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

Perception http://www.marketingmag.ca/english/news/marketer/article.jsp?content=20090522_145448_2520#

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

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

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? http://adweek.blogs.com/adfreak/logos/

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

Subliminal Perception Effective? Extensive research has shown no evidence that subliminal advertising can cause behaviour changes 1957 - James Vicary (“Eat Popcorn” “Drink Coca-Cola”) never released study descriptives; no independent evidence http://www.snopes.com/business/hidden/popcorn.asp 1970s - Wilson Bryan Key “Sexploitation” Some evidence that subliminal stimuli may influence affective reactions

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.

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

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

Grouping

Closure

Closure Continued Dentyne Ice Surrey Drug Mart

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?

Stereotype

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.

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

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Figure 5-9 (continued)

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)

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

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

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