1. Chapter 5 Consumer Perception
Consumer Behaviour
Canadian Edition
Schiffman/Kanuk/Das

2. Perception

3. Perceptual Concepts Sensation Absolute threshold Sensory Adaptation
Selection
Perceptual Concepts
Perception is the process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world. It is “how we see the world around us”.
Sensation
Absolute threshold
Sensory Adaptation
Differential threshold (jnd)
Weber’s law
Subliminal Perception
Organization
Interpretation
Sensation
The immediate and direct response of the sensory organs to stimuli.
A perfectly unchanging environment provides little to no sensation at all!
Absolute threshold
The lowest level at which an individual can experience a sensation
Eg. Billboard in distance; volume of song on radio; smell of perfume
Differential Threshold
The minimal difference that can be detected between two similar stimuli
Weber’s Law
The stronger the initial stimulus, the stronger the additional stimulus must be to create a change in perception
Subliminal Perception
Perception of very weak or rapid stimuli received below the level of conscious awareness
Extensive research has shown no evidence that subliminal advertising can cause behaviour changes
Some evidence that subliminal stimuli may influence affective reactions

4. Marketing Applications of the JND
Need to determine the relevant j.n.d. for their products in order to facilitate change

5. Starbucks
The company's svp of marketing, Terry Davenport, explains the thinking to Adweek: "Obviously with a brand with such a huge profile as Starbucks, we approach this change very sensitively. We actually explored a very wide range of options, and when we stood back and looked from afar as well as looked close, we all unanimously gravitated toward the images that freed the siren from the word mark. We really took inspiration from companies like Nike where at one point they separated the word 'Nike' from the swoosh in their logo. This allows us to bring our identity to life anytime and anywhere." The inspiration for the siren logo—early versions of which have been called obscene by some—goes back to a 16th century Norse woodcut found by Seattle graphic designer Terry Heckler. Do you like the new design?

6. As a marketing manager, would you want the following changes to fall above or below the jnd?
Price increases?
Size decreases?
Quality improvements?
Brand name changes?
Price increases – below
Size decreases – below
Quality improvements – above
Brand name changes - depends

7. Subliminal Perception Effective?
Extensive research has shown no evidence that subliminal advertising can cause behaviour changes
James Vicary (“Eat Popcorn” “Drink Coca-Cola”) never released study descriptives; no independent evidence
1970s - Wilson Bryan Key “Sexploitation”
Some evidence that subliminal stimuli may influence affective reactions

8. Concepts Concerning Selective Perception
Selective Exposure
Selective Attention
Perceptual Defense
Perceptual Blocking
Selective exposure
Consumers actively choose stimuli that they want to see
Selective attention
Consumers decide how much attention they will pay to a stimulus
Perceptual defence
Consumers screen out psychologically threatening stimuli
Perceptual blocking
‘tuning out’ of stimuli
Which stimuli get selected depends upon consumer’s previous experience as it affects their expectations and their motives at the time of stimulus exposure.

9. How can marketers overcome blocking? PANEL EXERCISE #1
Overcome blocking by
Increasing contrast (“stopping power”) see livestrong ad
Increase sensory input (volume of pages) see dillard’s ads
Decreasing contrast see HPV ad
How can marketers overcome blocking?
PANEL EXERCISE #1

10. Principles of Perceptual Organization
Figure and ground
Definition of figure depends on the background
Grouping
Information is organized into chunks
Closure
Incomplete stimuli create tension
Gestalt
Psychology

11. Grouping

13. Closure

14. Closure Continued
Dentyne Ice Surrey Drug Mart

15. Perceptual Interpretation
Stereotypes
Individuals’ biased pictures in their minds of the meaning of various stimuli
Main factors that influence stereotypes are:
Physical Appearances
Descriptive terms
First Impressions
Halo Effect
Physical appearance
There has to be a rational match between physical appearance of model, the packaging and the product
Consider appearance of models
More attractive models are good for enhancement products (like cosmetics, jewelry, perfume) but not for problem solving products like acne prevention products or dandruff control
Consider appearance of products
Descriptive Terms
Brand names; slogans; scripts
First Impressions
Product quality essential at launch
Halo effect
The evaluation of a single object or person on a multitude of dimensions based upon the evaluation of just one or a few dimensions
What would you think about a new Apple product launch?

16. Stereotype

17. Perceptual Interpretation
Kool-Aid Commercials
Perception of Kool-Aid brand is likely:
A vibrantly-coloured, sugary kids’ drink
Brand personality is light-hearted and fun
Perception likely formed from:
Previous taste experiences
Familiarity with the product in your home/friends’ homes
Exposure to image building media messages (like TV commercials)
Visit the bekool.ca link. Are you surprised to learn that kool-aid has a ‘sensible solutions’ label?
Does this distort your perception of kool-aid?
What does this accomplish?
What is your perception?
How was it formed?
Consider perceptual distortion. Perceptual distortion is the lack of correspondence between the way a stimulus is commonly perceived and the way an individual perceives it under given conditions.

18. Consumer Imagery Product Positioning and Repositioning Perceived Price
Satisfaction based, relationship and efficiency pricing
Perceived Quality
Reliance on extrinsic cues; SERVQUAL
Price-Quality Relationship
Image
Store and manufacturer
Perceived Risk

19. (continued)

20. Figure 5-9 (continued)

21. Positioning Techniques
Establishing a specific image for a brand in relation to competing brands
Frequently analyzed using perceptual maps
Positioning Techniques
Umbrella Positioning
Positioning Against Competition
Positioning Based on a Specific Benefit
Taking an Unowned Position
Positioning for Several Positions
Repositioning
Umbrella positioning (Dove)
Positioning against competition (PC and Mac)
Positioning based on specific benefits (Vaseline Alaska commercial; Gain = fresh scent; McDonald’s eggs)
Taking an Un-owned position (topol = smokers toothpaste)
Positioning for several positions (Tide; Tylenol)
Repositioning (Cottonelle; KFC)

22. Perceived Risk The degree of uncertainty perceived by the
consumer as to the consequences (outcomes) of a specific purchase decision
High-risk perceivers  narrow categorizers
Low-risk perceivers  broad categorizers
Narrow categorizers limit choices to safe alternatives
Broad categorizers prefer a wide range of alternatives
Types of Risk
Functional Psychological Physical
Financial Social Time Loss

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

24. Perception and Marketing Strategy
Make perceptual selection work in your favour
Increase accidental exposure
Use the j.n.d
Draw attention to your ad using contrast and other principles
Find creative ways to reduce blocking
Ensure that consumers organize and interpret messages correctly
Develop suitable consumer imagery
Find ways to reduce perceived risk