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Chapter 6

Consumer Behavior,Consumer Behavior,Eighth EditionEighth Edition

SCHIFFMAN & KANUK

Consumer Perception

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Perception

•The process by which an individual selects,

organizes, and interprets stimuli into a

meaningful and coherent 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 and direct response of the

sensory organs to stimuli.

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sensation

• Stimulus:- any unit of input to any of the senses e.g. products, packages, brand names,

• Sensory receptors:- human organs

• 83% of all communications today appeal to sight; also that smell is the second most important sensory input

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The absolute threshold• The lowest level at which an individual can

experience a sensation

• The point at which a person can detect the difference between something & nothing

• E.g. the distance at which a driver can note a specific billboard on a highway

• As exposure to the stimulus increases it is noticed less (sensory adaptation, getting used to)

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Sensory adaptation• Sensory adaptation is a problem concerned

by many advertisers

• Therefore they try to change their ads regularly

• To cut through ad clutters some try to increase sensory input

• e.g. buying all the ad space in an issue of a magazine

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The differential threshold

• The minimal difference that can be detected between two similar stimuli is called the differential threshold or j.n.d

• Weber`s discovered that j.n.d between two stimuli is not an absolute amount, but an amount relative to the intensity of the first stimulus

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Weber’s Law

A theory concerning the perceived 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 be

perceived as different).

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• If you lift up and hold a weight of 2.0 kg, you will notice that it takes some effort. If you add to this weight another 0.05 kg and lift, you may not notice any difference between the apparent or subjective weight between the 2.0 kg and the 2.1 kg weights.

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• If you keep adding weight, you may find that you will only notice the difference when the additional weight is equal to 0.2 kg. The increment threshold for detecting the difference from a 2.0 kg weight is 0.2 kg. The just noticeable difference (jnd) is 0.2 kg.

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• Now start with a 5.0 kg weight. If you add weight to this, you will find that the just noticeable difference is 0.5 kg. It takes 0.5 kg added to the 5.0 kg weight for you to notice an apparent difference.

• For the weight of magnitude, I, of 2.0 kg, the increment threshold for detecting a difference was a ∆ I (pronounces, delta I) of 0.2 kg. For the weight of magnitude, I = 5.0 kg, the increment threshold ∆ I = 0.5 kg.

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Weber's Law

• The ratio of ∆ I /I for both instances (0.2/2=0.5/5=0.1) is the same

• Weber's Law states that the ratio of the increment threshold to the background intensity is a constant. So when you are in a noisy environment you must shout to be heard while a whisper works in a quiet room.

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Weber's Law

• And when you measure increment thresholds on various intensity backgrounds, the thresholds increase in proportion to the background.

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Weber's Law

• Webber's law can be applied to a variety of sensory modalities(brightness, loudness, mass, line length etc)

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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 readily

discernible (noticeable) to the public– so that product improvements are very apparent

to consumers– J.n.d is used to determine the amount of

improvement marketers should make in their products

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Figure 6.3 Gradual Changes in Brand

Name Fall Below the J.N.D.

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Subliminal Perception

Perception of very weak or rapid stimuli received below the level of conscious

awareness.

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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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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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Figure 6.7 The Unexpected

Attracts Attention

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Principles of Perceptual Organization

• Figure and ground• Grouping• Closure

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Influences of Perceptual Distortion (misrepresentation)• 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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Positioning

Establishing a specific image for a brand in relation to competing brands.

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Figure 6.13 Repositioning

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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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Perceptual Mapping

A research technique that enables

marketers to plot graphically consumers’ perceptions

concerning product attributes of specific

brands.

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Figure 6.14 Perceptual Mapping

MoreArtwork

MoreCopy

Fashion Coverage

Club Coverage

Splash

Crash

FashionSplash

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

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Acquisition-Transaction Utility

• Acquisition utility represents the consumer’s perceived economic gain or loss associated with the purchase

• Function of product utility and purchase price

• Transaction utility concerns the perceived pleasure or displeasure associated with the financial aspect of the purchase

• Determined by the difference between the internal reference price and the purchase price

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Tensile and Objective Price Claims

• Evaluations least favorable for ads stating the minimum discount level

• Ads stating maximum discount levels are better than stating a range

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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 and Consumed

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Table 6.3 SERVQUAL Dimensions for Measuring Service Quality

DIMENSION DESCRIPTION

•Tangibles Appearance of physical facilities, equipment, personnel, and communication materials

•Reliability Ability to perform the promised service dependably 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

Emphasizing Tangible

Cues

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Figure 6.16 Conceptual Model of the Consequences of Service Quality

Superior

Inferior

Favorable

Unfavorable

Remain

Behavior

Defect

+$Ongoing Revenue

Increased SpendingPrice Premium

Referred Customers

Financial Consequences

-$Decreased Spending

Lost CustomersCosts to AttractNew Customers

ServiceQuality

BehavioralIntentions

Focus of present study

Empirical links demonstrated in macro studies

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Price/Quality Price/Quality RelationshipRelationship

The perception of price as an indicator of product quality

(e.g., the higher the price, the higher the perceived quality of

the product).

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

Perceived Value

Objective 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 Conceptualization to Include Brand Name and

Store Name

Store Name

Brand Name

Perception of Store

Perception of Brand

+

+

Objective Price

Perception of Price

Perceived Sacrifice

Perceived Quality

Perceived Value

Willingness to Buy

+

+

+

+

-

-

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Perceived RiskTypes• Functional Risk• Physical Risk• Financial Risk• Psychological Risk• Time Risk

The degree of uncertainty

perceived by the consumer 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

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Figure 6.2 Betty Crocker Changes Fall Below the J.N.D.

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Figure 6.5 Subliminal Embedding

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Concepts Concerning Selective Perception

• Selective Exposure• Selective Attention• Perceptual Defense• Perceptual Blocking

Gestalt Gestalt PsychologyPsychology

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Figure 6.12 Using Imagery

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Apple’s 1984 Ad Positions Against the Competition

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