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Schiffman cb10 ppt_06

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  • Here is an outline of the topics for Chapter Six.
  • Perception is how we see the world around us. You and your friend might see the same person, thing, or event yet you will interpret in different ways. This interpretation is highly individualized and depends on each person’s own needs, values, and expectations. These are the four major elements of perception. They will be described in detail on the following slides.
  • Sensation is the response of the sensory organs, including the eyes, ears, nose, mouth, and skin. Most of marketing focuses on sight and sound but much research is being done on smell and touch. The web link on this page connects to a company that uses smell as a marketing tactic. Advertisers must reach the absolute threshold for consumers to be able to experience their advertising tactic. It is interesting that the absolute threshold changes over time. Consumers adapt and get used to a certain ad or message so no longer notice it. This is one of the reasons why advertisers change their ads frequently.
  • Marketers are very concerned with the differential threshold , which is also called the just noticeable difference . It was a German scientist named Ernst Weber who realized that this difference was not a fixed amount. The best example is when you buy a low-priced product like a cup of coffee from Starbucks. A $1 increase in your tall coffee would be noticed by you. But if you were buying a laptop whose price changed from $455 to $456 you might not even notice.
  • Marketers make changes in their products over time. Sometimes they have to make negative changes, perhaps increase price or reduce package size. They want to make this negative change subtle enough that most consumers will not notice. On the other hand, a marketer might want to make positive changes to the product. They would want to determine how small they can make this change so that it is noticeable to the end consumer but does not cost the marketer excessive amounts of money. Marketers also want to be careful that when they change the look of a product or packaging, that consumers still recognize the brand and transfer their positive feelings toward the brand.
  • Kellogg’s might want to change their ingredients, either to make the product healthier or because they have secured lower-priced raw materials. They might want to reduce package size to avoid a price increase and they would not want this to be noticed. Perhaps Tony the Tiger could look a little different. At one point, Pillsbury made a decision to make the Pillsbury Dough Boy a bit thinner. They wanted to make sure he still was cute but looked a bit more fit and lean.
  • People have been fascinated by subliminal perception for over 50 years. The question is whether stimuli that are not consciously sensed can still be perceived and are therefore capable of altering behavior. At this point, there is no research that shows that it directly changes attitudes or purchase behavior. No doubt, there will continue to be research on this subject as many feel that there is indeed an effect from subliminal perception.
  • Consumers are bombarded by stimuli and are therefore very selective as to what messages and information they perceive. As new information comes to their mind, it is organized within their mind. Finally, consumers interpret the stimuli based on their needs, expectations, and experience. Each of these stages will be examined on the following slides.
  • Consumers are exposed to thousands, if not millions, of stimuli every day. The stimuli that they perceive depends on the three factors on this slide – nature of the stimulus, expectations, and motives. Think of the last time you went to the supermarket – what products did you notice? Why? Perhaps it was the nature of the stimulus, the packaging of the product. You might notice a sale on your favorite brand because you have positive expectations of how that brand performs. Finally, your motive in going to the supermarket might have been to purchase eggs and milk. This might lead you to notice promotions or point-of-purchase displays for these products.
  • If you think about it, you might be surprised at what you have seen today. Did you go online to Google? If so, you probably had many contextual search ads appearing on your screen. Also consider outdoor advertisements you may have seen, including billboards, taxi tops, and rail advertising.
  • These four concepts are very important to consider when understanding how consumers select which stimuli they will perceive. In general, they are selective as to what they are exposed to – what messages they seek out. Once exposed, they are selective of their attention to some messages over others. Consumers might even screen out or block messages that they consider threatening or overwhelming.
  • Organization refers to how people organize stimuli into groups and perceive them as a whole. This is referred to as Gestalt which means pattern in German. There are three major principles of perceptual organization, including figure and ground, grouping, and closure. The first, figure and ground , has to do with contrast. An advertiser wants just enough contrast so that the figure is noticed but that the background adds a sensory effect. Product placement, when a product appears in a movie or television show, can be considered a figure and ground issue. The advertiser wants the product (figure) to be noticed as it blends in with the ground (character in the show). This web link takes you to a very fun site called sporcle. The quiz that is opened for you refers to the top brands, organized by product category. Is this similar to how you organize these brands? How did you do on the test?
  • Grouping is common in perceptual organization. Whether it is numbers (phone numbers) that are grouped in 3 or 4 digits OR images in an ad, consumers will group stimuli together to organize them. This grouping helps memory and recall.
  • Individuals organize their perceptions to form a complete picture. Our minds have a need for closure and we will work to fill in the missing information when we are presented incomplete stimuli.
  • When asked what you have done today, it is sometimes difficult to recall. When asked what you have to do, we often have a stronger memory of this information. A local bank could use this information to help their customers realize they have not yet set up an annual IRA account. They could show a picture of a teller with a blank square in their hand the size of a bank check. The consumer will use closure to fill in the image with a check.
  • Perceptual interpretation occurs because consumers have unique motives, interests, and experiences. How people interpret often reveals a lot about themselves. For instance, individuals tend to have stereotypes due to physical appearances, descriptive terms, first impressions, and the halo effect. These will be examined in the next couple of slides.
  • We often make decisions based on how people or products appear. A beautiful spokesperson might be perceived as possessing expertise for beauty products. A certain color to a food might make us think it is healthier. The web link is an example of a tool marketers can use on their website to give a “human” touch. There are many attractive hosts to choose from.
  • The choice of descriptive terms for names and advertisement in services are particularly important due to the intangible nature of services. In this ad, the marketer has stereotyped the person who eats a cheeseburger vs. tofu and applied them in a descriptive sense to their product.
  • First impressions are lasting so a marketer should be careful how they advertise new products.
  • With the halo effect , a person uses just one dimension in evaluating a person, product, or service. For instance, a consumer might consider a clean waiting room as an indication of a good dentist. For this reason, marketers use the halo effect when licensing names of products or choosing spokespeople.
  • It is important to realize that good position defines the product in a unique place in the consumer’s mind when compared to competing products. This place is the result of the benefits that are offered by the product and how they are different or better than those of the competitor’s products.
  • A consumer often derives their understanding of a product and its benefits from the packaging. A good example would be shampoo. The shape of the bottle, the choice of colors and symbols, and even the cap can help the consumer position the product and determine if the product’s benefits are gentle, color safe, strong cleaning, or conditioning. Many marketers will need to reposition their product over time due to either market changes or consumer preference changes. This is often challenging to marketers, especially if their product had been perceived negatively in the marketplace.
  • Perceptual mapping helps the marketer visualize how their product is positioned in the consumer’s mind. It is a graph of products within a category based on two major benefits or attributes. It allows them to see gaps in the positioning of all the products and identify areas for new products.
  • This map shows slogans used to position new condos in New York City. We can see that they are broadly positioned by whether they are more modern vs. traditional and whether they are more of a home vs. a trophy. This map does not show any large gaps in the marketplace.
  • Positioning of services has extra challenges due to the intangible nature of a service. You cannot hold it in your hand and look at it – you must make your decision based on visual images and tangible cues, such as delivery trucks, storefronts, or other marketing tactics.
  • Perceived price should reflect the value that the customer receives from their purchase. It is important for customer satisfaction that the consumer sees their price as fair. To determine fairness, consumers look at other prices that they know. Comparative prices might be ones that the consumer knows (internal) or prices that the marketer uses in their advertising as is the case with an ad that states “compare to $100 at our competitor.” Consumers perceive the quality of a product by intrinsic and extrinsic cues. Those that are intrinsic concern the physical characteristics of the product. These include color, flavor, aroma, and size. Many times a consumer will use extrinsic cues, those that are not really part of the physical product including brand name, reputation, and location within store. If a consumer has no experience with a product, they are more likely to use external cues. An example of external cues is country of origin. A chocolate is from Switzerland so it must be good even though you know nothing of the color or taste of the chocolate.
  • These are three pricing strategies that one set of researchers proposed. They would be effective when considering services and the customer perception of the value that the service delivers.
  • This survey was used in a study to measure perceptions of brand luxury. The benefit of “luxury” would be one that many marketers would use, including hotels, cars, and jewelry.
  • Services have unique characteristics that make quality a more complex issue. First of all, services are intangible. It is hard for consumers to compare them side by side without having to use external cues. Secondly, they can differ from day to day. We all know that we can get a haircut from a barber or hair stylist on one day that is vastly different from the quality of a previous cut. Services are difficult because they are perishable, they cannot be put on a shelf and left standing from day to day. Finally, the products are consumed and produced at the same time, making quality control hard for the service marketer. The SERVQUAL scale measures the gap between customer expectations of a service before it is provided versus their perceptions after the service is provided. The scale measures five dimensions, including reliability, responsiveness, assurance, empathy, and tangibility
  • Value is the trade-off between perceived benefits and perceived sacrifice. As such, a consumer helps understand the benefits many times in terms of the monetary sacrifice. The more they pay, the better product or service they get.
  • You have probably done this many times for a service. Was it always better?
  • The image and subsequent positioning of a retail store is a result of the factors listed above. Of considerable interest are the brands that the store carries. There is an association formed between the retailer and their brands. Research has shown that strong brands will improve the image of a retailer in many situations.
  • Manufacturers want their corporate image to be positive so that their products and brands can be positively perceived in the marketplace. Institutional advertising can do this in addition to exhibits and sponsorship of community events.
  • Consumer purchase decisions are determined by the degree of risk that consumers perceive, and their tolerance for risk. The major types of risk are listed in this slide. The first, functional risk, deals with the risk that the product will not perform as expected. Physical risk is the risk to self and others. Financial risk is that the product will not be worth its cost and social risk is that the choice of the product might lead to social embarrassment. Psychological risk is that a poor product choice will hurt the consumer's ego and time risk is that the time has been wasted in purchasing this product.
  • How consumers handle risk will differ by their own individual strategy. That being said, there are a handful of strategies that people tend to use when dealing with risk. The first of these is to seek information so that they have more knowledge when they purchase. Consumers can also stay brand loyal, thereby avoiding risk by sticking with a known product. Consumers can select by brand image to reduce their risk because they may already know and trust the brand, perhaps from buying a different product by the same brand or company. Some consumers will rely on store image to help them reduce risk. Some customers buy the most expensive model assuming that the price/quality relationship will safely deliver them the best product. Finally, consumers seek reassurance through money-back guarantees, warranties, seals of approval and free trials.
  • Transcript

    • 1. CHAPTER SIXConsumer Perception
    • 2. Learning Objectives1. To Understand the Sensory Dynamics of Perception.2. To Learn About the Three Elements of Perception.3. To Understand the Components of Consumer Imagery and Their Strategic Applications. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 2
    • 3. Perception• The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world• Elements of Perception – Sensation – Absolute threshold – Differential threshold – Subliminal perception Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 3
    • 4. Sensation• Sensation is the immediate and direct response of the sensory organs to stimuli – A stimulus is any unit of input to any of the senses.• The absolute threshold is the lowest level at which an individual can experience a sensation.Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 4
    • 5. Differential Threshold (Just Noticeable Difference – j.n.d.)• Minimal difference that can be detected between two similar stimuli• Weber’s law – The j.n.d. between two stimuli is not an absolute amount but an amount relative to the intensity of the first stimulus – The stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different.Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 5
    • 6. 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 consumersCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 6
    • 7. Discussion Question• How might a cereal manufacturer such as Kellogg’s use the j.n.d. for Frosted Flakes in terms of: – Product decisions – Packaging decisions – Advertising decisions – Sales promotion decisionsCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 7
    • 8. Subliminal Perception• Stimuli that are too weak or too brief to be consciously seen or heard – They may be strong enough to be perceived by one or more receptor cells.• Is it effective? – Extensive research has shown no evidence that subliminal advertising can cause behavior changes – Some evidence that subliminal stimuli may influence affective reactionsCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 8
    • 9. Aspects of PerceptionCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 9
    • 10. Perceptual SelectionSelection Depends Upon:Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 10
    • 11. Why Are Consumers Likely to Notice This Ad?Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 11
    • 12. The Attention-Getting Nature of a Dramatic ImageCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 12
    • 13. Discussion Questions• What marketing stimuli do you remember from your day so far?• Why do you think you selected these stimuli to perceive and remember?Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 13
    • 14. Perceptual Selection Important ConceptsCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 14
    • 15. Organization Principles • People tend to organize perceptions into figure- • Figure and ground and-ground relationships. • Grouping • The ground is usually hazy. • Closure • Marketers usually design so the figure is the noticed stimuli.Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 15
    • 16. Organization Principles • Figure and ground • People group stimuli to • Grouping form a unified • Closure impression or concept. • Grouping helps memory and recall.Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 16
    • 17. Organization Principles • People have a need for closure and organize • Figure and ground perceptions to form a • Grouping complete picture. • Will often fill in missing • Closure pieces • Incomplete messages remembered more than completeCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 17
    • 18. What Element of Perceptual Organization Is Featured in This Ad?Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 18
    • 19. ClosureCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 19
    • 20. Discussion Question• Do you agree you remember more of what you have NOT completed?• How might a local bank use this in their advertising?Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 20
    • 21. Interpretation • People hold meanings related to stimuliCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 21
    • 22. Interpretation • Positive attributes of people they know to those who resemble them • Important for model selectionCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 22
    • 23. Interpretation • Verbal messages reflect stereotypesCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 23
    • 24. How Does This Ad Depict Perceptual Interpretation?Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 24
    • 25. It Contrasts the Powerful Durango with Less Rugged Referred to in the Ad as the “Land Of Tofu.”Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 25
    • 26. Interpretation • First impressions are lasting • The perceiver is trying to determine which stimuli are relevant, important, or predictiveCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 26
    • 27. Interpretation • Consumers perceive and evaluate multiple objects based on just one dimensionCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 27
    • 28. Product Positioning• Establishing a specific image for a brand in the consumer’s mind in relation to competing brands• Conveys the product in terms of how it fulfills a need• Successful positioning creates a distinctive, positive brand image Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 28
    • 29. Which Concepts of Perception Are Applied in These Ads?Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 29
    • 30. The Principle Of ContrastCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 30
    • 31. Packaging as a Positioning Element• Packaging conveys the image that the brand communicates to the buyer.• Color, weight, image, and shape are all important.• Repositioning might be necessary because: – Increased competition – Changing consumer tastesCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 31
    • 32. Perceptual Mapping• An analytical technique that enables marketers to plot graphically consumers’ perceptions concerning product attributes of specific brands Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 32
    • 33. Perceptual Mapping Figure 6.9Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 33
    • 34. Positioning of Services• Image is a key factor for services• Services often want a differentiated positioning strategy to market several versions of their service to different markets.Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 34
    • 35. Which Elements of This Ad Convey the Restaurant’s Perceptual Position and How?Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 35
    • 36. The Steak Knife and the Reference to Vegetarians Convey The Position of the Restaurant as a Well-Established SteakhouseCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 36
    • 37. Perceived Price and Perceived Quality• Reference prices – used as a basis for comparison in judging another price – Internal – External• Perceived Quality of Products – Intrinsic vs. Extrinsic Cues Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 37
    • 38. Three Pricing Strategies Focused on Perceived Value - Table 6.4Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 38
    • 39. Measuring Perceptions of Brand LuxuryCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 39
    • 40. Perceived Quality of Services• Difficult due to characteristics of services – Intangible – Variable – Perishable – Simultaneously Produced and Consumed• SERVQUAL scale used to measure gap between customers’ expectation of service and perceptions of actual serviceCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 40
    • 41. Price/Quality RelationshipThe perception of price as an indicator of product quality (e.g., the higher the price, the higher the perceived quality of the product.)Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 41
    • 42. How Can This Ad Affect the Service’s Perceived Quality?Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 42
    • 43. It Uses a Process Dimension in Advertising a Newly-Formed Business Class on an AirlineCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 43
    • 44. Discussion Questions• When have you used price as an indicator of quality?• Were you correct?Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 44
    • 45. Which of the Ad’s Elements Conveys the Product’s Quality?Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 45
    • 46. The Slogan on the Ad’s Bottom Left Reads “Perfection Has Its Price”Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 46
    • 47. Retail Store ImageCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 47
    • 48. Manufacturer’s Image• Favorable image tied to new product acceptance• Companies sponsor community events to enhance images• Product and institutional imagesCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 48
    • 49. 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 – Time RiskCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 49
    • 50. How Consumers Handle Risk• Seek Information• Stay Brand Loyal• Select by Brand Image• Rely on Store Image• Buy the Most Expensive Model• Seek ReassuranceCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 50
    • 51. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic,mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice HallCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 51