4. 6-4SensationThe immediate anddirect response of thesensory organs tostimuli. Examplesinclude the sensation ofan air craft taking off orfeeling a hot or juicyhamburger.The object in theenvoirment istechnically a stimulus
5. 6-5Weber’sLawA theory concerning theperceived differentiationbetween similar stimuli ofvarying intensities (i.e., thestronger the initial stimulus,the greater the additionalintensity needed for thesecond stimulus to beperceived as different).
6. 6-6Weber’s Law• For example:• A one half inch reduction in the size of afive - inch candy bar perhaps will not benoticed,but the same reduction in a two inchlong stick of chewing gum is likely to benoticed.
7. 6-7Marketing Applicationsof the JND• Need to determine the relevant j.n.d. fortheir products– so that negative changes are not readilydiscernible (noticeable) to the public– so that product improvements are very apparentto consumers– Marketers use this principle to marginallyreduce product quantity or size in order to keepprices constant in the wake of rising costs.
8. 6-8Figure 6.3 GradualChanges in BrandName Fall Below theJ.N.D.
9. 6-9SubliminalPerceptionPerception of veryweak or rapid stimulireceived below thelevel of consciousawareness.
10. 6-10Is Subliminal PersuasionEffective?• Extensive research has shown no evidencethat subliminal advertising can causebehavior changes• Some evidence that subliminal stimuli mayinfluence affective reactions
11. 6-11Aspects of PerceptionSelectionOrganizationInterpretation
25. 6-25Issues in Perceived Price• Reference prices– Internal– External• Tensile and objective price claims
26. 6-26Acquisition-Transaction Utility• Acquisition utilityrepresents theconsumer’s perceivedeconomic gain or lossassociated with thepurchase• Function of productutility and purchaseprice• Transaction utilityconcerns the perceivedpleasure or displeasureassociated with thefinancial aspect of thepurchase• Determined by thedifference between theinternal reference priceand the purchase price
27. 6-27Tensile and ObjectivePrice Claims• Evaluations leastfavorable for ads statingthe minimum discountlevel• Ads stating maximumdiscount levels are betterthan stating a range
28. 6-28Perceived Quality• Perceived Quality of Products– Intrinsic vs. Extrinsic Cues• Perceived Quality of Services• Price/Quality Relationship
29. 6-29Characteristics of Services• Intangible• Variable• Perishable• SimultaneouslyProduced andConsumed
30. 6-30Table 6.3 SERVQUAL Dimensions forMeasuring Service QualityDIMENSION DESCRIPTION•Tangibles Appearance of physical facilities, equipment,personnel, and communication materials•Reliability Ability to perform the promised servicedependably and accurately•Responsiveness Willingness to help customers and provideprompt service•Assurance Knowledge and courtesy of employees andtheir ability to convey trust and confidence•Empathy Caring, individualized attention the firmprovides its customers
31. 6-31Figure 6.15AdEmphasizingTangibleCues
32. 6-32Figure 6.16 Conceptual Model of theConsequences of Service QualitySuperiorInferiorFavorableUnfavorableRemainBehaviorDefect+$Ongoing RevenueIncreased SpendingPrice PremiumReferred CustomersFinancialConsequences-$Decreased SpendingLost CustomersCosts to AttractNew CustomersServiceQualityBehavioralIntentionsFocus of present studyEmpirical links demonstrated in macro studies
33. 6-33Price/QualityPrice/QualityRelationshipRelationshipThe perception ofprice as an indicatorof product quality(e.g., the higher theprice, the higher theperceived quality ofthe product).
34. 6-34Figure 6.17 Conceptual Model of the Effects ofPrice, Brand Name, and Store Name onPerceived ValueObjective PricePerceptionof PricePerceivedSacrificePerceivedQualityPerceivedValueWillingnessto BuyA. Conceptual Relationship of Price Effect++++--
35. 6-35Figure 6.17 continuedB. Extended Conceptualizationto Include Brand Name andStore NameStoreNameBrandNamePerceptionof StorePerceptionof Brand++Objective PricePerceptionof PricePerceivedSacrificePerceivedQualityPerceivedValueWillingnessto Buy++++--
36. 6-36Perceived RiskTypes• Functional Risk• Physical Risk• Financial Risk• Psychological Risk• Time RiskThe degree ofuncertaintyperceived by theconsumer as to theconsequences(outcome)of a specificpurchase decision.
37. 6-37How Consumers Handle Risk• Seek Information• Stay Brand Loyal• Select by Brand Image• Rely on Store Image• Buy the Most Expensive Model• Seek Reassurance
38. 6-38Figure 6.2 Betty Crocker Changes FallBelow the J.N.D.
39. 6-39Figure 6.5SubliminalEmbedding
40. 6-40Figure 6.12Using Imagery
41. 6-41Apple’s 1984 Ad PositionsAgainst the CompetitionClick icon to reach ad