1. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 1 Perception Chapter 8  How consumers process information  The different steps involved in information processing  Which factors influence this process  The way children process information  The implications of perceptions for retail, brand and communication strategies

2. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 2 Nature of Perception  Exposure  Attention  Interpretation  Memory ôshort-term ôlong-term  Purchase and consumption decisions

3. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 3 Information Processing for Consumer Decision Making Purchase & consumption decisions Exposure Random Deliberate Attention Low- involvement High- involvement Interpretation Low- involvement High- involvement Memory Short-term Long-term Active problem solving Stored experiences, values, decisions, rules etc. Perception

4. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 4 Exposure  Occurs when a stimulus comes within range of our sensory receptor nerves  Deliberate exposure to stimuli ôconsumers seek information that will help achieve certain goals  immediate  long range  Random exposure to stimuli

5. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 5 Attention  Occurs when stimulus activates one or more sensory receptor nerves and the resulting sensations go to the brain for processing  Determined by: ôstimulus ôindividual ôsituation

6. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 6 Stimulus Factors  Size and intensity ôinsertion frequency  Colour and movement  Position  Isolation  Format  Compressed messages  Information quantity — information overload

7. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 7 Stimulus Factors (cont.)  Individual factors ôInterest ôNeed  Situational factors ôContrast ôAdaptation level theory  Non-focused attention ôHemispheric lateralisation ôSubliminal stimuli

8. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 8 Determinants of Interpretation

9. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 9 Interpretation  Cognitive interpretation ôprocess of adding meaning from existing knowledge –Semantic meaning –Psychological meaning  Affective interpretation ôprocessing and adding meaning by feeling

10. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 10 Interpretation (cont.)  Individual characteristics ôlearning ôexpectations  Situational characteristics ôe.g. hunger,moods, temperature etc. ôproximity  Stimulus characteristics ôsemiotics  Misinterpretation of marketing messages

11. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 11 Piaget’s Stages of Cognitive Development  The period of sensorimotor intelligence (0 – 2 yrs)  The period of pre-operational thought (3 – 7 yrs)  The period of concrete operations (8 – 11yrs)  The period of formal operations (12 – 15 yrs)

12. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 12 Perception and Marketing Strategy  Retail strategy  Brand name and logo development  Media strategy  Advertising and package design  Warning labels and package design  Advertising evaluation  Perceptions of marketing messages and ethics

13. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 13 Retail Strategy  Store layout ôCold and Hot zones ôTraffic and islands  Lighting and fitout  Placement of products on shelves ôEye levels (for adults and for children!) ôNumber of facings to maximise visual impact

14. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 14 Brand Name and Logo Development  Same sporting goods product — the only difference is the name associated with the product  Percentage attributing feature to product

15. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 15 Media Strategy  Random approach ôto reach where the target market may be  Selective approach ôto reach where the target market is ôYellow pages/directories ôfocused media

16. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 16 Advertisement and Package Design  Utilise stimulus characteristics  Tie the message to a topic the target market is interested in

17. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 17 Advertising Evaluation  Exposure ô physically reach target market  Attention ô attended to by the consumer  Interpretation ôproperly interpreted  Memory ôstored, so it is retrieved under the proper circumstances