Sensation & Perception Michael J. Kalsher MGMT 4460/6940 Summer 2014

2-2 CHAPTER OBJECTIVES Perception is a three-stage process that translates raw stimuli into meaning. Products and commercial messages often appeal to our senses, but many of them will not succeed. The design of a product today is a key driver of its success or failure. Subliminal advertising is a controversial—but largely ineffective—way to talk to consumers. We interpret the stimuli to which we do pay attention according to learned patterns and expectations. The science of semiotics helps us to understand how symbols are used to create meaning.

2-3 Sensation Immediate response of our sensory receptors… …eyes, ears, nose, mouth, fingers… …to basic stimuli… …such as light, color, sound, odor, and texture

The Sensory & Motor Homunculus 2-4

2-5 Perception The process by which sensations are selected, organized, and interpreted (i.e., adding meaning to raw sensations). Figure 2.1

2-6 Communication- Human Information Processing (C-HIP) Model Wogalter, DeJoy, & Laughery (1999). Warnings and Risk Communication. London: Taylor & Francis. Wogalter, M.S. (2006). Handbook of Warnings. Mahwah, NJ: Erlbaum

2-7 Sensory Systems We receive external stimuli through our five senses –Each of our senses has a specific sensory receptor Hedonic Consumption –The multisensory, fantasy, and emotional aspects of consumers’ interactions with products. –Modern consumers demand hedonic value in addition to basic function.

2-8 Vision –Attracting and maintaining attention is the first step! –Reaction is biological and cultural. –Color provokes emotion Red is energizing Blue is r-e-l-a-x-i-n-g… Reactions to color are biological and learned –In the U.S., brighter = more complex –Culture, gender, aging –Color associated with specific companies

2-9 Portable Gas Containers Are manufacturers trying their best to alert consumers to the dangers of “co-occurrence” hazards associated with gasoline? Attracting and Maintaining Consumers’ Attention is Not Always a Goal! Flammable Vapor Ignition Resistant (FVIR) Water Heaters

2-10 Each SawStop saw is equipped with a safety system that detects when someone accidentally contacts the spinning saw blade, and then stops the blade in milliseconds. In most cases, such an accident would result in just a nick on a SawStop saw, instead of the devastating injury which would likely occur on an ordinary saw. Some noteworthy examples …

2-11 Vision Size Matters! –We tend to eat more: When food container is larger When our plate still contains food When we see an assortment of foods (e.g., M&Ms, jelly beans) –We focus on height rather than width when pouring liquid into a glass –Trade dress (Combinations of color associated with a particular corporation or product) VERTICAL HORIZONTAL ILLUSION

2-12 Smell Odors = mood & memory (limbic system) –Folger’s coffee ad –Fresh cinnamon buns = male sexual arousal? –Two-day-old tee-shirts and female attraction? –Baron & Kalsher study of driving performance –Scented marketing Cadillac’s “Nuance” scent = expensive upholstery Scratch and sniff

2-13 Hearing Many aspects of sound affect people’s feelings and behaviors –Phonemes of brands = unique product meanings “i” brands are perceived as “lighter” than “a” brands –Effect of Muzak Stimulus “progression” Reduced absenteeism, enhanced performance MUZAK.COM

2-14 Touch Haptic senses affect product experience & judgment Individual differences and the Need for Touch Scale Kansei engineering (translates customer feelings into design elements) Fabric textures and surfaces with products & packaging (e.g., “soft-touch” resins) PerceptionMaleFemale High ClassWoolSilkFine Low ClassDenimCotton HeavyLightCourse

Tactile-Quality Associations Consider the following questions for each ad: 1.Who is the primary target audience? 2.What is the main message of the ad? 3.Is the ad successful or unsuccessful? 4.If successful, what are the most important features. 5.If unsuccessful, what are the features that caused you to either “tune-out” or become “turned-off” to the product.

Taste  Flavor houses develop new concoctions for consumer palates  Cultural changes determine desirable tastes  The more respect we have for ethnic dishes, the more spicy food we desire

2-17 Exposure Occurs when a stimulus comes within range of someone’s sensory receptors –We can concentrate, ignore, or completely miss stimuli – –Cadillac’s “0 - 60” 5-sec ad. –

2-18 Sensory Thresholds Psychophysics –quantitatively investigates the relationship between physical stimuli and the sensations and perceptions they affect. Absolute threshold –Minimum amount of a stimulus that can be detected by a given sensory receptor 50% of the time. Dog whistle Billboard with too small print

2-19 Sensory Thresholds Differential threshold –j.n.d. (just noticeable difference) Do consumers notice smaller quantities? Or price increases? –Weber’s Law Amount of change in the original stimulus required for the change to be noticed depends on its intensity. 20 percent difference in price required for “markdowns” to be effective. Sensory detection abilities decline with age. –Implications of thresholds for marketers attempting to appeal to the elderly?

2-20 Subliminal Perception It is believed that many ads are designed to be perceived unconsciously (below threshold of recognition) 1959 Experiment Subliminal Techniques –Embeds –Subliminal auditory perception Forward Backward

Brief History of Subliminal Ads In the mid 1950's, James Vicary used subliminal messaging to make people want popcorn and coke by flashing "eat popcorn" and "drink Coke" very briefly on a screen during a movie. Vicary claimed that the sales of popcorn went up by 57.5% and the sales of Coke rose by 18.1%. Many advertisers at the time were interested in Vicary's claims. However, experts were never able to prove that subliminal messages worked, and the controversy that Vicary's report created soon died down until the 1980s... and Judas Priest. 2-21

2 Families Sue Heavy-Metal Band As Having Driven Sons to Suicide By LARRY ROHTER, Special to The New York Times Published: July 17, 1990 Two days before Christmas in 1985, a pair of young Nevada men shot themselves after listening to albums by the heavy-metal band Judas Priest. Today the rock group and CBS Records went on trial in Washoe County District Court here, accused by the men's families of having driven them to suicide. As the members of Judas Priest, dressed in dark business suits instead of the dark leather garb they favor on stage, looked on silently, lawyers for the families of Raymond Belknap and James Vance argued that the musicians had placed subliminal messages in several recordings, including the album ''Stained Class,'' thereby inciting the two troubled young men to try to kill themselves. Both the group and its record label are charged in a civil suit with the liability arising from the manufacture and marketing of a faulty product, as well as negligence and intentional and reckless misconduct. ''Judas Priest and CBS pander this stuff to alienated teen-agers,'' said Kenneth McKenna, the lawyer for Mr. Belknap's family. ''The members of the chess club, the math and science majors don't listen to this stuff. It's the dropouts, the drug and alcohol abusers. So our argument is you have a duty to be more cautious when you're dealing with a population susceptible to this stuff.’’ 2-22

2-23 Subliminal Perception Most researchers believe that subliminal techniques are not of much use in marketing –Wide individual differences in threshold levels. –Maintaining homeostasis makes threshold levels “movable.” –Attention shifts decrease probability that people are “attending” to the stimulus at the moment it’s presented. –Subliminal stimuli have tiny, generalized effects (e.g., visual priming studies). Assuming that some forms of subliminal persuasion may have the desired effect of influencing consumers, do you think the use of these techniques is ethical?

2-24 Attention The extent to which processing activity is devoted to a particular stimulus –Competition for our attention: Consumers are usually in a state of sensory overload 3,500 vs. 560 ad info pieces per day Multi-tasking –Marketers need to break through the clutter Microsoft’s butterfly decals on sidewalks Lunesta “butterfly”

2-25 Stimulus Selection Factors  We are more likely to notice stimuli that differ from others around them  So, marketers can create “contrast” through: SizeColorPositionNovelty

2-26 Perceptual Selection Psychic economy Personal Selection Factors –Perceptual vigilance Awareness of stimuli relevant to our needs; cocktail-party phenomenon –Perceptual defense Threatening stimuli may be ignored or distorted –Adaptation Intensity, duration, discrimination, frequency of exposure, and relevance

2-27 Perceptual Selection Stimulus Selection Factors –Weber’s Law Differences in size, color, position, & novelty Eye-tracking studies –Interpretation: assigned meaning to stimuli Schemas and Mental Models lead to “top-down” stimulus evaluation (we see what we expect to see)

2-28 Perceptual Selection: An Example

2-29 Stimulus Organization Stimulus interpretation is associated with other related events, sensations, or images Gestalt: “the whole is greater than the sum of it parts” Closure Similarity Figure-ground

2-30 Interpretational Biases We often interpret ambiguous stimuli based on our experiences, expectations, and needs –Princeton vs. Dartmouth football game Differences in perception about “infractions” Self-serving nature of perceptual processes –Planters Fresh Roast (vacuum-packed peanuts package) Analogy to fresh-roast coffee produced a “messy” ending.

2-31 Semiotics Correspondence between signs and symbols are their role in the assignment of meaning Marketing messages have three basic components: -Object -Product on which the message is focused -Sign -Sensory image that represents the intended meanings of object -Interpretant -Meaning derived

2-32 Semiotic Relationships Marlboro Cigarettes Cowboy Rugged American Object (Product) Sign (Sensory Image) Interpretant (Meaning Derived) Figure 2.3

2-33 Semiotics Signs are related to objects in 3 ways: –Icon (physically resembles product) –Index (connected to product through shared property) –Symbol (related to a product through conventional or agreed-upon associations) Hyper-reality –Marlboro cigarettes = American frontier spirit –“Heidiland” in Switzerland Office Space & “Rio Red” stapler: SWINGLINE.COM

2-34 Perceptual Positioning Brand perceptions = functional attributes + symbolic attributes Perceptual map –Map of where brands are perceived in consumers’ minds –Company’s own strengths and weaknesses in comparison with competitors

2-35 Perceptual Map Figure 2.4

2-36 Positioning Strategy Marketing mix elements influence the consumer’s interpretation of brand’s meaning Brand’s position as a function of: –Lifestyle, price leadership, attributes, product class, competitors, occasions, users, and quality

2-37 Positioning Strategy  Examples of brand positioning LifestyleGrey Poupon is “high class” Price leadershipSouthwest Airlines is “no frills” AttributesBounty is “quicker picker upper” Product classMazda Miata is sporty convertible CompetitorsNorthwestern Insurance is the “quiet company OccasionsWrigley’s gum used when smoking not permitted UsersLevi’s Dockers targeted to men in 20s and 30s QualityAt Ford, “Quality is Job 1”

2-38 Chapter Summary Perception is a three-stage process that translates raw stimuli into meaning. Products and messages may appeal to our senses. The design of a product affects our perception of it. We interpret stimuli using learned patterns. Marketers use symbols to create meaning.

2-39 SawStop Back