CONSUMER BEHAVIOR




                    1
2
Perception is defined as the process by which an individual
selects, organizes and interprets stimuli into a meaningful and
coherent picture of the world.



Because individuals make decisions and take actions based on what
they perceive to be reality, it is important that marketers



understand the whole notion of perception and its related concepts,
so they can more readily determine what factors influence
consumers to buy.




                                                                      3
Perception is a biological process




 Each of us lives within the prison of his own brain , According to
  biologists, the process begins with stimuli, usually in the form of
  photons, vibrations or chemical reactions from the outside world .




 This chemical reactions that happen
With the sensory system transfer into
Perception about a particular product




                                                                        4
Perceptual process




                     We receive external
                      stimuli through
                       our five senses




                                           5
6
Sensory systems          Series 3
 80%


 70%


 60%


 50%


 40%


 30%


 20%


 10%


 0%
       Sight   Hearing       Touch   Smell   Taste


                                                     7
UNDERSTANDING SENSORY SYSTEMS


Vision
           Marketers rely heavily on visual elements in
           advertising, store design, and packaging.

           Meanings are communicated on the visual channel
           through a product’s color, size, and styling.

           Colors may influence our emotions more directly.
           Some reactions to color are due to biological (men
           and women) and cultural differences.
               •Saturated colors (green, yellow, orange) are
                considered the best to capture attention.
                •Trade dress: Colors that are strongly associated
                 with a corporation




                                                                    8
Market researchers say colour affects shopping habits. Impulse
shoppers respond best to red-orange, black and royal blue.
Shoppers who plan and stick to budgets respond best to
pink, teal, light blue and navy. Traditionalists respond to pastels -
pink, rose, sky blue.




                                                                        9
Cont. Understanding Sensory Systems


Sound        Sound affects people’s feelings and
             behaviors

             Advertising jingles create brand awareness.



             Background music creates desired moods.



             High tempo = more stimulation
             Slower tempo = more relaxing




                                                           10
Cont. Understanding Sensory Systems

Smell
            Odors can stir emotions or create a calming
             feeling.
             Some responses to scents result from early
             associations that call up good or bad feelings
             and tat explains why businesses are exploring
             connections among smell, memory and mood.

              • Scented clothes
              •Scented stores
              •Scented cars and planes;
               •Scented household products;
               •Scented advertisements




                                                              11
Cont. Understanding Sensory Systems

Smell
                 To some extent reaction to odours is dependent on
                    culture (many large companies adjust the smell
                    of their products from country to country)
                  Peppermint: You pay better attention to dull-but-
                    must-do jobs when this scent is in the air. When
                    a peppermint scent was wafting, workers made
                    fewer typing mistakes and alphabetized faster.
                  Cinnamon: In simulated driving tests, a whiff of
                    cinnamon every 15 minutes decreased fatigue.
                    When an endless ribbon of highway stretches
                    ahead, consider popping cinnamon gum.
                  Grapefruit: It makes you skinny! Researchers
                    speculate that grapefruit the oil's smell has an
                    effect on liver enzymes that might help nix
                    cravings and spur weight loss.



                                                               12
Cont. Understanding Sensory Systems


Taste
         Taste receptors contribute to our experience of
          many products.
          Specialized companies called “flavor houses”
          are constantly developing new concoctions to
          please the changing palates of consumers.
          Changes in culture also determine the tastes
          we find desirable.




                                                           13
Cont. Understanding Sensory Systems


Touch
              •Relatively little research has been done on
                the effects of tactile stimulation on the
                consumer, but common observation tells
                us that this sensory
              •People associate textures of fabrics and
                other surfaces with product quality.
              •Perceived richness or quality of the material
                in clothing is linked to its “feel,” whether
                rough or smooth.




                                                        14
Exposure
   Exposure occurs when a stimulus comes within range of someone’s sensory
    receptors
   We can concentrate, ignore, or completely miss stimuli




3/28/2013
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall          2-15
Sensory Thresholds
 The Absolute Threshold
 The Differential Threshold
Sensory Thresholds
   Psychophysics: science that focuses on how the physical environment is integrated
    into our personal, subjective world
   Absolute threshold: the minimum amount of stimulation that can be detected on a
    given sensory channel




3/28/2013
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall                2-17
Differential Threshold
 The ability of a sensory system to detect changes
  or differences between two stimuli
     Minimum difference between two stimuli is
     the j.n.d. (just noticeable difference)
 Example: packaging updates must be subtle
  enough over time to keep current customers




                      3/28/2013
                      Copyright © 2011 Pearson Education, Inc.
                      publishing as Prentice Hall
                                                                 2-18
Subliminal Perception
 Subliminal Techniques
 Does Subliminal Perception work?
 Limitations
Subliminal Perception
   Subliminal perception occurs when stimulus is below the level of the consumer’s
    awareness.
   Rumors of subliminal advertising are rampant—though there’s little proof that it
    occurs.
   Most researchers believe that subliminal techniques are not of much use in
      marketing.




3/28/2013
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall                   2-20
Subliminal Techniques
   Embeds: figures that are inserted into magazine advertising by using high-speed
    photography or airbrushing.
   Subliminal auditory perception: sounds, music, or voice text inserted into
    advertising.




3/28/2013
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall                  2-21
Attentions
                                               • Size
                                               • Intensity
                                               • Attractive visuals
                                 Stimulus      • Color
                                  factors      • Position
                                               • Isolation and contrast
                                               • Format
                                               • Interestingness




                                      Individual      • motivation
                                        factors       • ability




                 Attentions
                               Situational     • clutter
                                 factors       • Program involvement




Daniel M. Zhou                 Consumer Behavior                          22
Attentions - Stimulus Factors

                 Size:
                 Larger stimuli are more likely to be noticed than smaller ones.
                 Size also affects attention to advertising.




                              The Impact of Size on Advertising Readership


                  Intensity:
                  The intensity (e.g., loudness, brightness, length) of a stimulus can
                  increase attention.
                       •In online contexts, one aspect of intensity is intrusiveness
                       •Repetition is related to intensity. Consumers may shift the
                       focus of their attention from one part of the ad to another
                       across repetitions, resulting in attention reallocation.

Daniel M. Zhou                            Consumer Behavior                          23
Attentions - Stimulus Factors


             Attractive Visuals:
             •Individuals are attracted to pleasant stimuli and repelled by
             unpleasant stimuli.
             •Any factor that draws attention to itself and away from the brand
             has to be used with caution.



                 Color:
                 A brightly colored package or display is more likely to received
                 attention.




                              Color and Size Impact on Attention



Daniel M. Zhou                            Consumer Behavior                         24
Attentions - 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.



             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.




Daniel M. Zhou                      Consumer Behavior                                 26
Attentions - 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.




           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 graph).




Daniel M. Zhou                    Consumer Behavior                           27
Interpretation
   Interpretation refers to the meaning we assign to
      sensory stimuli, which is based on a schema




3/28/2013
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall   2-27
Stimulus Organization
   Gestalt: the whole is greater than the sum of its parts
      Closure: people perceive an incomplete picture as
       complete
      Similarity: consumers group together objects that share
       similar physical characteristics
      Figure-ground: one part of the stimulus will dominate
       (the figure) while the other parts recede into the
       background (ground)



3/28/2013
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall   2-28
Application of the
Figure-Ground Principle




         3/28/2013
         Copyright © 2011 Pearson Education, Inc.
         publishing as Prentice Hall
                                                    2-29
Semiotics
   Semiotics: correspondence between signs and symbols and their role in the
    assignment of meaning
   Marketing messages have three basic components:
      Object: product that is the focus of the message
         Sign: sensory image that represents the intended meanings of the object
         Interpretant: meaning derived




3/28/2013
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall                2-30
Perceptual Positioning
   Brand perceptions = functional attributes + symbolic attributes
   Perceptual map: map of where brands are perceived in consumers’ minds
         Used to determine how brands are currently perceived to determine future
            positioning




3/28/2013
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall             2-31
Positioning Strategy
   Examples of brand positioning
           Lifestyle                         Grey Poupon is “high class”
           Price leadership                  Southwest Airlines is “no frills”
           Attributes                        Bounty is “quicker picker upper”
           Product class                     Mazda Miata is sporty convertible
           Competitors                       Northwestern Insurance is the “quiet
                                             company
           Occasions                         Wrigley’s gum used when smoking not
                                             permitted
           Users                             Levi’s Dockers targeted to men in 20s
                                             and 30s
           Quality                           At Ford, “Quality is Job 1”
3/28/2013
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall                 2-32
Consumers seek information

Consumers are brand loyal

Consumers select by brand image

Consumers rely on store image

Consumers buy the most expensive model when in
 doubt

Consumers seek reassurance




                                                  33
Brand perceptions = functional attributes +
symbolic attributes
Perceptual map: map of where brands are
perceived in consumers’ minds
Used to determine how brands are currently
perceived to determine future positioning




                                              34
:
                    Application on consumer perception

 Consumers seem to think that cartons with out-of-the-ordinary functionality
  or a special shape make the products worth as much as 30% more than a
  straightforward, traditional shape. This was revealed by a consumer
  perception study conducted by Metsä Board in spring 2009.




                                                                                35
In the first test, a supermarket shelf was filled with genuine but
foreign confectionery brands and seeded with three differently
shaped packages in a mock chocolate brand design. The
participants, who wore special glasses that automatically track
eye movement, were asked first to look at the shelves and then
to pick out the best and worst designs.




                                                                     36
According to the test, packages with unique shapes, fit-to-
product colors and large front faces with a window, where the
product is visible, receive the most attention on the shop shelf.
Participants felt that chocolate packed in unusual cartons would
be more tempting and extraordinary. They also paid high
attention to the negative aspects of the packages, especially
when the design didn’t complement the product.

Many comments by the participants concerned the
product, even though it was only the package that they were
asked to evaluate. The outcome of the consumer perception test
was clear: as an integral part of the product, the package is
expected to complement what’s inside and reflect the brand
values. With as many as 70% of purchase decisions made at the
point-
of-sale, the package has to look, feel and function just right.




                                                                    37
Thank you



            38

Perception

  • 1.
  • 2.
  • 3.
    Perception is definedas the process by which an individual selects, organizes and interprets stimuli into a meaningful and coherent picture of the world. Because individuals make decisions and take actions based on what they perceive to be reality, it is important that marketers understand the whole notion of perception and its related concepts, so they can more readily determine what factors influence consumers to buy. 3
  • 4.
    Perception is abiological process  Each of us lives within the prison of his own brain , According to biologists, the process begins with stimuli, usually in the form of photons, vibrations or chemical reactions from the outside world .  This chemical reactions that happen With the sensory system transfer into Perception about a particular product 4
  • 5.
    Perceptual process We receive external stimuli through our five senses 5
  • 6.
  • 7.
    Sensory systems Series 3 80% 70% 60% 50% 40% 30% 20% 10% 0% Sight Hearing Touch Smell Taste 7
  • 8.
    UNDERSTANDING SENSORY SYSTEMS Vision Marketers rely heavily on visual elements in advertising, store design, and packaging. Meanings are communicated on the visual channel through a product’s color, size, and styling. Colors may influence our emotions more directly. Some reactions to color are due to biological (men and women) and cultural differences. •Saturated colors (green, yellow, orange) are considered the best to capture attention. •Trade dress: Colors that are strongly associated with a corporation 8
  • 9.
    Market researchers saycolour affects shopping habits. Impulse shoppers respond best to red-orange, black and royal blue. Shoppers who plan and stick to budgets respond best to pink, teal, light blue and navy. Traditionalists respond to pastels - pink, rose, sky blue. 9
  • 10.
    Cont. Understanding SensorySystems Sound Sound affects people’s feelings and behaviors Advertising jingles create brand awareness. Background music creates desired moods. High tempo = more stimulation Slower tempo = more relaxing 10
  • 11.
    Cont. Understanding SensorySystems Smell Odors can stir emotions or create a calming feeling. Some responses to scents result from early associations that call up good or bad feelings and tat explains why businesses are exploring connections among smell, memory and mood. • Scented clothes •Scented stores •Scented cars and planes; •Scented household products; •Scented advertisements 11
  • 12.
    Cont. Understanding SensorySystems Smell To some extent reaction to odours is dependent on culture (many large companies adjust the smell of their products from country to country)  Peppermint: You pay better attention to dull-but- must-do jobs when this scent is in the air. When a peppermint scent was wafting, workers made fewer typing mistakes and alphabetized faster.  Cinnamon: In simulated driving tests, a whiff of cinnamon every 15 minutes decreased fatigue. When an endless ribbon of highway stretches ahead, consider popping cinnamon gum.  Grapefruit: It makes you skinny! Researchers speculate that grapefruit the oil's smell has an effect on liver enzymes that might help nix cravings and spur weight loss. 12
  • 13.
    Cont. Understanding SensorySystems Taste Taste receptors contribute to our experience of many products. Specialized companies called “flavor houses” are constantly developing new concoctions to please the changing palates of consumers. Changes in culture also determine the tastes we find desirable. 13
  • 14.
    Cont. Understanding SensorySystems Touch •Relatively little research has been done on the effects of tactile stimulation on the consumer, but common observation tells us that this sensory •People associate textures of fabrics and other surfaces with product quality. •Perceived richness or quality of the material in clothing is linked to its “feel,” whether rough or smooth. 14
  • 15.
    Exposure Exposure occurs when a stimulus comes within range of someone’s sensory receptors  We can concentrate, ignore, or completely miss stimuli 3/28/2013 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 2-15
  • 16.
    Sensory Thresholds  TheAbsolute Threshold  The Differential Threshold
  • 17.
    Sensory Thresholds  Psychophysics: science that focuses on how the physical environment is integrated into our personal, subjective world  Absolute threshold: the minimum amount of stimulation that can be detected on a given sensory channel 3/28/2013 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 2-17
  • 18.
    Differential Threshold  Theability of a sensory system to detect changes or differences between two stimuli  Minimum difference between two stimuli is the j.n.d. (just noticeable difference)  Example: packaging updates must be subtle enough over time to keep current customers 3/28/2013 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 2-18
  • 19.
    Subliminal Perception  SubliminalTechniques  Does Subliminal Perception work?  Limitations
  • 20.
    Subliminal Perception  Subliminal perception occurs when stimulus is below the level of the consumer’s awareness.  Rumors of subliminal advertising are rampant—though there’s little proof that it occurs.  Most researchers believe that subliminal techniques are not of much use in marketing. 3/28/2013 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 2-20
  • 21.
    Subliminal Techniques  Embeds: figures that are inserted into magazine advertising by using high-speed photography or airbrushing.  Subliminal auditory perception: sounds, music, or voice text inserted into advertising. 3/28/2013 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 2-21
  • 22.
    Attentions • Size • Intensity • Attractive visuals Stimulus • Color factors • Position • Isolation and contrast • Format • Interestingness Individual • motivation factors • ability Attentions Situational • clutter factors • Program involvement Daniel M. Zhou Consumer Behavior 22
  • 23.
    Attentions - StimulusFactors Size: Larger stimuli are more likely to be noticed than smaller ones. Size also affects attention to advertising. The Impact of Size on Advertising Readership Intensity: The intensity (e.g., loudness, brightness, length) of a stimulus can increase attention. •In online contexts, one aspect of intensity is intrusiveness •Repetition is related to intensity. Consumers may shift the focus of their attention from one part of the ad to another across repetitions, resulting in attention reallocation. Daniel M. Zhou Consumer Behavior 23
  • 24.
    Attentions - StimulusFactors Attractive Visuals: •Individuals are attracted to pleasant stimuli and repelled by unpleasant stimuli. •Any factor that draws attention to itself and away from the brand has to be used with caution. Color: A brightly colored package or display is more likely to received attention. Color and Size Impact on Attention Daniel M. Zhou Consumer Behavior 24
  • 25.
    Attentions - IndividualFactors 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. 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. Daniel M. Zhou Consumer Behavior 26
  • 26.
    Attentions - SituationalFactors 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. 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 graph). Daniel M. Zhou Consumer Behavior 27
  • 27.
    Interpretation Interpretation refers to the meaning we assign to sensory stimuli, which is based on a schema 3/28/2013 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 2-27
  • 28.
    Stimulus Organization  Gestalt: the whole is greater than the sum of its parts  Closure: people perceive an incomplete picture as complete  Similarity: consumers group together objects that share similar physical characteristics  Figure-ground: one part of the stimulus will dominate (the figure) while the other parts recede into the background (ground) 3/28/2013 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 2-28
  • 29.
    Application of the Figure-GroundPrinciple 3/28/2013 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 2-29
  • 30.
    Semiotics Semiotics: correspondence between signs and symbols and their role in the assignment of meaning  Marketing messages have three basic components:  Object: product that is the focus of the message  Sign: sensory image that represents the intended meanings of the object  Interpretant: meaning derived 3/28/2013 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 2-30
  • 31.
    Perceptual Positioning  Brand perceptions = functional attributes + symbolic attributes  Perceptual map: map of where brands are perceived in consumers’ minds  Used to determine how brands are currently perceived to determine future positioning 3/28/2013 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 2-31
  • 32.
    Positioning Strategy  Examples of brand positioning Lifestyle Grey Poupon is “high class” Price leadership Southwest Airlines is “no frills” Attributes Bounty is “quicker picker upper” Product class Mazda Miata is sporty convertible Competitors Northwestern Insurance is the “quiet company Occasions Wrigley’s gum used when smoking not permitted Users Levi’s Dockers targeted to men in 20s and 30s Quality At Ford, “Quality is Job 1” 3/28/2013 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 2-32
  • 33.
    Consumers seek information Consumersare brand loyal Consumers select by brand image Consumers rely on store image Consumers buy the most expensive model when in doubt Consumers seek reassurance 33
  • 34.
    Brand perceptions =functional attributes + symbolic attributes Perceptual map: map of where brands are perceived in consumers’ minds Used to determine how brands are currently perceived to determine future positioning 34
  • 35.
    : Application on consumer perception  Consumers seem to think that cartons with out-of-the-ordinary functionality or a special shape make the products worth as much as 30% more than a straightforward, traditional shape. This was revealed by a consumer perception study conducted by Metsä Board in spring 2009. 35
  • 36.
    In the firsttest, a supermarket shelf was filled with genuine but foreign confectionery brands and seeded with three differently shaped packages in a mock chocolate brand design. The participants, who wore special glasses that automatically track eye movement, were asked first to look at the shelves and then to pick out the best and worst designs. 36
  • 37.
    According to thetest, packages with unique shapes, fit-to- product colors and large front faces with a window, where the product is visible, receive the most attention on the shop shelf. Participants felt that chocolate packed in unusual cartons would be more tempting and extraordinary. They also paid high attention to the negative aspects of the packages, especially when the design didn’t complement the product. Many comments by the participants concerned the product, even though it was only the package that they were asked to evaluate. The outcome of the consumer perception test was clear: as an integral part of the product, the package is expected to complement what’s inside and reflect the brand values. With as many as 70% of purchase decisions made at the point- of-sale, the package has to look, feel and function just right. 37
  • 38.

Editor's Notes

  • #28 The meaning we assign to a stimulus depends on the schema, or set of beliefs, to which we assign it. In a process called priming, certain properties of a stimulus evoke a schema. This leads us to compare the stimulus to other similar ones. In this ad for Toyota, the living room evokes an image of a car because of the seat arrangement.
  • #30 This ad for the Australian postal service uses an application of the figure-ground principle.