Information Processing II

8/6/2019 Information Processing II

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Consumer BehaviorConsumer BehaviorInformation Processing IIInformation Processing II


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Learning ConceptsLearning Concepts

JNDJND

Webers LawWebers Law

MarketingMarketingImplications ofJNDImplications ofJND&Webers Law&Webers Law

The Butterfly CurveThe Butterfly Curve

MarketingMarketingImplications of theImplications of theButterfly CurveButterfly Curve

Types of AttentionTypes of Attention

CapturingCapturingConsumerConsumerAttentionAttention

PerceptualPerceptualOrganizationOrganization

StimulusStimulusOrganizationOrganization

SemieoticsSemieotics


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The Just NoticeableThe Just Noticeable

Difference Threshold (JND) . .Difference Threshold (JND) . .

..... is the minimal amount of... is the minimal amount ofdifference in intensity of a stimulusdifference in intensity of a stimulus

that can be detected 50% of thethat can be detected 50% of thetime.time.

Examples: changing size ofExamples: changing size of

packages, changing taste, changingpackages, changing taste, changingthe quality of sound, or touch, orthe quality of sound, or touch, orsmell of a product.smell of a product.


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WebersLaw

A theory concerning theperceived differentiation

between similar stimuli of

varying intensities (i.e., thestronger the initial stimulus,

the greater the additional

intensity needed for the

second stimulus to be

perceived as different).


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Marketing ApplicationsMarketing Applications

of the JNDof the JND Companies need to determine theCompanies need to determine the

relevant JND for their products:relevant JND for their products: so that negative changes are not readilyso that negative changes are not readily

discernible to the publicdiscernible to the public so that product improvements are veryso that product improvements are very

apparent to consumersapparent to consumers


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Webers Law and the JNDWebers Law and the JND

Weber's Law states that as the intensity ofWeber's Law states that as the intensity ofthe stimulus increases, the ability tothe stimulus increases, the ability todetect a difference between the two levelsdetect a difference between the two levels

of the stimulus decreases.of the stimulus decreases. JND: Just Noticeable DifferenceJND: Just Noticeable Difference

JND = Intensity X Constant (.20 rule ofJND = Intensity X Constant (.20 rule ofthumb)thumb)

How much to lower price of $20,000How much to lower price of $20,000car?car?

Is pricing JND? No!! It is justIs pricing JND? No!! It is justmeaningful difference.meaningful difference.


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Marketing examples of the JNDMarketing examples of the JND

PricingPricing:: When raising price, move less than JNDWhen raising price, move less than JND

When lowering the price for sale, moveWhen lowering the price for sale, movemore than JNDmore than JND

Sales Promotion:Sales Promotion: Make coupons larger thanMake coupons larger thanJNDJND

Product:Product:Make decreases in size of packagingMake decreases in size of packagingless than JND; when the word new isless than JND; when the word new isused make sure the product change isused make sure the product change is

greater than JNDgreater than JNDPackaging:Packaging: To update package styling andTo update package styling and

logo keep within JNDlogo keep within JND

To change Image, make styling changesTo change Image, make styling changesgreater than JNDgreater than JND


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Betty Crocker Changes Fall BelowBetty Crocker Changes Fall Below

the J.N.Dthe J.N.D..


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Gradual ChangesGradual Changes

in Brand Name Fallin Brand Name Fall

Below the J.N.DBelow the J.N.D..


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Consumer Adaptation . . .Consumer Adaptation . . .

... is the amount or level of the... is the amount or level of thestimulus to which the consumer hasstimulus to which the consumer has

become accustomed.become accustomed.

A reference point to which changes inA reference point to which changes in

the level of the stimulus are compared.the level of the stimulus are compared.


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The Butterfly Curve . . .The Butterfly Curve . . .

... is the idea that... is the idea thatsomething slightly differentsomething slightly different

may be perceived moremay be perceived morepositively.positively.

Liking

Stimulus intensity

High

Low


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The Attention StageThe Attention Stage

Before consumers can comprehendBefore consumers can comprehendand remember information, theyand remember information, theymust first attend to it.must first attend to it.

Attention involves the allocation ofAttention involves the allocation ofcognitive capacity to an object or taskcognitive capacity to an object or taskso that information is consciouslyso that information is consciously

processed.processed. The more demanding the task, greaterThe more demanding the task, greater

the amount of attention that will bethe amount of attention that will befocused on it.focused on it.


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Marketing Application of Butterfly CurveMarketing Application of Butterfly Curve

Marketing applicationMarketing application

i.i. Why fashion trends change soWhy fashion trends change sooften?often?

ii.ii. Why radical fashions are adaptedWhy radical fashions are adaptedslowly?slowly?

iii.iii. Spontaneous brand switchingSpontaneous brand switching

iv.iv. Periodical change in corporate logosPeriodical change in corporate logosand other corporate symbols toand other corporate symbols togive a fresh lookgive a fresh look


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Types of AttentionTypes of Attention

PrePre--attention is an unconsciousattention is an unconsciousprocess in which consumersprocess in which consumersautomatically scan the features of theautomatically scan the features of theenvironment.environment.

Attention can be voluntary orAttention can be voluntary orinvoluntary.involuntary. Selective attention is voluntarily &Selective attention is voluntarily &

selectively focusing on relevantselectively focusing on relevant

information.information. Orientation reflex is the involuntary reflexOrientation reflex is the involuntary reflex

when something surprising or novel iswhen something surprising or novel ispresented one turns toward and allocatespresented one turns toward and allocates

attention to it.attention to it.


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Capturing Customers AttentionCapturing Customers Attention

Goal is to activateGoal is to activatethe orientationthe orientation

reflex by creatingreflex by creatingstimuli thatstimuli thatsurprise, threaten,surprise, threaten,annoy,or violateannoy,or violate

the expectation ofthe expectation ofconsumers.consumers.


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UnexpectedUnexpected

AttractsAttracts

AttentionAttention


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Unexpected catches attentionUnexpected catches attention


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rabbing Consumer AttentionGrabbing Consumer Attention Connect with consumer needsConnect with consumer needs

Reminding them of their needs before showingReminding them of their needs before showingthem how the product can satisfy needsthem how the product can satisfy needs

Snickers TV advertisement starts with theSnickers TV advertisement starts with thequestion, Hungry?. Viewers are then instructedquestion, Hungry?. Viewers are then instructedto grab snickers as they see a human handto grab snickers as they see a human hand

voraciously devour the productvoraciously devour the product Look ! It movesLook ! It moves

Colors are niceColors are nice

Make it more intense (Loud sounds, bright colors)Make it more intense (Loud sounds, bright colors)

Make it BiggerMake it Bigger DistinctivenessDistinctiveness

Contrast with other elements in the perceptualContrast with other elements in the perceptualfield in which the object appears (Using differentfield in which the object appears (Using differentcolors and shapes in packagingcolors and shapes in packaging


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Grabbing Consumer AttentionGrabbing Consumer Attention

Location! Location! Location:Location! Location! Location:Products located at the end of the aisle or onProducts located at the end of the aisle or onshelves at eye level stand better chance of gettingshelves at eye level stand better chance of gettingattentionattention

An ads location in the magazine influencesAn ads location in the magazine influences

attentionattentionGreater attention is given to the ad in the frontGreater attention is given to the ad in the frontpart than in the back part of magazine, on rightpart than in the back part of magazine, on righthand pages than on left hand page, and on thehand pages than on left hand page, and on theinside front, inside back, and outside back coversinside front, inside back, and outside back covers

For smaller ads, upper left hand corner of the pageFor smaller ads, upper left hand corner of the pagegets the maximum attention whereas lower rightgets the maximum attention whereas lower righthand corner is least likely to get attentionhand corner is least likely to get attention

The surprise factorThe surprise factor

The Human Attraction ( Showing attractiveThe Human Attraction ( Showing attractiveendorsersendorsers


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Grabbing Consumer AttentionGrabbing Consumer Attention

The entertainment factorThe entertainment factor

LearnedAttention inducing stimuliLearnedAttention inducing stimuli

Some stimuli attract our attention because weSome stimuli attract our attention because we

have been taught or conditioned to react tohave been taught or conditioned to react tothemthem

Ringing phone or doorbellRinging phone or doorbell

Certain words or phrases are associated withCertain words or phrases are associated with

things we desire, e.g., word free

with wordsthings we desire, e

.g., word free

with wordsthat show saving money, Clearance Sale,that show saving money, Clearance Sale,

Special offer or 50% Off Special offer or 50% Off

Look for less cluttered environmentLook for less cluttered environment


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Aspects of PerceptionAspects of Perception

Selection

Organization

Interpretation


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The Comprehension Stage . . .The Comprehension Stage . . .

... is the process in which... is the process in whichindividuals organize and interpretindividuals organize and interpretinformationinformation

Perceptual organization is the way peoplePerceptual organization is the way peopleperceive the shapes, forms, figures, andperceive the shapes, forms, figures, andlines in their visual world.lines in their visual world.

Interpretation process is how people drawInterpretation process is how people drawupon their experience, memory, andupon their experience, memory, andexpectations to attach meaning to aexpectations to attach meaning to astimulus.stimulus.


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Perceptual OrganizationPerceptual Organization

GestaltGestaltpsychologistspsychologists

attempted toattempted toidentify the rulesidentify the rulesthat govern howthat govern howpeople takepeople take

disjointed stimulidisjointed stimuliand make sense outand make sense outof them. (The analof them. (The analretentive artistretentive artist

Esher)Esher)


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Stimulus OrganizationStimulus Organization

One factor that determines how a stimulus willOne factor that determines how a stimulus will

be interpreted is its assumed relationship withbe interpreted is its assumed relationship withother events, sensations, or images.other events, sensations, or images.

1). Our brains tend to relate incoming1). Our brains tend to relate incomingsensations to others already in memory basedsensations to others already in memory based

on some fundamental organizationalon some fundamental organizationalprinciples.principles.

a). These principles are based on gestalta). These principles are based on gestaltpsychology (meaning is derived from totalitypsychology (meaning is derived from totalityof a set of stimuli). In German,of a set of stimuli). In German,gestaltgestaltmeans whole, pattern, or configuration.means whole, pattern, or configuration.

b). Sometimes the whole is greater than theb). Sometimes the whole is greater than thesum of its parts.sum of its parts.


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Principles include:Principles include:

a).

Thea).

Thec

losure princ

iplec

losure princ

iple----people tendpeople tendto perceive an incomplete picture asto perceive an incomplete picture ascomplete. We fill in the blanks.complete. We fill in the blanks.

b). Theb). Theprinciple of similarityprinciple of similarity----

consumers tend to group objects thatconsumers tend to group objects thatshare similar physical characteristics.share similar physical characteristics.

c). Thec). The figurefigure--ground principleground principle----statesstatesthat one part of a stimulus willthat one part of a stimulus will

dominate (the figure) while other partsdominate (the figure) while other partsrecede into the backdrop (therecede into the backdrop (thebackground).background).


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Figure-ground we need to separate a dominantshape (a 'figure' with a definite

contour)Is the figure a white vase on ablack background or silhouettedprofiles on a white background?

we tend to favor one interpretation

over the other (though altering theamount of black or white which isvisible can create a bias towards oneor the other)

When we have identified a figure,

the contours seem to belong to it,and it appears to be in front of theground.


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Billboard for Wrangler Jeans Makes CreativeBillboard for Wrangler Jeans Makes Creative

use of the Figureuse of the Figure--Ground PrincipleGround Principle


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An Ad forAn Ad for AbsolutAbsolut Vodka using the figureVodka using the figure

ground principleground principle


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proximity

What you are likely tonotice fairly quicklyis that this is not justa square pattern of

dots but rather is aseries of columns of dots.The principle ofproximityis thatfeatures which

are close togetherare associated.

Here we arelikely to

group thedots togetherin rows.


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We are more likely to associatethe lines which are closetogether than those which arefurther apart. In this examplewe tend to see three pairs of

lines which are fairly closetogether (and a lonely line onthe far right) rather than threepairs of lines which are furtherapart (and a lone line on thefar left).


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similarity

Here the little circles and squares are evenly spaced bothhorizontally and vertically so proximity does not come into

play.However, we do tend to see alternating columns of circles andsquares.This is because of the principle of similarity - features whichlook similar are associated.Without the two different recurrent

features we would see either rows or columns or both...


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continuity

This principle is thatcontours based on smoothcontinuity are preferred toabrupt changes ofdirection.

Here, for instance, we aremore likely to identify linesa-b and c-d crossing thanto identify a-d and c-b ora-c and d-b as lines.


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Closure Interpretations, which produce'closed' rather than 'open' figures are favored.

Here we tend to see three broken rectangles(and a lonely shape on the far left) ratherthan three 'girder' profiles (and a lonely shapeon the right).

In this case the principle of closure cutsacross the principle of proximity, since if weremove the bracket shapes, we return to animage used earlier to illustrate proximity...


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This Ad Demonstrates the Use of Closure: PeopleThis Ad Demonstrates the Use of Closure: People

Have to Mentally Fill in the Gaps in the SentenceHave to Mentally Fill in the Gaps in the Sentence


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ScotchScotch--BriteBrite..

Cleans really cleanCleans really clean..

An ad using theAn ad using theclosure principleclosure principle


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An ad featuring theAn ad featuring the

similarity/proximity principlessimilarity/proximity principles


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Interpretation . . .Interpretation . . .

...is trying to gain...is trying to gain

an understandingan understandingof somethingof somethinggarnering ourgarnering ourattentionattention


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InterpretationInterpretation

Arrives at an understanding of what stimulus is.Arrives at an understanding of what stimulus is.Retrieved from long term memory informationRetrieved from long term memory informationpertinent to the stimulus, as well as expectanciespertinent to the stimulus, as well as expectanciesregarding what the stimulus should be like.regarding what the stimulus should be like.

Personal inclination and biases also influencePersonal inclination and biases also influenceconsumer interpretation of the stimulusconsumer interpretation of the stimulusRole ofExpectation:Role ofExpectation:Expectations are a persons prior beliefs aboutExpectations are a persons prior beliefs aboutwhat should happen in a given situation (a vanillawhat should happen in a given situation (a vanilla

pudding in dark brown color was perceived to bepudding in dark brown color was perceived to bethe most tasting chocolate pudding)the most tasting chocolate pudding)


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Conceptual Relationship of Price Effect

Objective

Price

Perceptionof price

Perceived

Quality

Perceived

Sacrifice

Perceived

value

Willingness

to Buy

+

_

+

_

+_


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BrandName

Perceptionof Brand

+

Store

Name

Perception

of Store+

Objective

Price

Perception

ofPrice

+ Perceived

Quality

+

Perceived

Value

+

_

Willingness

to Buy

Perceived

Sacrifice __

Expanded Conceptualization to Include Brand and

Store Name


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Price Quality RelationshipPrice Quality Relationship

High price indicates high quality under followingHigh price indicates high quality under followingcircumstances:circumstances:

1.1. The consumer has some confidence that inThe consumer has some confidence that inthis situation price predicts qualitythis situation price predicts quality

2.2. There are real or perceived quality variationsThere are real or perceived quality variationsamong the brandsamong the brands

3.3. Actual quality is difficult to judge byActual quality is difficult to judge byobjective meansobjective means

4.4. Larger differences in price have greaterLarger differences in price have greaterimpact on perceived quality than do smallerimpact on perceived quality than do smallerdifferencesdifferences

5.5. Consumers use price as indicator of qualityConsumers use price as indicator of qualitymore frequently for familiar brands than formore frequently for familiar brands than forunfamiliar brandsunfamiliar brands


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SemioticsSemiotics -- the symbols around usthe symbols around us

The field of study that examines theThe field of study that examines thecorrespondence between signs and symbolscorrespondence between signs and symbolsand their role in the assignment of meaning.and their role in the assignment of meaning.

Every marketing message has three basicEvery marketing message has three basiccomponents:components:

1.1. ObjectObject -- is the product that is the focus ofis the product that is the focus ofthe message ( Marlboro cigarettes)the message ( Marlboro cigarettes)

2.2. SignSign -- is the sensory imagery thatis the sensory imagery thatrepresents the intended meaning of therepresents the intended meaning of theobject( Marlboro cowboy)object( Marlboro cowboy)

3.3. InterpretantInterpretant -- the meaning derived ( rugged,the meaning derived ( rugged,individualistic, American)individualistic, American)


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Marlborocigarettes

Cowboy

Rugged

American

Sign

( image)

Intrepretant

(meaning)

Object ( product)


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Semiotics: Key ConceptsSemiotics: Key Concepts

Signs: words, gestures, pictures,Signs: words, gestures, pictures,and other symbols that conveyand other symbols that conveymeaning.meaning.

Semiosis analysis to identifySemiosis analysis to identifymeanings transmitted.meanings transmitted.

Focus groups provide methodology.Focus groups provide methodology.

CrossCross--cultural translations.cultural translations.


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Perceptions and Marketing StrategyPerceptions and Marketing Strategy

Brandname and logodevelopment:Brandname and logodevelopment:Create names that convey appropriateCreate names that convey appropriatemeaning for productsmeaning for products

Compaq:Compaq: comcom means computer andmeans computer and

communication,communication, paqpaq mean compact.mean compact.Unique spellings attract attention andUnique spellings attract attention andgive scientific impressionsgive scientific impressions

In general, concrete terms with relevant,In general, concrete terms with relevant,established visual images are easy toestablished visual images are easy torecognize and recallrecognize and recall


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Perceptions and MarketingPerceptions and Marketing

StrategyStrategyRetailers use exposure very affectivelyRetailers use exposure very affectively

i.i. Frequently soughtFrequently sought--out items separatedout items separated

ii.ii. High margin items are often placed in highHigh margin items are often placed in hightraffic areas to capitalize on increased exposuretraffic areas to capitalize on increased exposure

iii.iii. Shelf position and amount of shelf spaceShelf position and amount of shelf spaceinfluence which items and brands are allocatedinfluence which items and brands are allocatedattentionattention

iv.iv. Point of purchase displays to attract attentionPoint of purchase displays to attract attention

to sale and highto sale and high--margin itemsmargin itemsv.v. Stores are designed with highly visible shelvesStores are designed with highly visible shelves

and overhead signs to make locating items asand overhead signs to make locating items aseasy as possibleeasy as possible


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Perceptions and Marketing StrategyPerceptions and Marketing Strategy

c.c. Media strategy: the fact that exposure process isMedia strategy: the fact that exposure process isselective rather than random is the underlying basis forselective rather than random is the underlying basis foreffective mediaeffective media--strategystrategy

i.i. Determine which media the consumers in target areDetermine which media the consumers in target aremost frequently exposed to and then place the ad in thatmost frequently exposed to and then place the ad in thatmediamedia

ii.ii. For high involvement products, consumers would look forFor high involvement products, consumers would look formore information; print media is the best selectionmore information; print media is the best selection

iii.iii. For low involvement products, TV advertisements may beFor low involvement products, TV advertisements may bemost suitedmost suited

d.d. Advertisement Design: For low involvement products:Advertisement Design: For low involvement products:

i.i. Utilize stimulus characteristics, full page, bright colors,Utilize stimulus characteristics, full page, bright colors,animated cartoons etc.animated cartoons etc.

ii.ii. Tie the message to a topic the target market isTie the message to a topic the target market isinterested in e.g. celebrities, humor, sex etc.interested in e.g. celebrities, humor, sex etc.

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Information Processing II