2. Learning Objectives
1. To Understand the Sensory Dynamics of
Perception.
2. To Learn About the Three Elements of
Perception.
3. To Understand the Components of Consumer
Imagery and Their Strategic Applications.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 2
Chapter Six Slide
3. Perception
• The process by which an
individual selects,
organizes, and interprets
stimuli into a meaningful
and coherent picture of the
world.
• Perception is how we
see the world around us.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 3
Chapter Six Slide
4. • Elements of Perception
– Sensation
– Absolute threshold
– Differential threshold
– Subliminal perception
4
5. Sensation
• 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.
• The absolute threshold is the lowest level at
which an individual can experience a
sensation.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 5
6. Differential Threshold
(Just Noticeable Difference – j.n.d.)
• Minimal difference that can be detected
between two similar stimuli
• Weber’s law
– The j.n.d. between two stimuli is not an absolute
amount but an amount relative to the intensity of
the first stimulus
– The stronger the initial stimulus, the greater the
additional intensity needed for the second
stimulus to be perceived as different.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 6
7. Marketing Applications
of the J.N.D.
• Marketers 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
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 7
8. Discussion Question
• How might a cereal
manufacturer such as
Kellogg’s use the j.n.d. for
Frosted Flakes in terms of:
– Product decisions
– Packaging decisions
– Advertising decisions
– Sales promotion decisions
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 8
9. Subliminal Perception
• Stimuli that are too weak or too brief to be
consciously seen or heard
– They may be strong enough to be perceived by
one or more receptor cells.
• Is it effective?
– Extensive research has shown no evidence that
subliminal advertising can cause behavior changes
– Some evidence that subliminal stimuli may
influence affective reactions
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 9
11. Perceptual Selection
• Includes the product’s physical attributes,
package design, brand name, advertising and
more…
Nature of the
stimulus
• Based on familiarity, previous experience or
expectations.
Expectations
• Needs or wants for a product or service.
Motives
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 11
Selection Depends Upon:
12. Why Are Consumers
Likely to Notice This Ad?
12
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide
13. The Attention-Getting Nature of a
Dramatic Image
13
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide
14. Discussion Questions
• What marketing stimuli do you remember
from your day so far?
• Why do you think you selected these stimuli
to perceive and remember?
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 14
15. Perceptual Selection
Important Concepts
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 15
Chapter Six Slide
Selective
Exposure
• Consumers
seek out
messages
which:
• Are
pleasant
• They can
sympathize
• Reassure
them of
good
purchases
Selective
Attention
• Heightened
awareness
when stimuli
meet their
needs
• Consumers
prefer
different
messages
and medium
Perceptual
Defense
• Screening out
of stimuli
which are
threatening
Perceptual
Blocking
• Consumers
avoid being
bombarded
by:
• Tuning out
• TiVo
16. Organization
• Organization refers to how people organize
stimuli into groups and perceive them as a
whole.
• This is referred to as Gestalt which means
pattern in German.
• There are three major principles of perceptual
organization, including figure and ground,
grouping, and closure
16
17. Organization
• Figure and ground
• Grouping
• Closure
• People tend to organize
perceptions into figure-
and-ground relationships.
• The ground is usually hazy.
• Marketers usually design
so the figure is the noticed
stimuli.
Principles
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 17
18. Organization
• Figure and ground
• Grouping
• Closure
• People group stimuli to
form a unified
impression or concept.
• Grouping helps memory
and recall.
Principles
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 18
19. Organization
• Figure and ground
• Grouping
• Closure
• People have a need for
closure and organize
perceptions to form a
complete picture.
• Will often fill in missing
pieces
• Incomplete messages
remembered more than
complete
Principles
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 19
20. What Element of Perceptual
Organization Is Featured in This Ad?
20
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide
22. Discussion Question
• Do you agree you remember more of what
you have NOT completed?
• How might a local bank use this in their
advertising?
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 22
23. Interpretation
Stereotypes
Physical Appearances
Descriptive Terms
First Impressions
Halo Effect
• People hold meanings
related to stimuli
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 23
Stereotypes
Physical Appearances
Descriptive Terms
First Impressions
Halo Effect
24. Interpretation
Stereotypes
Physical Appearances
Descriptive Terms
First Impressions
Halo Effect
• Positive attributes of
people they know to
those who resemble
them
• Important for model
selection
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 24
Stereotypes
Physical Appearances
Descriptive Terms
First Impressions
Halo Effect
25. Interpretation
• Verbal messages reflect
stereotypes
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 25
Stereotypes
Physical Appearances
Descriptive Terms
First Impressions
Halo Effect
26. How Does This Ad
Depict Perceptual Interpretation?
26
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide
27. It Contrasts the Powerful Durango with Less Rugged
Referred to in the Ad as the “Land Of Tofu.”
27
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide
28. Interpretation
Stereotypes
Physical Appearances
Descriptive Terms
First Impressions
Halo Effect
• First impressions are
lasting
• The perceiver is trying
to determine which
stimuli are relevant,
important, or predictive
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 28
Stereotypes
Physical Appearances
Descriptive Terms
First Impressions
Halo Effect
29. Interpretation
Stereotypes
Physical Appearances
Descriptive Terms
First Impressions
Halo Effect
• Consumers perceive and
evaluate multiple
objects based on just
one dimension
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 29
Stereotypes
Physical Appearances
Descriptive Terms
First Impressions
Halo Effect
30. Product Positioning
• Establishing a specific image for a brand in the
consumer’s mind in relation to competing
brands
• Conveys the product in terms of how it fulfills
a need
• Successful positioning creates a distinctive,
positive brand image
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 30
Chapter Six Slide
31. Which Concepts of Perception Are
Applied in These Ads?
31
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide
32. The Principle Of Contrast
32
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide
33. Packaging as a Positioning Element
• Packaging conveys the image that the brand
communicates to the buyer.
• Color, weight, image, and shape are all
important.
• Repositioning might be necessary because:
– Increased competition
– Changing consumer tastes
33
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide
34. Perceptual Mapping
• An analytical technique that enables
marketers to plot graphically consumers’
perceptions concerning product attributes of
specific brands
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 34
Chapter Six Slide
36. Positioning of Services
• Image is a key factor for services
• Services often want a differentiated
positioning strategy to market several
versions of their service to different markets.
36
Chapter Six Slide
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
37. Which Elements of This Ad Convey the
Restaurant’s Perceptual Position and How?
37
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide
38. The Steak Knife and the Reference to Vegetarians
Convey The Position of the Restaurant as a
Well-Established Steakhouse
38
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide
39. Perceived Price and Perceived Quality
• Reference prices – used as a basis for
comparison in judging another price
– Internal
– External
• Perceived Quality of Products
– Intrinsic vs. Extrinsic Cues
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 39
Chapter Six Slide
40. Three Pricing Strategies
Focused on Perceived Value - Table 6.4
Pricing Strategy Provides Value By… Implemented As…
Satisfaction-based
pricing
Recognizing and reducing
customers’ perceptions of
uncertainty, which the intangible
nature of services magnifies
Service guarantees
Benefit-driven pricing
Flat-rate pricing
Relationship pricing Encouraging long-term
relationships with the company
that customers view as beneficial
Long-term contracts
Price bundling
Efficiency pricing Sharing with customers the cost
savings that the company has
achieved by understanding,
managing, and reducing the costs
of providing the service
Cost-leader pricing
Chapter Six Slide 40
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
41. Measuring Perceptions of
Brand Luxury
41
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide
42. Perceived Quality of Services
• Difficult due to characteristics of services
– Intangible
– Variable
– Perishable
– Simultaneously Produced and Consumed
• SERVQUAL scale used to measure gap between
customers’ expectation of service and
perceptions of actual service
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 42
43. 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.)
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 43
44. Discussion Questions
• When have you used
price as an indicator
of quality?
• Were you correct?
44
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide
45. Which of the Ad’s Elements Conveys the
Product’s Quality?
45
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide
46. The Slogan on the Ad’s Bottom Left
Reads “Perfection Has Its Price”
46
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide
47. Retail Store Image
Brands
carried
Prices
Level of
service
Store
ambiance
Clientele
Product
assortment
Discounts
47
Chapter Six Slide
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
48. Manufacturer’s Image
• Favorable image tied to new product
acceptance
• Companies sponsor community events to
enhance images
• Product and institutional images
48
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide
49. Perceived Risk
• The degree of uncertainty perceived by the
consumer as to the consequences (outcome) of a
specific purchase decision
• Types
– Functional Risk
– Physical Risk
– Financial Risk
– Social Risk
– Psychological Risk
– Time Risk
49
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide
50. How Consumers Handle Risk
• Seek Information
• Stay Brand Loyal
• Select by Brand Image
• Rely on Store Image
• Buy the Most Expensive Model
• Seek Reassurance
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 50
Editor's Notes
Here is an outline of the topics for Chapter Six.
Perception is how we see the world around us. You and your friend might see the same person, thing, or event yet you will interpret in different ways. This interpretation is highly individualized and depends on each person’s own needs, values, and expectations.
These are the four major elements of perception. They will be described in detail on the following slides.
Sensation is the response of the sensory organs, including the eyes, ears, nose, mouth, and skin. Most of marketing focuses on sight and sound but much research is being done on smell and touch. The web link on this page connects to a company that uses smell as a marketing tactic.
Advertisers must reach the absolute threshold for consumers to be able to experience their advertising tactic. It is interesting that the absolute threshold changes over time. Consumers adapt and get used to a certain ad or message so no longer notice it. This is one of the reasons why advertisers change their ads frequently.
Marketers are very concerned with the differential threshold, which is also called the just noticeable difference. It was a German scientist named Ernst Weber who realized that this difference was not a fixed amount. The best example is when you buy a low-priced product like a cup of coffee from Starbucks. A $1 increase in your tall coffee would be noticed by you. But if you were buying a laptop whose price changed from $455 to $456 you might not even notice.
Marketers make changes in their products over time. Sometimes they have to make negative changes, perhaps increase price or reduce package size. They want to make this negative change subtle enough that most consumers will not notice. On the other hand, a marketer might want to make positive changes to the product. They would want to determine how small they can make this change so that it is noticeable to the end consumer but does not cost the marketer excessive amounts of money. Marketers also want to be careful that when they change the look of a product or packaging, that consumers still recognize the brand and transfer their positive feelings toward the brand.
Kellogg’s might want to change their ingredients, either to make the product healthier or because they have secured lower-priced raw materials. They might want to reduce package size to avoid a price increase and they would not want this to be noticed. Perhaps Tony the Tiger could look a little different. At one point, Pillsbury made a decision to make the Pillsbury Dough Boy a bit thinner. They wanted to make sure he still was cute but looked a bit more fit and lean.
People have been fascinated by subliminal perception for over 50 years. The question is whether stimuli that are not consciously sensed can still be perceived and are therefore capable of altering behavior. At this point, there is no research that shows that it directly changes attitudes or purchase behavior. No doubt, there will continue to be research on this subject as many feel that there is indeed an effect from subliminal perception.
Consumers are bombarded by stimuli and are therefore very selective as to what messages and information they perceive. As new information comes to their mind, it is organized within their mind. Finally, consumers interpret the stimuli based on their needs, expectations, and experience. Each of these stages will be examined on the following slides.
Consumers are exposed to thousands, if not millions, of stimuli every day. The stimuli that they perceive depends on the three factors on this slide – nature of the stimulus, expectations, and motives. Think of the last time you went to the supermarket – what products did you notice? Why? Perhaps it was the nature of the stimulus, the packaging of the product. You might notice a sale on your favorite brand because you have positive expectations of how that brand performs. Finally, your motive in going to the supermarket might have been to purchase eggs and milk. This might lead you to notice promotions or point-of-purchase displays for these products.
If you think about it, you might be surprised at what you have seen today. Did you go online to Google? If so, you probably had many contextual search ads appearing on your screen. Also consider outdoor advertisements you may have seen, including billboards, taxi tops, and rail advertising.
These four concepts are very important to consider when understanding how consumers select which stimuli they will perceive. In general, they are selective as to what they are exposed to – what messages they seek out. Once exposed, they are selective of their attention to some messages over others. Consumers might even screen out or block messages that they consider threatening or overwhelming.
Organization refers to how people organize stimuli into groups and perceive them as a whole. This is referred to as Gestalt which means pattern in German. There are three major principles of perceptual organization, including figure and ground, grouping, and closure. The first, figure and ground, has to do with contrast. An advertiser wants just enough contrast so that the figure is noticed but that the background adds a sensory effect. Product placement, when a product appears in a movie or television show, can be considered a figure and ground issue. The advertiser wants the product (figure) to be noticed as it blends in with the ground (character in the show). This web link takes you to a very fun site called sporcle. The quiz that is opened for you refers to the top brands, organized by product category. Is this similar to how you organize these brands? How did you do on the test?
Grouping is common in perceptual organization. Whether it is numbers (phone numbers) that are grouped in 3 or 4 digits OR images in an ad, consumers will group stimuli together to organize them. This grouping helps memory and recall.
Individuals organize their perceptions to form a complete picture. Our minds have a need for closure and we will work to fill in the missing information when we are presented incomplete stimuli.
When asked what you have done today, it is sometimes difficult to recall. When asked what you have to do, we often have a stronger memory of this information. A local bank could use this information to help their customers realize they have not yet set up an annual IRA account. They could show a picture of a teller with a blank square in their hand the size of a bank check. The consumer will use closure to fill in the image with a check.
Perceptual interpretation occurs because consumers have unique motives, interests, and experiences. How people interpret often reveals a lot about themselves. For instance, individuals tend to have stereotypes due to physical appearances, descriptive terms, first impressions, and the halo effect. These will be examined in the next couple of slides.
We often make decisions based on how people or products appear. A beautiful spokesperson might be perceived as possessing expertise for beauty products. A certain color to a food might make us think it is healthier. The web link is an example of a tool marketers can use on their website to give a “human” touch. There are many attractive hosts to choose from.
The choice of descriptive terms for names and advertisement in services are particularly important due to the intangible nature of services. In this ad, the marketer has stereotyped the person who eats a cheeseburger vs. tofu and applied them in a descriptive sense to their product.
First impressions are lasting so a marketer should be careful how they advertise new products.
With the halo effect, a person uses just one dimension in evaluating a person, product, or service. For instance, a consumer might consider a clean waiting room as an indication of a good dentist. For this reason, marketers use the halo effect when licensing names of products or choosing spokespeople.
It is important to realize that good position defines the product in a unique place in the consumer’s mind when compared to competing products. This place is the result of the benefits that are offered by the product and how they are different or better than those of the competitor’s products.
A consumer often derives their understanding of a product and its benefits from the packaging. A good example would be shampoo. The shape of the bottle, the choice of colors and symbols, and even the cap can help the consumer position the product and determine if the product’s benefits are gentle, color safe, strong cleaning, or conditioning.
Many marketers will need to reposition their product over time due to either market changes or consumer preference changes. This is often challenging to marketers, especially if their product had been perceived negatively in the marketplace.
Perceptual mapping helps the marketer visualize how their product is positioned in the consumer’s mind. It is a graph of products within a category based on two major benefits or attributes. It allows them to see gaps in the positioning of all the products and identify areas for new products.
This map shows slogans used to position new condos in New York City. We can see that they are broadly positioned by whether they are more modern vs. traditional and whether they are more of a home vs. a trophy. This map does not show any large gaps in the marketplace.
Positioning of services has extra challenges due to the intangible nature of a service. You cannot hold it in your hand and look at it – you must make your decision based on visual images and tangible cues, such as delivery trucks, storefronts, or other marketing tactics.
Perceived price should reflect the value that the customer receives from their purchase. It is important for customer satisfaction that the consumer sees their price as fair. To determine fairness, consumers look at other prices that they know. Comparative prices might be ones that the consumer knows (internal) or prices that the marketer uses in their advertising as is the case with an ad that states “compare to $100 at our competitor.”
Consumers perceive the quality of a product by intrinsic and extrinsic cues. Those that are intrinsic concern the physical characteristics of the product. These include color, flavor, aroma, and size. Many times a consumer will use extrinsic cues, those that are not really part of the physical product including brand name, reputation, and location within store. If a consumer has no experience with a product, they are more likely to use external cues. An example of external cues is country of origin. A chocolate is from Switzerland so it must be good even though you know nothing of the color or taste of the chocolate.
These are three pricing strategies that one set of researchers proposed. They would be effective when considering services and the customer perception of the value that the service delivers.
This survey was used in a study to measure perceptions of brand luxury. The benefit of “luxury” would be one that many marketers would use, including hotels, cars, and jewelry.
Services have unique characteristics that make quality a more complex issue. First of all, services are intangible. It is hard for consumers to compare them side by side without having to use external cues. Secondly, they can differ from day to day. We all know that we can get a haircut from a barber or hair stylist on one day that is vastly different from the quality of a previous cut. Services are difficult because they are perishable, they cannot be put on a shelf and left standing from day to day. Finally, the products are consumed and produced at the same time, making quality control hard for the service marketer.
The SERVQUAL scale measures the gap between customer expectations of a service before it is provided versus their perceptions after the service is provided. The scale measures five dimensions, including reliability, responsiveness, assurance, empathy, and tangibility
Value is the trade-off between perceived benefits and perceived sacrifice. As such, a consumer helps understand the benefits many times in terms of the monetary sacrifice. The more they pay, the better product or service they get.
You have probably done this many times for a service. Was it always better?
The image and subsequent positioning of a retail store is a result of the factors listed above. Of considerable interest are the brands that the store carries. There is an association formed between the retailer and their brands. Research has shown that strong brands will improve the image of a retailer in many situations.
Manufacturers want their corporate image to be positive so that their products and brands can be positively perceived in the marketplace. Institutional advertising can do this in addition to exhibits and sponsorship of community events.
Consumer purchase decisions are determined by the degree of risk that consumers perceive, and their tolerance for risk. The major types of risk are listed in this slide. The first, functional risk, deals with the risk that the product will not perform as expected. Physical risk is the risk to self and others. Financial risk is that the product will not be worth its cost and social risk is that the choice of the product might lead to social embarrassment. Psychological risk is that a poor product choice will hurt the consumer's ego and time risk is that the time has been wasted in purchasing this product.
How consumers handle risk will differ by their own individual strategy. That being said, there are a handful of strategies that people tend to use when dealing with risk. The first of these is to seek information so that they have more knowledge when they purchase. Consumers can also stay brand loyal, thereby avoiding risk by sticking with a known product. Consumers can select by brand image to reduce their risk because they may already know and trust the brand, perhaps from buying a different product by the same brand or company. Some consumers will rely on store image to help them reduce risk. Some customers buy the most expensive model assuming that the price/quality relationship will safely deliver them the best product. Finally, consumers seek reassurance through money-back guarantees, warranties, seals of approval and free trials.
