CONSUMER

BEHAVIOR

Perception
Chapter # 6

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 Perception is the process by which an
individual selects, organizes and interprets
stimuli into a meaningful and coherent (logical,
rational) picture of the world. how we see,
feel, hear, smell the world around us.”

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 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. Example of
stimuli (i.e. sensory input) include products,
packages, brand names, advertisements and
commercials.
 Sensory receptors are the human organs (i.e.,
the eyes, ears, nose, mouth, and skin) that receive
sensory inputs. Their sensory functions are to see,
hear, smell, taste and feel.
 As sensory input decreases, however our ability to
detect changes in input or intensity increases.

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 The lowest level at which an individual can
experience a sensation is called the absolute
threshold.
 The point at which a person can detect the
difference between “something” and “nothing” is
that person’s absolute threshold for the stimulus.
 For example, the distance at which a driver can
note a specific billboard on a highway is that
individual’s absolute threshold.
 Under conditions of constant stimulation, such as
driving through a “corridor” of billboards, the
absolute threshold increases (that is, the senses
tend to become increasingly dulled).

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 The minimal difference that can be detected between
two stimuli is called the difference threshold or the
j.n.d. (Just noticeable difference).
 A 19th century German scientist named Ernst Weber
discovered that the j.n.d. Between two stimuli was not
an absolute amount, but an amount relative to the
intensity of the first stimulus. Weber’s law states that
the stronger the initial stimulus, the greater the
additional intensity needed for the second stimulus to be
perceived as different.
 Also, an additional level of stimulus, equivalent to the
j.n.d. must be added for the majority of people to
perceive a difference between the resulting stimulus and
the initial stimulus.
 Weber’s law holds for all senses and almost all levels of
intensity.

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 Manufacturers and marketers endeavor to
determine the relevant j.n.d. for their products
so that:
 Negative changes—reductions
changes or increases in
product size, or reduced quality—are not readily
discernible to the public.
 So that product improvements are readily discernible
to the consumer without being wastefully extravagant.
 Marketers use the j.n.d. to determine the
amount of change or updating they should
make in their products to avoid losing the
readily recognized aspects of their products

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 To better compete in a global marketplace that has
been radically altered by computer technology,
many companies are updating their corporate logos
to convey the notion that they are timely and fast-
paced and at the top of their respective product
class.
 Marketers want to meet or exceed the consumers’
differential threshold so that they readily perceive
the improvements made in the original product.

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 People are also stimulated below their level of
conscious awareness—they can perceive stimuli
without being consciously aware of it.
 The threshold for conscious awareness appears to
be higher than the absolute threshold for effective
perception.
 Perception of stimuli that are above the level of
conscious awareness technically is called
Supraliminal or normal perception.

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 In the late 1950s there was a stir when
consumers were being exposed to subliminal
advertising messages they were not aware of
receiving.
 Messages were supposedly persuading people to buy
goods and services without their being aware of it.
 The effectiveness of the concept was tested at a drive-
in theater by flashing the words “eat popcorn” and
“drink coke” on the screen during the movie, so quickly
that the audience was not aware of it.
 In a six-week test, popcorn sales increased 58 percent
and coke sales 18 percent.
 No scientific controls were used, and results were
never replicated.

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 Human beings are constantly bombarded with stimuli
during every minute and every hour of every day.
Perception is not a function of sensory input alone,
rather, perception is the result of two different kinds of
inputs that interact to form the personal pictures—the
perceptions—that each individual experiences. Physical
stimuli from the outside environment, and internal stimuli
based on expectations, motives, and learning is based
on previous experiences.
 Because each person is a unique individual, with unique
experiences, needs, wants, desires, and expectations, it
follows that each individual’s perceptions are also
unique.
 There are three aspects to perception—selection,
organization, and interpretation of stimuli.

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 Consumers subconsciously exercise selectivity as
to the stimuli they perceive. Which stimuli get
selected depends on two major factors in addition
to the nature of the stimulus itself:
 Consumers’ previous experience as it affects their
expectations.
 Their motives at the time (their needs, desires,
interests, and so on).
 Each of these factors can serve to increase or
decrease the probability that a stimulus will be
perceived.

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 The Nature of the Stimulus
 Marketing stimulus contains an enormous number of
variables. Examples include:
 Nature of the product.
 Its physical attributes.
 The package design.
 The brand name.
 The advertisements and commercials.
 The position of a print ad or commercial.
 The editorial environment.
 Advertisers are also running print ads (called advertorials) that
closely resemble editorial material, making it increasingly
difficult for readers to tell them apart.
 Advertisers are producing 30-minute commercials (called
infomercials) that appear to the average viewer as
documentaries.

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 Expectations
 People see what they expect to see. What they
expect to see is usually based on familiarity,
previous experience, or preconditioned set
expectations.
 Stimuli that conflict sharply with expectations often
receive more attention than those that conform to
expectations.
 For years, certain advertisers have used blatant
sexuality in advertisements for products to which
sex was not relevant in the belief that such
advertisements would attract a high degree of
attention.

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Motives
 People tend to perceive things they need or want.
The stronger the need, the greater the tendency to
ignore unrelated stimuli in the environment. An
individual’s perceptual process attunes itself more
closely to those elements of the environment that
are important to that person. Marketing managers
recognize the efficiency of targeting their products
to the perceived needs of consumers.

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 The consumer’s “selection” of stimuli (selective
perception) from the environment is based on the
interaction of expectations and motives with the stimulus
itself.
 Selective Exposure — consumers actively seek out
messages they find pleasant or with which they are
sympathetic. Consumers actively avoid painful or
threatening messages.
 Selective Attention — consumers have a heightened
awareness of the stimuli that meet their needs or
interests. Consumers have a lower awareness of stimuli
irrelevant to their needs. People vary in terms of the kind
of information in which they are interested and the form
of message and type of medium they prefer.

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 Perceptual Defense — threatening or otherwise
damaging stimuli are less likely to be perceived
than are neutral stimuli. Individuals unconsciously
may distort information that is not consistent with
their needs, values, and beliefs.
 Perceptual Blocking — consumers screen out
enormous amounts of advertising by simply “tuning
out.”

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 People do not experience the numerous stimuli they
select from the environment as separate and
discrete sensations. People tend to organize stimuli
into groups and perceive them as unified wholes.
 Gestalt psychology (Gestalt, in German, means
pattern or configuration) is the name of the school
of psychology that first developed the basic
principles of perceptual organization.
 Three of the most basic principles of perceptual
organization are figure and ground,
ground grouping,
grouping
and closure.
closure

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A. Figure and Ground:
 Stimuli that contrast with their environment are more likely to
be noticed. The simplest example is the contrast between a
figure and the ground on which it is placed.
 The figure is usually perceived clearly.
 The ground is usually perceived as indefinite, hazy, and
continuous.
The figure is more clearly perceived because it appears to be
dominant—the
dominant ground appears to be subordinate and less
important. Advertisers have to plan their advertisements
carefully to make sure that the stimulus they want noted is
seen as figure and not as ground. Marketers sometimes run
advertisements that confuse the consumer because there is
no clear indication of which is figure and which is ground.

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B. Grouping:
 Individuals tend to group stimuli in “chunks” rather than as
discrete bits of information. Grouping can be used
advantageously by marketers to imply certain desired
meanings in connection with their products. Most of us
remember things like a social security number because it can
be broken into three “chunks.”

C. Closure:
 Individuals have a need for closure. As a result, people
organize a perception so they see a complete picture. If the
pattern of stimuli to which they are exposed is incomplete,
they tend to perceive it as complete—they fill in the missing
pieces. The very act of completion serves to involve the
consumer more deeply in the message.

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 The interpretation of stimuli is uniquely individual
because it is based on what individuals expect to
see in light of their previous experience. Stimuli are
often highly ambiguous.
 When stimuli are highly ambiguous, individuals
usually interpret them in such a way that they serve
to fulfill personal needs, wishes, and interests.
 How close a person’s interpretations are to reality
depends on the clarity of the stimulus, the past
experiences of the perceiver, and his or her motives
and interests at the time of perception.

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 With respect to perceptual distortion, individuals are subject to a
number of influences that tend to distort their perceptions.
 Physical Appearances—people tend to attribute the qualities they
associate with certain people to others who may resemble them.
Attractive models are more persuasive and have a more positive
influence on consumer attitudes and behavior than do average-looking
models.
 Stereotypes—individuals tend to carry “pictures” in their minds of the
meaning of various kinds of stimuli.
 First Impressions—these tend to be lasting but formed while the
perceiver does not know which stimuli are relevant, important, or
predictive.
 Jumping to Conclusions—many people tend to jump to conclusions
before examining all the relevant evidence—hearing the beginning of an
ad and drawing the incorrect conclusion.
 Halo Effect—describes situations where the evaluation of a single object
or person on a multitude of dimensions is based on the evaluation of just
one or a few dimensions. Consumers often evaluate an entire product
line on the basis of the one product within the product line. Licensing also
is based on the halo effect—associating products with a well-known
celebrity or designer name.

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 Consumers attempt to preserve or enhance their
self-images by buying products they believe agree
with that self-image and avoiding products that do
not agree. This is called Consumer Imagery.
Imagery
Consumers tend to shop in stores that have images
that agree with their own self-images.

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1. Product Positioning
 Positioning strategy (product positioning) is the essence of
the marketing mix. Positioning conveys the concept or
meaning of the product or service, in terms of how it fulfills a
consumer need. The marketer must create a distinctive
product image in the mind of the consumer. How a product is
positioned in the mind of the consumer is more important to
the product’s success than are the product’s actual
characteristics.
 Marketers try to differentiate their products by stressing attributes they
claim will fulfill the consumer’s needs better than competing brands.
 The result of a successful positioning strategy is a distinctive brand
image on which consumers rely to make choices.
 A positive brand image is associated with consumer loyalty, consumer
beliefs about positive brand value, and a willingness to search for the
brand.
 A positive brand image also serves to promote consumer interest in
future brand promotions, and inoculates against competitors’
marketing activities.

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 Umbrella Positioning—creating an overall image of the
company around which a lot of products can be featured
individually. i.e. Radhuni.
 Positioning Against the Competition. i.e. Coke and Pepsi.
 Positioning Based on a Specific Benefit—effective
depictions of a core product benefit often include memorable
imagery. i.e. Sunsilk
 Finding an “Unowned” Position—finding a niche unfilled by
other companies. i.e. Aeromatic Halal Soap, Keya (2 in 1
soap)
 Filling Several Positions—because unfilled gaps or
“unowned” perceptual positions present opportunities for
competitors, sophisticated marketers create several distinct
offerings, often in the form of different brands, to fill several
identified niches. i.e. Bata having different range of shoes.

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2. Product Repositioning:
Repositioning
 Regardless of how well positioned a product
appears to be the marketer may be forced to
reposition (product repositioning) it in response to
market events, such as a competitor cutting into the
brand’s market share.
 Rather than trying to meet the lower prices of high-
quality private label competition, some premium
brand marketers have repositioned their brands to
justify their higher prices, playing up brand
attributes that had previously been ignored.
 Another reason to reposition a product or service is
to satisfy changing consumer preferences.

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3. Perceptual Mapping:
 Perceptual mapping allows marketers to
determine how their products appear to consumers
in relation to competitive brands on one or more
relevant characteristics.
 Perceptual mapping enables the marketer to see
gaps in the positioning of all brands in the product
class and to identify areas in which consumer
needs are not being adequately met.

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 Compared with manufacturing firms, service
marketers face several unique problems in
positioning and promoting their offerings. Services
are intangible; image becomes a key factor in
differentiating a service from its competition. The
marketing objective is to enable the consumer to
link a specific image with a specific brand name.
 Many service marketers have developed
strategies to provide customers with visual
images and tangible reminders of their service
offerings. Examples would include painted
delivery vehicles, restaurant matchbooks,
packaged hotel soaps and shampoos, and a
variety of other specialty items.
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 The service environment conveys the image of the service
provider with whom the service is so closely linked. One
study of service environments identified five environmental
variables most important to bank customers.
 Privacy—both visually and verbally, with enclosed
offices, transaction privacy, etc.
 Efficiency/convenience—transaction areas that are
easy to find, directional signs, etc.
 Ambient background conditions—temperature,
lighting, noise, and music.
 Social conditions—the physical appearance of other
people in the bank environment, such as bank customers
and bank personnel.
 Aesthetics—e.g., color, style, use of materials, and
artwork.

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 How a consumer perceives a price (Perceived
Price)—as
Price high, as low, as fair—has a strong
influence on both purchase intentions and
purchase satisfaction.
 Perception of price fairness—customers pay
attention to the prices paid by other customers
(e.g., senior citizens, frequent fliers, affinity club
members). Customers perceive differential pricing
strategies used by some marketers as unfair to
those not eligible for the special prices.
Perceptions of price unfairness affect consumers’
perceptions of product value, and ultimately, their
willingness to patronize a store or a service.

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 A Reference Price is any price that a consumer
uses as a basis for comparison in judging another
price.
 Reference prices can be external or internal.
 An advertiser generally uses a higher External
Reference Price in an ad in which a lower sales
price is being offered, to persuade the consumer
that the product advertised is a really good buy.
 Internal reference prices are those prices (or
price ranges) retrieved by the consumer from
memory.

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 Consumers often judge the quality of a product
(perceived quality) on the basis of a variety of
informational cues.
 Intrinsic cues are physical characteristics of the
product itself, such as size, color, flavor, or
aroma.
 Extrinsic cues are such things as price, store
image, service environment, brand image, and
promotional message.

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 Intrinsic cues are concerned with physical
characteristics of the product itself, size, color,
flavor, etc.
 Consumers like to think they base quality
evaluations on intrinsic cues, but in reality, they
are often unable to identify that product in a taste
test.
 In the absence of actual experience with a
product, consumers often evaluate quality on the
basis of extrinsic cues,
cues price, brand image, store
image, etc. Many consumers use country-of-origin
stereotypes to evaluate products.

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 It is more difficult for consumers to evaluate the
quality of services than the quality of products.
 Service characteristics include—intangibility,
variability, perishability, simultaneously produced,
and consumed. Consumers are unable to
compare services side-by-side as they do
products, so consumers rely on surrogate or
extrinsic cues when purchasing services.

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 Perceived product value has been described as a
trade-off between the product’s perceived benefits
(or quality) and perceived sacrifice required to
acquire it.
 Some Researchers suggest that consumers rely
on price as an indicator of product quality.
 Other studies suggest consumers are actually
relying on a well-known brand name as a quality
indicator.

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 Retail stores have their own images that influence the
perception of the quality of the products they carry.
 The width of product assortment also affects retail store
image.
 The type of product the consumer wishes to buy influences
his or her selection of retail outlet, conversely, the
consumer’s evaluation of a product often is influenced by
the knowledge of where it was bought.
 Most studies of the effects of extrinsic cues on perceived
product quality have focused on just one variable—either
price or store image. When a second extrinsic cue is
available (e.g., price and store image), however, perceived
quality is sometimes a function of the interaction of both
cues on the consumer.

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 Consumer imagery extends beyond perceived price and store
image to the producers themselves.
 Manufacturers who enjoy a favorable image generally find
that their new products are accepted more readily than those
of manufacturers who have a less favorable or even a
“neutral” image.
 Researchers have found that consumers generally have
favorable perceptions of pioneer brands (the first in a product
category), even after follower brands become available.
 They also found a positive correlation between pioneer brand
image and an individual’s ideal self-image, which suggests
that positive perceptions toward pioneer brands lead to
positive purchase.

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Perceived Risk is the uncertainty that consumers
face when they cannot foresee the consequences
of their purchase decision.
 The degree of risk that consumers perceive and
their own tolerance for risk taking are factors that
influence their purchase strategies.
 Consumers are influenced by risks that they
perceive, whether or not such risks actually exist.
 High risk perceivers are often described as narrow
categorizers cause limited choice to safe
alternatives. Low risk perceivers just opposite.

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Types of Risk Include:
Functional Risk – is the risk that the product will not
perform as expected.
Physical Risk – is the risk to self and others that the
product may pose.
Financial Risk – is the risk that the product will not be
worth its cost.
Social Risk – is the risk that a poor product choice may
result in social embarrassment.
Psychological Risk - is the risk that a poor product
choice will bruise the consumer’s ego.
Time Risk – is the risk that the time spent in product
search may be wanted if the product does not
perform as expected.
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How Consumers Handle risks:
 Consumers Seek Information
 Consumers are Brand Loyal.
 Consumers Select by Brand Image.
 Consumers Rely on Store Image.
 Consumers Buy the Most Expensive Model.
 Consumers Seek Reassurance.

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