Consumer perception

THE CONCEPT OF PERCEPTION

• In philosophy, psychology, and the cognitive sciences,perception is the process of attaining awareness orunderstanding of sensory information.

• 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

Elements of Perception

• Sensation

• Absolute threshold

• Differential threshold

• Subliminal threshold

sensation

• Immediate response of our sensory receptors…

…eyes, ears, nose, mouth, fingers…

…to basic stimuli…

…such as light, colour, sound, odour, and texture

…advertisements, brand names, commercials, and

packages…depends on the sensitivity of the individual

The Absolute Threshold

The lowest level at which an individual can experience a sensation.

• The point which differentiates between “something”and “nothing”.

• Example: Absolute threshold of driver driving on highway to notice billboard.

• Adaptation: Getting ‘used to’certain sensation.

The Differential Threshold

The minimal detectable difference between two similar stimuli (just noticeable difference).

• It’s not at all the absolute difference.

• It’s an amount relative to the intensity of the first stimulus.

• The stronger the initial stimulus, the greater the additional intensity needed for second stimulus to be perceived as differentiated.

JND

• The JND(just noticeable difference) between two stimuli is not an absolute amount but an amount relative to the intensity of the first stimulus.

Marketing Applications of the J.N.D.

• Marketers need to determine the relevantj.n.d. for their products

– so that negative changes are not readilydiscernible to the public

– so that product improvements are very apparentto consumers

WEBER’S 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).

Subliminal Perception

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

Aspects of Perception

Selection

Organization

Interpretation

1.Perceptual Selection

• Consumers subconsciously are selective as to what they perceive.

• Perceptual selection depends on the

– Nature of the stimulus

– Expectations

– Motives

These factors give rise to four important concepts concerning perception:

Perceptual Selection

• Selective Exposure

• Consumers seek out messages which:– Are pleasant– They can sympathize– Reassure them of good

purchases

Concepts

Perceptual Selection

• Selective Attention

• Heightened awareness when stimuli meet their needs

• Consumers prefer different messages and medium

Concepts

Perceptual Selection

• Perceptual Defense

• Screening out of stimuli which are threatening

Concepts

Perceptual Selection

• Perceptual Blocking

• Consumers avoid being bombarded with stimulus by simply blocking such stimuli from conscious awareness

Concepts

2. Organizing

• Customers do not experience the numerous stimuli they select from the environment as separate and discrete sensation; rather they tend to organize them into groups and perceive them as unified wholes.

Organization

• Figure and ground

• 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

Organization

• Grouping

• People group stimuli to form a unified impression or concept.

• Grouping helps memory and recall.

Principles

Organization

• 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

3. Interpretation

• The interpretation of stimuli is also uniquely individual, because it is based on what individuals expect to see in light of their previous experiences and on their motives and interests at the time of perception.

Interpretation

• Physical Appearances

• Stereotypes

• First Impressions

• Jumping to Conclusions

• Halo Effect

Perceptual Distortion

• Consumer Perception

• Consumer selects, organizes and interprets stimuli into a meaningful and coherent picture of the world.

• How we view the World around us!

• Consumers make decisions based on what they perceive rather than what the objective reality is.

• Consumers see what they want to see!

• Elements of Perception

• Sensation: Stimuli and Intensity

• Absolute threshold (e.g. seeing an ad)

• Sensory adaptation (Phenomenon of getting used to), e.g. change ad campaigns, package

• Differential threshold JND (Weber’s Law); product improvement decisions

• Negative changes (Price rise, size, quality reductions, etc.)

• Perceived Risk

• An uncertainty arises when consumers cannot foresee the consequences of their purchase decisions.

• Depends on the person,theproduct, and the purchase situation.

• High risk perceivers categorized as narrow categorizers.

• Types of Perceived Risk

• Functional risk: The risk that the product will not perform as expected.

– Will the cell phone I bought work for the given warranty period?

• Physical risk: The risk to self and others that the product may pose .

• Will the cell phone damage my health? Is it safe to use?

Financial risk: The risk that the product will not be

worth its price.

Will the price of mobile/laptop drop after I buy it?

Social risk: The risk that a poor product choice

may result in some form of social embarrassment.

Will my mobile look like an outdated model?

Psychological risk: The Risk that a poor product

choice will bruise the consumer’s ego.

After buying this product, will my peer group members

laugh that it is a wrong choice?

Time risk: The risk that the time spent in product

search may be wasted if the product does not

perform as expected.

I have spent so much time in buying a new

camera/laptop. Was it worth or a waste of time?

How Customers Handle Risk

-Seek information,

-word of mouth, newspapers

-Buy known brands/become loyal,e.g. buy

AnnapurnaAtta.

-Select by Company/Brand image,

e.g. buy SonyTV / NokiaCell phones.

How Customers Handle Risk (cont.)

-Rely on Store image, e.g. buying from known

shops.

-Buy the most expensive model.

-Seek reassurance

(money‐back guarantees, pre‐purchase trial,

warranty period).