Amity International Business School 
1 
AMITY INTERNATIONAL 
BUSINESS SCHOOL 
MBAIB/IMBA Semester IV 
CONSUMER BEHAVIOUR 
PERCEPTION 
KOKIL JAIN
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Perception 
• The process by which an individual 
selects, organizes, and interprets stimuli 
into a meaningful and coherent picture of 
the world 
• How we see the world around us
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3 
The Nature of Perception 
• Exposure: when a stimulus comes within range of our 
sensory receptor nerves 
– Random vs. Deliberate 
• Attention: when the stimulus activates one or more 
sensory receptor nerves and the resulting sensations go 
to the brain for processing 
– Low vs. High Involvement 
• Interpretation: the assignment of meaning to sensations 
– Low vs. High Involvement
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Elements of Perception 
• Sensation 
• Absolute threshold 
• Differential threshold 
• Subliminal perception
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Sensation 
• The immediate and direct response of the sensory organs to 
stimuli 
• Sensitivity to stimuli varies with the quality of an individuals 
sensory receptors 
• Sensation itself depends on energy change within the 
environment where the perception occurs (i.e. the 
differentiation of input) 
• As sensory input decreases , our ability to detect changes in 
input increases, to the point that we attain maximum 
sensitivity under conditions of minimal stimulation
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The absolute threshold 
• The lowest level at which individual can experience a 
sensation is called the absolute threshold. 
• sensory adaptation-Under conditions of constant 
stimulation , the absolute threshold increases.
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Differential Threshold 
• Minimal difference that can be detected 
between two similar stimuli 
• Also known as the just noticeable 
difference (the j.n.d.)
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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 
• Weber’s law states that the stronger the 
initial stimulus, the greater the additional 
intensity needed for the second stimulus to 
be perceived as different.
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Marketing Applications 
of the J.N.D. 
• Marketers need to determine the relevant 
j.n.d. for their products 
– so that negative changes are not readily 
discernible to the public 
– so that product improvements are very 
apparent to consumers
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STIMULUS CONSTANT (K) 
PITCH 0.003 
LOUDNESS 0.10 
SALTINESS 0.20
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Discussion Question 
• How might a cereal 
manufacturer such as 
Kellogg’s use the j.n.d. for 
Frosted Flakes in terms 
of: 
– Product decisions 
– Packaging decisions 
– Advertising decisions 
– Sales promotion decisions
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Subliminal Perception 
• Stimuli that are too weak or too brief to be 
consciously seen or heard may be strong 
enough to be perceived by one or more 
receptor cells.
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Is Subliminal Persuasion 
Effective? 
• Extensive research has shown no 
evidence that subliminal advertising can 
cause behavior changes 
• Some evidence that subliminal stimuli may 
influence affective reactions
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Aspects of Perception 
Selection 
Organization 
Interpretation
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Aspects of Perception 
Selection 
Organization 
Interpretation
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Perceptual Selection 
• Consumers subconsciously are selective as to 
what they perceive. 
• Stimuli selected depends on two major factors 
– Consumers’ previous experience 
– Consumers’ motives 
• Selection depends on the 
– Nature of the stimulus 
– Expectations 
– Motives
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Stimulus Factors 
• Size and Intensity – 
influence the 
probability of paying 
attention 
Larger stimuli are 
more likely to be 
noticed than a small 
one 
SIZE NO. OF 
RESPON 
SES 
SPREAD 107 
1 PAGE 76 
TWO THIRDS 
PAGE 
68 
ONE HALF 
PAGE 
56 
ONE THIRD 
PAGE 
47
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• INSERTION FREQUENCY-THE 
NUMBER OF TIMES THE SAME AD 
APPEARS IN THE SAME ISSUE OF 
A MAGAZINE, HAS AN IMPACT 
SIMILAR TO AD SIZE
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• Color and 
Movement – 
serve to attract 
attention
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Position – 
• Placement of the 
object in a person’s 
visual field
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Perceptual Selection 
• Selective 
Exposure 
• Selective 
Attention 
• Perceptual 
Defense 
• Perceptual 
Blocking 
• Consumers seek out 
messages which: 
– Are pleasant 
– They can sympathize 
– Reassure them of 
good purchases 
Concepts
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Perceptual Selection 
• Selective 
Exposure 
• Selective 
Attention 
• Perceptual 
Defense 
• Perceptual 
Blocking 
• Heightened 
awareness when 
stimuli meet their 
needs 
• Consumers prefer 
different messages 
and medium 
Concepts
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Perceptual Selection 
• Selective 
Exposure 
• Selective 
Attention 
• Perceptual 
Defense 
• Perceptual 
Blocking 
• Screening out of 
stimuli which are 
threatening 
Concepts
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Perceptual Selection 
• Selective 
Exposure 
• Selective 
Attention 
• Perceptual 
Defense 
• Perceptual 
Blocking 
• Consumers avoid 
being bombarded by: 
– Tuning out 
– TiVo 
Concepts
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Aspects of Perception 
Selection 
Organization 
Interpretation
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Organization 
• Figure and 
ground 
• Grouping 
• Closure 
• 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. 
Principles
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Organization 
• Figure and 
ground 
• Grouping 
• Closure 
• People group stimuli 
to form a unified 
impression or 
concept. 
• Grouping helps 
memory and recall. 
Principles
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Organization 
• Figure and ground 
• Grouping 
• Closure 
• People have a need for 
closure and organize 
perceptions to form a 
complete picture. 
• Will often fill in missing 
pieces 
• Incomplete messages 
remembered more than 
complete 
Principles
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Aspects of Perception 
Selection 
Organization 
Interpretation
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Interpretation 
• Physical 
Appearances 
• Stereotypes 
• First Impressions 
• Jumping to 
Conclusions 
• Halo Effect 
• Positive attributes of 
people they know to 
those who resemble 
them 
• Important for model 
selection 
• Attractive models are 
more persuasive for 
some products 
Perceptual Distortion
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40 
Interpretation 
• Physical 
Appearances 
• Stereotypes 
• First Impressions 
• Jumping to 
Conclusions 
• Halo Effect 
• People hold meanings 
related to stimuli 
• Stereotypes influence 
how stimuli are 
perceived 
Perceptual Distortion
Amity International Business School 
41 
Interpretation 
• Physical 
Appearances 
• Stereotypes 
• First Impressions 
• Jumping to 
Conclusions 
• Halo Effect 
• First impressions are 
lasting 
• The perceiver is trying 
to determine which 
stimuli are relevant, 
important, or 
predictive 
Perceptual Distortion
Amity International Business School 
42 
Interpretation 
• Physical 
Appearances 
• Stereotypes 
• First Impressions 
• Jumping to 
Conclusions 
• Halo Effect 
• People tend not to 
listen to all the 
information before 
making conclusion 
• Important to put 
persuasive arguments 
first in advertising 
Perceptual Distortion
Amity International Business School 
43 
Interpretation 
• Physical 
Appearances 
• Stereotypes 
• First Impressions 
• Jumping to 
Conclusions 
• Halo Effect 
• Consumers perceive 
and evaluate multiple 
objects based on just 
one dimension 
• Used in licensing of 
names 
• Important with 
spokesperson choice 
Perceptual Distortion
Amity International Business School 
44 
Issues in Consumer Imagery 
• Product Positioning and Repositioning 
• Positioning of Services 
• Perceived Price 
• Perceived Quality 
• Retail Store Image 
• Manufacturer Image 
• Perceived Risk
Amity International Business School 
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Positioning 
• Establishing a specific image for a brand in 
the consumer’s mind 
• Product is positioned in relation to competing 
brands 
• Conveys the concept, or meaning, of the 
product in terms of how it fulfills a consumer 
need 
• Result of successful positioning is a 
distinctive, positive brand image
Amity International Business School 
46 
Positioning Techniques 
• Umbrella Positioning 
• Positioning against 
Competition 
• Positioning Based on 
a Specific Benefit 
• Finding an “Unowned” 
Position 
• Filling Several 
Positions 
• Repositioning
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Perceived Quality 
• Perceived Quality of Products 
– Intrinsic vs. Extrinsic Cues 
• Perceived Quality of Services 
• Price/Quality Relationship
Amity International Business School 
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Perceived Quality of Services 
• Difficult due to characteristics of services 
– Intangible 
– Variable 
– Perishable 
– Simultaneously Produced and Consumed 
• SERVQUAL scale used to measure gap 
between customers’ expectation of service and 
perceptions of actual service
Amity International Business School 
51 
Price/Quality Relationship 
• The perception of price as an indicator of 
product quality (e.g., the higher the price, 
the higher the perceived quality of the 
product.)

Perception

  • 1.
    Amity International BusinessSchool 1 AMITY INTERNATIONAL BUSINESS SCHOOL MBAIB/IMBA Semester IV CONSUMER BEHAVIOUR PERCEPTION KOKIL JAIN
  • 2.
    Amity International BusinessSchool 2 Perception • The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world • How we see the world around us
  • 3.
    Amity International BusinessSchool 3 The Nature of Perception • Exposure: when a stimulus comes within range of our sensory receptor nerves – Random vs. Deliberate • Attention: when the stimulus activates one or more sensory receptor nerves and the resulting sensations go to the brain for processing – Low vs. High Involvement • Interpretation: the assignment of meaning to sensations – Low vs. High Involvement
  • 4.
    Amity International BusinessSchool 4 Elements of Perception • Sensation • Absolute threshold • Differential threshold • Subliminal perception
  • 5.
    Amity International BusinessSchool 5 Sensation • The immediate and direct response of the sensory organs to stimuli • Sensitivity to stimuli varies with the quality of an individuals sensory receptors • Sensation itself depends on energy change within the environment where the perception occurs (i.e. the differentiation of input) • As sensory input decreases , our ability to detect changes in input increases, to the point that we attain maximum sensitivity under conditions of minimal stimulation
  • 6.
    Amity International BusinessSchool 6 The absolute threshold • The lowest level at which individual can experience a sensation is called the absolute threshold. • sensory adaptation-Under conditions of constant stimulation , the absolute threshold increases.
  • 7.
  • 8.
  • 9.
    Amity International BusinessSchool 9 Differential Threshold • Minimal difference that can be detected between two similar stimuli • Also known as the just noticeable difference (the j.n.d.)
  • 10.
    Amity International BusinessSchool 10 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 • Weber’s law states that the stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different.
  • 11.
    Amity International BusinessSchool 11 Marketing Applications of the J.N.D. • Marketers need to determine the relevant j.n.d. for their products – so that negative changes are not readily discernible to the public – so that product improvements are very apparent to consumers
  • 12.
    Amity International BusinessSchool 12 STIMULUS CONSTANT (K) PITCH 0.003 LOUDNESS 0.10 SALTINESS 0.20
  • 13.
    Amity International BusinessSchool 13 Discussion Question • How might a cereal manufacturer such as Kellogg’s use the j.n.d. for Frosted Flakes in terms of: – Product decisions – Packaging decisions – Advertising decisions – Sales promotion decisions
  • 14.
    Amity International BusinessSchool 14 Subliminal Perception • Stimuli that are too weak or too brief to be consciously seen or heard may be strong enough to be perceived by one or more receptor cells.
  • 15.
    Amity International BusinessSchool 15 Is Subliminal Persuasion Effective? • Extensive research has shown no evidence that subliminal advertising can cause behavior changes • Some evidence that subliminal stimuli may influence affective reactions
  • 16.
  • 17.
    Amity International BusinessSchool 17 Aspects of Perception Selection Organization Interpretation
  • 18.
    Amity International BusinessSchool 18 Aspects of Perception Selection Organization Interpretation
  • 19.
    Amity International BusinessSchool 19 Perceptual Selection • Consumers subconsciously are selective as to what they perceive. • Stimuli selected depends on two major factors – Consumers’ previous experience – Consumers’ motives • Selection depends on the – Nature of the stimulus – Expectations – Motives
  • 20.
    Amity International BusinessSchool 20 Stimulus Factors • Size and Intensity – influence the probability of paying attention Larger stimuli are more likely to be noticed than a small one SIZE NO. OF RESPON SES SPREAD 107 1 PAGE 76 TWO THIRDS PAGE 68 ONE HALF PAGE 56 ONE THIRD PAGE 47
  • 21.
    Amity International BusinessSchool 21 • INSERTION FREQUENCY-THE NUMBER OF TIMES THE SAME AD APPEARS IN THE SAME ISSUE OF A MAGAZINE, HAS AN IMPACT SIMILAR TO AD SIZE
  • 22.
    Amity International BusinessSchool 22 • Color and Movement – serve to attract attention
  • 23.
    Amity International BusinessSchool 23 Position – • Placement of the object in a person’s visual field
  • 24.
    Amity International BusinessSchool 24 Perceptual Selection • Selective Exposure • Selective Attention • Perceptual Defense • Perceptual Blocking • Consumers seek out messages which: – Are pleasant – They can sympathize – Reassure them of good purchases Concepts
  • 25.
    Amity International BusinessSchool 25 Perceptual Selection • Selective Exposure • Selective Attention • Perceptual Defense • Perceptual Blocking • Heightened awareness when stimuli meet their needs • Consumers prefer different messages and medium Concepts
  • 26.
    Amity International BusinessSchool 26 Perceptual Selection • Selective Exposure • Selective Attention • Perceptual Defense • Perceptual Blocking • Screening out of stimuli which are threatening Concepts
  • 27.
    Amity International BusinessSchool 27 Perceptual Selection • Selective Exposure • Selective Attention • Perceptual Defense • Perceptual Blocking • Consumers avoid being bombarded by: – Tuning out – TiVo Concepts
  • 28.
    Amity International BusinessSchool 28 Aspects of Perception Selection Organization Interpretation
  • 29.
    Amity International BusinessSchool 29 Organization • Figure and ground • Grouping • Closure • 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. Principles
  • 30.
  • 31.
  • 32.
  • 33.
    Amity International BusinessSchool 33 Organization • Figure and ground • Grouping • Closure • People group stimuli to form a unified impression or concept. • Grouping helps memory and recall. Principles
  • 34.
  • 35.
  • 36.
    Amity International BusinessSchool 36 Organization • Figure and ground • Grouping • Closure • People have a need for closure and organize perceptions to form a complete picture. • Will often fill in missing pieces • Incomplete messages remembered more than complete Principles
  • 37.
  • 38.
    Amity International BusinessSchool 38 Aspects of Perception Selection Organization Interpretation
  • 39.
    Amity International BusinessSchool 39 Interpretation • Physical Appearances • Stereotypes • First Impressions • Jumping to Conclusions • Halo Effect • Positive attributes of people they know to those who resemble them • Important for model selection • Attractive models are more persuasive for some products Perceptual Distortion
  • 40.
    Amity International BusinessSchool 40 Interpretation • Physical Appearances • Stereotypes • First Impressions • Jumping to Conclusions • Halo Effect • People hold meanings related to stimuli • Stereotypes influence how stimuli are perceived Perceptual Distortion
  • 41.
    Amity International BusinessSchool 41 Interpretation • Physical Appearances • Stereotypes • First Impressions • Jumping to Conclusions • Halo Effect • First impressions are lasting • The perceiver is trying to determine which stimuli are relevant, important, or predictive Perceptual Distortion
  • 42.
    Amity International BusinessSchool 42 Interpretation • Physical Appearances • Stereotypes • First Impressions • Jumping to Conclusions • Halo Effect • People tend not to listen to all the information before making conclusion • Important to put persuasive arguments first in advertising Perceptual Distortion
  • 43.
    Amity International BusinessSchool 43 Interpretation • Physical Appearances • Stereotypes • First Impressions • Jumping to Conclusions • Halo Effect • Consumers perceive and evaluate multiple objects based on just one dimension • Used in licensing of names • Important with spokesperson choice Perceptual Distortion
  • 44.
    Amity International BusinessSchool 44 Issues in Consumer Imagery • Product Positioning and Repositioning • Positioning of Services • Perceived Price • Perceived Quality • Retail Store Image • Manufacturer Image • Perceived Risk
  • 45.
    Amity International BusinessSchool 45 Positioning • Establishing a specific image for a brand in the consumer’s mind • Product is positioned in relation to competing brands • Conveys the concept, or meaning, of the product in terms of how it fulfills a consumer need • Result of successful positioning is a distinctive, positive brand image
  • 46.
    Amity International BusinessSchool 46 Positioning Techniques • Umbrella Positioning • Positioning against Competition • Positioning Based on a Specific Benefit • Finding an “Unowned” Position • Filling Several Positions • Repositioning
  • 47.
    Amity International BusinessSchool 49 Perceived Quality • Perceived Quality of Products – Intrinsic vs. Extrinsic Cues • Perceived Quality of Services • Price/Quality Relationship
  • 48.
    Amity International BusinessSchool 50 Perceived Quality of Services • Difficult due to characteristics of services – Intangible – Variable – Perishable – Simultaneously Produced and Consumed • SERVQUAL scale used to measure gap between customers’ expectation of service and perceptions of actual service
  • 49.
    Amity International BusinessSchool 51 Price/Quality Relationship • The perception of price as an indicator of product quality (e.g., the higher the price, the higher the perceived quality of the product.)