consumer behavior-3 session

Consumer behaviorThird session

Lecture notes are available at:http://Arash-management.blogspot.com

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Consumer behavior (CB)

Arash Najmaei

Arash.unity@gmailArash.unity@yahoo.com

H/P : 0172116875

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Consumer perception…

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Synopsis of Consumer perception…

• What is perception1.The importance f perception2.Negative and positive perception3.Exposure and perception4.Selective exposure5.Selective comprehension6.Selective retention

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Exposure, Attention, and Perception• What is necessary to reach consumers?

1. Exposure (e.g., consumer must see your billboard).

2. Attention (e.g., consumer must look at ad message).

3. Perception (e.g., consumer must “take in” message).

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Behavior and perception

• Behavior elements ( beliefs, values ,attitudes, assumption)

• Perception ( positive and negative)• Attitude toward product and brand, reflected

in CDP

Goals of advertising and promotion.Goals of advertising and promotion.

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AIDA• Attention or awareness: to draw customers

attention toward your product or brand.• Intention : to make customers intend

purchase • Desire: to make customers to desire your

product or demand your product• Action: by doing so they take action and make

final decision .

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• This logical mechanism is built upon customer psychology .

• The essence of any advertisement and promotional activity is AIDA

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AIDA

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Consumer Decision Process

Problem RecognitionProblem Recognition

Information SearchInformation Search

Alternative EvaluationAlternative Evaluation

Purchase DecisionPurchase Decision

Postpurchase EvaluationPostpurchase Evaluation

MotivationMotivation

PerceptionPerception

Attitude FormationAttitude Formation

IntegrationIntegration

LearningLearning

Decision Process StagesDecision Process StagesDecision Process StagesDecision Process Stages Psychological ProcessesPsychological Processes

Perception

• Perception is the way in which an individual gathers, processes, and interprets information from the environment.

• Perception is the process of making sense out of an experience - the imputing of meaning to experience(Burgoon 1994).

• Two views of consumer perception– Sensory perception– Gestalt theory of perception

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Perception

The process of selecting, integrating and organizing stimuli from the environment into meaningful patterns in order to make sense of the world.

Definition:

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Information Processing for Consumer Decision Making

EXPOSURERandom______________Deliberate

ATTENTIONLow involvement—High Involvement

INTERPRETATIONLow involvement—High Involvement

MEMORYShort term____________Long Term

PURCHASE /CONSUMPTIONDECISIONS

PE

RC

EP

TIO

N

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Factors Impacting Perception

Sensory AbilitiesComprehension SkillsMemory CapacityNeedsExperience/KnowledgeInvolvementConfidencePre-dispositions (Attitudes, Beliefs, Mood)

Internal: External:

Stimulus(I) Characteristics: Motion, Intensity, Shape, Format, Color, Contrast, Location, Size

Competing Stimuli

Setting Characteristics

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Selective perception

The various elements of selective perception are:

selective exposure selective attention selective comprehension selective retention

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The Selective Perception Process

Selective Retention

Selective Comprehension

Selective Attention

Selective Exposure

Selective exposure

• Exposure: the process by which the consumer comes in physical contact with a stimulus.

• Selective exposure: From the variety of communication experiences available to them, people choose to expose themselves to communication that reaffirms preexisting ideas and attitudes, thereby bolstering their image of themselves and what they "know".

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Selective exposure

• Such behavior is founded on a basic aspect of human nature: The rationale behind almost all human activity is the strong need to protect, maintain, and enhance one’s self-concept or self-image (Burgoon 1994)

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Selective attention

• Selective Attention: Attention is the taking possession by the mind, in clear and vivid form, of one out of what seem several simultaneously possible objects or trains of thought. Focalization, concentration, of consciousness are of its essence. It implies withdrawal from some things in order to deal effectively with others. This stage results in greater awareness of supportive information and avoidance of contradictory information (Assael 1981).

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Selective comprehension

• Selective comprehension: This stage involves interpreting discrepant information so that it is consistent with beliefs and attitudes (Assael 1981)

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Selective retention

• Selective retention: The key question is what information is retained in memory to influence future behavior (Assael 1981). The principle of selective retention states that people remember more accurately messages that are favorable to their self-image than messages that are unfavorable.

• In short, people remember the good things and forget the bad. Selective retention thus reinforces one’s self-image

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Information Processing ComponentsInformation Processing ComponentsInformation Processing ComponentsInformation Processing Components

Exposure

Purchase and Consumption Decisions

Per

cep

tio

n

Attention

Interpretation

Memory

Random Deliberate

LowInvolvement

HighInvolvement

LowInvolvement

HighInvolvement

ShortTerm

LongTerm

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Information Processing is Selective

Selective Exposure

Stimuli

Selective Attention

Selective Comprehension

Selective Retention

Consumers have a choice of what stimuli they get

Info Overload forces attention to be < << 100%Habituation negatively attentiveness

Beliefs, Attitudes & InvolvementStrongly Impact Comprehension

Not all Comprehended MessagesMake it to Memory

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Perceived Value

• The trade-off between product benefits and product costs.

Perceived value = perceived benefits / perceived costs

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Perception and application in ADs

• It has been estimated that the average consumer is exposed to from 300 to 600 advertisements in a normal day (Assael 1981).

• These ads range from TV commercials, radio spots, magazine ads, newspaper ads, posters bulletins, brochures, flyers, t-shirts, online banner ads and much more.

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Perception and application in ADs

• Advertisers search for more and more places to display their product or service ads where consumers may selectively perceive. However, this certainly does not mean that consumers will be able to selectively perceive and recall them.

• Consumers perceive marketing stimuli selectively because each individual is unique in the combination of his or her needs, attitudes, experiences, and personal characteristics

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Understanding selective perception

• Understanding selective perception is useful in the following ways.

1.Choosing Message Type2.Building Brand Image3.Communicating to Target Markets4.Reinforcing Current Perceptions

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summary• The selective perception process:

Selective exposure: consumers select which promotional messages they will expose themselves to.

Selective attention: consumers select which promotional messages they will pay attention to.

Selective comprehension: consumer interpret messages in line with their beliefs, attitudes, motives and experiences.

Selective retention: consumers remember messages that are more meaningful or important to them

You should consider the implications of this process on the development of an effective promotional strategy.

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PerceptionPerception

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

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Elements of Perception

1. Sensation2. The absolute threshold3. The differential threshold4. Subliminal perception

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Sensory Sensory ReceptorsReceptors

The human organs (eyes, ears, nose, mouth, skin) that receive sensory inputs.

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Absolute Absolute ThresholdThreshold

The lowest level at which an individual can experience a sensation.

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Sensory Sensory AdaptationAdaptation

“Getting used to” certain sensations; becoming accommodated to a certain level of stimulation.

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Differential Differential ThresholdThreshold

The minimal difference that can be detected

between two stimuli. Also known as the JND (just noticeable difference).

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Marketing Applications of the JND

• Need to determine the relevant JND 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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Subliminal Subliminal PerceptionPerception

Perception of very weak or rapid stimuli received

below the level of conscious awareness.

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Aspects of Perception

SelectionOrganization

Interpretation

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Perceptual Selection

• Depends on two major factors.

1. Consumers’ previous experience (expectations)

2. Consumers’ motives

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Some Marketing Variables Influencing Consumer Perception

1. Nature of Product2. Physical Attributes of Product3. Package Design4. Brand Name5. Advertisements & Commercials6. Position of Ad7. Editorial Environment

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Principles of Perceptual Organization

• Figure and ground• Grouping• Closure

– Zeigernik effect

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PositioningPositioning

Establishing a specific image for a brand in relation to competing brands.

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Perceptual Perceptual MappingMapping

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

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Risk Perception/Risk Reduction

• It refers to a perceptual process and behavior outcomes generated from the perception of risk in the purchase or a product or service

• Components of risk:1. Severity of consequences (how bad will it be)2. Uncertainty related to those consequences (what are the

chances the consequence will occur)

• Risk reduction strategies: behaviors to reduce their perception of risk in purchase situations

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Perceptual Map

Pain Relievers

(perceptual map)

Gentleness

Effectiveness

Tylenol

Private-labelAspirin Anacin

Bayer

Excedrin

Nuprin

Advil

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Intrinsic Intrinsic CuesCues

Physical characteristics of the product (such as size, color, flavor, or aroma) that serve to influence the consumer’s perceptions of product quality.

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Extrinsic Extrinsic CuesCues

Cues external to the product (such as price, store image, or brand image) that serve to influence the consumer’s perception of a product’s quality.

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Price/Quality Price/Quality RelationshipRelationship

The perception of price as an indicator of product quality (e.g., the higher the price, the higher the perceived quality of the

product).

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Perceived Perceived RiskRisk

The degree of uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision.

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Types of Perceived Risk

1. Functional Risk2. Physical Risk3. Financial Risk4. Psychological

Risk5. Time Risk

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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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summary

• Perception and behavior • Selective perception• Application of studying consumer perception• Concept of JND and its advertising application• Perceived value • Perceptual map• Risk and handling of risk

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