Arslan Ahmed

Group members

Perception:Process via which consumers select and

organize stimuli, so as to provide themselves with a meaningful and coherent view of the world

More than sensing somethingAssigning meaning and incorporating it into

their worldPart of the “Information Processing” process

Consumer Perception

SensationAbsolute thresholdDifferential thresholdSubliminal perception

Elements of Perception

SensationThe immediate and direct response of the

sensory organs to stimuli.

A perfectly unchanging environment provides little to no sensation at all!

Elements of Perception(cont..)

Absolute threshold:

Absolute threshold is the lowest intensity at which a stimulus can be detected 50% of the time. The absolute threshold can be influenced by several different factors, such as the subject's motivations and expectations, cognitive processes, and whether the subject is adapted to the stimulus.

Elements of Perception(cont..)

Differential Threshold:

The ability of a sensory system to detect changes or differences between two stimuliMinimum difference

between two stimuli is the j.n.d. (just noticeable difference)

Example: packaging updates must be subtle enough over time to keep current customers

Elements of Perception(cont..)

Subliminal Perception:Perception of very weak or rapid stimuli

received below the level of conscious awareness.

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

Elements of Perception(cont..)

Perception Process

We receive external stimuli through our five senses

Factors influence our perception.

Exposure

Attention

Interpretation

Factors In Perception

Exposure:Exposure involves the extent to which we

encounter a stimulus.

We are exposed to numerous commercial messages while driving on freeway.

Example, Bill boards Radio Advertisement

Factors In Perception (cont..)

Attention:Attention is actually a matter of degree

Our attention may be quite high when we read directions for getting an income tax refund, but low when commercials come on during a television program.

Example :If an advertisement for a product in which we

are interested comes on.

Factors In Perception (cont..)

Interpretation: Interpretation involves making

sense out of the stimulus.

Example: when we see a red can, we may

recognize it is a “Coke” and blue can for “Pepsi”.

Factors In Perception

Factors In Perception (cont..)

Weber’s LawAbility to note a change in a stimulus, depends

on its initial levelExample:

$500 increase in the price of a car$500 increase in the price of a personal computer

P (notice a stimulus change) = Change in stimulus /Initial level of stimulus

Weber’s Law

Closure: Individual tend to express their need

closure by organizing their perception so that form a complete picture.

Example: circle or Arc? show piece or Two faces?

Factors Influence Stimulus.

Relevance:One of obvious issue is relevance, consumer

when they have choice , are also more likely to attend to stimuli relevant to them.

Factors Influence Stimulus (cont…)

Repetition: Consumer often do not give much attention to

stimuli, if it seen over and over again. The cumulative impact will be greater here.

Surprising stimuli: Are likely to get more attention .Greater contrast: Difference between the stimulus

and its surroundings.Greater prominence: Greater size center placement.

Factors Influence Stimuli (cont..)

Make perceptual selection work in your favour.

Increase accidental exposureDraw attention to your ad using contrast

and other principlesFind creative ways to reduce blocking

Perception and Marketing Strategy

Ensure that consumers organize and interpret messages correctly

Develop suitable consumer imageryFind ways to reduce perceived risk

Perception and Marketing Strategy(cont....)

Satisfaction-based Pricing

Relationship Pricing

Efficiency Pricing

Pricing Strategies Focused on Perceived Value

Reference prices:InternalExternal

Tensile and objective price claims

Issues in Perceived Price

Evaluations least favorable for ads stating the minimum discount level

Ads stating maximum discount levels are better than stating a range

Tensile and Objective Price Claims

Perceived Quality of ProductsIntrinsic vs. Extrinsic Cues

Perceived Quality of Services

Price/Quality Relationship

Perceived Quality

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

Price/Quality Relationship

Effects of Brand name, Store name & Price

Functional RiskPhysical RiskFinancial RiskPsychological RiskTime Risk

Perception of risk.

Functional risk: Product will not perform as expected.

Physical risk: Risk to self and others ...... Like use of cell

phone.

Financial risk: The product will not be worth its cost.

Perception of risk(cont..)

Social risk: Poor product choice may result in social

embarrassment .

Time risk: Time spent in product search may be

wasted if the product does not perform as expected.

Perception of risk(cont..)

Seek InformationStay Brand LoyalSelect by Brand ImageRely on Store ImageBuy the Most Expensive ModelSeek Reassurance

How Consumers Handle Risk

Ads for children; ban on TV ads containing cartoons character promoting products during children shows in which they themselves appear (misperceived by kids to be part of the show)

Thirty minute infomercials misperceived as documentaries

Ethics And Consumer Perception.

Example

Red colour is perceived as sign of danger and sorrow in chinese culture

While in our culture Red colour is perceived as sign of Love, Glamour & Attraction

Cross-Culture of Consumer Perceptions.