INDIVIDUAL ASPECT OF CONSUMER BEHAVIOR: PERCEPTION, LEARNING & INFORMATION PROCESSING

Prof.Deepika

A CUSTOMER IS THE MOST IMPORTANT VISITOR ON OUR PREMISES, HE IS NOT DEPENDENT ON US, WE ARE DEPENDENT ON HIM. HE IS NOT AN INTERRUPTION ON OUR WORK, HE IS THE PURPOSE OF IT. HE IS NOT AN OUTSIDER ON OUR BUSINESS HE IS A PART OF IT. WE ARE NOT DOING HIM A FAVOUR BY SERVING HIM, HE IS DOING US A FAVOUR BY GIVING US THE OPPORTUNITY TO DO SO.

PERCEPTION
It is the process through which individuals are exposed

to information, attend to the information, and comprehend the information. The process by which an individual select, organize & interprets stimuli into a meaningful and coherent picture of the world How do we see world around us

THREE STAGES OF PERCEPTION

Exposure stage - consumers receive information through

their senses. Attention stage - consumers allocate processing capacity to a stimulus. Comprehension stage - consumers organize and interpret the information to obtain meaning from it.

 Stimulus-ads, products
Response- physical/mental reaction to the stimulus Interviewing variables mood, knowledge, attitude,

values, situations

Elements of perception
Sensation
Absoulte threshold Differential threshold-just noticeable difference

Subliminal perception

Sensation Immediate & direct response of the sensory organ to the stimuli A stimulus is the single input of the sense Human being have sensory organ/sensory receptor

 Nose

SMELL

 Eyes

SIGHT

 Skin

TOUCH

 Ear

SOUND

 Mouth

TASTE

1) Absoulte Threshold
Minimum level a individual can

experience a sensation Distinguish between something & nothing Sensory adaptation-Under

conditions of constant stimulation, the absolute threshold increases.

Level varies from person to person Time-Place-Environment

2) Differential Threshold Minimal difference that can be detected between two similar stimuli Also known as the just noticeable difference (the j.n.d.)

Webers Law
The j.n.d. between two stimuli is not an absolute

amount but an amount relative to the intensity of the first stimulus

Webers law states that the stronger the initial

stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different.

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 consumers

3) Subliminal Perception

This is the example of

threshold of consciousness A visual or auditory message that is allegedly perceived psychological but not consciously Stimuli that are too weak or too brief to be consciously seen or heard may be strong enough to be perceived by one or more receptor cells.

Aspects of Perception
Selection Organization Interpretation

Aspects of Perception
Selection Organization Interpretation

 Selection

Perceptual Selection
Concepts
Selective Exposure Selective Attention Perceptual Defense Perceptual Blocking

Which one you will choose?

Which one you will choose?

Selective exposure
Consumer seek out message which Are pleasant They can sympathize Reassure them of good purchase

Perceptual Selection
Consumers subconsciously are selective as to what they

perceive. Stimuli selected depends on two major factors

Consumers previous experience

Consumers motives

Selection depends on the

Nature of the stimulus

Expectations
Motives

Stimulus Factors
Size and Intensity influence the probability of paying attention

SIZE

SPREAD 1 PAGE

NO. OF RESPONS ES 107 76

Larger stimuli are more likely to be noticed than a small one

TWO THIRDS 68 PAGE ONE HALF 56 PAGE ONE THIRD 47 PAGE

Selective attention
Heightened awareness when

stimuli meet need Consumer prefer different message & medium

Perceptual defense
Screening out of stimuli

which are threatening Eg: Tv cable termination campaign

Perceptual blocking
Consumer avoid being

bombarded by
Tuning out TiVo (Odd ads)

Aspects of Perception
Selection Organization

Interpretation

Organization Principles
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.

Organization
Principles
Figure and ground Grouping Closure People group stimuli to

form a unified impression or concept. Grouping helps memory and recall.

Organization
Principles
People have a need for Figure and ground Grouping Closure

closure and organize perceptions to form a complete picture. Will often fill in missing pieces Incomplete messages remembered more than complete

Aspects of Perception
Selection Organization

Interpretation

Interpretation
Perceptual Distortion
Physical

Appearances Stereotypes First Impressions Jumping to Conclusions Halo Effect

Physical appearances
Positive attributes of

people they know to those who resemble them Important for model selection Attractive models are more persuasive for some products

Stereotypes
People hold meanings

related to stimuli Stereotypes influence how stimuli are perceived

First Impressions
First impressions are

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

Jumping to conclusion
People tend not to listen

to all the information before making conclusion Important to put persuasive arguments first in advertising

Halo effect
Consumers perceive and

evaluate multiple objects based on just one dimension Used in licensing of names Important with spokesperson choice

Issues in Consumer Imagery

Product Positioning and Repositioning Positioning of Services Perceived Price Perceived Quality Retail Store Image Manufacturer Image Perceived Risk

Positioning
Establishing a specific image for a brand in the

consumers mind Product is positioned in relation to competing brands Conveys the concept, or meaning, of the product in terms of how it fulfills a consumer need Result of successful positioning is a distinctive, positive brand image

Positioning Techniques
Umbrella Positioning Positioning against Finding an Unowned

Competition Positioning Based on a Specific Benefit

Position Filling Several Positions Repositioning

Repositioning
Changing the way a

product is perceived by consumer in relation to other brand or product

Positioning of service
Umbrella positioning

Positioning against competition

Positioning with benefits

Perceptual mapping
A research technique that enables marketers to plot

graphically consumers perceptions concerning product attributes of specific brands

LEARNING
Changes in an individuals behavior arising from experience.

LEARNING DEFINED IT IS RELATIVELY PERMANENT CHANGE IN BEHAVIOUR

OCCURING AS A RESULT OF EXPERIENCE.

Learning Taxonomy

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Learning Theories
Behavioral

Theories: Cognitive Theories: Theories based on the A theory of learning premise that learning based on mental takes place as the result information processing, of observable responses often in response to to external stimuli. Also problem solving. known as stimulus response theory.

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Learning Processes
Intentional: Incidental:

Learning acquired as a result of a careful search for information

Learning acquired by accident or without much effort

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Elements of Learning Theories

1. 2. 3. 4.

Motivation Cues Response Reinforcement Stimulus Drive Response Reinforcement

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Reinforcement

A positive or negative outcome that influences the likelihood that a specific behavior will be repeated in the future in response to a particular cue or stimulus.

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Stimulus Generalizati on

The inability to perceive differences between slightly dissimilar stimuli.

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Observationa l Learning

A process by which individuals observe the behavior of others, and consequences of such behavior. Also known as modeling or vicarious learning.

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COMPONENTS OF OBSERVATIONAL LEARNING

ATTENTION

RETENTION

PRODUCTION PROCESS

MOTIVATION

OBSERVATIONAL LEARNING

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Classical Conditioning

A behavioral learning theory according to which a stimulus is paired with another stimulus that elicits a known response that serves to produce the same response when used alone.
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Models of Classical Conditioning

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Instrumental (Operant) Conditioning

A behavioral theory of learning based on a trial-and-error process, with habits forced as the result of positive experiences (reinforcement) resulting from certain responses or behaviors.
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Operant Conditioning . . .
. . . is the process in which the frequency of occurrence of a bit of behavior is modified by the consequences of the behavior.
If positively reinforced, the likelihood of the behavior being repeated increases.

If punished, the likelihood of the behavior being repeated decreases.

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Operant (or instrumental) conditioning

Stimulus Response Reward Reinforcement Can you explain habit ?

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Vicarious Learning . . .

. . . is the phenomenon where people observe the actions of others to develop patterns of behavior.

Consumers Learn by Modeling

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INFORMATION PROCESSING
Is the process through which consumers are exposed to

information, attend to it, comprehend it, place it in there memory and retrieve it when required.

What is Motivation?
Motivation refers to an activated state of needs

within a person that leads to goal-directed behavior. Types of Needs Needs can be either innate or learned Needs can be expressive( emotional) Needs can be utilitarian( practical and functional). Needs can be hedonic

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Consumer motivations
Represents the drive to satisfy both physiological

and psychological needs through purchase and consumption .

product

It Gives insights into why people buy certain

products. Stems from consumer needs: industries have been built around basic human needs

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Types of Motivational Conflict

Approach-approach: deciding between two or more desirable options

Avoidance-avoidance: deciding between two or more undesirable options

Approach-avoidance: behavior has both positive and negative consequences

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Motivational Intensity

Motivational intensity: how strongly consumers are motivated to satisfy a particular need
Depends on needs importance Involvement: degree to which an object or behavior is personally relevant Motivational intensity and involvement determine amount of effort consumers exert in satisfying needs
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The Challenge of Understanding Consumer Motivation

Reasons underlying consumer motivation are not always obvious
Research is necessary to discover real motivations behind behaviors People dont always want to disclose real reasons for their actions People dont always know why they do what they do , unconscious motivation Motivations change over time
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Attitudes

Global evaluative judgments

Relationships between Consumer Beliefs, Feelings, Attitudes, and Intentions

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Consumer Attitudes

Properties of Attitudes
1. Valence: Whether the attitude is positive, negative or

neutral
2. Extremity: The intensity of liking or disliking
3. Resistance: Degree to which the attitude is immune

to change
4. Confidence: Belief that attitude is correct 5. Accessibility: How easily the attitude can be retrieved

from memory
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What Is Personality

The inner psychological characteristics that both determine and reflect how a person responds to his or her environment

The Nature of Personality

Personality reflects individual differences

Personality is consistent and enduring

Personality can change

Theories of Personality
Freudian theory Unconscious needs or drives are at the heart of human motivation Neo-Freudian personality theory Social relationships are fundamental to the formation and development of personality Trait theory Quantitative approach to personality as a set of psychological traits

Freudian Theory
Id
Warehouse of primitive or instinctual needs for which

individual seeks immediate satisfaction

Superego
Individuals internal expression of societys moral and

ethical codes of conduct

Ego
Individuals conscious control that balances the demands

of the id and superego

Brand Personality
Personality-like traits associated with brands Examples
Nike and athlete BMW is performance driven Levis 501 jeans are dependable and rugged

Brand personality which is strong and favorable will strengthen a brand but not necessarily demand a price premium