38a88module ii c

8/3/2019 38a88Module II c

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Amity Business School

Consumer Perception


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Perception

The process by whichan individual selects,

organizes, and

interprets stimuli into ameaningful and

coherent picture of the

world

How we see the world

around us


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The Perceptual Process

Selection Exposure

Attention

Organization

Interpretation Categorization

Inference


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Elements of Perception Sensation

Absolute threshold : It is the lowest level at which anindividual can experience a sensation.

Differential threshold : The minimal difference thatcan be detected between two similar stimuli is calledthe differential threshold or just noticeabledifference.

Increase of Rs 5 on premium juice (Rs 150 / liter) andon petrol.

Subliminal perception


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Sensation

The immediate and

direct response of the

sensory organs to

stimuli.

A perfectly unchanging

environment provideslittle to no sensation at

all!


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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 Applicationsof the JND Need to determine the relevant j.n.d. for their products.

Below jnd level : To hide the negative changes.(Reduction in product size or quality, increase in price).

Above j.n.d. level : To highlight the product

improvements ( improved or updated packaging, largersizes or lower price)


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Subliminal

Perception

Perception of very

weak or rapid stimuli

received below the

level of conscious

awareness.


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Aspects of Perception

Selection

Organization

Interpretation


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Why Parachute is extending the brand in skincare

market?


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Perceptual Selection

Depends on two major factors

Consumers previous experience Consumers motives


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Concepts Concerning SelectivePerception

Selective Exposure

Selective Attention

Perceptual Defense

Perceptual BlockingGestaltPsychology


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Principles of PerceptualOrganization

Figure and ground (Product Placement)

Grouping (multiplebenefit)

Closure (incompletepicture, complete

the sequence)


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Influences of PerceptualDistortion

Stereotypes : Individual carry biased pictures in theirminds of the meanings of various stimuli. It can be due to;

a) Physical Appearances: Attractive models, ice creampackages are round.

b) Descriptive Terms:

First Impressions

Jumping to Conclusions

Halo Effect

Marketers are using and encashing habits and beliefs.

Surf Lalitaji, Chintamani, Vicco Turmeric cream


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Issues In Consumer Imagery

Product Positioning and Repositioning

Positioning of Services Perceived Price

Perceived Quality

Retail Store Image Manufacturer Image

Perceived Risk


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Positioning

Establishing aspecific image for a

brand in relation to

competing brands.


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Positioning Techniques Umbrella

Positioning

PositioningAgainstCompetition

PositioningBased on aSpecific Benefit

Conveying aProduct Benefit

Taking anUnownedPosition

Positioning forSeveral Positions

Repositioning


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Perceptual

Mapping

A research technique

that enables

marketers to plot

graphically

consumers

perceptions

concerning productattributes of specific

brands.


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Perceptual Mapping

More

Artwork

More

Copy

Fashion Coverage

Club Coverage

Splash

Crash

Fashion

Splash

Bash


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Pricing Strategies Focused onPerceived Value

Satisfaction-based Pricing

Relationship Pricing Efficiency Pricing


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Acquisition-Transaction Utility

Acquisition utilityrepresents the

consumers perceivedeconomic gain or lossassociated with thepurchase

Function of productutility and purchaseprice

Transaction utilityconcerns the perceived

pleasure or displeasureassociated with thefinancial aspect of thepurchase

Determined by thedifference between theinternal reference priceand the purchase price


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Tensile and ObjectivePrice Claims Evaluations least favorable

for ads stating the minimumdiscount level

Ads stating maximum

discount levels are betterthan stating a range


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Perceived Quality

Perceived Quality of Products

Intrinsic vs. Extrinsic Cues

Perceived Quality of Services

Price/Quality Relationship


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SERVQUAL Dimensions for Measuring

Service QualityDIMENSION DESCRIPTION

Tangibles Appearance of physical facilities, equipment,

personnel, and communication materialsReliability Ability to perform the promised service

dependably and accurately

Responsiveness Willingness to help customers and provide

prompt serviceAssurance Knowledge and courtesy of employees and

their ability to convey trust and confidence

Empathy Caring, individualized attention the firm

provides its customers


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Amity Business SchoolConceptual Model of the Consequences ofService 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/Quality

Relationship

The perception of

price as an indicator

of product quality

(e.g., the higher the

price, the higher the

perceived quality ofthe product).


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Amity Business SchoolConceptual Model of the Effects of Price,Brand Name, and Store Name on Perceived

ValueObjectiv

e Price

Perception

of Price

Perceived

Sacrifice

Perceived

Quality

Perceived

Value

Willingness

to Buy

A. Conceptual Relationship of Price Effect

+

++

+

--


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Amity Business Schoolcontinued

B. Extended Conceptualizationto Include Brand Name and

Store Name

Store

Name

Brand

Name

Perceptionof StorePerceptionof Brand

+

+

Objectiv

e Price

Perception

of Price

Perceived

Sacrifice

Perceived

Quality

Perceived

Value

Willingness

to Buy

+

+

+

+

-

-


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Perceived Risk

Types

Functional Risk Physical Risk

Financial Risk

Psychological Risk Time Risk

The degree of

uncertaintyperceived by the

consumer 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

38a88module ii c

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