1. Consumer Behavior, 9th Edition SCHIFFMAN & KANUK
Chapter 6
Consumer Perception

2. What do you see?

3. What do you see now?

4. What colour comes to mind?
RED

5. What’s in the picture?

6. So….what then is 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

7. Elements of Perception
Sensation
Absolute threshold
Differential threshold
Subliminal perception

8. The immediate and direct response of the sensory organs to stimuli.
Sensation
The immediate and direct response of the sensory organs to stimuli.
A perfectly unchanging environment provides little to no sensation at all!
As sensory input decreases, our ability to detect changes in input or intensity increases.

9. Absolute Threshold
The lowest level at which an individual can experience a sensation.
The point at which a person can detect a difference between something and nothing

10. Sensory Adaptation
As our exposure to stimulus increases, we notice it less.
Factors leading to adaptation:
Intensity, duration, discrimination, exposure, relevance
Promotional methods aimed at increasing sensory input:
Experiential marketing, Sophisticated scented ads, inserts and pop-ups, ambush advertising, Product placement

11. Increased Sensory Input increased intensity

12. Increased Sensory Input
3D/digital billboard

13. Stimulus Factors Size Intensity Attractive visuals Color and movement
Position
Isolation
Format
Contrast & expectations
Remarkability
Information Quantity

14. The minimal differences that can be detected between two similar stimuli
Differential Threshold

15. A theory concerning the perceived differentiation between similar stimuli of varying intensities (i.e., the stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different).
Weber’s Law

16. 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

17. Betty Crocker Changes Fall Below the J.N.D.

18. Changes in Brand Name Fall Below the J.N.D.

19. Subliminal Perception
Perception of very weak or rapid stimuli received below the level of conscious awareness.

20. Subliminal Perception
1957: Drive-In Movie Theater
1974: Publication of Subliminal Seduction
1990s: Allegations against Disney

21. Is Subliminal Persuasion Effective?
Extensive research has shown no evidence that subliminal advertising can cause behavior changes
Some evidence that subliminal stimuli may influence affective reactions

22. Aspects of Perception
Selection
Organization
Interpretation

23. Perceptual Selection
People receive only a small fraction of the stimuli to which they are exposed.
Depends on two major factors
Consumers’ previous experience
Consumers’ motives

24. Concepts Concerning Selective Perception
Selective Exposure
Selective Attention
Perceptual Defense
Perceptual Blocking

25. Principles of Perceptual Organization
Referred as Gestalt psychology
Figure and ground
Grouping
Closure

26. Influences of Perceptual Distortion
Stereotypes
Physical Appearances
Descriptive Terms
First Impressions
Jumping to Conclusions
Halo Effect……………………….
The iPod has had positive effects on
perceptions of Apple's other products

27. “Safed Teeka”
Use of cultural habits to formulate imagery involving steriotypes associated with product category

28. Issues In Consumer Imagery
Product Positioning and Repositioning
Positioning of Services
Perceived Price
Perceived Quality
Retail Store Image
Manufacturer Image
Perceived Risk

29. Using Imagery

30. Positioning & Repositioning
Establishing a specific image for a brand in relation to competing brands.
Involves changing the identity of the product relative to the identity of the competing brands in the collective minds of the target market
If a brand does not reposition at the right time , it may not get a second chance

31. Repositioning of Cadbury Dairy Milk
“Kid in all of us”
“Spontaneous Joy”-
(girl dancing in the cricket field)
“Real Taste of Life”-
A girl is shown breaking the security barriers and entering thecricket field to celebrate the victory of the country in the crickedmatch under the tag line “Kuch Khaas Hai Zindagi mein”. Thiscampaign went on to be awarded The Campaign of theCentury, in India at the Abby (Ad Club, Mumbai) awards.

32. Different Ad Campaigns by Cadbury Dairy Milk
“Khaane Waalon Ko Khaane Ka Bahana Chahiye”
“Kuch Meetha Ho jaye”
“Pappu Paas Ho gaya”
“Radha Miss Palampur ban gaye “
“Meetha hai Khaana aaj pehli tarrekh hai”
“Is Diwali aap kise khush kar rahe hain”
Sister tying rakhi to her brother and receiving a box of chocolates in return
“Shubh Aaarambh”

33. Positioning Techniques
Umbrella Positioning
Positioning Against Competition
Positioning Based on a Specific Benefit
Conveying a Product Benefit
Taking an Unowned Position
Positioning for Several Positions
Repositioning

34. Apple’s 1984 Ad Positions Against the Competition
Click icon to reach ad

35. Perceptual Mapping
A research technique that enables marketers to plot graphically consumers’ perceptions concerning product attributes of specific brands.

36. Perceptual Mapping

37. Perceptual Mapping

38. Pricing Strategies Focused on Perceived Value
Satisfaction-based Pricing
Relationship Pricing
Efficiency Pricing

39. Issues in Perceived Price
Reference prices
Internal
External
Tensile and objective price claims
Was $199
Now $99
Sale!
20% to 70% Off!

40. Acquisition-Transaction Utility
Transaction utility concerns the perceived pleasure or displeasure associated with the financial aspect of the purchase
Determined by the difference between the internal reference price and the purchase price
Acquisition utility represents the consumer’s perceived economic gain or loss associated with the purchase
Function of product utility and purchase price

41. 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%

42. Perceived Quality Perceived Quality of Products
Intrinsic vs. Extrinsic Cues
Perceived Quality of Services
Price/Quality Relationship

43. 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).

44. Perceived Risk Types The degree of Functional Risk uncertainty
perceived by the
consumer as to the
consequences
(outcome)
of a specific
purchase decision.
Types
Functional Risk
Physical Risk
Financial Risk
Psychological Risk
Time Risk
Social Risk

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