Schiffman CB10 PPT 06

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Consumer Perception CHAPTER SIX

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CHAPTER SIXConsumer Perception

Learning Objectives1. To Understand the Sensory Dynamics of Perception. 2. To Learn About the Three Elements of Perception. 3. To Understand the Components of Consumer Imagery and Their Strategic Applications.

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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 Elements of Perception

Sensation Absolute threshold Differential threshold Subliminal perception

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Sensation Sensation is the immediate and direct response of the sensory organs to stimuli A stimulus is any unit of input to any of the senses.

The absolute threshold is the lowest level at which an individual can experience a sensation.

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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.

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Marketing Applications of the J.N.D. Marketers need to determine the relevant j.n.d. for their products so that negative changes are not readily discernible to the public so that product improvements are very apparent to consumersCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 6

Discussion Question How might a cereal manufacturer such as Kellogg s use the j.n.d. for Frosted Flakes in terms of: Product decisions Packaging decisions Advertising decisions Sales promotion decisionsCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 7

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 reactionsCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 8

Aspects of PerceptionSelectionOrganization

Interpretation

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Perceptual SelectionSelection Depends Upon:

Nature of the stimulus Expectations Motives

Includes the product s physical attributes, package design, brand name, advertising and more

Based on familiarity, previous experience or expectations.

Needs or wants for a product or service.

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Why Are Consumers Likely to Notice This Ad?

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The Attention-Getting Nature of a Dramatic Image

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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?

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

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

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

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

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What Element of Perceptual Organization Is Featured in This Ad?

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Closure

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

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InterpretationStereotypes Stereotypes Physical Appearances Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo EffectCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 21

People hold meanings related to stimuli

InterpretationStereotypes Stereotypes Physical Appearances Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo EffectCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 22

Positive attributes of people they know to those who resemble them Important for model selection

Interpretation Verbal messages reflect stereotypes

Stereotypes Physical Appearances Descriptive Terms First Impressions Halo EffectCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

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How Does This Ad Depict Perceptual Interpretation?

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

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InterpretationStereotypes Stereotypes Physical Appearances Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo EffectCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 26

First impressions are lasting The perceiver is trying to determine which stimuli are relevant, important, or predictive

InterpretationStereotypes Stereotypes Physical Appearances Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo EffectCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 27

Consumers perceive and evaluate multiple objects based on just one dimension

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

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Which Concepts of Perception Are Applied in These Ads?

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The Principle Of Contrast

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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

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

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Perceptual Mapping Figure 6.9

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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.

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Which Elements of This Ad Convey the Restaurant s Perceptual Position and How?

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The Steak Knife and the Reference to Vegetarians Convey The Position of the Restaurant as a Well-Established Steakhouse

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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

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Three Pricing Strategies Focused on Perceived Value - Table 6.4Pricing StrategySatisfaction-based pricing

Provides Value ByRecognizing and reducing customers perceptions of uncertainty, which the intangible nature of services magnifies Encouraging long-term relationships with the company that customers view as beneficial

Implemented AsService guarantees Benefit-driven pricing Flat-rate pricing Long-term contracts Price bundling

Relationship pricing

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

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Measuring Perceptions of Brand Luxury

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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

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Price/Quality RelationshipThe 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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How Can This Ad Affect the Service s Perceived Quality?

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

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

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

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

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Retail Store ImageBrands carried Store ambiance Prices Level of service Product assortment

Clientele

DiscountsCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 47

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

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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 RiskChapter Six Slide 49

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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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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

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