This chapter discusses consumer perception and the processes that occur within an individual when receiving marketing messages. It covers the three main phases of perception: sensing, organizing, and reacting to stimuli. Attention and interpretation are influenced by characteristics of the stimulus, the individual, and the situation. The chapter also examines exposure, attention, and interpretation in detail, outlining key factors that influence each step of information processing for consumer decision making.

1. Chapter Eight:
Perception
8-1

2. Chapter 8: Perception
Introduction
• Attention now shifts from the different steps
involved in purchase decision making to
the processes that occur primarily within
the individual.
These are discussed in:
• Chapter 8 Perception
• Chapter 9 Learning and memory
• Chapter 10 Motivation, personality and
emotion
• Chapter 11 Attitude and attitude change
8-2

3. Processes that occur primarily within
the individual
8-3

4. Chapter 8: Perception
1. The nature of perception
2. Different steps involved in information
processing
3. Which stimulus’ factors influence this process
4. Which individual factors influence this process
5. Which situational factors influence this
process
6. The way children process information
7. Implications of perception for retail, brand and
communication strategies
8-4

5. A simplified model of
perception
• Before we go into the details of the
concepts in this chapter, look
through the next four slides
• Shows the essence of what
perception involves
8-5

6. Consumer Perception Phases
8-6

7. The 3 phases
• Sensing: deciding what stimuli to
pay attention to (subject to ‘selective
perception’)
• Organizing: how to arrange
information in our minds
(categorization)
• Reacting: responding to stimuli;
experiences will then feedback and
influence future sensing 8-7

8. Selective Perception
Selective exposure
Selective exposure
Selective attention
Selective attention
Selective distortion
Selective distortion
8-8

9. Organization Process
Like sorting mail!
(information is sorted by categories)
8-9

10. The Nature of Perception
Information processing is a series of activities by which
stimuli are perceived, transformed into information, and
stored.
Perception consists of the first three steps or stages of
information processing: exposure, attention, and
exposure attention
interpretation.
8-10

11. The nature of perception
• Exposure
• Attention
• Interpretation
• Memory
– Short-term
– Long-term
8-11

12. Information processing for consumer
decision making
8-12

13. The Nature of Perception
Information Processing for Consumer Decision Making
Exposure occurs when a
stimulus comes within
range of a person’s sensory
receptor nerves (vision).
Attention occurs when the
stimulus is “seen” (the
receptor nerves pass the
sensations on to the brain
for processing).
8-13

14. The Nature of Perception
Information Processing for Consumer Decision Making
Interpretation is the
assignment of meaning to
the received sensations.
Memory is the short-term
use of the meaning for
immediate decision making
or the longer-term retention
of the meaning.
8-14

15. The Nature of Perception
Information Processing for Consumer Decision Making
These processes occur virtually
simultaneously and are clearly
interactive.
Perceptual defenses - individuals are not passive recipients of
marketing messages.
Both perception and memory are extremely selective.
8-15

16. Exposure
Exposure occurs when a
stimulus is placed within a
person’s relevant
environment and comes
within range of their sensory
receptor nerves.
Exposure provides the
opportunity for attention but
in no way guarantees it.
8-16

17. Exposure
• Occurs when a stimulus comes within range
of our sensory receptor nerves
• Deliberate exposure to stimuli
– Consumers seek information that will help
achieve certain goals
immediate
long-range
• Random exposure to stimuli
8-17

18. Exposure
Types of Exposure
1. Selective Exposure
• The highly selective nature of consumer exposure is a
major concern for marketers, since failure to gain
exposure results in lost communication and sales
opportunities.
2. Voluntary Exposure
• Although consumers often avoid commercials and other
marketing stimuli, sometimes they actively seek them
out for various reasons including purchase goals,
entertainment, and information.
8-18

19. Exposure
Selective Exposure
Ad avoidance includes ways consumers selectively
avoid exposure to advertising messages and can
include:
• Zipping--occurs when one fast-forwards through a
Zipping
commercial on a prerecorded program
• Zapping--involves switching channels when a
Zapping
commercial appears
• Muting--is turning the sound off curing commercial
Muting
breaks.
8-19

20. Exposure
Selective Exposure (cont.)
Product placement involves incorporating brands into
movies, television programs, and other entertainment
venues in exchange for payment or promotional or
other consideration.
• Firms expend tremendous effort into placing their
products within entertainment due to the exposure
provided that consumers don’t try to avoid.
• Product placement also shows the consumer how
and when to use the product and enhances its
image.
8-20

21. Exposure
Voluntary Exposure
Infomercials are program-length commercials to which
consumers voluntarily expose themselves.
Voluntary exposure also occurs online. Examples:
• A consumer who clicks on a banner ad or pop up
(clickthrough) is voluntarily being exposed to the target
site and its marketing message.
8-21

22. Exposure
Voluntary Exposure (cont.)
• Consumers also voluntarily expose themselves to
marketing messages by deliberately visiting a firm’s
home page and other marketer sites.
• Permission-based marketing occurs when a consumer
“opts in” to receive email-based promotions.
• The voluntary and self-selected nature of such
online offerings can enhance effectiveness.
8-22

23. Attention
Consumers are given the
opportunity to attend to the
marketer’s message.
8-23

24. Attention
Attention occurs when the
stimulus activates one or more
sensory receptor nerves, and
the resulting sensations go to
the brain for processing.
Attention requires consumers to
allocate limited mental
resources toward information
processing.
8-24

25. Attention
• Occurs when stimulus activates one or more
sensory receptor nerves and the resulting
sensations go to the brain for processing
• Determined by:
– Stimulus
– Individual
– Situation
8-25

26. Attention
Attention is determined by three factors:
1. Stimulus Factors
• Are physical characteristics of the stimulus itself
2. Individual Factors
• Are characteristics which distinguish one individual from
another
3. Situational Factors
• Include stimuli in the environment other than the focal
stimulus and temporary characteristics of the individual
that are induced by the environment
8-26

27. Attention
Stimulus Factors
Size
Intensity
Attractive Visuals
Color and Movement
Position
Isolation
Format
Contrast and Expectations
Interestingness
Information Quantity
8-27

28. Attention paid to prime-time TV ads
8-28

29. Stimulus’ factors
• Size and intensity
– Insertion frequency
• Colour and movement
• Position
• Isolation
• Format
• Contrast
– Adaptation level theory
• Compressed messages
• Information quantity—information overload
8-29

30. Attention
Stimulus Factors
Size
Larger stimuli are more likely to
be noticed than smaller ones.
Size also affects attention to
advertising.
Source: 1Cahners Advertising Research Report 110.1B (Boston: Cahners Publishing, undated).
8-30

31. The impact of advertisement size
8-31

32. Attention
Stimulus Factors
Intensity
The intensity (e.g., loudness, brightness, length) of a stimulus
can increase attention.
In online contexts, one aspect of intensity is intrusiveness, or
the degree to which one is forced to see or interact with a
banner ad or pop up in order to see the desired content.
Repetition is related to intensity. It is the number of times an
individual is exposed to a given stimulus, such as an ad or
brand logo, over time.
Consumers may shift the focus of their attention from one
part of the ad to another across repetitions, resulting in
attention reallocation. 8-32

33. Attention
Stimulus Factors
Attractive Visuals
Individuals are attracted to
pleasant stimuli and repelled by
unpleasant stimuli.
An ad’s visual or pictorial
component can have a strong
influence, known as a picture
superiority effect.
Any factor that draws attention to
itself and away from the brand Does Pepsi Gets Lost in this Ad?
has to be used with caution.
8-33

34. Attention
Stimulus Factors
Color and Size Impact on
Attention1
Color and Movement
Color and movement attract
attention.
A brightly colored package
or display is more likely to
received attention.
Color and movement are
also important in ads.
Source: 1”How Important is Color to an Ad?” Starch Tested Copy. February 1989,
p.1. Roper Starch Worldwide, Inc.
8-34

35. Attention
Stimulus Factors
Position
Position is the placement of an
object in physical space or
time.
In retail stores, items that are
easy to find or stand out are
more likely to attract attention,
such as end-caps and kiosks.
High impact zones in print ads
in the U.S. tend to be toward End-caps provide a way to capture
the top left portion of the ad. the shopper’s attention
8-35

36. Attention
Stimulus Factors
Isolation
Isolation is separating a stimulus object from other objects.
Examples of isolation include:
• In store use of a stand-alone kiosk
• In an advertisement, the use of “white space”
• In a radio commercial, surrounding a key part with a brief
moment of silence.
8-36

37. Attention
Stimulus Factors
Format
Format refers to the manner in which the message is
presented.
Simple, straightforward presentations receive more
attention than complex presentations.
What can decrease attention?
• Elements in the message that increase processing effort
• Ads that lack a clear visual point of reference or have
inappropriate movement
• Audio messages that are difficult to understand
8-37

38. Attention
Stimulus Factors
Contrast and Expectations
Consumers pay more attention to
stimuli that contrast with their
background.
Expectations drive perceptions of
contrast. Ads that differ from
expectations for a product category
often motivate more attention.
Adaptation level theory suggests
This billboard ad provides contrast
that if a stimulus doesn’t change for enhanced attention.
over time we habituate to it and
begin to notice it less. 8-38

39. Attention
Stimulus Factors
Interestingness
What one is interested in is generally an individual characteristic.
However, certain characteristics of the message, store, and in-
store display can generate consumer interest.
In advertising, factors that increase curiosity, interest and
attention include:
• Ongoing plot
• The possibility of a surprise ending
• Uncertainty as to the point of the message until the end
8-39

40. Attention
Stimulus Factors
Information Quantity
Information quantity represents the number of cues in the
stimulus field. Cues can relate to the features of the brand
itself, typical user of the brand, typical usage situations, etc.
Information helps consumers make decisions. But too much
information can have negative consequences.
Information overload occurs when consumers are confronted
with so much information that they cannot or will not attend
to all of it, resulting in suboptimal decisions.
8-40

41. Attention (cont.)
• Individual factors
– Interest
– Need
• Situational factors
– Involvement
• Non-focused attention
– Hemispheric lateralisation
– Subliminal stimuli
8-41

42. Attention
Individual Factors
Motivation
Motivation is a drive state created by consumer interest and
needs.
Product involvement indicates motivation or interest in a
specific product category. Product involvement can be
temporary or enduring.
Smart banners are banner ads that are activated based on
terms used in search engines. These search terms are used
to gauge involvement.
8-42

43. Attention
Individual Factors
Ability
Ability refers to the capacity of individuals to attend to and
process information.
Ability is related to knowledge and familiarity with the
product, brand, or promotion.
Brand familiarity is an ability factor related to attention.
Those with high brand familiarity may require less attention
to the brand’s ads due to their high existing knowledge.
8-43

44. Attention
Situational Factors
Clutter
Program Involvement
8-44

45. Attention
Situational Factors
Clutter
Clutter represents the density of stimuli in the environment.
Research suggests cluttering of the in-store environment
with too many point-of-purchase displays decreases the
attention consumers pay to a given display.
Consumers pay less attention to a television commercial in a
large grouping of commercials than they do to one in a
smaller set.
8-45

46. Attention
Situational Factors
Program Involvement
Program involvement refers to interest in the program or editorial
content surrounding the ads.
Program involvement has a positive influence on attention (see
graphs on the next two slides).
8-46

47. Involvement and magazine
advertising effectiveness
8-47

48. Involvement in a television program
and advertising effectiveness
8-48

49. Attention
Nonfocused Attention
Hemispheric lateralization
Subliminal Stimuli
8-49

50. Attention
Nonfocused Attention
Hemispheric Lateralization refers to activities that take place on
each side of the brain.
The left side of the The right side of
brain controls the brain deals
activities related to with images and
rational thought. impressions.
8-50

51. Attention
Nonfocused Attention
Subliminal Stimuli
A message presented so fast, softly or masked by other
messages that one is not aware of seeing or hearing it is call a
subliminal stimulus.
stimulus
A subliminal ad “hides” key persuasive information within the ad
by making it so weak that it is difficult or impossible for someone
to physically detect.
Subliminal advertising has been the focus of intense study and
public concern.
8-51

52. The Vicary Subliminal
“Persuasion” Study
Is this subliminal stuff true?
8-52

53. Interpretation
Interpretation is the
assignment of meaning to
sensations.
Interpretation relates to
how we comprehend and
make sense of incoming
information.
It is influenced by
characteristics of the
stimulus, the individual, and
the situation.
8-53

54. Factors Affecting Comprehension
(comprehension= interpretation)
Source: Babin and Harris 8-54
(Note: you don’t need to know all- just understand a few factors)

55. Physical Characteristics of the
Message Fonts
Numbers
8-55

56. Simplicity/Complexity
Simple phrases such as “fat
free” often communicate
more clearly than detailed
information.
8-56

57. Congruent or Incongruent Message
Sequences?
8-57

58. Message Source Factors
Likeability
Likeability
Expertise
Expertise
Trustworthiness
Trustworthiness
Attractiveness
Attractiveness
8-58

59. Interpretation
Three aspects of interpretation:
interpretation
1. It is generally a relative process rather than absolute,
referred to as perceptual relativity.
relativity
2. It tends to be subjective and open to a host of
psychological biases.
3. It can be a cognitive “thinking” process or an affective
“emotional” process.
• Cognitive interpretation is a process whereby stimuli are
placed into existing categories of meaning.
• Affective interpretation is the emotional or feeling response
triggered by a stimulus such as an ad.
8-59

60. Interpretation
• Cognitive interpretation
– Process of adding meaning
– From existing knowledge
semantic meaning
psychological meaning
• Affective interpretation
– Processing and adding meaning by
feeling
8-60

61. Affective interpretation used in an
advertisement
8-61

62. Determinants of interpretation
8-62

63. Interpretation (cont.)
• Individual characteristics
– Learning
– Expectations
• Situational characteristics
– E.g. hunger, moods, temperature etc.
– Proximity
• Stimulus’ characteristics
– Semiotics
• Misinterpretation of marketing messages
8-63

64. Interpretation
Individual Characteristics
Traits
Learning and Knowledge
Expectations
8-64

65. Interpretation
Individual Characteristics
Traits
Physiological and psychological traits
drive our needs and desires. These traits
influence how a stimulus is interpreted.
Physiologically Psychologically
Consumers have natural cognitive,
Consumers differ in their sensitivity to
emotional, and behavioral
stimuli, e.g., taste.
predispositions, e.g., affect intensity.
8-65

66. Interpretation
Individual Characteristics
Learning and Knowledge
The meanings attached to
such “natural” things as time,
space, relationships, and
colors are learned and vary
widely across cultures.
Consumers also learn about
marketer-created stimuli like
brands and promotions Color is used in the Wrigley’s ad to
through their experiences mean “icy and cool.”
with them.
8-66

67. Interpretation
Individual Characteristics
Expectations
Interpretations tend to be consistent
with expectations, an effect referred
to as the expectation bias.
Consumers often evaluate the
performance of a well-known brand
as higher than that of an identical
product with an unknown brand Brands create expectations and
can thus bias perceptions.
name.
8-67

68. Interpretation
Situational Characteristics
The situation provides a context within which the focal
stimulus is interpreted.
The Contextual cues present in the situation play a
role in consumer interpretation independent of the
actual stimulus.
8-68

69. Interpretation
Stimulus Characteristics
Traits
Organization
Changes
8-69

70. Interpretation
Stimulus Characteristics
Traits
Specific traits of the stimulus
such as size, shape and color
affect interpretation.
Consumers appear to prefer
stimuli that they perceive as easy
to process.
Incongruity is an unexpected
stimulus and increases attention.
This billboard ad features a
simple message.
8-70

71. Interpretation
Stimulus Characteristics
Organization
Stimulus organization refers to
the physical arrangement of the
stimulus objects.
The mannequin’s position (right)
makes it “appear” to be looking at
the Calvin Klein ad. This likely
draws shoppers to the ad and
store as well.
This store front shows a mannequin
turned toward a Calvin Klein ad.
8-71

72. Interpretation
Stimulus Characteristics
Organization (cont.)
Proximity means that stimuli positioned close together are
perceived as belonging to the same category.
Ambush marketing draws on proximity by making it appear
that a company is associated with an event when it’s not.
Closure involves presenting an incomplete stimulus with the goal
of getting consumers to complete it and become more engaged
and involved.
Figure-ground involves presenting the stimulus in such a way that
it is perceived as the focal object to be attended to and all other
stimuli are perceived as the background.
8-72

73. The Figure and Ground
Distinction
8-73

74. Apple i-pod ads
8-74

75. Interpretation
Stimulus Characteristics
Changes
Interpreting change requires both the ability to detect change
and then assigning meaning to that change.
Sensory Discrimination is the physiological ability of an
individual to distinguish between similar stimuli.
Just Noticeable Difference (j.n.d.) is the minimum
amount that one brand can differ from another (or from its
previous version) with the difference still being noticed.
8-75

76. JND
(Just Noticeable Difference)
• Represents how much stronger
one stimulus has to be relative to
another so that someone can notice
that the two are not the same.
• Weber’s Law – the ability to detect
differences between two levels of a
stimulus is affected by the original
intensity of the stimulus.
8-76

77. JND formula
∆I K: JND
∆ I : change in
K= intensity of stimuli
I I : original intensity of
stimuli
8-77

78. JND: Marketing Implications
Pricing
Pricing Quantity
Quantity
Add-on
Add-on
Quality
Quality Purchases
Purchases
8-78

79. JND and Pricing
• Depends on whether you are
increasing or reducing price
• JND for reducing price should be
large (‘above the jnd’- noticeable)
• JND for increasing price should be
imperceptible (‘below the jnd’)
8-79

80. JND and Quantity
• Increasing or decreasing quantity
• Increase= above the JND
• Decrease= below the JND
• Examples
– Extra value package (more quantity)
– But if you have to reduce size (like
burger patty or chocolate bars, make
sure it is imperceptible – below the jnd)
8-80

81. JND and Quality
• Changes in quality
• Improvements: above the jnd
• Reduction : below the jnd
• Examples???
8-81

82. Interpretation
Consumer Inferences
When it comes to marketing, “what you see is not
what you get.” That’s because interpretation often
requires consumers to make inferences.
An inference goes beyond what is directly stated or
presented.
Consumers use available data and their own ideas to
draw conclusions about information that is not
provided.
8-82

83. Interpretation
Consumer Inferences
Quality Signals
Interpreting Images
Missing Information and Ethical Concerns
8-83

84. Interpretation
Consumer Inferences
Quality Signals
Some product quality inferences Quality signals include:
are consistent across consumers
and are termed quality signals. • Price-perceived quality
Quality signals tend to operate • Advertising intensity
more strongly when consumers • Warranties
lack the expertise, when
involvement in the decision is •Country of origin (COO)
low, and when other quality- •Brand name
related information is lacking.
8-84

85. Interpretation
Consumer Inferences
Interpreting Images
Consumer inferences are becoming
increasingly important as advertisers
increase their use of visual imagery.
A picture is worth a thousand words
not just because it may convey
reality more efficiently than words
but because it may convey meanings
that words cannot adequately
express. Courtesy Partnership for a Drug-Free America
8-85

86. Interpretation
Consumer Inferences
Missing Information and Ethical Concerns
How can consumers be misled?
1. Companies can make direct claims that
are false.
2. Other types of deception are more
subtle and fall under the broad category
of claim-belief discrepancies.
8-86

87. Children’s information processing
Stage Description
1. Sensorimotor Primarily motor
intelligence (0-2 yrs)
2. Pre-operational thought Language and
(3-7yrs) conceptual development
3. Concrete operations Logical thought applied
(8-11yrs)
4. Formal operations Logical thought has been
(12-15yrs) developed and can be
applied
8-87

88. Perception and marketing strategy
1. Retail strategy
2. Brand name and logo development
3. Media strategy
4. Advertisement and package design
5. Warning labels and package
designs
8-88

89. Perception and marketing strategy
(cont.)
• Perceptions of marketing messages and
ethics
– Ethics of the ads
e.g. Heart tick can’t be used by all
‘healthy’ foods
– Advertising aimed at children
children can’t always distinguish
between ads and programs
more research required
8-89

90. Perception and Marketing Strategy
Retail Strategy
Retailers often use exposure very effectively.
Store interiors are designed with frequently
purchased items separated so consumers will travel
through more of the store, increasing total exposure.
Shelf position and amount of shelf space influence
which items and brands are allocated attention.
Cross-promotions, where signage in one area of the
promotions
store promotes complementary products in another can
also be effective.
8-90

91. Retail strategy
• Store layout
– Cold and hot zones
– Traffic and islands
• Lighting and fit-out
• Placement of products on shelves
– Eye levels (for adults and for children!)
– Number of facings to maximise visual
impact
8-91

92. Perception and Marketing Strategy
Retail Strategy
Shelf space and position help to gain attention. In this case, the
shelf is protruding out into the shopping aisle!
8-92

93. Perception and Marketing Strategy
Brand Name and Logo Development
Brand names can influence anything from food taste to color
preference. Given the tendency toward global brands, it is easy
to imagine how complex creating an appropriate name can be.
Linguistic
Consideration
Logo Design
Branding
and
Strategies
Typographics
8-93

94. Perception and Marketing Strategy
Brand Name and Logo Development
Linguistic Considerations
Sometimes brand names start out having no inherent
meaning, but gain associations over time as consumers gain
experience with them.
Marketers increasingly tap into linguistic characteristics of
words to create brand names with inherent meaning.
• Semantic meaning or morpheme -- (e.g.,
NutraSweet)
• Phonemes -- Sounds of letters and words can
symbolize product attributes (e.g., Charmin’s soft
sounds)
8-94

95. Brand name and logo development
• Important for consumer and industrial
products
• Creating a brand is a long and expensive
process
• Brand names and logos require constant
management and rejuvenation
• Take into account where the brand
name/logo will be used
– Is it easily transferable to a range of media?
8-95

96. Perception and Marketing Strategy
Brand Name and Logo Development
Branding Strategies
Marketers engage in numerous strategies to leverage strong
existing brand names.
• Brand extension
• An existing brand extends to a new category with the
same name.
• Co-branding
• An alliance where two brands are put together on a
single product.
A key issue with both branding strategies is perceived fit.
8-96

97. Perception and Marketing Strategy
Brand Name and Logo Development
Logo Design and Typographics
How a product or service name is presented—its logo—is very
important.
Dimensions include:
•Naturalness
•Elaborateness
•Symmetry
8-97

98. Perception and Marketing Strategy
Advertisements
Advertisements must perform two critical tasks:
Capturing attention
Conveying meaning
8-98

99. Simple, straight-forward
advertisements can gain attention
8-99

100. Perception and Marketing Strategy
Advertisements
Strategy examples can include:
Utilizing stimulus characteristics to attract attention
(bright colors or surrealism)
Tying the message to a topic in which the target
market is interested (relevance)
Using humor, sex appeal, and celebrities in ways that
are relevant to the product or message
8-100

101. Perception and Marketing Strategy
Media Strategy
The explosion of media alternatives makes it difficult and
expensive to gain exposure to key target audiences.
It is essential to determine which media the consumers in
the target market are most frequently exposed and place ad
messages in those media.
8-101

102. Media strategy
1. Random approach
– To reach where the target market may be
2. Selective approach
– To reach where the target market is
– Focused media
3. Advertisements
– Utilise stimulus’ characteristics
4. Package design
8-102

103. Advertising evaluation
• Exposure
– Physically reach target market
• Attention
– Attended to by the consumer
• Interpretation
– Properly interpreted
• Memory
– Stored, so it is retrieved under the proper
circumstances
8-103

104. Perception and Marketing Strategy
Package Design and Labeling
Packages must also attract attention and convey information.
Packaging has functional and perceptual components.
Bright colors, taller packages, and unusual shapes can
be used to attract attention, convey meaning, and influence
consumption.
Packages also contain product information and warnings.
Ethical and legal considerations require marketers to
place warning labels on a wide array of products such as
cigarettes, alcoholic beverages, and many over-the-counter
drugs. 8-104