Consumer Perception

By Kaustubh Pal

What is perception???

• Perception is defined as the process of selection, organization and interpretation of stimuli into a meaningful and coherent picture of the world.

• How we see the world around us

• As each individual is unique in his needs, expectations and motivations therefore each person’s perception is different.

Elements of Perception

• Sensation• Absolute threshold• Differential threshold• Subliminal perception

Sensation

• The immediate and direct response of the sensory organs to stimuli

• A stimulus is any unit of input to any of the senses.• The absolute threshold is the lowest level at which an

individual can experience a sensation.

Differential Threshold

• Minimal difference that can be detected between two similar stimuli

• Also known as the just noticeable difference (the j.n.d.)

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.

Aspects of Perception

Selection

Organization

Interpretation

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

Perceptual Selection

• Selective Exposure• Selective Attention• Perceptual Defense• Perceptual Blocking

• Consumers seek out messages which:

– Are pleasant– They can empathize– Reassure them of good

purchases

Concepts

Perceptual Selection

• Selective Exposure• Selective Attention• Perceptual Defense• Perceptual Blocking

• Heightened awareness when stimuli meet their needs

• Consumers prefer different messages and medium

Concepts

Perceptual Selection

• Selective Exposure• Selective Attention• Perceptual Defense• Perceptual Blocking

• Screening out of stimuli which are threatening

Concepts

Perceptual Selection

• Selective Exposure• Selective Attention• Perceptual Defense• Perceptual Blocking

• Consumers avoid being bombarded by:

– Tuning out– DTS TV

Concepts

Aspects of Perception

Selection

Organization

Interpretation

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

Organization

• Figure and ground• Grouping• Closure

• People group stimuli to form a unified impression or concept.

• Grouping helps memory and recall.

Principles

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

Aspects of Perception

Selection

Organization

Interpretation

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

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

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

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

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

Semiotics

• It is the analysis of how people obtain meaning from signs

• Signs are the words, gestures, pictures, products, and logos used to communicate information from one person to another

• Marketers use semiotic analysis to identify meanings transmitted.

• Focus groups provide methodology.

Perceptual Mapping

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

Three Pricing Strategies Focused on Perceived Value

Pricing Strategy Provides Value By… Implemented As…

Satisfaction-based pricing Recognizing and reducing customers’ perceptions of uncertainly, which the intangible nature of services magnifies

Service guarantees

Benefit-driven pricing

Flat-rate pricing

Relationship pricing Encouraging long-term relationships with the company that customers view as beneficial

Long-term contracts

Price bundling

Efficiency pricing Sharing with customers the cost savings that the company has achieved by understanding, managing, and reducing the costs of providing the service

Cost-leader pricing.

Acquisition-Transaction Utility

• Acquisition utility – The consumer’s perceived

economic gain or loss associated with the purchase

– Function of product utility and purchase price

• Transaction utility– 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

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.)

• Moral of the story: NEVER SELL YOUR PRODUCTS CHEAP

• L’Oreal is a brand that is extremely popular among females. Anyone who thinks of beauty thinks of L’Oreal.

• But it is relatively unknown among men. If it is known at all, it is for high quality beauty care for women.

• So, L’Oreal has an image that is strongly feminine.But L’Oreal wants to change that image now. With the rising of the Metrosexual Man, L’Oreal has come up with an exclusive range of men’s grooming products.

• These products are mainly skin care and shaving products, under the brand name ‘L’Oreal Paris Menexpert’

• There have been similar other attempts by personal care giants trying to woo the man with products that were popular among females. Eg. HLL’s Fair & Lovely Vs Fair & Lovely Menz Active, Fair and Handsome, etc.

• The current stigma associated with beauty for men and also the rift between the sexes does not let men touch anything that is remotely feminine. India is definitely one of the more masculine cultures where males would like to keep an arm’s length from products associated to females.

• No one will publicly admit using a product or get caught anywhere around it. Yet, products are flying off the shelves really fast.

L’Oreal Paris Men Expert Case Study

• QuestionWith such a strong feminine image attached with L’Oreal, how would you as a brand manager deal with the task of making a success out of Menexpert and thus come close to Men too? What role can women play to help you out?