Consumer Behavior

Information Processing II

Learning Concepts

JND
Webers Law
Marketing
Implications of JND
& Webers Law
The Butterfly Curve
Marketing
Implications of the
Butterfly Curve

Types of Attention
Capturing
Consumer
Attention
Perceptual
Organization
Stimulus
Organization
Semieotics

The Just Noticeable

Difference Threshold
. . . is the minimal amount of
(JND)
.
.
.
difference in intensity of a stimulus

that can be detected 50% of the

time.
Examples: changing size of
packages, changing taste, changing
the quality of sound, or touch, or
smell of a product.

Webers
Law

A theory concerning the

perceived differentiation
between similar stimuli of
varying intensities (i.e., the
stronger the initial stimulus,
the greater the additional
intensity needed for the
second stimulus to be
perceived as different).

Marketing Applications
of the JND

Companies need to determine the

relevant JND for their products:
so that negative changes are not readily
discernible to the public
so that product improvements are very
apparent to consumers

Marketing examples of the JND

Pricing: When raising price, move less than JND
When lowering the price for sale, move
more
than JND
Sales Promotion: Make coupons larger than
JND
Product: Make decreases in size of packaging
less than JND; when the word new is used make
sure the product change is greater than JND
Packaging:
To update package styling and
logo keep within JND
To change Image, make styling changes
greater than JND

Betty Crocker Changes Fall Below

the J.N.D.

Change in corporate logos within JND

Consumer Adaptation . . .
. . . is the amount or level of the
stimulus to which the consumer has
become accustomed.
A reference point to which changes in
the level of the stimulus are compared.

The Butterfly Curve . . .

. . . is the idea that
something slightly different
may be perceived more
positively.
High
Liking

Low
Stimulus intensity

Marketing Application of Butterfly Curve

Marketing application
i.
Why fashion trends change so
often?
ii.
Why radical fashions are adapted
slowly?
iii.
Spontaneous brand switching
iv.
Periodical change in corporate logos
and other corporate symbols to
give a fresh look

Types of Attention

Pre-attention is an unconscious process

in which consumers automatically scan
the features of the environment.
Attention can be voluntary or
involuntary.
Selective attention is voluntarily &
selectively focusing on relevant information.
Orientation reflex is the involuntary reflex
when something surprising or novel is
presented one turns toward and allocates
attention to it.

Capturing Customers Attention

Goal is to activate
the orientation
reflex by creating
stimuli that
surprise, threaten,
annoy,or violate
the expectation of
consumers.

Unexpected
Attracts
Attention

Unexpected catches attention

Unexpected

Using the unexpected

Grabbing
Consumer
Attention
Connect with consumer needs

Reminding them of their needs before showing them how

the product can satisfy needs
Snickers TV advertisement starts with the question,
Hungry?. Viewers are then instructed to grab snickers as
they see a human hand voraciously devour the product
Look ! It moves
Colors are nice
Make it more intense (Loud sounds, bright colors)
Make it Bigger
Distinctiveness
Contrast with other elements in the perceptual field in
which the object appears (Using different colors and
shapes in packaging

Grabbing Consumer Attention

Location! Location! Location:

Products located at the end of the aisle or on shelves at
eye level stand better chance of getting attention
An ads location in the magazine influences attention
Greater attention is given to the ad in the front part than
in the back part of magazine, on right hand pages than
on left hand page, and on the inside front, inside back,
and outside back covers
For smaller ads, upper left hand corner of the page gets
the maximum attention whereas lower right hand
corner is least likely to get attention
The surprise factor
The Human Attraction ( Showing attractive endorsers) 9

Grabbing Consumer Attention

The entertainment factor

Learned Attention inducing stimuli
Some stimuli attract our attention because we
have been taught or conditioned to react to them
Ringing phone or doorbell
Certain words or phrases are associated with
things we desire, e.g., word free with words
that show saving money, Clearance Sale,
Special offer or 50% Off
Look for less cluttered environment

Aspects of Perception
Selection
Organization
Interpretation

The Comprehension Stage . . .

. . . is the process in which individuals
organize and interpret information
Perceptual organization is the way people
perceive the shapes, forms, figures, and lines
in their visual world.
Interpretation process is how people draw
upon their experience, memory, and
expectations to attach meaning to a
stimulus.

Perceptual Organization

Gestalt
psychologists
attempted to
identify the rules
that govern how
people take
disjointed stimuli
and make sense out
of them.

Stimulus Organization
One factor that determines how a stimulus will
be interpreted is its assumed relationship with
other events, sensations, or images.
1). Our brains tend to relate incoming
sensations to others already in memory based
on some fundamental organizational
principles.
a). These principles are based on gestalt
psychology (meaning is derived from totality
of a set of stimuli). In German, gestalt
means whole, pattern, or configuration.
b). Sometimes the whole is greater than the
sum of its parts.

Principles include:
a). The closure principle--people tend
to perceive an incomplete picture as
complete. We fill in the blanks.
b). The principle of similarity-consumers tend to group objects that
share similar physical characteristics.
c). The figure-ground principle--states
that one part of a stimulus will
dominate (the figure) while other parts
recede into the backdrop (the
background).

Figure-ground

we need to separate a dominant

shape (a 'figure' with a definite
contour)
Is the figure a white vase on a
black background or silhouetted
profiles on a white background?
we tend to favor one interpretation
over the other (though altering the
amount of black or white which is
visible can create a bias towards one
or the other)
When we have identified a figure,
the contours seem to belong to it,
and it appears to be in front of the
ground.

Billboard for Wrangler Jeans Makes Creative

use of the Figure-Ground Principle

An Ad for Absolut Vodka using the figure

ground principle

proximity
What you are likely to
notice fairly quickly
is that this is not just
a square pattern of
dots but rather is a
series of columns of dots
. The principle of
proximity is that
features which
are close together
are associated.

Here we are
likely to
group the
dots together
in rows.

We are more likely to associate

the lines which are close
together than those which are
further apart. In this example
we tend to see three pairs of
lines which are fairly close
together (and a lonely line on
the far right) rather than three
pairs of lines which are further
apart (and a lone line on the
far left).

similarity
Here the little circles and squares are evenly spaced both
horizontally and vertically so proximity does not come into
play.
However, we do tend to see alternating columns of circles and
squares.
This is because of the principle of similarity - features which
look similar are associated. Without the two different recurrent
features we would see either rows or columns or both...

continuity
This principle is that
contours based on smooth
continuity are preferred to
abrupt changes of
direction.
Here, for instance, we are
more likely to identify lines
a-b and c-d crossing than
to identify a-d and c-b or
a-c and d-b as lines.

Closure Interpretations, which produce 'closed'

rather than 'open' figures are favored.
Here we tend to see three broken rectangles
(and a lonely shape on the far left) rather than
three 'girder' profiles (and a lonely shape on
the right).
In this case the principle of closure cuts
across the principle of proximity, since if we
remove the bracket shapes, we return to an
image used earlier to illustrate proximity...

This Ad Demonstrates the Use of Closure: People

Have to Mentally Fill in the Gaps in the Sentence

Scotch-Brite.
Cleans really
clean.

An ad using the
closure principle

An ad featuring the
similarity/proximity principles

AN AD USING THE CONTINUITY PRINICIPLE

Using the Continuity Principle

Interpretation . . .
. . .is trying to gain
an understanding
of something
garnering our
attention

Interpretation
Arrives at an understanding of what stimulus is.
Retrieved from long term memory information
pertinent to the stimulus, as well as expectancies
regarding what the stimulus should be like.
Personal inclination and biases also influence
consumer interpretation of the stimulus
Role of Expectation:
Expectations are a persons prior beliefs about
what should happen in a given situation (a vanilla
pudding in dark brown color was perceived to be
the most tasting chocolate pudding)

Conceptual Relationship of Price Effect

+

Objective
Price

Perceived
Quality

Perception
of price

Perceived
value
Perceived
Sacrifice

+
_

Willingness
to Buy

Expanded Conceptualization to Include Brand and

Store Name
Brand
Name
Store
Name

Perception
of Brand
Perception
of Store
+

Objective
Price

Perceived
Quality

Perceived
Value

Perception
of Price
_

Perceived
Sacrifice

+
_

Willingness
to Buy

Price Quality Relationship

High price indicates high quality under following
circumstances:
1.
The consumer has some confidence that in this
situation price predicts quality
2.
There are real or perceived quality variations
among the brands
3.
Actual quality is difficult to judge by objective
means
4.
Larger differences in price have greater impact
on perceived quality than do smaller differences
5.
Consumers use price as indicator of quality more
frequently for familiar brands than for unfamiliar
brands

Semiotics - the symbols around us

1.

2.

3.

The field of study that examines the

correspondence between signs and symbols
and their role in the assignment of meaning.
Every marketing message has three basic
components:
Object - is the product that is the focus of the
message ( Marlboro cigarettes)
Sign - is the sensory imagery that
represents the intended meaning of the
object( Marlboro cowboy)
Interpretant - the meaning derived ( rugged,
individualistic, American)

Object ( product)
Marlboro
cigarettes

Cowboy
Sign
( image)

Rugged
American
Intrepretant
(meaning)

Perceptions and Marketing Strategy

Brand name and logo development:
Create names that convey appropriate
meaning for products
Compaq: com means computer and
communication, paq mean compact.
Unique spellings attract attention and
give scientific impressions
In general, concrete terms with relevant,
established visual images are easy to
recognize and recall

Perceptions and Marketing

Strategy
Retailers use exposure very affectively
i.
Frequently sought-out items separated
ii.
High margin items are often placed in high
traffic areas to capitalize on increased exposure
iii.
Shelf position and amount of shelf space
influence which items and brands are allocated
attention
iv.
Point of purchase displays to attract attention
to sale and high-margin items
v.
Stores are designed with highly visible shelves
and overhead signs to make locating items as
easy as possible

Perceptions and Marketing Strategy

c.

i.

ii.

iii.

d.

i.
ii.

Media strategy: the fact that exposure process is selective

rather than random is the underlying basis for effective
media-strategy
Determine which media the consumers in target are most
frequently exposed to and then place the ad in that media
For high involvement products, consumers would look for
more information; print media is the best selection
For low involvement products, TV advertisements may be
most suited
Advertisement Design: For low involvement products:
Utilize stimulus characteristics, full page, bright colors,
animated cartoons etc.
Tie the message to a topic the target market is interested
in e.g. celebrities, humor, sex etc.