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Consumer perceptions
Definitions
Sensation: immediate and direct response of sensory organs to stimuli Stimulus: any unit of input to any of the senses
Absolute threshold: the lowest level at which an individual can experience a sensation
Marketing stimuli
Any communications or physical stimuli designed to influence consumers Primary (intrinsic) stimuli Secondary (extrinsic) stimuli
2.
Secondary stimuli
Words, pictures, symbolism Other stimuli associated with the product (price, store, salesperson)
2.
Bundle of product benefits that can be directed to the needs of a defined group of consumers Using messages, symbolism, imagery Organisation of the secondary stimuli into a product position Key factors determining which stimuli consumers perceive and how they interpret them
Stimulus characteristics
Sensory elements
Taste
Smell Sound
Voiceovers Music
Feel
Structural elements
Physical characteristics of the marketing message Print ads: size or position in a magazine TV
Consumer characteristics
Stimulus discrimination
Threshold level
Ability of consumers to detect variations in stimuli is determined by their threshold level Just noticeable difference
Differential threshold exists in comparing two stimuli Consumer doesnt detect differences below differential threshold Minimum difference between two stimuli that consumers can detect DT represents the JND
Applications
Webers Law
The stronger the initial stimulus, the greater the change required for the subsequent stimulus to be seen as different Increase in the difference required to reach the differential threshold (JND) is constant Most direct application in pricing
The higher the original price, the greater the markdown required to increase sales
Adaptation level
The level at which consumers no longer notice a frequently repeated stimulus Advertising wearout is the consumers adaptation to a campaign over a period of time Consumers differ in levels of adaptation
Stimulus generalisation
When two stimuli are seen as similar (contiguous) The effects of one can be substituted for the effects of the other Allows consumers to simplify the process of evaluation No separate judgment required for each stimulus
Assume past experience (positive) will be repeated No separate judgment required for each purchase
Horseless carriage
2.
True False
Perceptual Process
Exposure
Selection
Attention
Organisation
Categorisation
Interpretation
Inference
Perceptual selection
Exposure
Consumers senses activated by a stimulus Pick and choose stimuli they are exposed to Likely to avoid exposure to stimuli that are unimportant and uninteresting Momentary focusing of a consumers cognitive capacity on a selective stimulus
Attention
Selective Perception
Two consumers may perceive the identical advertisement, package or product very differently Occurs at every stage in the perceptual process Depends on
Nature of stimulus: eg contrast Expectations: people usually see what they expect to see. What they expect to see is usually based on familiarity, previous experience or preconditioned set of expectations Motives: people tend to perceive things they need
Selective exposure and attention occur because consumers beliefs influence what they choose to listen to or read
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2.
True False
Selective organisation occurs because people organise information to be consistent with their beliefs
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2.
True False
Selective interpretation occurs so that perceptions conform with prior beliefs and attitudes
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2.
True False
High involvement: guides consumers to information instrumental in attaining desired benefits Low involvement: screens out information because consumers want to minimise information processing
Protects from threatening or contradictory stimuli When consumers are involved Messages in agreement with beliefs accepted (assimilation effect) Messages not in agreement, rejected or distorted to contrast with the consumers opinions (contrast effect)
Perceptual equilibrium
Consistency between the information received about a brand and consumers prior beliefs about the brand Ensures that the consumers psychological set is in equilibrium
Consumers process information to ensure consistency By contrast or assimilation When information conflicts with beliefs Balance achieved by changing opinion about the object, or the source of information or both Result: balance of beliefs When postpurchase conflicts arise Balance through seeking supporting information Or distorting contradictory information
Perceptual disequilibrium
Consistency between the information received about a brand and consumers prior beliefs about the brand Ensures that the consumers psychological set is in equilibrium
True False
Why?
Ambiguity Benefits are not clear cut Product is important to consumer Enables consumers to project almost any motive for using MS products Perceive the message selectively in line with their needs Use of Perceptual Defence
Perceptual organisation
understand it better Act on it Perceive various stimuli as an organised whole Simplifies information processing Provides an integrated meaning for the stimuli Based on Gestalt psychology: people organise perceptions to form a complete picture of an object
Closure
Perceivers tendency to fill in missing elements when a stimulus is incomplete Consumers desire to form a complete picture satisfaction in completing the picture on their own Principle operates when consumers develop their own conclusions from moderately ambiguous advertisements
Closure
Grouping
More likely to perceive a variety of information as chunks than as separate units Chunking or grouping information permits consumers to evaluate one brand over another by using a variety of attributes Principles of grouping
Promixity
One object is associated with another because of its closeness to that object Advertising employs principle of proximity by associating the product with positive symbols and imagery close to the product
Proximity
Similarity
Similarity
Continuity
Grouping stimuli into uninterrupted forms rather than discontinuous contours In a retail store, no sharp breaks should occur from one sales station to the next by type of merchandise: reasonably continuous transition
Continuity
Context
Consumers tend to perceive an object by the context in which it is shown Setting of an advertisement influences the perception of a product Same advertisement may be perceived differently in two different media Most important principle: figure and ground
Distinguish stimuli that are prominent (figure in foreground) From stimuli that are less prominent (in the background)
Context
Perceptual interpretation
Once consumers select and organise stimuli they interpret them Categorisation Inference
Categorisation
Tendency to place information into logical categories Helps process known information quickly and efficiently Also helps consumers classify new information Marketers need to ensure
Recognise a brand as part of a product class Not a direct duplicate of other brands Product positioning
Category levels
When consumers first learn about a product they classify it at the most basic level As they process more information, develop a capacity to use refined classifications
Mainframes
Microcomputers
Desktops
Portables
Laptops
Notebooks
Personal assistants
Cell phones
Process of categorisation
Schema
Recall of information in clusters of thoughts, ideas and symbols Hard disks, floppies, CDs, memory, portability, graphics, connectivity etc Developing a subcategory of a broader category Schema can help define a subcategory
New schema: fruit based soft drinks Campaign: Weve got the juice Entry of Coca Cola and P&G established the subcategory
Subtyping
Pepsi Slice
Perceptual inference
The object The symbol associated with the object The interpretant or meaning of the symbol
Crystal Pepsi
Object (Crystal Pepsi)
Perceived risk
Types of risk
Financial: cost relative to disposable income Social risk: may not meet standards of important reference group Psychological risk: loss of self esteem when error recognised Performance risk: product may not work as anticipated Physical risk: bodily harm due to product performance Internet risks
Security of financial information Privacy Shipping and handling costs Late delivery or delivery of damaged or incomplete products
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2.
Risk is likely to be perceived as greater when there is little information about the product category
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2.
True False
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2.
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2.
Risk is likely to be perceived as greater when consumers have high self confidence in evaluating brands
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2.
True False
Risk is likely to be perceived as lesser when there are variations in quality among brands
True False
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2.
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2.
Risk is likely to be perceived as greater when the purchase is not very important to consumers
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2.
True False
Better evaluate alternatives Ensure avoiding products that fail Consumers know what to expect from the product
Brand loyalty
Buy the lowest priced item or smallest size Obtain a warranty or guarantee Reduce psychological risk
Warranties Money back guarantees Liberal return policies for defective products Offer products at lower prices or smaller sizes Free samples
Price perceptions
Price expectations
What the consumer expects to pay Consumers use this as a reference for comparison
Range of prices consumers are willing to accept higher end is the reservation price: above which the product would be judged too expensive Lower end is the limit below which the quality would be suspect
Price is also used to reflect quality when there is confidence in the source of the price information
Brand positioning
Image in the mind of the consumer More important to success than actual attributes Unique position that the brand occupies in the mind of the consumer Differentiation through emphasis on benefits
Must reflect attributes that are important to and fit with the perceptions of the target segment
Result: a distinctive brand image on which consumers rely in making choices Positive brand image leads to positive beliefs about the brand value and a willingness to search for the brand. Also reinforces brand loyalty Positioning strategy forms consumer beliefs about brand attributes and determines the price consumers are willing to pay
Perceptual mapping
Enables marketers determine how they want their products or services to appear to consumers in relation to competitive brands on one or more relative characteristics Allows them to see gaps in the positioning of all brands and identify areas in which new offerings can be developed
Perceived price
Should generally reflect the value the customer receives from the purchase Should be consistent with the value
A burger A BMW
How a consumer perceives the price has a strong influence on purchase intention and satisfaction
Reference prices
Any price that a consumer uses as a basis for comparison in judging other prices Can be external or internal Internal reference prices are retrieved by the consumer from memory
Perceived quality
Based on informational cues that they associate with the product Intrinsic to the product or service Extrinsic to the product or service
Intrinsic cues
Extrinsic cues