CHAPTER-SIX

Consumer Perception
 Learning Objectives
• To understand the sensory dynamics of
perception.
• To learn about the three elements of
perception.
• To understand the components of
consumer imagery and their strategic
applications.

Chapter Six Slide

 Perception
• Perception is how we see the world around us. You and
your friend might see the same person, thing, or event yet
you will interpret in different ways depending on your own
needs, values, and expectations. Perception is all about
consumers’ subjective understandings and not objective
realities.
• It is the process by which an individual selects, organizes,
and interprets stimuli into a meaningful and coherent picture
of the world
• Elements of Perception
– Sensation
– Absolute threshold
– Differential threshold
– Subliminal perception
Chapter Six Slide
 Sensation
• Sensation is the immediate and direct response of
the sensory organs[eyes, ears, nose, mouth, and
skin] to stimuli
– A stimulus is any unit of input to any of the
senses. eg., products, packages, brand names,
advertisements, and commercials.
• Most marketing communications focuses on sight
and sound.
• The absolute threshold is the lowest level at
which an individual can experience a sensation.
Chapter Six Slide
 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 instance, the distance at which a driver can note a
specific billboard on a highway is that individual’s
absolute threshold. Two persons riding together may
first spot the billboard at different distances.
 Differential Threshold
(Just Noticeable Difference – j.n.d.)
• Minimal difference that can be detected
between two similar stimuli
• Weber’s law
– The j.n.d. between two stimuli is not an
absolute amount but an amount relative to the
intensity of the first stimulus
– The stronger the initial stimulus, the greater
the additional intensity needed for the second
stimulus to be perceived as different.

Chapter Six Slide

 Differential Threshold
(Just Noticeable Difference – j.n.d.)
– For example, if a marketer of a 16-ounce bag of whole-
wheat pasta raises the price from $3.99 to $4.25, most
consumers will notice.
– Therefore, instead of raising the price, the marketer leaves
the price unchanged, but lowers the quantity to 13.25
ounces per bag. Because this change is relatively small—
that is, below the JND—most consumers will not notice it,
unless they look at the package carefully.
– when you buy a low-priced product like a cup of coffee
from Starbucks a $1 increase in your tall coffee would be
noticed by you. But if you were buying a laptop whose
price changed from $455 to $456 you might not even
notice.
Chapter Six Slide
 Marketing Applications of the
J.N.D.
• Marketers need to determine the relevant j.n.d. for their
products
– so that negative changes[increase price or reduce package size] are
not readily noticeable to the public
– so that product improvements are very apparent to consumers
– When a marketer make positive changes to the product, he/she make
this change is noticeable to the end consumer but does not cost the
marketer excessive amounts of money.

Chapter Six Slide

 Subliminal Perception
• Stimuli that are too weak or too brief to be
consciously seen or heard
– They may be strong enough to be perceived by
one or more receptor cells.
• Is it effective?
– Extensive research has shown no evidence that
subliminal advertising can cause behavior
changes
– Some evidence that subliminal stimuli may
influence affective reactions
Chapter Six Slide
 Aspects of Perception

Selection

Organization

Interpretation

Chapter Six Slide

 Perceptual Selection
• Includes the product’s physical
Nature of the attributes, package design, brand
stimulus name, advertising and more…

• Based on familiarity, previous

Expectations experience or expectations.

• Needs or wants for a product or

Motives service.

Chapter Six Slide

 Discussion Questions
• What marketing stimuli do you remember
from your day so far?
• Why do you think you selected these
stimuli to perceive and remember?

Chapter Six Slide

 Perceptual Selection
Important Concepts
Selective Selective Perceptual Perceptual
Exposure Attention Defense Blocking
• Consumers • Heightened • Screening out • Consumers
seek out awareness of stimuli avoid being
messages when stimuli which are bombarded
which: meet their threatening by:
• Are needs • Tuning out
pleasant • Consumers • TiVo
• They can prefer
sympathize different
• Reassure messages and
them of medium
good
purchases

Chapter Six Slide

 Organization
• People tend to organize perceptions into
Principles
• figure-and-ground
Figure and ground relationships.
•• The ground is usually hazy.
Grouping
•• Marketers
Closure usually design so the figure is
the noticed stimuli.

Chapter Six Slide

 Organization
• People group stimuli to form a unified
Principles
• impression
Figure and or concept.
• Grouping
ground helps memory and recall.
• Grouping
• Closure

Chapter Six Slide

 Organization
• People have a need for closure and
Principles
• organize perceptions
Figure and ground to form a complete
• picture.
Grouping
•• Will often fill in missing pieces
Closure
• Incomplete messages remembered more
than complete

Chapter Six Slide

 What Element of Perceptual
Organization Is Featured in This Ad?

Chapter Six Slide

Closure

Chapter Six Slide

 Discussion Question
• Do you agree you remember more of what
you have NOT completed?
• How might a local bank use this in their
advertising?

Chapter Six Slide

 Interpretation
• People hold meanings related to stimuli
Stereotypes
Stereotypes
Physical
PhysicalAppearances
Appearances
Descriptive
DescriptiveTerms
Terms
First
FirstImpressions
Impressions
Halo
HaloEffect
Effect

Chapter Six Slide

 Interpretation
• Positive attributes of people they know to
those who resemble them
Stereotypes
Stereotypes
• Important
Physical for model selection
Appearances
Physical Appearances
Descriptive
Descriptive Terms
Terms
First
FirstImpressions
Impressions
Halo
HaloEffect
Effect

Chapter Six Slide

 Interpretation
• Verbal messages reflect stereotypes

Stereotypes
Physical
Appearances
Descriptive Terms

First Impressions

Halo Effect

Chapter Six Slide

 How Does This Ad
Depict Perceptual Interpretation?

Chapter Six Slide

It Contrasts the Powerful Durango with
Less Rugged Referred to in the Ad as
the “Land Of Tofu.”

Chapter Six Slide

 Interpretation
• First impressions are lasting
Stereotypes
• The perceiver is trying to determine which
Stereotypes
stimuli
Physical are relevant, important, or
Appearances
Physical Appearances
predictive
Descriptive
DescriptiveTerms
Terms
First
FirstImpressions
Impressions
Halo
HaloEffect
Effect

Chapter Six Slide

 Interpretation
• Consumers perceive and evaluate multiple
objects based on just one dimension
Stereotypes
Stereotypes
Physical Appearances
Physical Appearances
Descriptive
DescriptiveTerms
Terms
First
FirstImpressions
Impressions
Halo
HaloEffect
Effect

Chapter Six Slide

 Product Positioning
• Establishing a specific image for a brand in
the consumer’s mind in relation to
competing brands
• Conveys the product in terms of how it
fulfills a need
• Successful positioning creates a
distinctive, positive brand image

Chapter Six Slide

Which Concepts of Perception Are
Applied in These Ads?

Chapter Six Slide

The Principle Of Contrast

Chapter Six Slide

 Packaging as a Positioning
Element
• Packaging conveys the image that the
brand communicates to the buyer.
• Color, weight, image, and shape are all
important.
• Repositioning might be necessary because:
– Increased competition
– Changing consumer tastes

Chapter Six Slide

 Perceptual Mapping
• An analytical technique that enables
marketers to plot graphically consumers’
perceptions concerning product attributes
of specific brands

Chapter Six Slide

Perceptual Mapping
Figure 6.9

Chapter Six Slide

 Positioning of Services
• Image is a key factor for services
• Services often want a differentiated
positioning strategy to market several
versions of their service to different
markets.

Chapter Six Slide

Which elements of this ad convey
the restaurant’s perceptual position
and how?

Chapter Six Slide

The steak knife and the reference to
vegetarians convey the position of the
restaurant as a well-established steakhouse

Chapter Six Slide

 Perceived Price and Perceived
Quality
• Reference prices – used as a basis for
comparison in judging another price
– Internal
– External
• Perceived Quality of Products
– Intrinsic vs. Extrinsic Cues

Chapter Six Slide

 Three Pricing Strategies
Focused on Perceived Value - Table 6.4
Pricing Provides Value By… Implemented As…
Strategy
Satisfaction-based Recognizing and reducing Service guarantees
pricing customers’ perceptions of Benefit-driven pricing
uncertainty, which the intangible Flat-rate pricing
nature of services magnifies
Relationship pricing Encouraging long-term Long-term contracts
relationships with the company Price bundling
that customers view as
beneficial
Efficiency pricing Sharing with customers the cost Cost-leader pricing
savings that the company has
achieved by understanding,
managing, and reducing the
costs of providing the service

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 37
Measuring Perceptions of
Brand Luxury

Chapter Six Slide

 Perceived Quality of Services
• Difficult due to characteristics of services
– Intangible
– Variable
– Perishable
– Simultaneously Produced and Consumed
• SERVQUAL scale used to measure gap between
customers’ expectation of service and perceptions
of actual service

Chapter Six Slide

 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.)

Chapter Six Slide

How Can This Ad Affect the
Service’s Perceived Quality?

Chapter Six Slide

It Uses a Process Dimension in Advertising a
Newly-Formed Business Class on an Airline

Chapter Six Slide

 Discussion Questions
• When have you used price as an indicator
of quality?
• Were you correct?

Chapter Six Slide

 Which of the Ad’s Elements
Conveys the Product’s Quality?

Chapter Six Slide

The Slogan on the Ad’s Bottom Left
Reads “Perfection Has Its Price”

Chapter Six Slide

 Retail Store Image
Brands Level of
carried Prices service

Store Product
ambiance Clientele assortment

Discounts

Chapter Six Slide

 Manufacturer’s Image
• Favorable image tied to new product
acceptance
• Companies sponsor community events to
enhance images
• Product and institutional images

Chapter Six Slide

 Perceived Risk
• The degree of uncertainty perceived by the
consumer as to the consequences (outcome) of a
specific purchase decision
• Types
– Functional Risk
– Physical Risk
– Financial Risk
– Social Risk
– Psychological Risk
– Time Risk
Chapter Six Slide
 How Consumers Handle Risk
• Seek Information
• Stay Brand Loyal
• Select by Brand Image
• Rely on Store Image
• Buy the Most Expensive Model
• Seek Reassurance

Chapter Six Slide