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Consumer Perception

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  1. 2. Presenting DeepaChandrasekar IIPM Gurgaon
  2. 3. Perception <ul><li>Perception is the way in which an individual gathers, processes, and interprets information from the environment. </li></ul><ul><li>How we see the world around us? </li></ul>
  3. 4. Elements of Perception <ul><li>Sensation </li></ul><ul><li>Absolute Threshold </li></ul><ul><li>Differential Threshold -Just Noticeable Difference </li></ul><ul><li>Subliminal Perception </li></ul>
  4. 5. Sensation <ul><li>Immediate & direct response of the sensory organs to stimuli </li></ul><ul><li>A Stimulus is a single input of the sense. </li></ul><ul><li>Human beings have Sensory Receptors / Sensory organs. </li></ul>
  5. 6. Nose <ul><li>Smell </li></ul>
  6. 7. Eyes <ul><li>Sight </li></ul>
  7. 8. Skin <ul><li>Touch </li></ul>
  8. 9. Ears <ul><li>Sound </li></ul>
  9. 10. Mouth <ul><li>Taste </li></ul>
  10. 11. Absolute Threshold <ul><li>Minimum level a individual can experience a sensation. </li></ul><ul><li>Distinguish between Something & Nothing </li></ul><ul><li>Level Varies from person to person </li></ul><ul><li>Time – Place - Environment </li></ul>
  11. 12. Differential Threshold <ul><li>Minimal difference that can be detected between to different stimuli </li></ul>
  12. 13. Marketing Applications of the J.N.D. <ul><li>Marketers need to determine the relevant j.n.d. for their products </li></ul><ul><ul><li>so that negative changes are not readily discernible to the public </li></ul></ul><ul><ul><li>so that product improvements are very apparent to consumers </li></ul></ul>
  13. 14. Just noticable difference
  14. 15. Subliminal Perception <ul><li>An advertising message presented below the threshold of consciousness. </li></ul><ul><li>A visual or auditory message that is allegedly perceived psychologically, but not consciously </li></ul>
  15. 16. Aspects of Perception Selection Organisation Interpretation
  16. 17. Selection
  17. 18. Which one you will choose?
  18. 19. Which one you will choose?
  19. 20. Which one you will choose?
  20. 21. Selective Exposure <ul><li>Consumers seek out messages which: </li></ul><ul><ul><li>Are pleasant </li></ul></ul><ul><ul><li>They can sympathize </li></ul></ul><ul><ul><li>Reassure them of good purchases </li></ul></ul>
  21. 22. Selective Attention <ul><li>Heightened awareness when stimuli meet their needs </li></ul><ul><li>Consumers prefer different messages and medium </li></ul>
  22. 23. Perceptual Defense <ul><li>Screening out of stimuli which are threatening </li></ul>
  23. 24. Perceptual Blocking <ul><li>Consumers avoid being bombarded by: </li></ul><ul><ul><li>Tuning out </li></ul></ul><ul><ul><li>Odd ads </li></ul></ul>
  24. 25. Perceptual Organisation <ul><li>Figure & Ground </li></ul><ul><li>People tend to organize perceptions into figure-and-ground relationships. </li></ul><ul><li>The ground is usually hazy. </li></ul><ul><li>Marketers usually design so the figure is the noticed stimuli. </li></ul>
  25. 26. Perceptual Organization <ul><li>Grouping </li></ul><ul><li>People group stimuli to form a unified impression or concept. </li></ul><ul><li>Grouping helps memory and recall. </li></ul>
  26. 28. Perceptual Organisation <ul><li>Closure </li></ul><ul><li>People have a need for closure and organize perceptions to form a complete picture. </li></ul><ul><li>Will often fill in missing pieces </li></ul><ul><li>Incomplete messages remembered more than complete. </li></ul>
  27. 29. Perceptual Interpretation
  28. 30. Physical Appearances <ul><li>Positive attributes of people they know to those who resemble them </li></ul><ul><li>Important for model selection </li></ul><ul><li>Attractive models are more persuasive for some products </li></ul>
  29. 31. Stereotypes <ul><li>People hold meanings related to stimuli </li></ul><ul><li>Stereotypes influence how stimuli are perceived </li></ul>
  30. 32. First impressions <ul><li>First impressions are lasting </li></ul><ul><li>The perceiver is trying to determine which stimuli are relevant, important, or predictive </li></ul>
  31. 33. Jumping to Conclusions <ul><li>People tend not to listen to all the information before making conclusion </li></ul><ul><li>Important to put persuasive arguments first in advertising </li></ul>
  32. 34. Halo Effect <ul><li>Consumers perceive and evaluate multiple objects based on just one dimension </li></ul><ul><li>Used in licensing of names </li></ul><ul><li>Important with spokesperson choice </li></ul>
  33. 35. Consumer Imagery <ul><li>Product Positioning – Repositioning </li></ul><ul><li>Perceptual Mapping </li></ul><ul><li>Positioning of services </li></ul><ul><li>Perceived Price </li></ul><ul><li>Perceived Quality </li></ul><ul><li>Retail Store Image </li></ul><ul><li>Manufacturer's Image </li></ul><ul><li>Perceived Risk </li></ul>
  34. 36. Positioning <ul><li>Establishing a specific image for a brand in relation to competing brands. </li></ul>
  35. 37. Repositioning <ul><li>Changing the way a product is perceived by consumers in relation to other brands or product uses. </li></ul>
  36. 38. Positioning of services <ul><li>Umbrella Positioning </li></ul>
  37. 39. Positioning against Competition
  38. 40. Positioning Based on a Specific Benefit
  39. 41. Interesting Boring Easy going Strict Managerial Eco Consumer Behaviour brand Comparative economics
  40. 42. Perceptual Mapping <ul><li>A research technique that enables marketers to plot graphically consumers’ perceptions concerning product attributes of specific brands </li></ul>
  41. 43. Perceived Price <ul><li>Reference prices – used as a basis for comparison in judging another price </li></ul><ul><ul><li>Internal </li></ul></ul><ul><ul><li>External </li></ul></ul><ul><li>Acquisition and transaction utility </li></ul><ul><li>One study offers three types of pricing strategies based on perception of value. </li></ul>
  42. 44. Perceived Quality <ul><li>Perceived Quality of Products </li></ul><ul><ul><li>Intrinsic vs. Extrinsic Cues </li></ul></ul><ul><li>Perceived Quality of Services </li></ul><ul><li>Price/Quality Relationship </li></ul>
  43. 45. Price/Quality Relationship <ul><li>The perception of price as an indicator of product quality (e.g., the higher the price, the higher the perceived quality of the product.) </li></ul>
  44. 46. Conceptual Model of the Effects of Price, Brand Name, and Store Name on Perceived Value Objective Price Perception of Price Perceived Sacrifice Perceived Quality Perceived Value Willingness to Buy + + + + - Conceptual Relationship of Price Effect
  45. 47. Extended Conceptualization to Include Brand Name and Store Name Store Name Brand Name Perception of Store Perception of Brand + + Objective Price Perception of Price Perceived Sacrifice Perceived Quality Perceived Value Willingness to Buy + + + + - -
  46. 48. Perceived Risk <ul><li>The degree of uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision </li></ul>
  47. 49. Types of Risks <ul><li>Functional Risk </li></ul><ul><li>Physical Risk </li></ul><ul><li>Financial Risk </li></ul><ul><li>Social Risk </li></ul><ul><li>Psychological Risk </li></ul><ul><li>Time Risk </li></ul>
  48. 50. How do Consumer Handle Risk? <ul><li>Seek Information </li></ul><ul><li>Brand Loyal </li></ul><ul><li>Select by Brand Image </li></ul><ul><li>Rely on store image </li></ul><ul><li>Buying the most expensive model </li></ul><ul><li>Seek Reassurance </li></ul>