Topic 6 Consumer Perception by ewghwehws


									Topic 6: Consumer

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   It is evident that consumers act and react on the
    basis of their perceptions , and not on the basis of
    objective reality.
   Reality –is totally a personal phenomenon , based
    on the persons needs, wants, values, and personal
   Thus to the marketer, consumers perceptions are
    much more important than their knowledge of
    objective reality.
   Individuals make decisions and take actions based
    on what they perceive to be reality.

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Elements of Perception

   Perception – is designed as the process by which
    an individual selects organizes, and interpret stimuli
    into a meaningful and coherent picture of the world.
   It can also be described as “ how we see the world
    around us”
   For example – two individuals may be exposed to
    the same stimuli under the same apparent condition.
   How each persons recognizes,
    selects,organizes,and interpret this stimuli is a highly
    individual process based on – person’s own needs,
    values and expectations.

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Elements of Perception – cont’d
1. Sensation – the immediate and direct
  response of the sensory organs to stimuli.
 Examples of stimuli (i.e. sensory input)
  include: product, packages, brand names,
  advertisements and commercials
 Sensory receptors are (human organs) : ears,
  eyes, nose, mouth and skin that receive
  sensory inputs. Their sensory functions are to
  see, hear,smell,taste, and feel.
 All of these functions are combine or singly in
  the evaluation and use of consumer products.
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Elements of Perception – cont’d
sensation -cont’d
 Sensitivity to stimuli varies with the quality of
  an individual’s sensory receptors ( e.g.
  eyesight, receptors.)

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 Elements of Perception – cont’d
2. The absolute threshold -
 The lowest level at which an individual can
   experience a sensation is called the absolute
   threshold -
 The point at which a person can detect a difference
   between ‘something’ and ‘nothing’ is that person’s
   absolute threshold for that stimulus
 For example – the distance at which a driver can
   note a specific billboard on a highway is that
   individual’s absolute threshold.
 Another example- two people riding together may
   first spot the billboard at different times (at different
   distances thus), thus they appear to have different
   absolute thresholds.

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Elements of Perception – cont’d

2. The absolute threshold - cont’d
 Sensory adaptation ( getting used to certain
  sensations) – is a problem that concern many
 In an effort to cut through the advertising
  problem and to ensure that consumers note
  their advertisement, marketers have to
  increase sensory input.

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Elements of Perception – cont’d
3.The differential Threshold
 A minimal difference that can be detected between
  two similar stimuli is called the differential threshold
  or just the noticeable differences (the j.n.d.)
 When it comes to product improvement , marketers
  prefer to meet or exceed the consumers differential
 That is marketers want consumers to readily
  perceive any improvements made in the original
 Marketers also use this determine the
  amount of improvement they should make in a

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 Elements of Perception – cont’d
 4. Subliminal Perception –
 Stimuli that are too weak or too brief to be consciously seen or
    heard or strong enough to be perceived by one or more receptor
 People are also stimulated below their level of conscious
    awareness – i.e.. stimulus is beneath the threshold.
 For example – Subliminal advertising was first tested at a drive-in
    movie at New Jersey in 1957. where ‘eat popcorn ‘ and ‘drink
    coca cola’ were flashed on the screen during the movie.
 Exposure time was so short that the viewers were unaware that
    they had seen a message.
 It was reported during the 6 weeks test period, that popcorn
    sales increased by 58% and coca – cola sale increased to 18%.

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Dynamics of Perception

   Human being are constantly bombarded with stimuli
    during every minute and every hour of every day.
   The sensory world is almost made up of almost an
    infinite number of discrete sensations that are
    constantly and subtly changing.
   The billions of different stimuli to which we are
    constantly exposed might serve to confuse us and
    keep us disoriented in a constantly changing

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Dynamics of Perception - cont’d

   Individuals are very selective as to which
    stimuli they ‘recognize’.
   They subconsciously organize the stimuli
    they do recognize according to widely held
    psychological principles, and they interpret
    such stimuli, in accordance with their
    personal needs, expectations, and

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Dynamics of Perception –cont’d

   Perceptual Organization

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Dynamics of Perception –cont’d

   Perceptual Interpretation

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Consumer Imagery
    Products and brands have symbolic value for
     individuals , who evaluate them on their basis of
     their consistency with their personal pictures of
1.   Product Positioning – The essence of successful
     marketing is the image that a product has in the
     mind of the consumer – that is its positioning.
    Positioning is the ultimate success of a product
     than its actual characteristics.
    In today's highly competitive market place, a
     distinctive product image is most important, but
     also vey difficult to create and maintain.
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Consumer Imagery – cont’d
2.Product repositioning
 The marketer may be forced to reposition products
  in response to market events such as :
 1. competitor cutting into the brand’s market share
 2. too many competitors stressing the same attribute
 3. to justify their higher prices.
 4. playing up brand attributes that had previously
   been ignored.
 “Perceptual mapping” help marketers determine how
  their products appear to consumers in relation to
  competitive brands.
 Help identify gaps in which consumer needs are not
  adequately met.
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Consumer Imagery – cont’d
3.Positioning of services
 Service marketers face several unique problems in positioning
    and promoting their offerings.
 Because services are intangible , image become a key factor to
    differentiate a service from its competition.
 Many service marketers have developed strategies to provide
    customers with visual images and tangible reminders of their
    service offerings
  such as:
   - delivery vehicles painted in distinct colors
   - packaged hotel soaps and shampoos
   - Marriott Hotel – ‘ superior service and genuine care’

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Consumer Imagery – cont’d
4. Perceived Price
 How a consumer perceive a price – as high, as low,
   as fair – has a strong influence on both purchase
   intentions and purchase satisfaction.
 Customers do pay attention to the prices paid by
   other customers ( such as senior citizens, frequent
   flyers, special club members etc)
 Perceptions of price unfairness affect consumer
   perceptions of product value and ultimately their
   willingness to patronize a store or a service.

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Consumer Imagery – cont’d
5.Perceived Quality
 Customers often judge the quality of a
  product or service on the basis of a variety of
  cues including, extrinsic and intrinsic
 Extrinsic characteristics are used to judge
  quality on physical product features
  packaging, pricing , advertising
 Intrinsic characteristics are used to judge on
  color, size, flavor or aroma.
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Consumer Imagery – cont’d
6. Price/Quality Relationships
 A number of research studies revealed that
   consumers rely on price as an indicator of product
   quality .
 It is a norm that consumers use price and brand to
   evaluate the prestige of the product but to not
   generally use these cues when they evaluate the
   product performance.
 Because price is always considered as an indicator
   of quality , some product advertisements
   deliberately emphasize a high price to underscore
   the marketers claims of quality.

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Consumer Imagery – cont’d
7. Retail Store Image
 Retail store have images of their own that serve to
   influence the perceived quality of products they
 These images stems from design, physical
   environment, pricing strategies, and product
 The consumers evaluation of a product often is
   influenced by the knowledge of where it was bought
  - a consumer wants to buy an elegant dress may go
   to a store with an elegant, high fashion image.
  - regardless of what she actually pays for the dress
   she selects ( regular price or marked down price )
   she will perceive its quality to be high.
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Consumer Imagery – cont’d
8. Manufacturer’s Image
 Researchers have found that consumers generally
   have favorable perceptions of pioneer brands ( the
   first in the product category) even after follower
   brands become available.
 Researchers found a correlation between pioneer
   brand image and an individual’s ideal-self image,
   which suggests that positive perceptions toward
   pioneer brands lead to positive purchase intentions.
 Today companies are using advertising, exhibits and
   sponsorships of community events to enhance their

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Perceived Risk
    Consumer perception of risk varies, depending on the
     person, the product, the situation and the culture.
    The amount of risk conceived depends on the
     specific consumer.
    An individual’s perception of risk varies depending on
     the purchase of different product categories.
    For example -consumers are likely to perceive a
     higher degree of risk , e.g. functional risk, financial
     risk, time risk etc when purchasing a television
    - For an automobile the type of risk – product-
      category perceived risk.
    Consumers perceived service decisions to be riskier
     than product decisions, particularly in terms of ; social
     risk, physical risk and psychological risk.

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How Consumers Handle Risk
    Consumers characteristically develop their own strategies for
     reducing perceived risk
    The following are some risk- reduction strategies taken by
     consumers :
1.   Consumers seek information – about the product category
     through word of mouth communication, family ,friends sales
     people, from general media.
2.   Brand loyal - consumers avoid risk by remain loyal to a brand
     which they have been satisfied ,
3.   Select by brand-image – when consumers new to the product
     they tend to ‘trust’ a favored or well known brand name.
4.   Rely on Store-image - when consumers trust the judgment of
     the merchandize buyers of a reputable store and depend on
     tem to have careful decisions in selecting products for sale.

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 How Consumers Handle Risk – cont’d
5. Buy the most expensive model – when in doubt ,
   consumers often feel that the most expensive model
   is probably the best in terms of quality; that is they
   equate price with quality.
6. Consumers seek reassurance – consumers who are
   uncertain about the wisdom of a product choice
   seek reassurance through money-back guarantees,
   government and private laboratory test results
   warranties, and prepurchase trial.
   e.g a test drive when buying a new model car etc.

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Ethics and Consumer Perception
   The ethical issues related to consumer perception
    focus on how marketers use the knowledge of
    perception to manipulate consumers.
   Predictions have indicated that marketers are likely
    to increase expenditures substantially on such
    branded entertainment e.g. extreme makeover etc.
   Marketers use their knowledge of just noticeable
    difference ( j.n.d.) to reduce product quality and
    quantity and increase prices and go unnoticed by

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Ethics and Consumer Perception – cont’d

    Marketers can also manipulate consumers
     perception and behavior by using the
     physical setting where consumption occurs.
    For example –it is widely known that
     supermarkets routinely move products
     around to encourage consumers to wander
     around the store and keep the stores
     relatively cold – because cold temperature
     makes people more hungrier and so they
     increase their food purchases.

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    Consumer Perception

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