CHAPTER - 6

CONSUMER PERCEPTION

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CONSUMER PERCEPTION

A marketer’s knowledge about his product is objective reality ie his own view, but a consumer may have his own perception about the very same product. This consumer perception is much more important than the objective reality for marketer.

Through ads marketers create & shape consumers’ perception,and positioning their offering as fulfilling needs and delivering important benefits more effectively than the competitors.

Such benefit becomes core identity, Unique Value Proposition and is the essence of brand’s competitive advantage.

Think about water, the most difficult product to position or differentiate, as water is an entirely uniformed product

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SENSORY DYNAMICS OF PERCEPTION

PERCEPTION is the process by which an individual selects,organises and interprets stimuli into a meaningful and coherent picture of the world. Two individuals may perceive differently the same stimuli depending upon their need, value and expectations.

SENSATION is the immediate and direct response of sensory organs to stimuli.

A STIMULUS is any unit of input to any of the senses. Eg: 4 Ps.SENSORY RECEPTORS are human organs.SENSORY FUNCTIONS – see, hear,smell,taste and touch.Most of the marketing communications today appeal to sight and

sound. Smell and touch also give opportunity to target customers.

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SENSORY DYNAMICS OF PERCEPTION

THE ABSOLUTE THRESHOLD the lowest level at which an individual can experience a sensation is called the absolute threshold. For eg: two drivers, one can spot a billboard at 500mts whereas another can spot at 1000 mts. Under condition of constant stimulus ,say driving through many billboards, the absolute threshold increases. senses become dulled and we notice lessThis is known as adaptation ie: “getting used to”

Sensory adaptation is a problem with national advertisers as consumers get so used to print and TV ads.

Refer Table 6.2 : Promotional methods aimed at increasing sensory input

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SENSORY DYNAMICS OF PERCEPTION

THE DIFFERENTIAL THRESHOLD is the minimum difference that can be detected between two similar stimuli also called J.N.D ie : Just noticeable difference ; Rs2&Rs 5 increase over Rs 150

Marketing applications of J.N.DPositive changes-Updated packaging, larger size, lower price should get noticed by consumers ie they should be more than j.n.dNegative changes-reduction in size, quality,increse in price should not get readily noticeable by consumers ie they should be less than j.n.d. If a larger change is required then to break into multiple changes and apply over a period so that consumers may not notice the changes.

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SENSORY DYNAMICS OF PERCEPTION

Eg: Silver care polish, Betty Crocker symbol, XeroxSubliminal Perception – Stimuli that are too weak or too brief

to be consciously seen or heard may nevertheless be strong enough to be perceived by one or more receptor cells. The stimulus is beneath the threshold but not below the absolute threshold.

Eg: Retailers take advantage of the ability to encode messages into music by playing subliminal tapes to secretly persuade shoppers.(famous The Judas Priest Trial –DO IT)

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ELEMENTS OF PERCEPTION

Major Principle of Perception : Raw sensory input by itself does not produce the coherent picture of the world most adults possess. Indeed, the study of perception is largely the study of what we subconsciously add to or subtract from raw sensory inputs to produce our own private picture of the world.

Perception is the results of two different kinds of inputs 1-physical stimuli of outside environment and 2-predispositionsbased on previous experience. This explains why no two people see the world in precisely the same way.

Perceptual selection : In actuality, people receive(perceive)only a small portion of the stimuli they are exposed. Which stimuli getsselected depends on 1.Previous experience 2. motives (needs)

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ELEMENTS OF PERCEPTION

Nature of stimuli : with the above concept on perception what kind of Marketing stimuli would work ? Number of variables packaging, brand name, ad ,position of ad etc etc affect

Contrast is one of the most attention compelling attribute –over sized ads. “Stopping power” ads, product against white background, absence of sound in a commercial etc .

Expectations: People usually see what they expect to see, and what they expect to see is usually based on familiarity, previousexperience.Eg : A movie from a famous director.

Motives: People tend to perceive the things they need or want.Eg:a student in need of mobile watch ads of it.

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PERCEPTUAL ORGANISATION

Figure and Ground: Stimuli that contrast with their environment are more likely to be noticed. A figure (product or brand)is perceived more clearly because ,in contrast to its ground (back ground music /Color) it appears to be well defined. A recent study found that a brand integrated and prominently featured in a TV program may produce negative feelings among viewers who liked the program a lot, but those who liked the program less were more likely to develop positive attitudes towards the brand.

Grouping: Individuals tend to group stimuli so that they form a unified picture or impression.Eg: an ad for tea shows a young man and woman sipping tea in a beautiful room before blazing hearth. The overall mood is enhanced by a group of stimuli drinking tea with romance, fine living, winter warmth.

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PERCEPTUAL ORGANISATION

Closure : Individuals have a need for a closure.Incompleted messages or tasks are better remembered than completed ones. Promotional messages in which viewers are required to “fill in "information beg for completion by consumers.Consumerwho are familiar with TV commercial perceive the audio track alone (in radio) as incomplete; in their need for completion, they mentally play back the visual content from memory.

A state of tension is created that manifests itself in improved memory for the incomplete task.

INCOMPLETE MESSAGES ARE BETTER REMEMBERED THAN COMPLETED ONE.

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PERCEPTUAL INTERPRETATION

Stereotypes: Individuals carry biased pictures in their minds of the meanings of various stimuli, which are termed as stereotypes. Stereotypes or implicit prejudice are automatically activated when consumers are exposed to ads featuring stigmatized group members(white or black).Studies were conducted by manipulating the presence or absence of stigmatized group member in ads and consumers automatic stereotype activation along with attitude towards ad, product,purchase intent and purchase behaviour were assessed.

Stereotypes are triggered by Physical appearance (people tend to attribute the quality they associate with certain types of people to others who resemble them)First impression (first impression tend to be lasting) and Halo effect (attractive

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PERCEPTUAL INTERPRETATION

People are often judged as having a more desirable personality and more skills than someone of average appearance).

Stereotypes in Indian Advertising:Horlicks Mother – It showed a caring motherSurf’s Lalitaji – Lalitaji telling consumers that half the quantity of

Surf would suffice ( Keeping in mind the Nirma onslaught)Vicco – Not a cosmetic, ad, culture, occasion, bridal stereotypeBru – stereotype of filter coffeeTitan – a watch , stereotype created with gifting

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CONSUMER IMAGERY

Consumers have a number of enduring perceptions or images that are particularly relevant to the study of consumer behaviour. Here we examine consumers 'perceived images of products, brands, services, prices, product quality, retail store.

Product Positioning : The essence of successful marketing is the image that a product has in the mind of the customer-that is,its positioning.

New products fail because they are conceived as “me too "offer.Marketers of different brands in the same category can effectively

differentiate their offerings only if they stress the benefits that their brands provide rather than the product’s physical feature

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CONSUMER IMAGERY

Here are the positioning claims of several brands of Indian soaps.Lux__________,Dove____________,Cinthol___________Santoor__________,Pears_____________,Lifebuoy___________

Suzuki ads convey ‘compact, fuel efficient and yet powerful’ car.

A positive brand image leads to loyalty, positive beliefs about brand value.It also promotes consumer interest in future brandpromotions and inoculates consumer against competitor’s marketing activities.

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DIGITAL MARKETING AND PRODUCT POSITIONING

Considering the influence of digital media especially among youthpositioning is to be carried out keeping the following in mind…Develop associations (sun silk website-www.gangofgirls.com)Educate youth-Himalaya-back to nature trend among youth.Web based contest-Parachute.Online youth community-Cafe Coffee Day

Packaging as a positioning element: Containers for detergents. Packaging of perfumes(in some cases it costs 40% and comes with brand personality features that consumer associate with it)

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PRODUCT REPOSITIONING

Regardless of how well positioned a product appears to be,reposition it in response to market events (competitor eating share or competitor stressing the same attribute)or to satisfychanging consumer preferences. Eg: US mortgage loans later promoted as equity loans with tag line “live richly", the ritual of burning mortgage notes, lead to financial crisis.Liril, Closeup and Cadbury repositioned in the past.

Reposition is required because of-- When new offerings flood the market, superiority of the

established brand is to be reemphasized.- When new offerings enter the market, the same features may

not help and reposition based on goodwill or other appeals.16

PRODUCT REPOSITIONING

-Contemporary image required due to changing psychographics.-When motivation to buy the category is very low among customTimely Repositioning: Iodex forced to reposition because of

Moov, Dove ‘trial for results’ to superior moisturiser,Maruti800 no frill ,Robin Blue vs. Ujala,Cotemporary offerings could erase the consumer’s memory of traditional offerings/brands if brand repositioning is not formulated.(on time with or without product attribute improvements).

Contemporary image: A contemporary image matters in some categories that are conspicuous in terms of consumer’s usage and observation. With changing life style/nuclear families in

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PRODUCT REPOSITIONING

Urban markets/up market segments. Raymonds(relationship), lifebuoy(hygiene).

Changing the target segment: It is difficult for an established brand to change its target segment overnight. But there are rare instances. Eg Cadbury repositioned “spontaneous joy”targeting adults. Timex from lower end to higher end.Hero Honda after the initial success of CD100 had to do re positioning with respect to many sub brands like SS,Passion and Splendor.

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PERPETUAL MAPPING

The analytical technique enables marketers to determine just how they want their products or services to appear to consumers in relation to competitive brands on one or more relevant characteristics. It allows them to see gaps in the positioning of all brands in the product or service class and identify areas in which new offerings can be developed.

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POSITIONING OF SERVICES

Services are intangible and image becomes a key factor in differentiating a service from its competition.Service marketers develop visual images and tangible reminders of their service offerings.Egdelivery vehicles,hotel match boxes,soaps,specialityitems, employees in ads.

Many service companies market several versions of their services to different market segments by using differentiated positioning strategy. Eg Airlines

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PERCEIVED PRICE

Perceived price should reflect the value that the customer receives from the purchase. Customers perceive a low price for a fast food outlet, high price from a high end hotel but may look at a price of Rs 10000/ as unreasonable for a meal.

No one is happy knowing he or she paid a twice of a price compared a person sitting the next seat.

Reference Prices is any price that a consumer uses as a basis for comparison in judging another price. An advertiser generally uses a higher external reference price (of another brand) compared to his lower price. Internal references those prices that are retrieved from consumer memory, Which may change over a period (flat screen TV ). Right side effect.

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PERCEIVED QUALITY

Consumers’ perceived quality of a product or service is based on a variety of informational cues that they associate with the product – some are intrinsic and some extrinsic.

Cues that are intrinsic concern physical characteristics of the product itself ie:size,color,flavour Eg real fruit/ synthetic flavour in ice cream.

Extrinsic characteristics – Consumers claim a brand of superior taste but often they could not identify the brand in blind test which proves that because of some extrinsic considerations they could say so.

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PERCEIVED QUALITY

Perceived Quality of Services: Services are intangible. Products can be compared but services not. So consumers rely on extrinsic cues to evaluate service quality. A dentist service is evaluated by the set up of the clinic, the conduct of the people there etc.

In the product defective product is detected at the factory itself and removed but for a service like hair cut ? So it in the case of service an inferior service is consumed as it is being produced.

Standardization is necessary in the service industry for quality. During peak hours if service suffers, try to even out i.e. low rate

for non peak hours.

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PERCEIVED QUALITY

Consumer’s evaluation of service quality is a function of the magnitude and direction of the gap between the customer’s expectation of service and customer’s assessment (perception) of the service actually delivered.

SERVQUAL scale to measure the gap based on the 5 dimensions i e:reliability,responsiveness,assurance,empathy & tangibility and is assessesed with respect to end service delivered (outcome) and how it was delivered ( process )

Marketers should never make promises that they can not deliver realistically because such claims raise customer’s expectations.

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PRICE / QUALITY RELATIONSHIP

Consumers rely on price as indicator of quality in the absence of other attributes/factors. Some ads deliberately advertise high prices. A recent study validated the concept of price/quality relationships. Two groups of subjects administered the same pain reliever and one group was told it cost $2.50 and another told 10 cents, 85% of high cost reported better pain reduction where as it is 61% for low cost group.

In addition to price consumers also use such cues as brand and store to evaluate quality.

The form in which products are sold may alter product’s perceived value.Eg products sold in bundles with extra replacement parts,

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RETAIL STORE IMAGE

Retail store image stem the merchandise they carry, the brands sold and their prices, the level of service, the ambience and its typical clientele.

Customer who holds a positive image of a store never rely on bad word of mouth.

A store having a larger assortment may be reluctant to go for smaller assortment.

When a low priced store stock a prestigious brands its image goes up where as the brand’s image is affected. That is why marketers of prestigious brand have limited outlets.

Designer labels are removed when going for second sales.

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