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Chapter 6

Consumer Behavior, 9 th Edition SCHIFFMAN & KANUK. Chapter 6. Consumer Perception. What do you see?. What do you see now?. What colour comes to mind?. RED. What’s in the picture?. So….what then is perception?.

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Chapter 6

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  1. Consumer Behavior,9th EditionSCHIFFMAN & KANUK Chapter 6 Consumer Perception

  2. What do you see?

  3. What do you see now?

  4. What colour comes to mind? RED

  5. What’s in the picture?

  6. So….what then is 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

  7. Elements of Perception • Sensation • Absolute threshold • Differential threshold • Subliminal perception

  8. Sensation The immediate and direct response of the sensory organs to stimuli. A perfectly unchanging environment provides little to no sensation at all! As sensory input decreases, our ability to detect changes in input or intensity increases.

  9. Absolute Threshold The lowest level at which an individual can experience a sensation. The point at which a person can detect a difference between something and nothing

  10. Sensory Adaptation • As our exposure to stimulus increases, we notice it less. • Factors leading to adaptation: • Intensity, duration, discrimination, exposure, relevance • Promotional methods aimed at increasing sensory input: • Experiential marketing, Sophisticated scented ads, inserts and pop-ups, ambush advertising, Product placement

  11. Increased Sensory Input increased intensity

  12. Increased Sensory Input 3D/digital billboard

  13. Stimulus Factors • Size • Intensity • Attractive visuals • Color and movement • Position • Isolation • Format • Contrast & expectations • Remarkability • Information Quantity

  14. Differential Threshold The minimal differences that can be detected between two similar stimuli

  15. A theory concerning the perceived differentiation between similar stimuli of varying intensities (i.e., the stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different). Weber’s Law

  16. Marketing Applications of the JND • 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

  17. Betty Crocker Changes Fall Below the J.N.D.

  18. Changes in Brand Name Fall Below the J.N.D.

  19. Subliminal Perception Perception of very weak or rapid stimuli received below the level of conscious awareness.

  20. Subliminal Perception • 1957: Drive-In Movie Theater • 1974: Publication of Subliminal Seduction • 1990s: Allegations against Disney

  21. 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

  22. Aspects of Perception Selection Organization Interpretation

  23. Perceptual Selection • People receive only a small fraction of the stimuli to which they are exposed. • Depends on two major factors • Consumers’ previous experience • Consumers’ motives

  24. Concepts Concerning Selective Perception • Selective Exposure • Selective Attention • Perceptual Defense • Perceptual Blocking

  25. Principles of Perceptual Organization • Referred as Gestalt psychology • Figure and ground • Grouping • Closure

  26. Influences of Perceptual Distortion • Stereotypes • Physical Appearances • Descriptive Terms • First Impressions • Jumping to Conclusions • Halo Effect………………………. The iPodhas had positive effects on perceptions of Apple's other products

  27. “Safed Teeka” Use of cultural habits to formulate imagery involving steriotypes associated with product category

  28. Issues In Consumer Imagery • Product Positioning and Repositioning • Positioning of Services • Perceived Price • Perceived Quality • Retail Store Image • Manufacturer Image • Perceived Risk

  29. Using Imagery

  30. Positioning & Repositioning Positioning Repositioning Involves changing the identity of the product relative to the identity of the competing brands in the collective minds of the target market If a brand does not reposition at the right time , it may not get a second chance • Establishing a specific image for a brand in relation to competing brands.

  31. Repositioning of Cadbury Dairy Milk • “Kid in all of us” • “Spontaneous Joy”- • (girl dancing in the cricket field) • “Real Taste of Life”- • A girl is shown breaking the security barriers and entering thecricket field to celebrate the victory of the country in the crickedmatch under the tag line “Kuch Khaas Hai Zindagi mein”. Thiscampaign went on to be awarded The Campaign of theCentury, in India at the Abby (Ad Club, Mumbai) awards.

  32. Different Ad Campaigns by Cadbury Dairy Milk • “Khaane Waalon Ko Khaane Ka Bahana Chahiye” • “Kuch Meetha Ho jaye” • “Pappu Paas Ho gaya” • “Radha Miss Palampur ban gaye “ • “Meetha hai Khaana aaj pehli tarrekh hai” • “Is Diwali aap kise khush kar rahe hain” • Sister tying rakhi to her brother and receiving a box of chocolates in return • “Shubh Aaarambh”

  33. Positioning Techniques • Umbrella Positioning • Positioning Against Competition • Positioning Based on a Specific Benefit • Conveying a Product Benefit • Taking an Unowned Position • Positioning for Several Positions • Repositioning

  34. Apple’s 1984 Ad Positions Against the Competition Click icon to reach ad

  35. Perceptual Mapping A research technique that enables marketers to plot graphically consumers’ perceptions concerning product attributes of specific brands.

  36. Perceptual Mapping

  37. Perceptual Mapping

  38. Pricing Strategies Focused on Perceived Value • Satisfaction-based Pricing • Relationship Pricing • Efficiency Pricing

  39. Was $199 Sale! Now $99 Issues in Perceived Price • Reference prices • Internal • External • Tensile and objective price claims 20% to 70% Off!

  40. Acquisition-Transaction Utility • Acquisition utility represents the consumer’s perceived economic gain or loss associated with the purchase • Function of product utility and purchase price • Transaction utility concerns the perceived pleasure or displeasure associated with the financial aspect of the purchase • Determined by the difference between the internal reference price and the purchase price

  41. Tensile and Objective Price Claims • Evaluations least favorable for ads stating the minimum discount level • Ads stating maximum discount levels are better than stating a range Save 10% or more Save upto 50%

  42. Perceived Quality • Perceived Quality of Products • Intrinsic vs. Extrinsic Cues • Perceived Quality of Services • Price/Quality Relationship

  43. 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).

  44. Perceived Risk Types • Functional Risk • Physical Risk • Financial Risk • Psychological Risk • Time Risk • Social Risk The degree of uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision.

  45. How Consumers Handle Risk • Seek Information • Stay Brand Loyal • Select by Brand Image • Rely on Store Image • Buy the Most Expensive Model • Seek Reassurance

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