Consumer Behavior: Information Processing II PDF

Information Processing II The Just Noticeable Difference Threshold (JND)...... is the minimal amount of difference in intensity of a stimulus that can be detected 50% of the time. Examples: changing size of packages, changing taste, changing the quality of sound, or touch, or smell of a product....

Information Processing II The Just Noticeable Difference Threshold (JND)...... is the minimal amount of difference in intensity of a stimulus that can be detected 50% of the time. Examples: changing size of packages, changing taste, changing the quality of sound, or touch, or smell of a product. Marketing Applications of the JND  Companies need to determine the relevant JND for their products:  so that negative changes are not readily discernible to the public  so that product improvements are very apparent to consumers Marketing examples of the JND  Pricing: When raising price, move less than JND When lowering the price for sale, move more than JND  Sales Promotion: Make coupons larger than JND  Product: Make decreases in size of packaging less than JND; when the word new is used make sure the product change is greater than JND Packaging: To update package styling and logo keep within JND To change Image, make styling changes greater than JND Betty Crocker Changes Fall Below the J.N.D. Change in corporate logos within JND  Types of Attention  Pre-attention is an unconscious process in which consumers automatically scan the features of the environment.  Attention can be voluntary or involuntary.  Selective attention is voluntarily & selectively focusing on relevant information.  Orientation reflex is the involuntary reflex when something surprising or novel is presented one turns toward and allocates attention to it. Capturing Customers’ Attention  Goal is to activate the orientation reflex by creating stimuli that surprise, threaten, annoy,or violate the expectation of consumers. Unexpected Attracts Attention Unexpected catches attention Unexpected Using the unexpected Grabbing Consumer Attention  Connect with consumer needs Reminding them of their needs before showing them how the product can satisfy needs e.g. an ad for a detergent could begin by showing a lot of stains or dirty clothes  Use appropriate colors to catch attention  Make it more intense (Loud sounds, bright colors)  Make it Bigger (Size – to a point where it may even become surreal)  Distinctiveness Contrast with other elements in the perceptual field in which the object appears (like a single colored image in a black-and-white background) Grabbing Consumer Attention  Location: Products located at the end of the aisle or on shelves at eye level stand better chance of getting attention An ad’s location in the magazine influences attention Greater attention is given to the ad in the front part than in the back part of magazine, on right hand pages than on left hand page, and on the inside front, inside back, and outside back covers For smaller ads, upper left hand corner of the page gets the maximum attention whereas lower right hand corner is least likely to get attention  The surprise factor: Using the unexpected  The Human Factor (Showing attractive endorsers) Grabbing Consumer Attention  The entertainment factor: Put the consumer in a good mood (make them laugh)  Using “Learned” Attention: Some stimuli attract our attention because we have been taught or conditioned to react to them Ringing phone or doorbell Certain words or phrases are associated with things we desire, e.g., word “ free” with words that show saving money, “ Clearance Sale”, “Special offer” or “50% Off”  Look for less cluttered environment The Comprehension Stage...... is the process in which individuals organize and interpret information  Perceptual organization is the way people perceive the shapes, forms, figures, and lines in their visual world.  Interpretation is how people draw upon their experience, memory, and expectations to attach meaning to a stimulus.  Perceptual Organization  Gestalt psychologists attempted to identify the rules that govern how people take disjointed stimuli and make sense out of them.  Stimulus Organization  One factor that determines how a stimulus will be interpreted is its assumed relationship with other events, sensations, or images. 1). Our brains tend to relate incoming sensations to others already in memory based on some fundamental organizational principles. a). These principles are based on gestalt psychology (meaning is derived from totality of a set of stimuli). In German, gestalt means whole, pattern, or configuration. b). Sometimes the “whole is greater than the sum of its parts.”  Principles include: a). The closure principle people tend to perceive an incomplete picture as complete. We fill in the blanks. b). The principle of similarity consumers tend to group objects that share similar physical characteristics. c). The figure-ground principle states that one part of a stimulus will dominate (the figure) while other parts recede into the backdrop (the background). d) The Continuity principle says that contours based on smooth continuity are preferred to abrupt changes of direction. Figure-ground we need to separate a dominant shape (a 'figure' with a definite contour) Is the figure a white vase on a black background or silhouetted profiles on a white background? we tend to favor one interpretation over the other (though altering the amount of black or white which is visible can create a bias towards one or the other) When we have identified a figure, the contours seem to belong to it, and it appears to be in front of the ground. Billboard for Wrangler Jeans Makes Creative use of the Figure-Ground Principle An Ad for Absolut Vodka using the figure ground principle proximity What you are likely to notice fairly quickly is that this is not just a square pattern of dots but rather is a series of columns of dots. The principle of proximity is that Here we are features which likely to group the are close together dots together are associated. in rows. We are more likely to associate the lines which are close together than those which are further apart. In this example we tend to see three pairs of lines which are fairly close together (and a lonely line on the far right) rather than three pairs of lines which are further apart (and a lone line on the far left). similarity Here the little circles and squares are evenly spaced both horizontally and vertically so proximity does not come into play. However, we do tend to see alternating columns of circles and squares. This is because of the principle of similarity - features which look similar are associated. Without the two different recurrent features we would see either rows or columns or both... continuity This principle is that contours based on smooth continuity are preferred to abrupt changes of direction. Here, for instance, we are more likely to identify lines a-b and c-d crossing than to identify a-d and c-b or a-c and d-b as lines. Closure Interpretations, which produce 'closed' rather than 'open' figures are favored. Here we tend to see three broken rectangles (and a lonely shape on the far left) rather than three 'girder' profiles (and a lonely shape on the right). In this case the principle of closure cuts across the principle of proximity, since if we remove the bracket shapes, we return to an image used earlier to illustrate proximity... This Ad Demonstrates the Use of Closure: People Have to Mentally Fill in the Gaps in the Sentence  Scotch-Brite. Cleans really clean.  An ad using the closure principle An ad featuring the similarity/proximity principles AN AD USING THE CONTINUITY PRINICIPLE Using the Continuity Principle Interpretation......is trying to gain an understanding of something garnering our attention Interpretation Role of Expectation: Expectations are a person’s prior beliefs about what should happen in a given situation (in an experimental research carried out in Pennsylvania – USA, a vanilla pudding in dark brown color was perceived to be the most tasting chocolate pudding)  Consumer Interpretation of Price + Perceived + Quality Perception Objective + Willingness of price Perceived Price _ to Buy value Perceived _ Sacrifice _ Consumer Interpretation of Price: Extended Model Brand + Perception Name of Brand Store Perception + Name of Store + + Perceived Quality Objective Perception Perceived + Willingness _ Value to Buy Price of Price Perceived _ Sacrifice _  Price Quality Relationship High price indicates high quality under following circumstances: 1. The consumer has some confidence that in this situation price predicts quality 2. There are real or perceived quality variations among the brands 3. Actual quality is difficult to judge by objective means 4. Larger differences in price have greater impact on perceived quality than do smaller differences 5. Consumers use price as an indicator of quality more frequently for familiar brands than for unfamiliar brands Semiotics - the symbols around us  The field of study that examines the correspondence between signs and symbols and their role in the assignment of meaning.  Every marketing message has three basic components: 1. Object - is the product that is the focus of the message ( Marlboro cigarettes) 2. Sign - is the sensory imagery that represents the intended meaning of the object( Marlboro cowboy) 3. Interpretant - the meaning derived ( rugged, individualistic, American)  Object ( product) Marlboro cigarettes Rugged Cowboy American Intrepretant Sign ( image) (meaning) Exposure and Visual Merchandising Retailers use exposure very affectively i. Frequently sought-out items separated ii. High margin items are often placed in high traffic areas to capitalize on increased exposure iii. Shelf position and amount of shelf space influence which items and brands are allocated attention iv. Point of purchase displays to attract attention to sale v. Stores are designed with highly visible shelves and overhead signs to make locating items as easy as possible Perceptions and Marketing Strategy c. Media strategy: i. Determine which media the consumers in target are most frequently exposed to and then place the ad in that media ii. For high involvement products, consumers would look for more information; print media is the best selection iii. For low involvement products, TV advertisements may be most suited d. Advertisement Design: For low involvement products: i. Utilize stimulus characteristics, full page, bright colors, animated characters etc. ii. Tie the message to a topic the target market is interested in e.g. celebrities, humor, sports etc.