceptual Distortion
◦ Physical Appearances
◦ Stereotypes
◦ First Impressions
◦ Jumping to Conclusions
◦ Halo Effect
Interpretation
People hold meanings related to
stimuli

Chapter Six Slide

Perceptual interpretation occurs because consumers have unique
motives, interests, and experiences.
How people interpret often reveals a lot about themselves.
For instance, individuals tend to have stereotypes due to physical
appearances, descriptive terms, first impressions, and the halo effect.
Stereotypes
Surf
Lalitaji ad
Caring mother
Interpretation
Positive attributes of people they
know to those who resemble them
Important for model selection

Chapter Six Slide

We often make decisions based on how people or products appear.
A beautiful spokesperson might be perceived as possessing expertise
for beauty products.
A certain color to a food might make us think it is healthier.
The web link is an example of a tool marketers can use on their website
to give a “human” touch. There are many attractive hosts to choose
from.
Interpretation
Lakme
Attractive models
Interpretation
Verbal messages reflect stereotypes

Chapter Six Slide

The choice of descriptive terms for names and advertisement in
services are particularly important due to the intangible nature of
services.
In this ad, the marketer has stereotyped the person who eats a
cheeseburger vs. tofu and applied them in a descriptive sense to their
product.
Interpretation
Opel Astra
Design of German engineering
How Does This Ad
Depict Perceptual
Interpretation?
It Contrasts the Powerful Durango with
Less Rugged Referred to in the Ad as the
“Land Of Tofu.”
Interpretation
First impressions are lasting
The perceiver is trying to determine
which stimuli are relevant,
important, or predictive

Chapter Six Slide

First impressions are lasting so a marketer should be careful how they
advertise new products.
Interpretation
Consumers perceive and evaluate
multiple objects based on just one
dimension

Chapter Six Slide

With the halo effect, a person uses just one dimension in evaluating a
person, product, or service.
For instance, a consumer might consider a clean waiting room as an
indication of a good dentist.
For this reason, marketers use the halo effect when licensing names of
products or choosing spokespeople.
Halo effect
Coke
Diet Coke
Diet conscious
Stretch the positive attributes of Coke on other products
Consumer Perception
Issues In Consumer Imagery
◦ Product Positioning and Repositioning
◦ Perceived Price
◦ Perceived Risk
Consumer Perception
Positioning
◦ Establishing a specific image for a brand in relation to
competing brands.
◦ Positioning Techniques
◦ Umbrella Positioning
◦ Positioning Against Competition
◦ Positioning Based on a Specific Benefit
◦ Taking an Unowned Position
◦ Positioning for Several Positions
Consumer Perception
Repositioning
POSITIONING ISSUES
Take a new look at the brand’s use/application
occasion
Dettol antiseptic lotion
Dominated cuts/wounds market
Declining market
Occasional product
Substitutes
How to increase usage
Reposition from occasional to daily
Use for shaving/bathing/washing baby nappies
POSITIONING ISSUES
Try to change consumers’ ideal’ position
During 50’s and 60’s
Cooking oil
Dalda
Taste
Preferred medium
Saffola
Changed ‘ideal’ position
Healthy and fat-free oil
Ignored by competitors
Consumer Perception
Pricing Strategies Focused on Perceived Value
◦ Satisfaction-based Pricing (Competition based pricing)
◦ Relationship Pricing (demand based pricing)
◦ Efficiency Pricing (Cost based pricing).

Customers look for fair price not low price.

Consumer Perception
Issues in Perceived Price
◦ Reference prices: a price in memory
◦ Internal
◦ External
◦ Tensile and objective price claims
Consumer Perception
Tensile and Objective Price Claims
◦ Evaluations least favorable for ads stating the minimum discount level e.g.
10% or more.

◦ Ads stating maximum discount levels are better than stating a range e.g. up
to 50% off.
Consumer Perception
Perceived Risk
◦ The degree of uncertainty perceived by the consumer as to the
consequences (outcome) of a specific purchase decision.
Consumer Perception
Types of perceived risk
1. Functional Risk
2. Physical Risk
3. Financial Risk
4. Psychological Risk
5. Time Risk
Consumer Perception
How Consumers Handle Risk
◦ Seek Information
◦ Stay Brand Loyal
◦ Select by Brand Image
◦ Rely on Store Image
◦ Buy the Most Expensive Model
◦ Seek Reassurance
Perceptual Mapping
An analytical technique that enables marketers to plot graphically
consumers’ perceptions concerning product attributes of specific
brands
Perceptual mapping helps the marketer visualize how their product is
positioned in the consumer’s mind. It is a graph of products within a
category based on two major benefits or attributes. It allows them to
see gaps in the positioning of all the products and identify areas for
new products.
Perceptual Mapping
This map shows slogans used to position new condos in New York City.
We can see that they are broadly positioned by whether they are more
modern vs. traditional and whether they are more of a home vs. a
trophy. This map does not show any large gaps in the marketplace.