Consumer Behaviour

1. CONSUMER PERCEPTION

2. PERCEPTION
 The process by which an individual
selects, organizes, and interprets
stimuli into a meaningful and
coherent picture of the world

3. ASPECTS OF PERCEPTION
Selection
Organization
Interpretation

4. Selection Depends Upon: 2 Factors in addition to nature of stimulus
1. Previous experience: affects expectations
2. Motives -Needs or wants for a product or service
Nature of the stimulus - Includes the product’s physical
attributes, package design, brand name, advertising and more.
Contrast is one of the attention compelling attribute of stimulus

5. ORGANIZATION
 Organization refers to how people organize
stimuli into groups and perceive them as a whole.
 Figure and Ground Law- People tend to organize
perceptions into figure-and-ground relationships.
 The ground is usually hazy.
 Marketers usually design so the figure is the
noticed stimuli.

7. FIGURE-GROUND PRINCIPLE
 This billboard for Wrangler jeans makes creative use
of the figure-ground principle.

8. FIGURE-GROUND PRINCIPLE
 Product placement- when advertised product (figure)
integrated into TV show

9. LAW OF CLOSURE
This law tells us that our brains usually associate disconnected
elements with forms we already know. This means that our brains
also tend to complete missing links without being asked to, though
we must first be familiar enough with the implied shape for this to
happen.

11. LAW OF CONTINUITY
 The Law of Continuity explains how our eyes
search for continuous forms and follow smooth
paths.

12. In the example of the IBM logo below, the
Law of Continuity makes the logo
appealing to look at and easy to read
despite the gaps.

13. LAW OF SIMILARITY
 The Law of Similarity says that our brains
perceive objects with common elements as
belonging to each other, whether the "common
elements” here are shape, color, size, texture, or
any other visual element.

14. In the above eBay homepage, images and
text of various sizes appear to belong to
the same group because of the common
green color. This helps consumers link
items together for faster and easier
processing.

15. SENSORY DYNAMICS OF PERCEPTION
 Sensation - Immediate response of our sensory
receptors…
 …eyes, ears, nose, mouth, skin…
…to basic stimuli…
 …such as light, colour, sound, odour, and texture
 …advertisements, brand names, commercials, and
packages
 …depends on the sensitivity of the individual
 Inputs picked up by our five senses are the raw
data that begin the perceptual process.

16. SENSORY SYSTEMS
Exposure to
Raw Data
Eye
Sight
Ear
Sound
Nose
Smell
Mouth
Taste
Skin
Touch
Processing
of Inputs
Interpretation
of Inputs

17. SENSORY MARKETING/BRANDING
 Visual Branding: Sight is the most used sense for
marketing because it is one of the most responsive to the
environment. Colour has big influence on visual branding-
 Warm hues (red, orange) increase BP and heart rate
 Cold hues (blue and green) have opposite effect
 Orange is used in fast food restaurants to increase hunger
 Blue and green are used in hospitals to reduce anxiety
 Sound: Sound is used in branding to evoke emotions and
feelings to influence brand experiences and interpretations.
 Background music
 Olfactory: Smell is used in branding because it
increases the customers' remembrance of the
brand.
 Impact of fragrance on store choice

18. SENSORY MARKETING
 Taste: Taste fuses all the different senses
together to create a holistic brand experience.
 Touch: Touch strengthens brand identity and
image by appealing to this sense.
 Touching a product influences persuasion

20. PERCEPTIONS OF COLOR (SENSORY SYSTEM-
VISION)
This ad campaign by
the San Francisco
Ballet uses color
perceptions to get urban
sophisticates to add
classical dance to their
packed entertainment
itineraries.

22. SENSORY MARKETING- USE OF COLOUR

24. EXAMPLE OF SENSORY MARKETING
 Advertisement which appeal to our senses

25. MULTISENSORY BRANDING
 The best solution to gain brand dominance in the market
today is multi-sensory branding. A multi-sensory branding
strategy encompasses all the senses:

26. ADVERTISEMENTS APPEAL TO OUR SENSORY
SYSTEMS
 This ad for a luxury car emphasizes the contribution made by all
of our senses to the evaluation of a driving experience.

27. AIRFRANCE: A CASE OF MULTI-SENSORIAL
EXPERIENCE

28. MULTISENSORY BRANDING

29. Multisensory Branding

30. https://www.youtube.com/watch?v=I4Wh
0NJ2fSg
https://www.youtube.com/watch?v=YEF6
Tx2gHZM

31. Absolute Threshold is the lowest level at which
an individual can experience the sensation
 Two individuals have different threshold
 Sensory adaptation: “getting used to” – a problem
that concern many advertisers.
ELEMENTS OF PERCEPTION

32. EXAMPLE OF BRAND LOGO ABOVE TO
ABSOLUTE THRESHOLD

33. ELEMENT OF PERCEPTION- JUST
NOTICEABLE DIFFERENCE
 Just noticeable difference (differential threshold)-
minimum amount of change that can be detected
 Why is it a 10% off sale fails to get your attention
while a 30% off sale brings in consumers from the
surrounding counties?

34. DIFFERENTIAL THRESHOLD
(JUST NOTICEABLE DIFFERENCE – J.N.D.)
• Minimal difference that can be detected between two
similar stimuli
• Weber’s law
– The j.n.d. between two stimuli is not an absolute
amount but an amount relative to the intensity of the
first stimulus
– The stronger the initial stimulus, the greater the
additional intensity needed for the second stimulus to be
perceived as different.

35. MARKETING APPLICATIONS OF THE JND
 Need to determine the relevant j.n.d. for their products
 so that negative changes (reduction in product size or quantity or
increase in product price) are not readily discernible to the public
 so that product improvements are very apparent to consumers
 JND can be applied to marketing mix decisions-
 Product improvements- equal to JND
 Price increase- less than JND
 Packaging/logo- below to JND
 Marketers should not go beyond JND
 Marketers use JND to determine the amount of improvement
in product

36. Gradual Changes in Brand Name Fall Below the J.N.D.

39. QUESTION????
 How might a cereal manufacturer such as Kellogg’s used
the j.n.d. for Frosted Flakes in terms of:
 Product decisions
 Packaging decisions
 Advertising decisions
 Sales promotion decisions