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Consumer Perception

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Perception

The process by which

an individual selects,organizes, and

interprets stimuli into a

meaningful andcoherent 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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Sensation

The immediate anddirect response of the

sensory organs to

stimuli.

A perfectly unchanging

environment provides

little to no sensation atall!

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WebersLaw

A theory concerning theperceived 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 beperceived 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 readilydiscernible to the public

so that product improvements are very apparentto consumers

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SubliminalPerception

Perception of very

weak or rapid stimuli

received below the

level of conscious

awareness.
http://www.thoughtscan.com/

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Subliminal Perception

1957: Tested in Movie Theater

Popcorn and coca-cola
http://www.snopes.com/business/hidden/popcorn.htm

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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
http://www.greetingads.com/

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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

GestaltGestalt

PsychologyPsychology

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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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Positioning

Establishing a

specific image for abrand in relation to

competing brands.

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Figure 6.13Repositioning

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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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PerceptualMapping

A research techniquethat enables

marketers to plot

graphically

consumers

perceptions

concerning product

attributes of specificbrands.

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Figure 6.14 Perceptual Mapping

ModernTraditional

Trophy modern blocks

Home

C category

B category

A category

D

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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 pricesInternal

External Tensile and objective price claims

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Acquisition-Transaction Utility

Acquisition utility

represents the

consumers perceived

economic gain or lossassociated with the

purchase

Function of product

utility and purchase

price

Transaction utility

concerns the perceived

pleasure or displeasure

associated with thefinancial aspect of the

purchase

Determined by the

difference between theinternal reference price

and the purchase price

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Tensile and Objective

Price Claims Evaluations least

favorable for ads stating

the minimum discountlevel

Ads stating maximumdiscount levels are betterthan stating a range

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Perceived Quality

Perceived Quality of ProductsIntrinsic vs. Extrinsic Cues

Perceived Quality of Services Price/Quality Relationship

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Characteristics of Services

Intangible

Variable

Perishable

Simultaneously

Produced andConsumed

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Table 6.3 SERVQUAL Dimensions for

Measuring Service QualityDIMENSION DESCRIPTION

Tangibles Appearance of physical facilities, equipment,

personnel, and communication materials

Reliability Ability to perform the promised servicedependably and accurately

Responsiveness Willingness to help customers and provide

prompt serviceAssurance Knowledge and courtesy of employees and

their ability to convey trust and confidenceEmpathy Caring, individualized attention the firm

provides its customers

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Figure 6.16 Conceptual Model of the

Consequences of Service Quality

Superior

Inferior

Favorable

Unfavorable

Remain

Behavior

Defect

+$

Ongoing Revenue

Increased Spending

Price Premium

Referred Customers

Financial

Consequences

-$

Decreased SpendingLost Customers

Costs to Attract

New Customers

Service

Quality

Behavioral

Intentions

Focus of present study

Empirical links demonstrated in macro studies

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Price/QualityPrice/QualityRelationshipRelationship

The perception of

price as an indicator

of product quality

(e.g., the higher theprice, the higher the

perceived quality of

the product).

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Perceived Risk

Types

Functional Risk

Physical Risk Financial Risk

Psychological Risk

Time Risk

The degree of

uncertainty

perceived by theconsumer as to the

consequences

(outcome)of a specific

purchase decision.

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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?
http://www.prodhelp.com/oral_care17.shtml

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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:

Theories based on the

premise that learningtakes place as the result

of observable

responses to external

stimuli. Also knownasstimulus response

theory.

Cognitive Theories:

A theory of learning

based on mentalinformation

processing, often in

response to problem

solving.

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ConsumerConsumerLearningLearning

Aprocess by whichindividuals acquire the

purchase and

consumptionknowledge

and experience

that they apply to

future related behavior.

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Learning Processes

Intentional:

learning acquired

as a result of acareful search for

information

Incidental:

learning acquired

by accident orwithout much effort

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Elements of Learning Theories

Motivation

Cues

Response Reinforcement

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Reinforcement

A positive or

negative outcomethat influences the

likelihood that a

specific behaviorwill 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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ClassicalClassicalConditioningConditioning

A behavioral

learning theoryaccording to which a

stimulus is paired

with another stimulusthat elicits a known

response that serves

to produce the same

response when used

alone.
http://almaz.com/nobel/medicine/1904a.html

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Figure 7.2A Pavlovian Model of


Unconditioned Stimulus

Meat paste

Conditioned Stimulus

Bell

Unconditioned Response

Salivation


Bell

Conditioned Response

Salivation

AFTER REPEATED PAIRINGS

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Figure 7.2B Analogous Model of


Unconditioned Stimulus

Dinner aroma


6 oclock news

Unconditioned Response

Salivation


6 oclock news

Conditioned Response

Salivation

AFTER REPEATED PAIRINGS

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Cognitive Associative Learning

Classical conditioning is viewed as the

learning of associations among events that

allows the organism to anticipate andrepresent its environment.

From this viewpoint, classical conditioning

is not reflexive action, but rather theacquisition 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 toEach Other

4. A CS that is Novel and Unfamiliar

5. A US that is Biologically or SymbolicallySalient

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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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StimulusStimulusGeneralizationGeneralization

The inability to

perceive differencesbetween slightly

dissimilar stimuli.

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Stimulus Generalization and

Marketing

Product Line, Form and CategoryExtensions

Family Branding

Licensing

Generalizing Usage Situations

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StimulusStimulus

DiscriminationDiscrimination

The ability to select

a specific stimulus

from among similar

stimuli because of

perceived

differences.

Positioning

Differentiation

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InstrumentalInstrumental

(Operant)(Operant)ConditioningConditioning

A behavioral theory of

learning based on atrial-and-error process,

with habits forced as

the result of positiveexperiences

(reinforcement)

resulting from certain

responses or

behaviors.

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Figure 7.10 A Model of Instrumental

Conditioning

Stimulus

Situation(Need good-

looking jeans)

TryBrand D

Try

Brand C

Try

Brand B

Try

Brand A

Unrewarded

Legs too tight

Unrewarded

Tight in seat

Unrewarded

Baggy in seat

RewardPerfect fit

Repeat Behavior

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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 specificbehavior.

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Reinforcement

Positive

Reinforcement:

Positive outcomes that

strengthen thelikelihood of a specific

response

Example: Ad showing

beautiful hair as a

reinforcement to buy

shampoo

Negative

Reinforcement:

Unpleasant or negative

outcomes that serve toencourage a specific

behavior

Example: Ad showing

wrinkled skin as

reinforcement to buy

skin cream

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ObservationalObservationalLearningLearning

A process by which

individuals observe

the behavior of

others, and

consequences ofsuch behavior. Also

known as modeling

or vicariouslearning.

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CognitiveCognitive

LearningLearningTheoryTheory

Holds that the kind

of learning most

characteristic of

human beings is

problem solving,which enables

individuals to gain

some control overtheir environment.

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InformationInformationProcessingProcessing

A cognitive theory of

human learningpatterned after

computer information

processing that

focuses on how

information is stored

in human memory

and how it isretrieved.

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Figure 7.13 Information Processing and

Memory Stores

Sensory

Store

Working

Memory

(Short-term

Store)

Long-

termStore

Sensory

Input Rehearsal Encoding Retrieval

Forgotten;

lost

Forgotten;

lost

Forgotten;

unavailable

Rehearsal

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Retention

Information is stored inlong-term memory

Episodically: by the orderin which it is acquired

Semantically: accordingto significant concepts

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Table 7.1 Models of Cognitive Learning

Attention Cognitive

Action Conative Purchase

Postpurchase

Evaluation

Trial

Adoption

Decision

Confirmation

Affective

Evaluation

Interest

Evaluation Persuasion

Knowledge

AwarenessAwareness

Knowledge

Interest

Desire

SequentialStages

of

Processing

Innovation

Adoption

Model

Decision-

Making

Model

Tricompetent

Model

Innovation

Decision

Process

Promotional

Model

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InvolvementTheory

A theory of consumer

learning which

postulates thatconsumers engagement

in a range of

information processingactivity varies from

extensive to limited

problem solving,

depending on the

relevance of the

purchase.

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Figure 7.14

Split Brain

Theory

Right/ Left Brain

Hemispheres specialize

in certain functions

Figure 7.14

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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

PeripheralRoutes to

Persuasion

A theory that proposesthat

highly involved consumersare best reached through ads

that focus on the specific

attributes of the product (the

central route) whileuninvolved consumers can be

attracted through peripheral

advertising cues such as the

model or the setting (the

peripheral route).

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ElaborationElaboration

LikelihoodLikelihoodModelModel

(ELM)(ELM)

A theory that suggeststhat a persons level of

involvement during

message processing isa critical factor in

determining which

route to persuasion is

likely to be effective.

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The Elaboration Likelihood Model

Involvement

CentralRoute

PeripheralRoute

PeripheralCues

Influence

Attitudes

MessageArguments

Influence

Attitudes

HIGH LOW

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Consumer Attitude

Formation and Change

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Attitudes

A learnedpredisposition to

behave in a

consistentlyfavorable 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

ConationConation

AffectAffect

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 objectand 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 waywith regard to the attitude object.

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MultiattributeMultiattribute

AttitudeAttitudeModelsModels

Attitude models that

examine the

composition of

consumer attitudesin terms of selected

product attributes or

beliefs.

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Multiattribute Attitude Models

The attitude-toward-object modelAttitude is function of evaluation of product-

specific beliefs and evaluations

The attitude-toward-behavior modelIs the attitude toward behaving or acting with

respect to an object, rather than the attitudetoward the object itself

Theory-of-reasoned-action modelA comprehensive, integrative model of attitudes

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Attitude-

Toward-

Behavior

Model

A model that proposes

that a consumers

attitude toward a

specific behavior is a

function of how

strongly he or shebelieves that the action

will lead to a specific

outcome (eitherfavorable or

unfavorable).

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Theory of

ReasonedAction

A comprehensive theory

of the interrelationship

amongattitudes,intentions, and

behavior.

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Figure 8.4 A Simplified Version of the

Theory of Reasoned Action

Beliefs that

the behavior

leads to

certainoutcomes

Beliefs that

the behavior

leads to

certain

outcomes

Evaluation

of the

outcomes

Evaluation

of the

outcomes

Beliefs that

specific

referents

think I

should or

should notperform the

behavior

Beliefs that

specific

referents

think I

should or

should notperform the

behavior

Motivation

to comply

with the

specificreferents

Motivation

to comply

with the

specific

referents

Subjective

norm

Subjective

normAttitude toward

the behavior

Attitude toward

the behavior

IntentionIntention

BehaviorBehavior

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Theory of

Trying toConsume

An attitude theory

designed to account

for the many cases

where the action or

outcome is not certainbut instead reflects

the consumers

attempt to consume(or purchase).

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Table 8.6 Selected Examples of Potential

Impediments That Might Impact TryingPOTENTIAL PERSONAL IMPEDIMENTSPOTENTIAL PERSONAL IMPEDIMENTSI 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 IMPEDIMENTSPOTENTIAL 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 comein 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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Attitude-Attitude-

Toward-Toward-

the-Adthe-Ad

ModelModel

A model that proposes that

a consumer forms variousfeelings (affects) and

judgments (cognitions) as

the result of exposure to

an advertisement, which,

in turn, affect the

consumers attitude

toward the adand attitudetoward 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)

Beliefs about theBrand

Attitude toward

the Brand

Attitude towardthe Ad

Feelings from the

Ad (Affect)

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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 CompetitorsBrands

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Four Basic Attitude Functions

The Utilitarian Function

The Ego-defensiveFunction

The Value-expressiveFunction

The Knowledge Function

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ElaborationElaboration

LikelihoodLikelihood

ModelModel

(ELM)(ELM)

A theory that suggeststhat a persons level

of involvement during

message processing is

a critical factor in

determining which

route to persuasion is

likely to be effective.

i i

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Why Might Behavior Precede

Attitude Formation? Cognitive Dissonance

Theory

Attribution Theory

Behave (Purchase)Behave (Purchase)

Form AttitudeForm AttitudeForm Attitude

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Cognitive

DissonanceTheory

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 resolvethis dissonance

through a variety of

strategies designed toconfirm the wisdom

of their choice.

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AttributionAttribution

TheoryTheory

A theory concernedwith 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 TheoryFoot-In-The-Door Technique

Attributions Toward Others Attributions Toward Things

How We Test Our Attributions
http://psych.athabascau.ca/html/aupr/personality.shtml

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Self-Self-

PerceptionPerceptionTheoryTheory

A theory that suggests

that consumers

develop attitudes byreflecting on their own

behavior.

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DefensiveDefensive

AttributionAttribution

A theory that suggests

consumers are likely

to accept credit for

successful outcomes

(internal attribution)and to blame other

persons or products for

failure (externalattribution).

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Criteria for Causal Attributions

Distinctiveness

Consistency Over Time

Consistency Over Modality Consensus

Documents

CB part 2