session 7 - consumer perception

8/6/2019 Session 7 - Consumer Perception

1/37

Consumer Perception

Session 618th September 2008

1


2/37

In 1967 Gablingers Beer low calorie

In 1972 Miller Lite less filling

Everything you want in a beer..and

less

Positioning

Product attribute Gablingers

Product benefit Miller Lite

2


3/37

Elements of Perception

Definition The process by which an

individual selects, organizes, interprets

stimuli into a meaningful and coherentpicture of the world.

How we see the world around us.

3


4/37

Sensation

It is an immediate and direct response of

the sensory organs to stimuli.

Sensory Receptors (eyes, ears, nose,

mouth and skin)

4


5/37

Absolute threshold The lowest level at which

an individual can experience sensation. This is the point at which a person can

detect the difference something and nothing

5


6/37

Sensory Adaptation The used to habit of the

consumer the reason why there iscontinuous change in advertising campaigns.

6


7/37

Differential threshold The difference that

can be detected between two similarstimuli.

7


8/37

Also called just noticeable difference (JND)

Ernst Webber German scientist 19th century.

Webbers Law

Stronger the initial stimuli greater the additional intensity for second

stimuli.

8


9/37

Marketing Applications of the

JND Marketers endeavor to determine the relevant

JND for their products for 2 very different

reasons That negative changes are not readily discernable to

the consumer. [reduction in size of toothpaste at

same price]

That product improvements are very apparent toconsumers without being wastefully extravagant. [

Pepsodent dishum dishum to Pepsodent complete]

9


10/37

Subliminal perception Stimulation below the

level of conscious awareness.

Because the stimuli is beneath the thresholdlevel of conscious awareness though obviously

not beneath the absolute threshold of the

receptors involved.

10


11/37

Supraliminal perception Stimuli that are

above the level of conscious awareness.

11


12/37

Evaluating the effectiveness ofsubliminal perception Two theoretical approaches

Constant repetition of very weak stimuli has

an incremental effect

Subliminal arouse unconscious motivations.

Summarily subliminal stimuli may

influence affective reactions but may notinfluence consumption motives and

actions.

12


13/37

Dynamics of perception

Selection

Organization

Interpretation of stimuli

13


14/37

Perceptual selection

Individuals may look at some things

Ignore others

Turn away from still others

Example of women shopping in a mall.

14


15/37

Nature of stimuli

Physical attributes

Package design

Brand name

Advertisement and commercial

Position of a print ad Editorial environment

15


16/37

Expectations

Usually see what they expect to see

Based on familiarity, previous experience

Pre-conditioned sets

E.g.- Usage of women in advertisement

16


17/37

Motives

People tend to perceive the things they need

or want

The stringer the need, the greater the

tendency to ignore unrelated stimuli in the

environment

Example: Seeing ad of cell phone

provider.

17


18/37

Closure

Consumers listen to first half of the message

and conclude the rest

18


19/37

Perceptual interpretation

Perceptual distortion

Physical appearance tendency to attribute

quality, characters to similar resemblingpeople.

Stereotypes Individuals tend to carrypictures in their mind of meanings of various

kind of stimuli Example: United colours of Benneton white

man, black man handcuffed together.

19


20/37

Perceptual interpretation

First impression tend to be lasting

Jumping to conclusion- tend to jump to

conclusion before examining the relevantevidence

Halo effect- situations in which the evaluationof a single object or person on a multitude of

dimensions is based on the evaluation of justone or a few dimension. Man looking at your eyes- noble.

20


21/37

ConsumerImagery

Product positioning

Actual characteristics

Product attributes

Product Image

Product strategy

What positioning conveys

21


22/37

Umbrella positioning

Positioning against the competition.

Positioning based on a specific benefit

Finding an Unowned position.

E.g. Castrol- Liquid engineering.

Filling several positions

22


23/37

Product repositioning

Perceptual mapping helps marketers to

determine just how their products or

services appear to consumers in relationto competitive brands on one or more

relevant characteristics.

E.g. The Telegraph E.g. The Statesman

E.g. Blanket with chicks to project warmth

23


24/37

Fashion Coverage

More Copy

Club Coverage

More Artwork

Fashion Splash

Splash

Bash

Crash

Perceptual Mapping

24


25/37

Positioning of Services

Tourism

Hotels

Post

25


26/37

Perceived Price

Reference price Any price that a consumer uses as a basis for

comparison in judging another price Internal Reference price

External reference price

Acquisition utility represents the consumersperceived economic gain or loss associated withthe purchase, function of product utility andpurchase price.

Transaction utility the perceived pleasure /

displeasure associated with the financial aspectsof the purchase, determined by the differencebetween internal reference price and purchaseprice

26


27/37

Tensile price claims

Used to promote a range of price discount

for a product line, and entire department,or an entire store

Objective price claim

Provides a single price claim

27


28/37

Perceived Quality

Perceived quality of products

Intrinsic characteristics

Extrinsic characteristics

Consumer Reports

Country of origin

Perceived quality of services

28


29/37

A scale measuring Customers Perception of Call-center

Employees.

Attentiveness

1. The agent did not make an attentive impression.*

2. The agent used short, affirmative words and sounds to indicate

that (s)he was really listening.

Perceptiveness

1. The agent asked for more details and extra information duringthe conversation.

2. The agent continually attempted to understand what I was

saying

3. The agent paraphrased what had been said adequately

Responsiveness

1. The agent offered relevant information to the questions I asked.

2. The agent used full sentences in his or her answers instead of

saying just yes or no.

3. The agent did not recognize what information I needed.*29


30/37

Trust

1. I believe that this company takes customer calls seriously

2. I feel that this company doesnt respond to customer problems

with understanding.*3. This company is ready and willing to offer support to customers.

4. I can count on this company to be serious

Satisfaction

1. I am satisfied with the level of service this agency provided.2. I am satisfied with the way I was spoken to by the agent

3. I am satisfied with the information I got from the agent

4. The telephone call with the agent was a satisfying experience.

Call Intention1. I will very likely contact this company again

2. Next time I have any questions I will not hesitate to call again

3. I wouldnt be willing to discuss problems I have with this company

over phone.**Negatively phrased item30


31/37

Reliability Providing the service as promised, at the promised timeand doing it right the first time; handling customer

problems in a dependable manner and keeping

customers informed

Responsiveness Prompt service, willingness to help customers and

readiness to respond to customer requests.

Assurance Instilling confidence in customers and making them feelsafe in their transactions; consistently courteous

employees with the knowledge to answer customers

questions.

Empathy Employees who deal with customers in a caring fashionand understand their needs; giving customers individual

attention and having their best at heart.

Tangibility Modern equipment, visually appealing facilities andmaterials related to the service, employees with

professional appearance, and convenient operating

SERVQUAL

Dimensions for measuring Service Quality

31


32/37

Service

Quality

Behaviourial

Intentions

Superior

UnfavorableInferior

FavorableRemain

Behavior

Defect

+$

Ongoing Revenue

Increased

Spending

Price Premium

Referred CustomerFinancial

Consequences

-$

Decreased

Spending

Lost Customers

Costs toAttract

New Customers

Empirical links demonstrated in macro studies

Focus on present study

32


33/37

IMAGE - Perception

Retail store image

Manufacturers image

Perceived risks

33


34/37

How consumers handle risk

Consumers seek information

Consumers are brand loyal

Consumers select by brand image

Consumer rely on store image

Consumer buy the most expensive model

Consumers seek reassurance

34


35/37

CASE I

NIRMA adopted a market penetration

strategy according to which the price ofits washing powder was fixed

approximately 40% below than that of

the highest price product in the market.

It was distributed in West and NorthZones The strategy was so successful

that it made the Industry Leader to lose

its market share substantially in thosezones where the product was promoted

aggressively.

35


36/37

Case II

AMUL products were launched in the

market by the KDCMPULtd The Unionchose AMUL as the brand name avariant ofAMULYA which meanspriceless in Sanskrit. The product was

initially advertised only on hoardings asthe main medium. The Utterly Butterlyad campaign soon became popular. In1973 an apex organization was formed

GCMMF which integrated the activitiesof district union to oversee themarketing of their dairy products.

36


37/37

Maggie Noodles for the first time brought the

concept of convenient food within the reach

of middle class household in India Theproduct was easy to prepare. It was

attractively packed. The company

emphasized intensive distribution strategy

backed up by heavy advertising and

promotion. The high pressure advertisement

campaign launch in print media and on TV

was highly successful. The campaign soldthe idea of a snack food and a quick meal

with remarkable success.

37

session 7 - consumer perception

Documents