6. Consumer Perceptions

7/28/2019 6. Consumer Perceptions

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Chapter 6

Consumer Perception


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6-2

Perception

The process by which

an individual selects,organizes, and

interprets stimuli into

a meaningful andcoherent picture of

the world

How we see the

world around us


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Elements of Perception

Sensation

Absolute threshold

Differential threshold Subliminal perception


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Sensation

The immediate anddirect response of the

sensory organs to

stimuli.

A perfectly unchanging

environment provides

little to no sensation atall!


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Figure 6.1

IncreasedSensory

Input


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WebersLaw

A theory concerning theperceived 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 beperceived 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 readilydiscernible to the public

so that product improvements are very apparentto consumers


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Figure 6.2 Betty Crocker Changes Fall

Below the J.N.D.


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Figure 6.3 Gradual

Changes in BrandName Fall Below the

J.N.D.


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Subliminal Perception

1957: Drive-In Movie Theater

1974: Publication of Subliminal Seduction

1990s: Allegations against Disney


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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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Figure 6.5

SubliminalEmbedding


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Aspects of Perception

Selection

Organization

Interpretation


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Perceptual Selection

Depends on two major factors

Consumers previous experience

Consumers motives


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Concepts Concerning Selective

Perception

Selective Exposure

Selective Attention Perceptual Defense

Perceptual BlockingGestalt

Psychology


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Figure 6.7 The

UnexpectedAttracts

Attention


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Influences of Perceptual Distortion

Physical Appearances

Stereotypes

First Impressions Jumping to Conclusions

Halo Effect


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Figure 6.10 Ads Depicting

Stereotypes


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Issues In Consumer Imagery

Product Positioning and Repositioning

Positioning of Services

Perceived Price Perceived Quality

Retail Store Image

Manufacturer Image Perceived Risk


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Figure 6.12

Using Imagery


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Positioning

Establishing a

specific image for abrand in relation to

competing brands.


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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


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Apples 1984 Ad Positions

Against the Competition

Click icon to reach ad


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PerceptualMapping

A research technique

that enables

marketers to plot

graphically

consumersperceptions

concerning product

attributes of specificbrands.


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Figure 6.14 Perceptual Mapping

More

Artwork

More

Copy

Fashion Coverage

Club Coverage

Splash

Crash

Fashion

Splash

Bash


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Table 6.2 Pricing Strategies

Focused on Perceived Value

Satisfaction-based Pricing Relationship Pricing

Efficiency Pricing


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Issues in Perceived Price

Reference prices Internal

External Tensile and objective price claims

Was $199

Now $99

Sale!

20%

to70%

Off!


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Tensile and Objective

Price Claims Evaluations least

favorable for ads stating

the minimum discountlevel

Ads stating maximumdiscount levels are betterthan stating a range

Save 10% or more

Save upto 50%


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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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Characteristics of Services

Intangible

Variable

Perishable

Simultaneously

Produced andConsumed


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Table 6.3 SERVQUAL Dimensions forMeasuring Service Quality

DIMENSION DESCRIPTION

Tangibles Appearance of physical facilities,

equipment, personnel, and communication materials

Reliability Ability to perform the promised servicedependably 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 6.15

Ad

EmphasizingTangible

Cues


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Figure 6.16 Conceptual Model of theConsequences of Service Quality

Superior

Inferior

Favorable

Unfavorable

Remain

Behavior

Defect

+$Ongoing Revenue

Increased

SpendingPrice Premium

Referred

CustomersFinancial

Consequences

-$

DecreasedSpending

Lost Customers

Costs to Attract

New Customers

Service

Quality

Behavioral

Intentions

Focus of present study

Empirical links demonstrated in macro studies


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Price/QualityRelationship

The perception of

price as an indicator

of product quality

(e.g., the higher theprice, the higher the

perceived quality of

the product).


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Figure 6.17 Conceptual Model of the Effects ofPrice, Brand Name, and Store Name on

Perceived ValueObjectiv

e Price

Perception

of Price

Perceived

Sacrifice

Perceived

Quality

Perceived

Value

Willingness

to Buy

A. Conceptual Relationship of Price Effect

+

++

+

--


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Figure 6.17 continued

B. Extended Conceptualizationto Include Brand Name and

Store Name

Store

Name

Brand

Name

Perception

of Store

Perception

of Brand

+

+

Objectiv

e Price

Perception

of Price

Perceived

Sacrifice

Perceived

Quality

Perceived

Value

Willingness

to Buy

+

+

+

+

-

-


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Perceived Risk

Types

Functional Risk

Physical Risk Financial Risk

Psychological Risk

Time Risk

The degree of

uncertainty

perceived by theconsumer as to the

consequences

(outcome)of a specific

purchase decision.


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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

Documents

6. Consumer Perceptions