Consumer Perception
Elements of Perception
• Sensation
• Absolute threshold
• Differential threshold
• Subliminal perception
Absolute Threshold
• The lowest level at which an individual can experience a sensation.
• The point at which a person can detect a difference between something and nothing
Differential Threshold
The minimal differences that can be detected between two similar stimuli
Marketing Applications
of the JND
• Need to determine the relevant j.n.d. for their products
w so that negative changes are not readily noticeable to the public
w so that product improvements are very apparent to consumers
Gradual Changes in Brand Name Fall Below the J.N.D.
Is Subliminal Persuasion Effective?
• Extensive research has shown no evidence that subliminal advertising can cause behavior changes
• Some evidence that subliminal stimuli may influence affective reactions
Subliminal Embedding
Aspects of Perception
Perceptual Selection
• Depends on two major factors
w Consumers’ previous experience
w Consumers’ motives
Concepts Concerning Selective Perception
• Selective Exposure
• Selective Attention
• Perceptual Defense
• Perceptual Blocking
• Figure and Ground
Influences of Perceptual Distortion
• Physical Appearances
• Stereotypes
• First Impressions
• Jumping to Conclusions
• Halo Effect
Issues In Consumer Imagery
• Product Positioning and Repositioning
• Positioning of Services
• Perceived Price
• Perceived Quality
• Retail Store Image
• Manufacturer Image
• Perceived Risk
Positioning Techniques
• Umbrella Positioning
• Positioning Against Competition
• Positioning Based on a Specific Benefit
• Conveying a Product Benefit
• Taking an Unowned Position
• Positioning for Several Positions
• Repositioning
Table 6.2 Pricing Strategies Focused on Perceived Value
• Satisfaction-based Pricing
• Relationship Pricing
• Efficiency Pricing
Issues in Perceived Price
• Reference prices
w Internal
w External
• Tensile and objective price claims
Acquisition-Transaction Utility
• Acquisition utility represents the consumer’s perceived economic gain or loss associated with the purchase
• Function of product utility and purchase price
• Transaction utility concerns the perceived pleasure or displeasure associated with the financial aspect of the purchase
• Determined by the difference between the internal reference price and the purchase price
Tensile and Objective
Price Claims
• Evaluations least favorable for ads stating the minimum discount level
• Ads stating maximum discount levels are better than stating a range
Perceived Quality
• Perceived Quality of Products
w Intrinsic vs. Extrinsic Cues
• Perceived Quality of Services
• Price/Quality Relationship
Characteristics of Services
• Intangible
• Variable
• Perishable
• Simultaneously Produced and Consumed
Perceived Risk
Types
• Functional Risk
• Physical Risk
• Financial Risk
• Social Risk
• Psychological Risk
• Time Risk
How Consumers Handle Risk
• Seek Information
• Stay Brand Loyal
• Select by Brand Image
• Rely on Store Image
• Buy the Most Expensive Model
• Seek Reassurance