CHAPTER SIX Consumer Perception Learning Objectives 1. To

CHAPTER SIX Consumer Perception Learning Objectives 1. To Understand the Sensory Dynamics of Perception. 2. To Learn About the Three Elements of Perception. 3. To Understand the Components of Consumer Imagery and Their Strategic Applications. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Six Slide 2 4 Chapter-5 6.1 Perception The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world

Elements of Perception 1- Sensation 2- Absolute threshold 3- Differential threshold 4- Subliminal perception Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 5 1. Sensation Sensation is the immediate and direct response

of the sensory organs to stimuli A stimulus is any unit of input to any of the senses. Marketing Applications: Applications Sight Sound Smell Touch

https://www.youtube.com/ watch?v=zyhks7Qu5A0 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 6 2- The absolute Threshold 7

2- The absolute Threshold The absolute threshold is the lowest level at which an individual can experience a sensation. Implication to marketing: -To change the advertising to avoid absolute threshold to decrease. To use methoods that will increase sensory input. E.g: experiential marketing, sophisticated scented ads, Sophisticated inserts and pop ups, Ambush advertising, Product placement Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Six Slide 8 2- Absolute Threshold Marketing Implications Experiential Marketing

Sophisticated scented ads Sophisticated inserts and pop ups Ambush advertising Product placement James Bond Xperia Replacement https://www.youtube.com/watch?v=YygWUF3ufuE https://www.youtube.com/watch?v=auq549lTiA Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Six Slide 9 XPERIA Z3 LAUNCH EVENT- PS4 JOKE VIRAL VIDEO Concept : Unexpected Performance, Different Joke describing PS4 integration of Xperia

Z3 It is easy, even a kid can play with Xperia Z3 2 dimensional chalk drawing 11 3- Differential Threshold (Just Noticeable Difference j.n.d.) Minimal difference that can be detected between two similar stimuli (perception is relative and comparable)

Webers 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. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 12 Marketing Applications of the 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 so that product improvements are very apparent to consumers

Betty Crocker symbol of General Mills Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 13 Discussion Question How might a cereal manufacturer such as Kelloggs use the j.n.d. for Frosted Flakes in terms of: Product decisions

Packaging decisions Advertising decisions Sales promotion decisions Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 14 3- 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 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 15 6.2 Aspects of Perception Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Six Slide 16 1 - Perceptual Selection Selection Depends Upon: Contrast Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 17

Which white square is smaller? Contrast: According to the principles of contrast, the stimuli that contradict most with the background or the expectations of people receive maximum attention Some other attention factors Intensity:

Contrast Intensity Size Repetition Motion Novelty and familiarity Light Colour

Brights Colour Size God is great God is great 19 Why Are Consumers Likely to Notice This Ad?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 20 The Attention-Getting Nature of a Dramatic Image Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 21 Discussion Questions

What marketing stimuli do you remember from your weekend so far? Why do you think you selected these stimuli to perceive and remember? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 22 Perceptual Selection Important Concepts Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Six Slide 23 2- Organization Principles Figure and ground Grouping Closure Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall People tend to organize perceptions into figureand-ground relationships.

The background is usually perceived as hazy, indefinite, and continious. Marketers usually design so the figure is the noticed stimuli. Chapter Six Slide 24 Organization Principles Figure and ground Grouping Closure

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall People group stimuli to form a unified impression or concept. Grouping helps memory and recall. Chapter Six Slide 25 Grouping of Image

The mind forms shapes that don't exist 26 Organization Principles Figure and ground Grouping Closure Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall People have a need for closure and organize

perceptions to form a complete picture. Will often fill in missing pieces Incomplete messages remembered more than complete Chapter Six Slide 27 What Element of Perceptual Organization Is Featured in This Ad?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 28 Closure Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 29 3- Interpretation People tend to carry

biassed pictures in their mind of the meanings or various stimuli, called stereotypes. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall People add their biased pictures to the received sensory stimuli and form distorted impressions. People hold meanings related to stimuli

Triggers of strereotypes: Physical appearences Descriptive terms First impressions Halo effect Chapter Six Slide 30 Interpretation

Positive attributes of people they know to those who resemble them Important for model selection Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 31 Interpretation

Verbal messages reflect stereotypes Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 32 How Does This Ad Depict Perceptual Interpretation? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 33

It Contrasts the Powerful Durango with Less Rugged Referred to in the Ad as the Land Of Tofu. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 34 Interpretation First impressions are lasting The perceiver is trying to determine which

stimuli are relevant, important, or predictive Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 35 Interpretation Consumers perceive and evaluate multiple objects based on just one dimension e.g: Brand name,

spokepers, waiting room of denstist Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 36 6.3 Consumer Imagery Consumers have a number of enduring images or perceptions towards products or services or brands. Products and brands have symbolic value for individuals, who evaluate them with their

personal pictures of themlseves. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 37 Product Positioning Establishing a specific image for a brand in the consumers mind in relation to competing brands Poisitining is the unique position of a product that occupies in consumers minds Conveys the product in terms of how it fulfills a

need Successful positioning creates a distinctive, positive brand image Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 38 Which Concepts of Perception Are Applied in These Ads? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 39

The Principle Of Contrast Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 40 Packaging as a Positioning Element Packaging conveys the image that the brand communicates to the buyer. Color, weight, image, and shape are all important.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 41 Product Repositioning Repositioning might be necessary because: Increased competition, increased number of products with same attributes Changing consumer tastes and preferencies Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 42

Perceptual Mapping Perceptual Mapping enables marketers to determine how tehy want ther product or services to appear to cnsumers in relation to competitors brands on one or more relevant characteristics. An analytical technique that enables marketers to plot graphically consumers perceptions concerning product attributes of specific brands Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 43

Brand Positioning Map TV MARKET High Strong Equity Growing Equity Olympic Specialist

Limited Classic Little Tiger Fighter 0 Clean Sheet

Little Equity Low Low High Defender Weak Fading Star Declining

Equity 0 High Growing Equity Strong Equity Olympic Specialist

Classic Little Tiger 0 Defender Clean Sheet Little Low Equity Low Weak

Fading Star Declining Equity 0 Presence % relative to category average High Chapter Six Slide 44 Positioning of Services

As services are intangible, image becomes a key factor when positioning services Visuals Tangible reminders of offerings Services often want a differentiated positioning strategy to market several versions of their service to different markets. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 45

Which Elements of This Ad Convey the Restaurants Perceptual Position and How? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 46 The Steak Knife and the Reference to Vegetarians Convey The Position of the Restaurant as a Well-Established Steakhouse Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Six Slide 47 Perceived Price Peceived price should reflect the value that the customer receives from the purchase Reference prices used as a basis for comparison in judging another price Internal: Consumers own experience External:the advertised price Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 48

Three Pricing Strategies Focused on Perceived Value - Table 6.4 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 49 Perceived Quality Perceived Quality of Products Intrinsic: Physical characteristics, colour, flavor,

aroma, size) Extrinsic Cues: Brand name, reputation, location within store, country of origin Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 50 Measuring Perceptions of Brand Luxury Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Six Slide 51 Perceived Quality of Services Difficult due to characteristics of services Intangible Variable

Perishable Simultaneously Produced and Consumed SERVQUAL scale used to measure gap between customers expectation of service and perceptions of actual service Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Six Slide 52 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.) Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 53

How Can This Ad Affect the Services Perceived Quality? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 54 It Uses a Process Dimension in Advertising a Newly-Formed Business Class on an Airline Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 55

Discussion Questions When have you used price as an indicator of quality? Were you correct? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 56 Which of the Ads Elements Conveys the Products Quality?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 57 The Slogan on the Ads Bottom Left Reads Perfection Has Its Price Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 58 Retail Store Image

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 59 Manufacturers Image Favorable image tied to new product acceptance Companies sponsor community events to enhance images Product and institutional images Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Six Slide 60 Perceived Risk The degree of uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision Types

Functional Risk Physical Risk Financial Risk Social Risk Psychological Risk Time Risk Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 61

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

Seek Reassurance Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 62 Homework Dead Line: 2 May 2016, after the course Style: Printed hand out. Max 10 slides Subject: Write and discuss Hofstedes Cultural Dimensions Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Six Slide 63 THANKS YOU All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 65

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