Chapter 5 Consumer Perception Consumer Behaviour Canadian Edition Schiffman/Kanuk/Das Copyright © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc. Opening Vignette Good Carbs, Bad Carbs Pasta, white bread, beer are ‘bad carbs’ Beer is perceived as high in bad carbs Only 11 to 17 gms per bottle Consumers overestimate carbs in beer Perceptions have to change Labatt’s campaign http://www.labatt.ca Copyright © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc. 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 Copyright © 2006 Pearson Education Canada Inc.

Elements of Perception Absolute threshold Differential threshold Copyright © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc. Sensation The immediate and direct response of the sensory organs to stimuli. A perfectly unchanging environment provides little to no sensation at all! Copyright © 2006 Pearson Education Canada Inc.

Differential Threshold or j.n.d The minimal difference that can be detected between two similar stimuli Copyright © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc. Weber’s Law the stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different Copyright © 2006 Pearson Education Canada Inc.

Marketing Applications of the JND 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 Copyright © 2006 Pearson Education Canada Inc.

Subliminal Perception Perception of very weak or rapid stimuli received below the level of conscious awareness http://www.thoughtscan.com/ Copyright © 2006 Pearson Education Canada Inc.

Subliminal Perception 1957: Drive-In Movie Theater 1974: Publication of Subliminal Seduction 1990s: Allegations against Disney http://www.snopes.com/business/hidden/popcorn.htm Copyright © 2006 Pearson Education Canada Inc.

Is Subliminal Persuasion Effective? Extensive research has shown no evidence that subliminal advertising can cause behaviour changes Some evidence that subliminal stimuli may influence affective reactions Copyright © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc. Aspects of Perception Selection Organization Interpretation Copyright © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc. Perceptual Selection Conscious and unconscious screening of stimuli Copyright © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc. Perceptual Selection Depends on three major factors Consumer’s previous experience Consumer’s motives Nature of the stimulus Copyright © 2006 Pearson Education Canada Inc.

Concepts Concerning Selective Perception Selective Exposure Selective Attention Perceptual Defense Perceptual Blocking Gestalt Psychology Copyright © 2006 Pearson Education Canada Inc.

Perceptual Selection – Cont’d Selective exposure Consumers actively choose stimuli that they want to see Selective attention Consumers decide how much attention they will pay to a stimulus Copyright © 2006 Pearson Education Canada Inc.

Perceptual Selection – Cont’d Perceptual defence Consumers screen out psychologically threatening stimuli Perceptual blocking ‘tuning out’ of stimuli Copyright © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc.

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 Copyright © 2006 Pearson Education Canada Inc.

Influences of Perceptual Distortion Physical Appearances Stereotypes First Impressions Jumping to Conclusions Halo Effect Copyright © 2006 Pearson Education Canada Inc.

Issues In Consumer Imagery Product Positioning and Repositioning Perceived Price Perceived Quality Price-Quality Relationship Perceived Risk Copyright © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc. Positioning Establishing a specific image for a brand in relation to competing brands Copyright © 2006 Pearson Education Canada Inc.

Positioning Techniques Umbrella Positioning Positioning Against Competition Positioning Based on a Specific Benefit Conveying a Product Benefit Taking an Un-owned Position Positioning for Several Positions Repositioning Copyright © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc. Perceptual Mapping A research technique that enables marketers to plot graphically consumers’ perceptions concerning product attributes of specific brands. Copyright © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc. Research Insight Attribute-based approach Identify attributes that consumers use Rate brands on these attributes Identify ideal level of these attributes Copyright © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc. Research Insight Copyright © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc. Internet Insight Non-attribute-based approach List all brands; identify all pairs Arrange pairs in order of similarity Identify underlying dimensions Copyright © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc. Research Insight Copyright © 2006 Pearson Education Canada Inc.

Pricing Strategies Focused on Perceived Value Satisfaction-based Pricing Relationship Pricing Efficiency Pricing Copyright © 2006 Pearson Education Canada Inc.

Issues in Perceived Price Reference prices Internal External Tensile and objective price claims Copyright © 2006 Pearson Education Canada Inc.

Tensile and Objective Price Claims Evaluations least favorable for ads stating the minimum discount level Ads stating maximum discount levels are better than stating a range Save 10% or more Save upto 50% Copyright © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc. Perceived Quality Perceived Quality of Products Intrinsic vs. Extrinsic Cues Perceived Quality of Services Price/Quality Relationship Copyright © 2006 Pearson Education Canada Inc.

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 © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc. (continued) Copyright © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc. Figure 5-9 (continued) Copyright © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc. Perceived Risk The degree of uncertainty perceived by the consumer as to the consequences (outcomes) of a specific purchase decision High-risk perceivers are narrow categorizers Limit their choices to safe alternatives Low-risk perceivers are broad categorizers Wide range of alternatives preferred Copyright © 2006 Pearson Education Canada Inc.

Copyright © 2006 Pearson Education Canada Inc. Types of Risk Functional Risk Physical Risk Financial Risk Psychological Risk Time Risk Copyright © 2006 Pearson Education Canada Inc.

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 © 2006 Pearson Education Canada Inc.

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 continued Copyright © 2006 Pearson Education Canada Inc.

Perception and Marketing Strategy Ensure that consumers organize and interpret messages correctly Develop suitable consumer imagery Find ways to reduce perceived risk Copyright © 2006 Pearson Education Canada Inc.