Consumer behaviour Consumer perception

1. S. Poovarasan
22MCM07
2ND M.COM

2. Meaning
Stages of Customer Perception
Advantages of Customer Perception
Disadvantages of Customer
Perception

3. What is customer perception
Customer perception is the opinions,
feelings, and beliefs customers have
about your brand. It plays an important
role in building customer loyalty and
retention as well as brand reputation and
awareness.

4. Stages of consumer perception

5. Customer Perception is a four stage process that translates raw stimuli into
meaningful information.
1. Exposure
Exposure includes the elements like colors, logo, sound, ambience which a
customer experiences when they interact with a brand or a product. When we
see a particular color and taste a unique flavor it can get our attention which
forms the second stage.

6. 2. Attention
Attention comes into picture when the exposure stage completes
and the customer takes notice of the message and product being
marketed. If the attention results in positive experience, it may
get into the interpretation stage.

7. 3. Interpretation
Interpretation is how a customer assigns meaning or some value to the
inputs and experience in the first 2 stages of customer perception. It can
lead to comparison with another similar product or some similar
experience from the past. Overall the customer assigns some meaning to
the overall experience with the product.

8. 4. Retention
Now the final stage is when the customer remembers the interaction for
future references by storing it in the memory. This means that the
customer perception is now formed. It may be positive or it may be
negative as well.
In simpler terms, it is how a customer see's a particular brand with
whatever he or she has been able to understand by watching the
products, its promotions, feedback etc. It is the image of that particular
brand in the mind of the customer.

9. Advantages of customer
perception:
1. Increases
customer loyalty
2. Influences
buying decision
3. Development of
New
Product/Expansion

10. Customer perception is a crucial component of the relationship between a
brand and its customers. Customer perception brings along a lot of
advantages:
Increases Customer Loyalty
When customers have a positive perception of your brand, they will be
loyal to your brand and will bring more customers. A good price point,
better packaging, a special offer can lure them. So, building a strong
relationship with a strong brand image is important.

11. Influences Buying Decision
If you’re selling cars, and the customer has to choose between you and your
competitor, positive customer perception will be advantageous. Your price
point is higher, looks are good, you have a strong brand value. The
competitor’s car is cheaper, but more powerful and packed with accessories,
but the looks are ordinary, the brand has a history of scandals. What will nail
his decision over performance and quality? Even though the competitor’s car
is a better one, he will zero in for yours. This is what happened to Volkswagen
after the Dieselgate scandal in 2015. Though a top car brand, its sales figures
fell, and the brand is still struggling to come out of it.

12. Development of New Products/Expansion
Understanding customer perception towards a product will help
marketers to launch new products or to expand the business. Based on
positive customer perception, a brand can introduce new offerings with
similar features

13. Disadvantages of consumer
perception :
1) Loses
credibility
2) Customer
service impact
3) Complacency

14. Loses credibility
A company must keep its promises to its customers. Always
strive for truth and make sure whatever you have promised you
are delivering it to the letter.
False promises will create a negative impact on the customer,
and you will lose your credibility in the market. An important
disadvantage of wrong customer perception is that making false
promises loses the trust of the common man.

15. Customer Service Impact
Make sure your customer service department is up to the mark if you want
to avoid negative perception about your brand. When the customer service
department does not work efficiently, it has a direct impact on the mind of
an individual.
An important disadvantage in this scenario is that once a customer makes
up his mind negatively about your brand, you will need to work extra hard
to remove this preconceived notion from his mind. There isn’t a guarantee
that you will succeed in your endeavor.
Customer perception is relative, but once it gets fixated on something , it
becomes difficult to change it immediately.

16. Complacency
Do not get comfortable if you are getting positive feedbacks of your brand.
When everything is going smoothly, people start taking all the things for
granted and become complacent.
If a customer complains, it is taken lightly or passed to some other
employee who forgets to pay timely attention to it.
This can cause serious repercussions as it will cause negative customer
perception. Maintain a strict vigil on your employees so that they can work
efficiently towards maintaining a positive impact.