Consumer Perception

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Perception

The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world How we see the world around us

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Elements of Perception
Sensation Absolute threshold Differential threshold Subliminal perception

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The immediate and direct response of the sensory organs to stimuli. Sensation A perfectly unchanging environment provides little to no sensation at all!
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Webers Law

A theory concerning the perceived differentiation between similar stimuli of varying intensities (i.e., the stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different).

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Marketing Applications of the JND

Need to determine the relevant j.n.d. for their products
so that negative changes are not readily discernible to the public so that product improvements are very apparent to consumers

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Subliminal Perception

Perception of very weak or rapid stimuli received below the level of conscious awareness.

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Subliminal Perception
1957: Tested in Movie Theater Popcorn and coca-cola

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Is Subliminal Persuasion Effective?

Extensive research has shown no evidence that subliminal advertising can cause behavior changes Some evidence that subliminal stimuli may influence reactions

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Aspects of Perception
Selection Organization Interpretation

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Perceptual Selection
Depends on two major factors Consumers previous experience Consumers motives

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Concepts Concerning Selective Perception

Selective Exposure Selective Attention Perceptual Defense Perceptual Blocking

Gestalt Psychology

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Principles of Perceptual Organization

Figure and ground Grouping Closure

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Influences of Perceptual Distortion

Stereotypes
Physical Appearances First Impressions Halo Effect

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Issues In Consumer Imagery

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Product Positioning and Repositioning Positioning of Services Perceived Price Perceived Quality Retail Store Image Manufacturer Image Perceived Risk

Figure 6.12 Using Imagery

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Positioning

Establishing a specific image for a brand in relation to competing brands.

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Figure 6.13 Repositioning

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Strategic Positioning -8 strategies

Top of Range Service Value for money Reliability Attractive COO Brand Name Selectivity

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Perceptual Mapping

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

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Figure 6.14 Perceptual Mapping

Trophy modern blocks
A category

Traditional

Modern
B category D C category

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Home

Table 6.2 Pricing Strategies Focused on Perceived Value

Satisfaction-based Pricing Relationship Pricing Efficiency Pricing

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Issues in Perceived Price

Reference prices
Internal External

Tensile and objective price claims

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Acquisition-Transaction Utility
Acquisition utility represents the consumers perceived economic gain or loss associated with the purchase Function of product utility and purchase price
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Transaction utility concerns 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

Tensile and Objective Price Claims

Evaluations least favorable for ads stating the minimum discount level Ads stating maximum discount levels are better than stating a range
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Perceived Quality
Perceived Quality of Products
Intrinsic vs. Extrinsic Cues

Perceived Quality of Services Price/Quality Relationship

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Characteristics of Services
Intangible Variable Perishable Simultaneously Produced and Consumed

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Table 6.3 SERVQUAL Dimensions for Measuring Service Quality

DIMENSION Tangibles DESCRIPTION Appearance of physical facilities, equipment, personnel, and communication materials Reliability Ability to perform the promised service dependably and accurately Responsiveness Willingness to help customers and provide prompt service Assurance Knowledge and courtesy of employees and their ability to convey trust and confidence Empathy Caring, individualized attention the firm provides its customers
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Figure 6.16 Conceptual Model of the Consequences of Service Quality

Service Quality Superior Behavioral Intentions Favorable Remain +$ Ongoing Revenue Increased Spending Price Premium Referred Customers Financial Consequences -$ Decreased Spending Lost Customers Costs to Attract New Customers

Behavior

Inferior

Unfavorable

Defect

Focus of present study

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Empirical links demonstrated in macro studies

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).

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Perceived Risk
The degree of uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision.
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Types Functional Risk Physical Risk Financial Risk Psychological Risk Time Risk

How Consumers Handle Risk

Seek Information Stay Brand Loyal Select by Brand Image Rely on Store Image Buy the Most Expensive Model Seek Reassurance

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Consumer Learning

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The Importance of Consumer Learning to New Product Success

Why did these products fail?

Listerine Toothpaste Aspirin

Why did Pocket Paks succeed?

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Importance of Learning
Marketers must teach consumers:
where to buy how to use how to maintain how to dispose of products

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Learning Theories
Behavioral Theories: Cognitive Theories: Theories based on the A theory of learning premise that learning based on mental takes place as the result information of observable processing, often in responses to external response to problem stimuli. Also known solving. as stimulus response theory.
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Consumer Learning

A process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior.

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Learning Processes
Intentional: learning acquired as a result of a careful search for information Incidental: learning acquired by accident or without much effort

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Elements of Learning Theories

Motivation Cues Response Reinforcement

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Reinforcement

A positive or negative outcome that influences the likelihood that a specific behavior will be repeated in the future in response to a particular cue or stimulus.

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Behavioral Learning Theories

Classical Conditioning Instrumental Conditioning Modeling or Observational Learning

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Classical Conditioning

A behavioral learning theory according to which a stimulus is paired with another stimulus that elicits a known response that serves to produce the same response when used alone.

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Figure 7.2A Pavlovian Model of Classical Conditioning

Unconditioned Stimulus Meat paste Unconditioned Response Salivation Conditioned Stimulus Bell
AFTER REPEATED PAIRINGS

Conditioned Stimulus Bell

Conditioned Response Salivation

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Figure 7.2B Analogous Model of Classical Conditioning

Unconditioned Stimulus Dinner aroma Unconditioned Response Salivation Conditioned Stimulus 6 oclock news
AFTER REPEATED PAIRINGS

Conditioned Stimulus 6 oclock news

Conditioned Response Salivation

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Cognitive Associative Learning

Classical conditioning is viewed as the learning of associations among events that allows the organism to anticipate and represent its environment. From this viewpoint, classical conditioning is not reflexive action, but rather the acquisition of new knowledge in and around environment.
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Neo-Pavlovian Conditioning
1. Forward Conditioning (CS Precedes US) 2. Repeated Pairings of CS and US 3. A CS and US that Logically Belong to Each Other 4. A CS that is Novel and Unfamiliar 5. A US that is Biologically or Symbolically Salient
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Strategic Applications of Classical Conditioning

Repetition Stimulus Generalization Stimulus Discrimination

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Repetition
Repetition increases strength of associations and slows forgetting but over time may result in advertising wearout. Cosmetic variations reduce satiation.

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Three-Hit Theory
Repetition is the basis for the idea that three exposures to an ad are necessary for the ad to be effective The number of actual repetitions to equal three exposures is in question.

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Stimulus Generalization

The inability to perceive differences between slightly dissimilar stimuli.

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Stimulus Generalization and Marketing

Product Line, Form and Category Extensions Family Branding Licensing Generalizing Usage Situations

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Stimulus Discrimination

The ability to select a specific stimulus from among similar stimuli because of perceived differences.

Positioning Differentiation
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Instrumental (Operant) Conditioning

A behavioral theory of learning based on a trial-and-error process, with habits forced as the result of positive experiences (reinforcement) resulting from certain responses or behaviors.

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Figure 7.10 A Model of Instrumental Conditioning

Try Brand A Try Brand B Try Brand C Try Brand D
Repeat Behavior

Unrewarded Legs too tight Unrewarded Tight in seat Unrewarded Baggy in seat Reward Perfect fit

Stimulus Situation
(Need goodlooking jeans)

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Instrumental Conditioning
Consumers learn by means of trial and error process in which some purchase behaviors result in more favorable outcomes (rewards) than other purchase behaviors. A favorable experience is instrumental in teaching the individual to repeat a specific behavior.
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Reinforcement
Negative Positive Reinforcement: Reinforcement: Unpleasant or negative Positive outcomes that outcomes that serve to strengthen the likelihood of a specific encourage a specific behavior response Example: Ad showing Example: Ad showing wrinkled skin as beautiful hair as a reinforcement to buy reinforcement to buy skin cream shampoo
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Observational Learning

A process by which individuals observe the behavior of others, and consequences of such behavior. Also known as modeling or vicarious learning.

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Cognitive Learning Theory

Holds that the kind of learning most characteristic of human beings is problem solving, which enables individuals to gain some control over their environment.

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Information Processing

A cognitive theory of human learning patterned after computer information processing that focuses on how information is stored in human memory and how it is retrieved.

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Figure 7.13 Information Processing and Memory Stores

Working Memory (Shortterm Store)

Sensory Input

Sensory Store

Rehearsal Encoding

Rehearsal

Longterm Store Retrieval

Forgotten; lost

Forgotten; lost

Forgotten; unavailable

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Retention
Information is stored in long-term memory
Episodically: by the order in which it is acquired Semantically: according to significant concepts

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Table 7.1 Models of Cognitive Learning

DecisionPromotional Tricompetent Making Model Model Model

Sequential Stages of Processing

Innovation Innovation Adoption Decision Model Process

Attention Interest Desire Action

Cognitive Affective Conative

Awareness Knowledge Evaluation Purchase Postpurchase Evaluation

Awareness Knowledge Interest Evaluation Trial Adoption Persuasion Decision Confirmation

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Involvement Theory

A theory of consumer learning which postulates that consumers engagement in a range of information processing activity varies from extensive to limited problem solving, depending on the relevance of the purchase.

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Figure 7.14

Figure 7.14 Split Brain Theory

Right/ Left Brain Hemispheres specialize in certain functions

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Issues in Involvement Theory

Involvement Theory and Media Strategy Involvement Theory and Consumer Relevance Central and Peripheral Routes to Persuasion Measures of Involvement

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Central and Peripheral Routes to Persuasion

A theory that proposes that highly involved consumers are best reached through ads that focus on the specific attributes of the product (the central route) while uninvolved consumers can be attracted through peripheral advertising cues such as the model or the setting (the peripheral route).

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Elaboration Likelihood Model (ELM)

A theory that suggests that a persons level of involvement during message processing is a critical factor in determining which route to persuasion is likely to be effective.

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The Elaboration Likelihood Model

Involvement HIGH Central Route LOW Peripheral Route

Message Arguments Influence Attitudes

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Peripheral Cues Influence Attitudes

Consumer Attitude Formation and Change

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Attitudes

A learned predisposition to behave in a consistently favorable or unfavorable manner with respect to a given object.

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What are Attitudes?

The attitude object Attitudes are a learned predisposition Attitudes have consistency Attitudes occur within a situation

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Structural Models of Attitudes

Tricomponent Attitude Model Muliattribute Attitude Model The Trying-to-Consume Model Attitude-toward-the-Ad Model

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Figure 8.2 A Simple Representation of the Tricomponent Attitude Model

Conation

Affect Cognition

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The Tricomponent Model

Cognitive Component
The knowledge and perceptions that are acquired by a combination of direct experience with the attitude object and related information from various sources.

Affective Component
A consumers emotions or feelings about a particular product or brand.

Conative Component
The likelihood or tendency that an individual will undertake a specific action or behave in a particular way with regard to the attitude object.
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Multiattribute Attitude Models

Attitude models that examine the composition of consumer attitudes in terms of selected product attributes or beliefs.

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Multiattribute Attitude Models

The attitude-toward-object model
Attitude is function of evaluation of productspecific beliefs and evaluations

The attitude-toward-behavior model

Is the attitude toward behaving or acting with respect to an object, rather than the attitude toward the object itself

Theory-of-reasoned-action model
A comprehensive, integrative model of attitudes
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AttitudeTowardBehavior Model

A model that proposes that a consumers attitude toward a specific behavior is a function of how strongly he or she believes that the action will lead to a specific outcome (either favorable or unfavorable).

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Theory of Reasoned Action

A comprehensive theory of the interrelationship among attitudes,intentions, and behavior.

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Figure 8.4 A Simplified Version of the Theory of Reasoned Action

Beliefs that Beliefs that the behavior the behavior leads to leads to certain certain outcomes outcomes Evaluation Evaluation of the of the outcomes outcomes Beliefs that Beliefs that specific specific referents referents think II think should or should or should not should not perform the perform the behavior behavior Motivation Motivation to comply to comply with the with the specific specific referents referents

Attitude toward Attitude toward the behavior the behavior Intention Intention Behavior Behavior
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Subjective Subjective norm norm

Theory of Trying to Consume

An attitude theory designed to account for the many cases where the action or outcome is not certain but instead reflects the consumers attempt to consume (or purchase).

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Table 8.6 Selected Examples of Potential Impediments That Might Impact Trying
POTENTIAL PERSONAL IMPEDIMENTS I wonder whether my fingernails will be longer by the time of my wedding. I want to try to lose fifteen pounds by next summer. Im going to try to get tickets for a Broadway show for your birthday. Im going to attempt to give up smoking by my birthday. I am going to increase how often I go to the gym from two to four times a week. Tonight, Im not going to have dessert at the restaurant. POTENTIAL ENVIRONMENTAL IMPEDIMENTS The first ten people to call in will receive a free T-shirt. Sorry, the shoes didnt come in this shipment from Italy. There are only three bottles of champagne in our stockroom. You better come in sometime today. I am sorry. We cannot serve you. We are closing the restaurant because of a problem with the oven.

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AttitudeTowardthe-Ad Model

A model that proposes that a consumer forms various feelings (affects) and judgments (cognitions) as the result of exposure to an advertisement, which, in turn, affect the consumers attitude toward the ad and attitude toward the brand.

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Figure 8.6 A Conception of the Relationship among Elements in an Attitude-Toward-the-Ad Model

Exposure to an Ad Judgments about the Ad (Cognition) Feelings from the Ad (Affect)

Beliefs about the Brand Attitude toward the Brand

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Attitude toward the Ad

Issues in Attitude Formation

How attitudes are learned Sources of influence on attitude formation Personality factors

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Strategies of Attitude Change

Changing the Basic Motivational Function Associating the Product With an Admired Group or Event Resolving Two Conflicting Attitudes Altering Components of the Multiattribute Model Changing Beliefs About Competitors Brands
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Four Basic Attitude Functions

The Utilitarian Function The Ego-defensive Function The Value-expressive Function The Knowledge Function

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Elaboration Likelihood Model (ELM)

A theory that suggests that a persons level of involvement during message processing is a critical factor in determining which route to persuasion is likely to be effective.

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Why Might Behavior Precede Attitude Formation?

Cognitive Dissonance Theory Attribution Theory
Behave (Purchase)

Form Attitude

Form Attitude

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Cognitive Dissonance Theory

Holds that discomfort or dissonance occurs when a consumer holds conflicting thoughts about a belief or an attitude object.

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Postpurchase Dissonance

Cognitive dissonance that occurs after a consumer has made a purchase commitment. Consumers resolve this dissonance through a variety of strategies designed to confirm the wisdom of their choice.

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Attribution Theory

A theory concerned with how people assign casualty to events and form or alter their attitudes as an outcome of assessing their own or other peoples behavior.

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Issues in Attribution Theory

Self-perception Theory
Foot-In-The-Door Technique

Attributions Toward Others Attributions Toward Things How We Test Our Attributions

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SelfPerception Theory

A theory that suggests that consumers develop attitudes by reflecting on their own behavior.

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Defensive Attribution

A theory that suggests consumers are likely to accept credit for successful outcomes (internal attribution) and to blame other persons or products for failure (external attribution).

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Criteria for Causal Attributions

Distinctiveness Consistency Over Time Consistency Over Modality Consensus

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