Chapter 3 Consumer Perception. Snapshot from the Marketplace zThe U.S. auto industry, for years, has...

Consumer PerceptionConsumer Perception

Chapter 3

Consumer Perception

Snapshot from the Marketplace

The U.S. auto industry, for years, has suffered a low-quality image perception.

In 2007, domestic automakers took steps to adopt new technologies and innovations.

Among these steps was the development of hybrid and electric cars.

In the battle of American brands against imports, GM and Ford performed remarkably.

In view of rising oil prices, success speculation for hybrid/electric cars is certain.

Q. 1. Define Perception.

What Is Perception?

The process of selecting, organizing, and interpreting sensation into a meaningful whole

What is Perception? (cont’d)

Although our senses (sight, hearing, smell, taste, and touch) play a major role in our comprehension of an event, our interpretation of the sensation may distort the intended message.

Our frame of reference affects how we interpret a message.

Three Concepts Related to Perception

Exposure The act of deliberately or accidentally coming

into contact with stimuliAttention

The allocation of mental capacity to a stimulusPlanned, involuntary, and spontaneous attention

Sensation Responses of the sensory receptors to a

stimulus and transmission of this information to the brain

Q. 2. What are the five senses that are influenced by

marketing?

Sensory Systems

Exposure toRaw Data

Eye

Sight

Ear

Sound

Nose

Smell

Mouth

Taste

Skin

Touch

Processingof Inputs

Interpretationof Inputs

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Vision

80 percent of what we receive from our environment is gained from vision.

Visual perception is a multi-dimensional process involving observation of many product aspects such as its color, size, shape, and movement.

Smell

Scents can stir emotions, elicit memories, produce hunger, induce relaxation, or even repel us.

Responses to scents are culturally programmed, based on prior association between the aroma and the occasion/emotion that surrounded the smell.

Taste

Receptors residing on the tongue and palate combine with smell to produce the familiar taste sensations.

Acceptance of new or unfamiliar taste sensations can be learned through familiarity.

The new electronic tongue innovation is being used by the food and beverage industry to monitor product flavors.

Sound

Speech and music are two important weapons in the marketer’s arsenal.

Speech is a cognitive process that involves the use of words, syntax, and mode of delivery to communicate meaning.

Music, on the other hand, evokes feelings, stirs relevant emotions, or sets a desired mood to facilitate message reception.

Touch

Touch is part of the exploratory nature of human beings.

Physical contact with products provides consumers with vital information.

Electronic or catalog shopping neglects the importance of product exploration and active touching that many consumers desire.

Input Variation: Effect on Sensation

Sensation depends on input variationAs sensory input decreases, our ability to detect

change increases Implications for advertising:

Perceptual Overloading: the inability to perceive all stimuli competing for one’s attention

Perceptual Vigilance: the ability to disregard much of the stimulation one receives

Stimulus & Individual Factors of Perception

In the traditional view, two factors combine to produce perception:

Stimulus Factors The physical characteristics of an object such as its

size, color, and shape that produce a physiological impulse in an individual

Individual Factors Qualities of individuals such as their needs, interests,

and experiences that influence their interpretation of the impulse

Top-Down and Bottom-Up Processing

Two different pathways sensory inputs take before perception is formulated: Bottom-up processing—information

processing proceeds from the stimulus factors to construct the resulting recognition

Top-down processing—information processing proceeds from the individual factors to construct the resulting recognition

Bottom-Up and Top-Down Processing

Consumer RecognitionPattern

Stimulus Properties

Properties

Consumer Recognition Pattern

Stimulus Properties

ExpectationsGoalsExperience

Size Shape Color

Q. 3. What are the three types of sensory thresholds?

Threshold Levels

Absolute Threshold Lowest intensity level at which one can detect a

stimulus

Terminal Threshold A point beyond which intensity increases of a

stimulus produce no greater sensation

Differential Threshold (JND) The smallest increment in the intensity of a

stimulus that one can detect

Applications of the JND to Marketing

Price changes: to be effective, price discounts have to exceed the JND, whereas price increases should be below the JND

Changes in product/package sizes: companies often use a strategy of downsizing (unnoticeable decrease in package size or contents while maintaining the same price) to combat rising costs of ingredients

Weber’s Law: the JND is a function of the initial intensity

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Consumer Chronicles 8.4Some Approximate Detection Threshold Values

Sense DetectionModality Threshold

Light A candle flame seen at 30 miles or a dark clear night.

Sound The tick of a watch under quiet conditions at 20 feet.

Taste One teaspoon of sugar in two gallons of water.

Smell One drop of perfume diffused into the entire volume of a three-room apartment.

Touch The wing of a bee falling on your back from a distance

of one centimeter.

Source: Donald H. McBurney and Virginia B. Collings, Introduction to Sensation/Perception (Englewood Cliffs, NJ: Prentice Hall, 1977), p. 7.

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Q. 4. What are the steps in the perceptual process?

Perceptual Process (1 of 2)

Preattentive Processing Exposure Attention Sensation

Perceptual Selection Motives Nature of the Stimulus

Perceptual Process (2 of 2)

Perceptual Organization (Gestalt Psychology) Grouping Figure and ground Closure Proximity Context

Perceptual Interpretation and Elaboration Perceptual inference Elaboration

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The Perceptual Process

Preattentive Processing the simultaneous preconscious monitoring of all

sensory channels for events that will require a shift in attention

Perceptual Selection that portion of stimuli selected for conscious

processing or focal attention Perceptual Organization

how consumers classify perceptions into categories and apply prior knowledge about the categories to organize them.

Perceptual Interpretation and Elaboration how consumers derive meaning from the totality of

the perceptual information they receive at a given moment.

Three Concepts Related to Perception

Exposure The act of deliberately or accidentally coming

into contact with stimuliAttention

The allocation of mental capacity to a stimulusPlanned, involuntary, and spontaneous attention

Sensation Responses of the sensory receptors to a

stimulus and transmission of this information to the brain

Perceptual Selectivity

Selective Exposure and Attention A tendency of consumers to ignore stimuli that are

unimportant to them A tendency to heed information of interest as well

as to avoid irrelevant or threatening informationPerceptual defenseSelective sensitization

EnvironmentalStimuli

SelectiveExposure

SelectiveAttention

Perception

Perceptual Selectivity (cont’d)

Selective Interpretation Combining perceived stimuli with our prior

learning, experience, expectations, and intentions to derive their meaning

Attention Stimulation Placement, timing, and presentation of stimuli so

that target consumers are most likely exposed to them

Adaptation Levels Indifference to a stimulus to which one has

become accustomed

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Perceptual Organization

Consumers classify perceptions into categories

Consumers apply prior knowledge about categories to organize them

Categories are shaped by goals, values, or the need to respond

Categories are socially and culturally constructed and learned

Categorization involves comparison between a perceived target and categorical knowledge.

Gestalt Psychology

A modern view that we perceive cohesive wholes and formulate total impressions rather than note solitary stimuli

Some Gestalt principles: Closure Grouping Proximity Context Figure and ground

Gestalt Principles

Closure: our tendency to perceive a complete object even thought some parts are missing

Grouping: our tendency to perceive large data chunks rather than small units

Proximity: objects close together seem to relateContext: refers to the setting (e.g., the medium type)

in which a stimulus (e.g., an ad) is presentedFigure and ground: objects or figures are perceived

in relationship to background

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Perceptual Organization

Grouping Individuals assume that

options found in proximity to one another go together.

Figure and ground Individuals determine what

aspects of stimuli they should focus on.

Closure Individuals use partial cues

to complete an image.

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Exhibit 8.1A Classic Figure-and-Ground Problem

Perceptual Inferences

Beliefs we consciously or unconsciously assign to products, brands, stores, or firms based on previously acquired information and our own experiences Halo effect: generalized impressions we

form about products, brands, or stores to simply shopping

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Perceptual Inference

Perceptual Inferences Interpretations that go beyond

the information given.

Inferences are influenced by: Context, goals, prior knowledge,

personal experiences

Marketing Implications brand extensions priming

What flavor is this ice cream cone?

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Elaboration

Elaboration: the extent to which perceptual stimuli are integrated with prior knowledge structure High levels of elaboration lead to counterarguing,

problem-solving, day-dreaming, and fantasizing Low levels of elaboration involve simple recognition

A boomerang effect occurs when the attitude change is opposite to that advocated in the persuasive message.

Schema and Scripts

Consumers store in their memory categorized information about objects

Schema: a set of expectations maintained by consumers that provides a structure for evaluating and interpreting incoming information

Scripts: appropriate behaviors or steps that we expect to go through in order to perform a familiar task

Perception and Images

Image: the functional and psychological portrait that a stimulus paints in consumers’ minds

Imagery: the process by which we visualize sensory information in our working memory Imagery plays a vital role in promotion In advertising, imagery is created largely through illustrations Imagery enhances comprehension and increases recall Image protection, restoration, and enhancement are

necessary strategies in today’s marketplaceBrand equity: the added value that a brand name

brings to a product beyond the item’s functional value

Q. 5. What are the perceptual judgments and their relation to

marketing strategies?

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Perceptions of Quality

Intrinsic Cues of Product QualityExtrinsic Cues of Product Quality:

Brand namePriceStore imageManufacturer’s imageCountry of origin image

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Product-Country Image Effects

Product-Country image effects reflect consumers’ use of country of origin or country of manufacture as a cue to infer beliefs about product attributes.

Product-Country image (PCI) is a schematic mental representation of a country’s people, products, culture, and national symbols.

Consumer voting captures the normative dimension of product-country images. By deciding to purchase or avoid a country’s products, consumers “vote” for or against the policies of its government.

Perception Video

Selective Attention Test of Perception

Q. 6. What are the five classes of situational variables?

Situational Influences on Perception

Situational variables are environmental circumstances that constitute the context within which purchases occur

They include: Physical surroundings Social surroundings Task definition Time perspective Antecedent state

Q. 7. What are the components of price perception?

Price Perception

Reference Price/Standard Price Acceptable price range Reservation price Expected price range

Q. 8. Define Interpretation.

Interpretation

The assignment of meaning to sensations.

Q. 9. What are the two kinds of interpretation?

Interpretation

Cognitive Affective

Q. 10. What are the five types of risks that consumers

experience?

Risk Perception

Any task we perform involves riskFive types of perceived risk:

Functional risk Financial risk Physical risk Social risk Psychological risk

Perception Videos

Perception of RealityPerception of Beauty