Consumer Perception

Consumer Perception

Perception Process via which consumers select and organize

stimuli, so as to provide themselves with a meaningful and coherent view of the world

More than sensing something Assigning meaning and incorporating it into their

world Part of the “Information Processing” process

Consumer Perception

Consumer’s Processing of Information Exposure Attention Comprehension -- Working Memory Acceptance Retention -- Permanent Memory

Perception Deals with the first two steps

Consumer Perception

Exposure Information Consumers are exposed to virtually an infinite

amount of information Non-marketing Marketing

Consumers self select the information for which they come into contact Some consumers never watch CNN – will never be

come into contact commercials (marketing stimuli) that run on this network

Consumer Perception

Is it difficult to achieve exposure? What percent of individuals watching TV actually watch the

commercials? Estimates range from 20% to 80% (best guess is 41%) Radio estimates are even slightly lower (i.e., about 40% listeners

actually listen to a commercial) How do consumers decide?

Sensation (raw sensory response to a stimulus), is needed to facilitate exposure Must notice something before you allow exposure

P(Sensation) = f (absolute threshold) Absolute threshold -- minimal amount of stimulus intensity necessary for

sensation to occur j.n.d. -- smallest amount of a change required to allow the C to notice Examples -- sales prices, price increases

Consumer Perception

Weber’s Law Ability to note a change in a stimulus, depends on

its initial level Example:

$500 increase in the price of a car $500 increase in the price of a personal computer

P (notice a stimulus change) = Change in stimulus /Initial level of stimulus

Consumer Perception

Attention Definition -- allocation of processing capacity to an

incoming stimulus Dimensions

Direction -- object of focus Intensity -- amount of capacity

Importance -- Use of humor (or emotion) in an ad C’s may be intense, but be directed to the emotion

(“Mikey”)

Consumer Perception

Attention Ad Clutter -- Even when forced to focus on ads,

C’s best remember first & last ads in a pod, well; best remember stand alone ads

Does attention guarantee success? Shadowing experiment results – say not necessarily

C’s could tell that human’s were talking C’s could detect male and/or female voice C’s could not tell the content of the message

Key is not to tradeoff direction for intensity

Consumer Perception

Application – Perceived Risk Consumers assessment of potential

consequences which may result from the purchase or usage of a product or service

PR = f (Uncertainty, Consequences) Why do Cs perceive risk?

Limited experience Limited knowledge Past dissatisfaction

Consumer Perception

Application – Perceived Risk Types of Perceived Risk

Functional Physical Financial Social Psychological

Even if unwarranted, Marketers must deal with it Belgium’s scare with Coca-Cola