Consumer Perception

Perception:
Example of Drone attacks to curb war or terror
Consumer Perception

Perception
A process by which consumers select and
organize stimuli, so as to provide themselves with
a meaningful and coherent view of the world
Assigning meaning and incorporating it into their
world
Part of the Information Processing process
More than sensing something (Needs, Values and
expectations)
Consumer Perception

Consumers Processing of Information

Exposure
Attention
Comprehension -- Working Memory
Acceptance
Retention -- Permanent Memory

Perception
Deals with the first two steps
Consumer Perception

Exposure Information
Consumers are exposed to virtually an infinite
amount of information
Non-marketing
Marketing
Consumers self select the information for which
they come into contact
Some consumers never watch CNN will never be
come into contact commercials (marketing stimuli) that
run on this network
Consumer Perception
Is it difficult to achieve exposure?
What percent of individuals watching TV actually watch the

commercials?
Estimates range from 20% to 80% (best guess is 41%)
Radio estimates are even slightly lower (i.e., about 40% listeners
actually listen to a commercial)
Consumer Perception
How do consumers decide?
Sensation (raw sensory response to a stimulus), is needed to

facilitate exposure (Scented Stores)

Evaluation of product is determinant of sensory receptor

(Blind)

Must notice something before you allow exposure

P(Sensation) = f (absolute threshold)
Absolute threshold -- minimal amount of stimulus intensity necessary for
sensation to occur
Examples: Emotions changes: Shoes and belts {Scent, Music} and LCDs
displayed, ambience
j.n.d. -- smallest amount of a change required to allow the C to notice
Examples -- sales prices, price increases
Consumer Perception

Webers Law
Ability to note a change in a stimulus, depends on
its initial level
Example:
$500 increase in the price of a car
$500 increase in the price of a personal computer
P (notice a stimulus change) = Change in stimulus
/Initial level of stimulus
Perceptual Selection

Stimulus selection = f(previous experience,

motives at time)
Example: Cash in hand and consumption, Selectivity in perception
Nature of the Stimulus, Physical attributes, Package Design, Brand name,
Advertisement and commercials

Expectations/Motives: identify the needs of customer

and translate it into voice of engineer

Selective Exposure: wisdom of pd; pleasant, sympathetic vs painful, threatening

Consumer Perception

Selective Attention
Definition -- allocation of processing capacity to an
incoming stimulus
Dimensions
Direction -- object of focus
Intensity -- amount of capacity
Importance -- Use of humor (or emotion) in an ad
Cs may be intense, but be directed to the emotion
Consumer Perception

Attention
Ad Clutter -- Even when forced to focus on ads,
Cs best remember first & last ads in a pod, well;
best remember stand alone ads
Does attention guarantee success?
Shadowing experiment results say not necessarily
Cs could tell that humans were talking
Cs could detect male and/or female voice
Cs could not tell the content of the message
Key is not to tradeoff direction for intensity
Perceptual Selection

Perceptual Defense:
Moral obligation regarding damaging
products
Explosion, Messages Vs Pictorial Presentation
Perceptual Blocking
Perceptual Organization

Three principles has been introduced by Gestalt. (German

means pattern or configuration)
PO = f( figure and ground, Grouping and closure)
Figure and Ground: Dominant vs subordinate
Example: Professor designed Jet after September 9/11
Grouping
A couple enjoying Tea
Closure
Incomplete messages are well remembered
Note: Perception is not only relying on raw sensory input rather it is the value
placed by individual who is exposed to the product or service on the basis of his
exposure, expectation and motives
Perceptual Interpretation

Perceptual Distortion: Example of Film Actress

Physical Appearance: Problem Solving ads should not inclined by it
Stereotypes: Male are good pilot and doctors
First Impression: Built brand image at first
Jumping to Conclusions: Focus on packaging, Design,
advertisement and pricing

Halo Effect: PC vs Pichli Canteen.. Ferrari for Pizza selling

Expectation vs Interpretation
Product Positioning
Umbrella Positioning
Positioning against the Competition
Positioning based on a specific benefit
Finding an Unknown position
Filling several positions
Product Repositioning
Perceptual Mapping
Positioning of Services
Example of Banks: Privacy, Efficiency, Ambient Background, Social
Conditions
Consumer Perception

Application Perceived Risk

Consumers assessment of potential
consequences which may result from the
purchase or usage of a product or service
PR = f (Uncertainty, Consequences)
Why do Cs perceive risk?
Limited experience
Limited knowledge
Past dissatisfaction
Consumer Perception

Application Perceived Risk

Types of Perceived Risk
Functional
Physical
Financial
Social Psychological
Even if unwarranted, Marketers must deal with it
Security is essential determinant to minimize risk and
enhance the margin of profitability while taking care of
perception of consumers in society.
Thank You

Questions/Answers