1. Consumer Perception

2. Consumer Perception
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Perception
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Process via which consumers select and organize
stimuli, so as to provide themselves with a
meaningful and coherent view of the world
More than sensing something
Assigning meaning and incorporating it into their
world
Part of the “Information Processing” process

3. Consumer Perception
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Consumer’s Processing of Information
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Exposure
Attention
Comprehension -- Working Memory
Acceptance
Retention -- Permanent Memory
Perception
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Deals with the first two steps

4. Consumer Perception
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Exposure Information
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Consumers are exposed to virtually an infinite
amount of information
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Non-marketing
Marketing
Consumers self select the information for which
they come into contact
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Some consumers never watch CNN – will never be
come into contact commercials (marketing stimuli) that
run on this network

5. Consumer Perception
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Is it difficult to achieve exposure?
 What percent of individuals watching TV actually watch the
commercials?
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Estimates range from 20% to 80% (best guess is 41%)
Radio estimates are even slightly lower (i.e., about 40% listeners
actually listen to a commercial)
How do consumers decide?
 Sensation (raw sensory response to a stimulus), is needed to
facilitate exposure
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Must notice something before you allow exposure
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P(Sensation) = f (absolute threshold)
Absolute threshold -- minimal amount of stimulus intensity necessary for
sensation to occur
j.n.d. -- smallest amount of a change required to allow the C to notice
Examples -- sales prices, price increases

6. Consumer Perception
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Weber’s Law
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Ability to note a change in a stimulus, depends on
its initial level
Example:
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$500 increase in the price of a car
$500 increase in the price of a personal computer
P (notice a stimulus change) = Change in stimulus
/Initial level of stimulus

7. Consumer Perception
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Attention
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Definition -- allocation of processing capacity to an
incoming stimulus
Dimensions
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Direction -- object of focus
Intensity -- amount of capacity
Importance -- Use of humor (or emotion) in an ad
C’s may be intense, but be directed to the emotion
(“Mikey”)

8. Consumer Perception
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Attention
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Ad Clutter -- Even when forced to focus on ads,
C’s best remember first & last ads in a pod, well;
best remember stand alone ads
Does attention guarantee success?
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Shadowing experiment results – say not necessarily
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C’s could tell that human’s were talking
C’s could detect male and/or female voice
C’s could not tell the content of the message
Key is not to tradeoff direction for intensity

9. Consumer Perception
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Application – Perceived Risk
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Consumers assessment of potential
consequences which may result from the
purchase or usage of a product or service
PR = f (Uncertainty, Consequences)
Why do Cs perceive risk?
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Limited experience
Limited knowledge
Past dissatisfaction

10. Consumer Perception
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Application – Perceived Risk
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Types of Perceived Risk
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Functional
Physical
Financial
Social Psychological
Even if unwarranted, Marketers must deal with it
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Belgium’s scare with Coca-Cola