Consumer Perception

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Chapter 6

• Consumer Perception

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Perception
The process by which an individual selects,
organizes, and interprets stimuli into a
meaningful and coherent picture of the world.
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Elements of Perception

• Sensation
• The absolute threshold
• The differential threshold
• Subliminal perception

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Sensory Receptors
The human organs (eyes, ears, nose, mouth, skin)
that receive sensory inputs.
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Absolute Threshold
The lowest level at which an individual can
experience a sensation.
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Sensory Adaptation
Getting used to certain sensations becoming
accommodated to a certain level of stimulation.
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Differential Threshold
The minimal difference that can be detected
between two stimuli. Also known as the j.n.d.
(just noticeable difference).
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Webers Law
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).
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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

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

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Aspects of Perception
Selection
Organization
Interpretation
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Perceptual Selection

• Depends on two major factors
• Consumers previous experience (expectations)
• Consumers motives

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Some Marketing Variables Influencing Consumer
Perception

• Nature of Product
• Physical Attributes of Product
• Package Design
• Brand Name
• Advertisements Commercials
• Position of Ad
• Editorial Environment

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Concepts Concerning Selective Perception

• Selective Exposure
• Selective Attention
• Perceptual Defense
• Perceptual Blocking

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Principles of Perceptual Organization

• Figure and ground
• Grouping
• Closure
• Zeigernik effect

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Zeigernik Effect
A person beginning a task needs to complete it.
When he or she is prevented from doing so, a
state of tension is created that manifests itself
in improved memory for the incomplete task.
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Distorting Influences

• Physical Appearances
• Stereotypes
• Irrelevant Cues
• First Impressions
• Jumping to Conclusions
• Halo Effect

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Issues In Consumer Imagery

• Product Positioning and Repositioning
• Positioning of Services
• Perceived Price
• Perceived Quality
• Retail Store Image
• Manufacturers Image
• Perceived Risk

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Positioning
Establishing a specific image for a brand in
relation to competing brands.
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Reposition
Changing the way a product is perceived by
consumers in relation to other brands or product
uses.
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Perceptual Mapping
A research technique that enables marketers to
plot graphically consumers perceptions
concerning product attributes of specific brands.
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Perceptual Mapping
Fashion Coverage
Fashion Splash
More Copy
More Artwork
Crash
Bash
Splash
Club Coverage
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The Service Environment Environmental Variables
Most Important to Bank Customers

• Privacy
• Efficiency/Convenience
• Ambient Background Conditions
• Social Conditions
• Aesthetics

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Issues in Perceived Price

• Reference prices
• Tensile and objective price claims

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Reference Price
Any price that a consumer uses as a basis for
comparison in judging another price.
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Reference Prices

• External Reference Price
• Internal Reference Price

89
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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

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Perceived Quality

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

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Intrinsic Cues
Physical characteristics of the product (such as
size, color, flavor, or aroma) that serve to
influence the consumers perceptions of product
quality.
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Extrinsic Cues
Cues external to the product (such as price,
store image, or brand image) that serve to
influence the consumers perception of a
products quality.
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Characteristics of Services

• Intangible
• Variable
• Perishable
• Simultaneously Produced and Consumed

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Table 6.1 SERVQUAL Dimensions for Measuring
Service Quality

• DIMENSION DESCRIPTION
• Tangibles Appearance of physical facilities,
  equipment, personnel, and communication
  materials
• Reliability Ability to perform the promised
  service dependably and accurately
• Responsiveness Willingness to help customers and
  provide prompt service
• Assurance Knowledge and courtesy of employees and
  their ability to convey trust and confidence
• Empathy Caring, individualized attention the firm
  provides its customers

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Figure 6.11 A Conceptual Model of the Components
of Transaction Satisfaction
Evaluation of Service Quality (SQ)
Evaluation of Product Quality (PQ)
Transaction Satisfaction (TSAT)
Evaluation of Price (P)
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Figure 6.12 Conceptual Model of the Behavioral
Consequences of Service Quality
Behavioral Intentions
Service Quality
Ongoing Revenue Increased Spending Price
Premium Referred Customers
Superior
Favorable
Remain
Behavior
Financial Consequences
- Decreased Spending Lost Customers Costs to
Attract New Customers
Inferior
Unfavorable
Defect
Focus of present study
Empirical links demonstrated in macro studies
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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).
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Figure 6.13 Conceptual Model of the Effects of
Price, Brand Name, and Store Name on Perceived
Value
Objective Price


Perception of Price
Perceived Sacrifice
Perceived Quality
Perceived Value
-

-

Willingness to Buy
A. Conceptual Relationship of Price Effect
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Figure 6.13 continued
Brand Name
Store Name
Objective Price


Perception of Price
Perception of Store
Perception of Brand

Perceived Quality
Perceived Sacrifice

-

Perceived Value
B. Extended Conceptualization to Include Brand
Name and Store Name
-

Willingness to Buy
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Perceived Risk
The degree of uncertainty perceived by the
consumer as to the consequences (outcome) of a
specific purchase decision.
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Types of Perceived Risk

• Functional Risk
• Physical Risk
• Financial Risk
• Psychological Risk
• Time Risk

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How Consumers Handle Risk

• Seek Information
• Stay Brand Loyal
• Select by Brand Image
• Rely on Store Image
• Buy the Most Expensive Model
• Seek Reassurance