PERCEPTION & CONSUMER BEHAVIOUR

How we see the world around us !

4- 1

 Which cream is more effective ?

Which machine is more powerful?

Which car is new ?

PPT - Perception
4- 2

Basic concepts of Perception

Sensation Absolute threshold

Differential threshold

4- 3

SENSATION
Sensation
Response of sensory organs to stimuli

Sensory Receptors Sensation depends on the quality of sensory receptors and the amount of stimuli (intensity) to which he or she is exposed

4- 4

SENSATION

Sensation depends on energy change within the environment where the perception occurs (i.e. differentiation of input)

4- 5

SENSATION
As sensory input decreases, however, our ability to detect changes in input or intensity increases to the point that we attain maximum sensitivity under conditions of minimal stimulations It was so quite , I could hear a pin drop
4- 6

ABSOLUTE THREHSOLD
Lowest level at which an individual can experience a sensation. The point at which a person can detect a difference between something and nothing. Does it depend on the distance only ?

4- 7

ABSOLUTE THREHSOLD
Sensory Adaptation Implications + sensory input - sensory input unusual media

Buying all the billboards on Shah-rah Faisal

Buying all the streamers e.g. Byco at Express way

Buying all the magazine pages e.g. Unilever in Dawn Lifestyles

4- 8

4- 9

4- 10

THE DIFFERENTIAL THRESHOLD

Concept of JND Webers Law
The stronger the initial stimuli , the greater the additional intensity needed for the second stimulus to be perceived as different

Lipton and JND Changes > JND

4- 11

JND Implications
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

4- 12

Gradual Changes in Brand Name Fall Below the J.N.D.

Pall Mall & Capstan , Nestle, Changes in Human Beings ???

4- 13

Perceptual Selection

Dynamics Of Perception

Perceptual Organization

Perceptual Interpretation

4- 14

INTRODUCTION
Preceding Section:
How individual receives sensations and how human organism adapts to the level of intensity of sensory input.

This Section
Raw sensory input by itself does not product or explain the coherent picture of the work, WE SUBCONSCIOUSLY ADD TO OR SUBTRACT FROM RAW SENSORY INPUT TO PRODUCE OUR OWN PRIVATE PICTURE OF THE WORLD Perception is a function of STIMULI and EXPECTATIONS,
MOTIVES, AND LEARNING based on PREVIOUS EXPERIENCE

4- 15

PERCEPTUAL SELECTION
Research:
A woman in super market may be exposed to over 20,000 products of different colors, sizes and shapes; to perhaps 100 people )looking, walkking, searching, talking); to smells (from fruit , meat , disinfectant, people) ; to sounds within the store (cash registers ringing, shopping carts rolling, air conditioners humming, and clerks sweeping, mopping aisles, stocking shelves); and to sound from out side the store. Yet she manages on a regular basis to visit her local supermarket. This is because she exercises selectivity in perception.
4- 16

PERCEPTUAL SELECTION

4- 17

PERCEPTUAL SELECTION
Depends on two major factors
Consumers previous experience Consumers motives
4- 18

PERCEPTUAL SELECTION
Other Factors affecting selection Nature of the stimulus
Physical attributes, package design, the brand name etc Contrast is one of the most attention compelling attributes of a stimulus (for ex: oversized ad) Advertising does not have to be unique to achieve a high degree of differentiation; it simply has to contrast (for ex: white background with little copy)

Consumers expectations & motives

4- 19

IMPLICATIONS ??

4- 20

UNEXPECTED ATTRACTS ATTENTION

4- 21

UNEXPECTED
UNEXPECTED - - - -

Ad1 Ad2

4- 22

Concepts Concerning Selective Perception

Selective Exposure
Stimuli --- Expectations --- Motives

Selective Attention
Needs

Perceptual Defense
Screenout or distort stimuli (eg tobacco)

Perceptual Blocking
Blocking or Avoiding
4- 23

PERCEPTUAL ORGANIZATION

4- 24

Principles of Perceptual Organization

Figure and ground Grouping Closure

4- 25

FIGURE AND GROUND

The Gestalt Psychologists found that there are two main visual components necessary for a person to see an object properly A FIGURE (the object) and A GROUND (the background or surroundings in which the object occurs).
4- 26

FIGURE AND GROUND

4- 27

FIGURE AND GROUND

4- 28

GROUPING

Humans have a tendency to organize stimuli into some coherent groups. They like to categorize things and maintain some organization with most stimuli.

4- 29

 Continuity Patterns Similarity Patterns Simplicity Patterns

4- 30

GROUPING
Principal of GROUPING is the basis of most of the marketing communication ???

Tea --- social acceptance family relations---4- 31

CLOSURE

Closure is a Gestalt principle of perceptual organization that explains how humans fill in visual gaps in order to perceive disconnected parts as a whole object.
4- 32

CLOSURE

4- 33

CLOSURE

4- 34

IMPLICATIONS
If individuals are exposed to incomplete picture, they tend to complete it by filling in the missing pieces. Incomplete messages or tasks are better remembered than completed ones. Playing soundtrack of ad on radio will remind them of the entire ad.
4- 35

PERCEPTUAL INTERPRETATION

4- 36

PERCEPTUAL INTERPRETATION
How close a persons interpretations are to reality, depends on the following things
Clarity of the stimulus, Past experiences of the perceiver His or her motives and interests

4- 37

INFLUENCES OF PERCEPTUAL DISTORTION

Physical Appearances
Stereotypes First Impressions Jumping to Conclusions Halo Effect
4- 38

INFLUENCES OF PERCEPTUAL DISTORTION

Physical Appearances
Stereotypes First Impressions Jumping to Conclusions Halo Effect
4- 39

INFLUENCES OF PERCEPTUAL DISTORTION

Physical Appearances
Stereotypes First Impressions Jumping to Conclusions Halo Effect
4- 40

INFLUENCES OF PERCEPTUAL DISTORTION

Physical Appearances
Stereotypes First Impressions Jumping to Conclusions Halo Effect
4- 41

INFLUENCES OF PERCEPTUAL DISTORTION

Physical Appearances
Stereotypes First Impressions Jumping to Conclusions
Licensing is based on Halo Effect

Halo Effect
4- 42

Halo Effect
In an attempt to enhance the image of JW Marriott, the Marriott hotel chains upscale brand, Marriott took over the Righa Royal Hotel, an upscale hotel in New York City, and renamed it the JW Marriott New York. When the new name signs went up, the company discovered that scores of regular, upscale customers who always stayed at the Righa when visiting New York City canceled their reservations because they did not want to tell colleagues to contact them at the Marriot. Finally, the company restored the Righa Hotel name

4- 43

CONSUMER IMAGERY
Product Positioning
Umbrella Positioning Positioning Against the Competition Positioning based on specific benefits Finding an Unowned Position Filling several positions

4- 44

CONSUMER IMAGERY
Product Positioning
Umbrella Positioning Positioning Against the Competition Positioning based on specific benefits Finding an Unowned Position Filling several positions
Competitive Ad
4- 45

CONSUMER IMAGERY
Product Positioning
Umbrella Positioning Positioning Against the Competition Positioning based on specific benefits Finding an Unowned Position Filling several positions

4- 46

CONSUMER IMAGERY
Product Positioning
Umbrella Positioning Positioning Against the Competition Positioning based on specific benefits Finding an Unowned Position Filling several positions

4- 47

CONSUMER IMAGERY
Product Positioning
Umbrella Positioning Positioning Against the Competition Positioning based on specific benefits Finding an Unowned Position Filling several positions

4- 48

CONSUMER IMAGERY
Product Repositioning
Kentucky Fried Chicken to KFC Dettol Johnson and Johnson

Positioning of Services
Tangible Cues

4- 49

PERCEIVED PRICE
Reference prices
Internal External

Tensile and objective price claims

4- 50

Tensile and Objective Price Claims

RESEARCH
Ads that state a maximum discount level (Save up to 40%) are more effective than ads stating the minimum discount level (save 10% or more) and ads stating a discount range (save 10 to 40%)

4- 51

PERCEIVED QUALITY
Perceived Quality of Products
Intrinsic cues Extrinsic cues

RESEARCH
Consumer Reports found that consumers often cannot differentiate among various cola beverages and that they base their preferences on such extrinsic cues as packaging, pricing, advertising, and even peer pressure. In the absence of actual experience with a product, consumers often evaluate quality on the basis of cues that are external to the product itself, such as price brand image, manufacturers image, retail store image, or even the country of origin.
4- 52

PERCEIVED QUALITY
Perceived Quality of Services
Extrinsic Cues Major Problem with Services

4- 53

Ad Emphasizing Tangible Cues

4- 54

PERCEIVED QUALITY
Retail Store Image

4- 55

PERCEIVED QUALITY
RESEARCH
A study of retail store image based on comparative pricing strategies found that consumers tend to perceive stores that offer a small discount on a large number of items (i.e. frequency of price advantage) as having lower prices over all than competing stores that offer larger discounts on a smaller number of products (i.e. magnitude of price advantage)

4- 56

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 (ego) Time Risk
4- 57

PERCEIVED RISK
Class discussion on perceived risk

4- 58

How Consumers Handle Risk

Seek Information Stay Brand Loyal Select by Brand Image Rely on Store Image Buy the Most Expensive Model Seek Reassurance

4- 59

PRESENTATION

Presentation Buyology

4- 60

GOOD NEWS
QUIZ Term Project Topic / Group Names are due today !!!

4- 61

NEXT SESSION
Learning Presentation Buyology

4- 62