Chapter 4: Consumer Perception PDF

e r p t a Ch 4 Copyright © 2015 Pearson Education  Chapter Outline Introduction The Elements of perception Perceptual selection Perceptual organization Perceptual interpretation Positioning  Introduction Perception is “The process by which ind...

e r p t a Ch 4 Copyright © 2015 Pearson Education  Chapter Outline Introduction The Elements of perception Perceptual selection Perceptual organization Perceptual interpretation Positioning  Introduction Perception is “The process by which individuals select, organize, and interpret stimuli into a meaningful and coherent picture of the world”. “how we see the world around us.” Perception is all about consumers’ subjective understandings and not objective realities. For each individual, reality is a totally personal phenomenon, based on that  Therefore, consumers’ perceptions are more important to a marketer than their knowledge of objective reality. Because people make decisions based on what they perceive to be reality. So it’s important for marketers to understand perception and its related concepts to determine what influence consumers to buy Perceptual process The elements of perception Raw sensory input by itself does not produce or explain the coherent picture of the world that most adults possess. The study of perception is largely the study of what we subconsciously add to or subtract from raw sensory inputs to produce our own private picture of the world.  Perception is a result of two different kinds of inputs; Physical stimuli from the outside environment. People’s motives, expectations, and what they learned from previous experiences. Because each person is unique individual, with unique experiences, needs, wants, desires, expectation, then each individual’s perception is unique.  Sensory Input Sensation is the immediate and direct response of the sensory organs to stimuli. – A stimulus is any unit of input to any of the senses (e.g. products, packaging, brand names, advertisements, commercials). – Sensory receptors are human organs that receive sensory inputs. Their sensory functions are to see, hear, smell, taste and touch.  Perception Examples: ### 1. *Visual Perception* - *Optical Illusions*: Images that can be perceived in multiple ways, such as the classic "Rubin's Vase," which can be seen as either a vase or two faces. - *Depth Perception*: The ability to judge distances and perceive the world in three dimensions, such as knowing how far away a car is while driving. ### 2. *Auditory Perception* - *Sound Localization*: Identifying the origin of a sound, like determining which direction a siren is coming from. - *Speech Perception*: Understanding spoken language, which can be influenced by accents, background noise, or the speaker’s tone. ### 3. *Tactile Perception* - *Texture Recognition*: Distinguishing between different surfaces by touch, such as feeling the difference between  ### 4. *Olfactory Perception* - *Smell Identification*: Recognizing scents, like distinguishing between the smell of fresh bread and that of burnt toast. - *Emotional Responses*: Certain smells can evoke memories or feelings, such as the scent of pine triggering holiday memories. ### 5. *Gustatory Perception* - *Taste Recognition*: Identifying different flavors in food, such as sweet, sour, salty, bitter, and umami. - *Flavor Perception*: The combination of taste and smell that influences how we experience food, like the complex flavor of a well-seasoned dish. ### 6. *Social Perception* - *Judging Character*: Forming opinions about someone based on their appearance, body language, or the way they speak. - *Stereotyping*: Making assumptions about individuals based on their group membership, such as race, gender, or profession. ### 7. *Cognitive Perception* - *Pattern Recognition*: Identifying patterns or regularities in data, such as seeing faces in clouds or interpreting trends in statistics. - *Perceptual Set*: The tendency to perceive things in a certain way based on expectations or prior experiences, like seeing a specific animal in a cloud formation. Perception is a complex process influenced by various factors, including sensory input, context, and personal experiences. Understanding perception can enhance our awareness of how we interpret the world around us.  Sensation itself depends on energy change within the environment where the perception occurs. Unchanging environment, regardless of the strength of the sensory input, provides little or no sensation at all. E.g. a person who lives in a busy street receive little or no sensation from the inputs. As sensory inputs decrease, the ability to detect changes in inputs increase. “ it was so quiet I could hear a pin drop” attain maximum sensitivity under conditions of minimal stimulation.  Types of sensory input 1. Sight Marketers rely heavily on visual elements in advertising, store design and packaging. What we see in a retail outlet or how a website is designed has an effect on the brands we choose and the brands we use.  1. Sight (continued) Color can often be the main reason a consumer purchases a product or service. Depending on the brand, its position in the market, and the feelings it wants to evoke in its consumers Color choice is serious business and not to be done without considerable thought and care.  Example: Package Color The package color decisions help to ‘color’ our expectations of what’s inside the package. When a Danish company launched a white cheese as a ‘sister product’ to an existing blue ‘Castello’ cheese, they introduced it in a red package under the name of Castello Bianco. They chose this color to provide maximum visibility on store shelves. sales were disappointing. Research showed that the red packaging and the name of the cheese gave the consumers the felling of product sweetness. The company relaunched it in a white package and named it ‘White Castello’. Almost immediately, sales more than doubled.  2. Smell Smell also represent considerable opportunities for targeting consumers. People usually associate memories with smells. Recognizing that the use of a scent in a retail environment enhances the shopping experience for many consumers and makes the time they spend examining merchandise, waiting in line, and waiting for help seem shorter. E.g. Cinnabon places baking ovens near the front of their stores so that the enticing smell of warm cinnamon rolls will attract consumers.  3. Touch Touching a product influences persuasion and that touching could be used as a persuasive tool. Retailers are keenly aware that most purchase decisions are made at the point of purchase. The choice between shopping online and shopping in stores is often made around the ability to touch products in stores.  4. Sound A sound, like a picture, may be “worth a thousand words. E.g. when opening Water Bottle or Tomato Paste Can Consumers perceive the sound and duration of the “pop” heard as indicators of quality and safety. Retailers create store playlists so that the music communicates the brand message and encourages spending. Retail stores will play music that will match the demographics and lifestyles of the consumers who shop in their stores. The right music will keep consumers in the stores longer which leads to more purchases.  5. Taste Food companies go to great lengths to ensure that their products taste as they should. E.g. blind taste test Marketers can influence the perception of taste with sights and sounds. For Example, Smokers perceived the taste of their cigarettes to be “off” when the government imposed tough laws for tobacco warning labels that included graphic images of mouth ulcers.  Absolute threshold “It is the lowest level at which an individual can experience a sensation”. The point at which a person can detect the difference between “something” and “nothing” is that person’s absolute threshold for the stimulus. – For example, the distance at which a driver can note a specific billboard on a highway is that individual’s absolute threshold. Under conditions of constant stimulation, such as driving through a “corridor” of billboards, the absolute threshold increases (that is, the senses tend to become increasingly dulled) Examples of Absolute threshold: e.g A billboard along the motorway might have the most entertaining story ever written, but this genius is wasted if the print is too small for passing motorists to read it. ### 1. *Vision* - *Light Detection*: The faintest light that can be detected in a completely dark room, such as a single candle flame from about 30 miles away on a clear night. - *Color Detection*: The faintest color change that can be perceived, such as distinguishing between two shades of gray in dim light. ### 2. *Hearing* - *Sound Detection*: The quietest sound that an average human ear can hear, typically around 0 decibels (dB), like a ticking watch from 20 feet away in a silent environment. - *Frequency Sensitivity*: The lowest frequency sound that can be detected, often around 20 Hz for young adults, which is the threshold for hearing low-pitched sounds. ### 3. *Taste* - *Taste Sensitivity*: The minimum concentration of sugar in a glass of water that can be detected, usually around 1 part per 200 parts of water. - *Bitterness Detection*: The smallest concentration of a bitter substance (like quinine) that can be tasted, which may be around 1 part in 10,000  ### 4. *Smell* - *Odor Detection*: The smallest amount of a substance that can be detected by the olfactory system, such as the smell of a drop of perfume in a small room. *Chemical Detection*: The minimum amount of a specific odorant (like ammonia) that can be detected, often measured in parts per billion. ### 5. *Touch* - *Pressure Sensitivity*: The lightest touch that can be felt on the skin, such as the sensation of a feather lightly brushing against the arm. - *Vibration Sensitivity*: The lightest vibration that can be felt on the skin, typically around 1 Hz, which can be detected on the fingertips. ### 6. *Pain* - *Pain Threshold*: The minimum intensity of a painful stimulus that can be felt, such as a pinprick on the skin. ### Conclusion The absolute threshold varies among individuals and can be influenced by various factors, including age, health, attention, fatigue, sensory adaptation and environmental conditions. Understanding these thresholds helps in fields like psychology, medicine, and sensory research. It is essential for understanding human perception and its limitations.  As our exposure to the stimulus increases, we notice it less. Sensory adaptation refers specifically to “getting used to” certain sensations, or becoming accustomed to a certain level of stimulation. Consumers will get used to their current print ads or tv commercials that they will no longer see them, as the ad will no longer provide sufficient sensory input Sensory adaptation is a problem that causes many advertisers to change their advertising campaigns regularly. among the promotional methods that are used to solve the problem of sensory adaptation are experiential marketing.  Experiential marketing allows customers to engage and interact with brands, products and services in sensory ways to create emotional bonds between consumers and marketing offerings. E.g. Ikea: IKEA's "IKEA Sleepover"*: The furniture retailer hosted a sleepover in their store, allowing customers to experience their products in a home-like setting, complete with activities and a cozy atmosphere. (Virtual reality) Marriott posted virtual reality videos on social media that take people on hosted tours of Marriott properties *L’Oreal’s Virtual Makeup Try-On*: Using VR technology, customers can try on different makeup products virtually, enhancing the shopping experience and allowing for personalized interactions with the brand.  Differential threshold or the JND (just noticeable difference). “The ability of a sensory system to detect changes or differences between two stimuli”. Improvements below the JND will not be perceived and will hurt the credibility of a marketer promoting the product as “new and improved.” e.g. raises the price from $3.99 to $4.25, most consumers will notice. Therefore, instead of raising the price, the marketer leaves the price unchanged, but lowers the quantity to 13.25 ounces per bag. Most consumer will not notice unless they look at the package carefully.  Just noticeable difference (JND) Manufacturers and marketers try to determine the relevant JND for their products;  To prevent the negative changes from being readily discernible to the public (e.g. decrease in product size or increase in price)--- below the JND  To ensure the product improvements are very apparent to consumers (e.g. updated packages)----they are at or just above JND  Logos and packaging Label update should be within the range of the JND in order to preserve the label’s instant recognition. Coca-Cola packaged regular Coke in snow-white cans, which exceeded the JND. Consumers became confused because the holiday cans were confusingly similar to Diet Coke’s silver cans. changes that deviates too much from the old and familiar designs confuse consumers. When a product icon is updated, the manufacturer does not want people to lose their identification with a familiar symbol. They changed the package because today’s consumers want healthier food. Within the JND  Stages of Perception Formation 1. Perceptual selection 2. Perceptual organization 3. Perceptual interpretation  1. Perceptual selection Subconsciously, Consumers are very selective when exposed to stimuli. Individuals look at somethings, ignore others. E.g. a woman at a food market is exposed to more than 30,000 product of different colors, sizes, shapes, to smells and tastes, to sounds within the store and yet selects only the items she needs as she exercise selectivity in perception. Which stimuli get selected depends on two major factors in addition to the Nature of the stimulus; – Consumers’ previous experience as it affects their expectations. – Their motives at the time (their needs, desires, interests, and so on).  b. Personal Expectations People see what they expect to see based on familiarity, previous experience, or a set of expectations. E.g. student who has been told by his friends that a particular professor is interesting and dynamic will probably perceive the professor in that manner when the class begins.  c. Consumer Motivation People tend to perceive things they need or want; the stronger the need, the greater the tendency to ignore unrelated stimuli in the environment. There is a heightened awareness of stimuli that are relevant to one’s needs and interests and a decreased awareness of stimuli that are irrelevant.  E.g. A student who is looking for a new cell phone provider is more likely to read carefully ads for deals regarding such service than his roommate who is satisfied with his current service provider. E.g. Someone who is overweight will notice the ads for diet food. E.g. A style conscious person will be more receptive to ads for fashionable clothes, while another consumer who is a habitual soft drink lover will be more attentive to advertisements portraying the various soft drink brands.  Perceptual defense takes place when consumers subconsciously screen out (remove or filter “This means that people see what they want to see – and don’t see what they don’t want to see) stimuli that they find psychologically threatening, even though exposure has already taken place. Consumers often protect themselves from being bombarded with stimuli by simply blocking such stimuli from conscious awareness. Ex: when somebody sees an ad full of vegetables, they may choose to ignore it if they eat fast food everyday. One way to combat perceptual defense is to vary and increase the amount of sensory input. E.g. warning labels on cigarettes Questions: Green packaging is often used for organic or health-focused products. This color evokes feelings of freshness and health, influencing consumers to perceive these products as more natural and better for their well-being. An ad featuring a delicious burger may resonate more strongly with someone who is hungry compared to someone who has just eaten. Consumers looking for safety might perceive insurance products as essential and view ads emphasizing protection and reliability as highly persuasive. Coca-Cola's iconic contour bottle, stand out on shelves. Unique packaging can draw attention and create a memorable brand identity, making consumers more likely to choose that product. A person raised in a culture where spicy food is the norm may perceive flavors differently than someone from a culture that favors milder tastes. This can affect their enjoyment of certain dishes and willingness to try new cuisines. Excellent customer service or product satisfaction can lead to a lasting preference for that brand. Conversely, a faulty product, can lead to distrust and avoidance.  2. Perceptual organization People do not experience the numerous stimuli they select from the environment as separate and discrete sensations; rather, they tend to organize them into groups and perceive them as unified wholes. Three of the most basic principles of perceptual organization are figure and ground, grouping, and closure.  a. Figure and Ground Figure and ground refers to the interrelationship between the stimulus itself (i.e., figure) and the environment or context within which it appears (i.e., ground). Stimuli that Contrast with their environment are more likely to be noticed. E.g. a sound must be louder or softer, color brighter or paler Advertisers have to plan their advertisements carefully to make sure that the stimulus they want noted is seen as figure and not as ground. E.g. the background shouldn’t detract from the product  b. Grouping Grouping refers to people’s instinctive tendency to group stimuli together so that they become a unified picture or impression. The perception of stimuli as groups or chunks of information, rather than as discrete bits of information, facilitates memory and recall. Marketers use grouping to imply certain desired meanings in connection with their products E.g. we recall and repeat phone numbers in chuncks Grouping has implications for product placement within retailers e.g. placing pickles products next to products with which they are eaten e.g. hamburgers  c. Closure Closure is people’s instinct to organize pieces of sensory input into a complete image or feeling. Individuals need closure, which means that if they perceive a stimulus as incomplete, they are compelled to figure out its complete meaning. If a message they receive is incomplete, they consciously or subconsciously fill in the missing pieces (like answering the questions in the ad). This serves to involve consumers more deeply in the message  3. Perceptual interpretation: The interpretation of stimuli is uniquely individual because it is shaped by the individual’s experiences, motives, expectations, and external stimuli. When stimuli are highly ambiguous, an individual will usually interpret them in such a way that they serve to fulfill personal needs, wishes, interests, and so on  Stereotyping Individuals carry biased pictures in their minds of the meanings of various stimuli, which are termed stereotypes. Sometimes, when presented with sensory stimuli, people “add” these biases to what they see or hear and thus form distorted impressions. Marketers must be aware of possible stereotypes because these images reflect people’s expectations and influence how stimuli are subsequently perceived. E.g. an ad for Benetton featuring two kids one black and one white hugging each other they were promoting racial harmony but perceived differently  Stereotyping (continued) Generally, people stereotype because it makes the processing of sensory input quicker and easier. The triggers of stereotyping are physical appearance, descriptive terms, first impressions, and the halo effect  Physical Appearances Physical Appearances—people tend to attribute the qualities they associate with certain people to others who may resemble them. Advertisers must ensure that there is a rational match between the product advertised and the physical attributes of the model used to promote it. E.g. highly attractive models are likely to be perceived as having more expertise regarding enhancement products (e.g., jewelry, lipstick, perfume), but not problem-solving products (e.g., products that correct beauty flaws such as acne or dandruff). The selection of models for print advertisements and for television commercials can be a key element in their persuasiveness.  Descriptive Terms Descriptive Terms—stereotypes are often reflected in verbal messages. Distinct brand names are important to all products or services, associations that consumers make with certain names are particularly crucial in marketing of service. The name should be distinctive, memorable, and relevant to the services that they offer E.g. consumers who eat food with elaborate names such as “succulent Italian seafood filet” rate those food as more appealing than those who eat food with normal names “seafood filet”  First Impressions First Impressions—these tend to be lasting. You will never have a second chance to make first impression So, a marketer should be careful how they advertise new products. As introducing new product before it has been perfected prove fatal to its ultimate success.  Halo Effect The Halo effect “refers to the overall evaluation of an object that is based on the evaluation of just one or a few dimensions”. In marketing, the term refers to a prestigious image of a product “rubbing off on” other products marketed under the same brand name. Consumers often evaluate an entire product line on the basis of the one product within the product line Ex: consumers admire Porsche Cars will be willing to spend a lot of money on sunglasses and other accessories sold under the same brand name. E.g. Apple (iPhone) E.g. Nike company developed strong reputation for making basketball sneakers and tennis shoes. Nike used the successful image it had developed in sports shoes to expand out into sporting equipment such as golf balls and golf clubs Questions: Determine which Stereotype trigger is each of the following? A person dressed in a suit may be perceived as more competent or authoritative compared to someone in casual clothing, regardless of their actual qualifications. An individual with a confident posture and a smile might be judged as more friendly or trustworthy, while someone with crossed arms and a frown may be seen as unfriendly or defensive. Using terms like "bossy" to describe a woman in a leadership role can perpetuate stereotypes about women being aggressive, while a man in the same position may be described as "assertive." Meeting someone at a networking event who appears nervous may lead others to assume they are unqualified or inexperienced, even if they have extensive knowledge and skills. Viewing a person's profile picture can influences how others perceive their personality or interests, regardless of the person’s true character. A well-liked celebrity endorsing a product can lead consumers to assume that the product is high quality simply because of their favorable view of the celebrity. A student who excels in one subject may be perceived as intelligent across all subjects, leading teachers to overlook areas where the student may struggle.  Positioning Positioning is “the process by which a company creates a distinct image for its products, services or brands in consumers’ minds”. The image and unique identity are called a “position.” The position, which is intangible and exists only in the consumer’s mind. It represents how marketers want consumers to perceive products and brands. The result of effective positioning is a unique perception of the product in consumers’ minds relative to competing offerings. Most new products fail because consumers perceive them as “me-too” offers that do not provide any advantages or unique benefits over competitive products because they are not positioned effectively.  Positioning Marketers have to persuade their target audiences to choose their products vs. competitive products. Remember that positioning doesn’t just mean what your target market thinks about your product. It’s about how they think about it relative to competitors’ products — your product is less expensive, performs better, or fits better with the customer’s lifestyle.  Positioning is especially difficult among commodities, where the physical characteristics of all the brands are identical. E.g. Water. marketers offer many brands of mineral water that range in price and are positioned differently.  Positioning statement A positioning statement “is one sentence that succinctly identifies the target market and spells out what you want them to think about your brand.” This statement should include; 1) the target segment, 2) the brand name, 3) the product/service category or frame of reference in which you are establishing this market position, 4) the key points of differentiation, and 5) the reasons customers should believe the positioning claims.  Positioning statement Formula for writing positioning statement: To [target audience], Product X is the only [category or frame of reference] that [points of differentiation/ benefits delivered] because [reasons to believe]. The “category or frame of reference” is the category of products or services you’re competing in. The “points of differentiation/benefits delivered” explains both what problem you solve and how you solve it in a different and better way than competitors The “reasons to believe” are any proof points or evidence that show your customers how you live up to your claims  Good Positioning Statements For World Wide Web users who enjoy books, Amazon is a retail bookseller that provides instant access to over 1.1 million books. Unlike traditional book retailers, Amazon provides a combination of extraordinary convenience, low prices and comprehensive selection. For cost-conscious moms of large blue-collar families with active children, Tide is the brand of laundry detergent that gets clothes their cleanest and keeps them looking new  Positioning Strategies: Umbrella positioning is a statement or slogan that describes the universal benefit of the company’s offering. At times, this statement does not refer to specific products. E.g. “I’m lovin’it”, LG“Life’s Goods” Mobinil, a mobile network company in Egypt, does the same with its slogan “Dayman maa baad” (always together) Premier positioning focuses on the brand’s exclusivity. E.g. “costliest perfume in the world” E.g. L’Oreal “because we worth it” Positioning against the competition acknowledges competing brands, it’s very effective in positioning and differentiation. E.g Duracell “No battery is stronger longer” AVIS in car rent “we try harder” Key attribute; positioning is based on a brand’s superiority on relevant attributes. (Tide) Finding an Un-owned positioning is when a position is not associated with a product from the category  Exercise on positioning Pringles Slogan: Once you pop, you can’t stop Disneyland: “The happiest place on Earth” M&Ms :Melts in your mouth, not in your hands 7-up slogan: The un-cola Apple Computer’s slogan: Everything is easier on a Mac Kentucky Fried Chicken: “Finger lickin’ good.” Coca-cola: “Together tastes better” De Beers: “Diamond is forever” What type of positioning is used?  Repositioning “is the process by which a company strategically changes the distinct image and identity that its product or brand occupies in consumers’ minds”. Companies do so when consumers get used to the original positioning and it no longer stands out in their minds. Similarly, when consumers begin to view the old positioning as dull, marketers must freshen up their brands’ identities Old Spice repositioning Fair and lovely repositioning  Perceptual mapping “is constructing a map-like diagram representing consumers’ perceptions of competing brands along relevant product attributes.” Perceptual maps show marketers: – How consumers perceive their brand in relation to competition – How to determine the direction for changing undesirable consumer perceptions of their brands – Gaps in the form or un-owned perceptual positions that offer opportunities for developing new brands or products  The aim of perceptual mapping is to develop repositioning strategies and fine-tune the images of products and services. If two competitors are positioned in the map close to each other this means they need to be more clearly defined in consumers’ minds.  How to construct a Perceptual map? Step one – select two determinant attributes Step two – list the main competitors in the product category Step three – Create scores for these brands from 1 to 10 (Conduct a Survey) Example of perceptual map Example of perceptual map Perceptual map of Restaurants End of Chapter