Consumer behaviour 2e-CHAPTER 4 2e final.pptx

Consumer behaviour 2e-CHAPTER 4 2e final

1. CHAPTER FOUR: CONSUMER PERCEPTIONS

2. Learning objectives Define perceptions Explain the perception process Describe the functions of perceptions Describe consumer perceptions Understand how to get the attention of customers Understand the strategic implications of consumer perceptions for marketing.

3. Key terms Absolute threshold Attention Attitudes Beliefs Brand Depth psychology Differential threshold Gestalt psychology Interpretation Memory Neuropsychology Perceptions Reaction Sensation Sensory receptors Social media Stimulus.

4. 4.1 Introduction Consumers view and react to products Constantly exposed Stimulus + reaction = perception Define perceptions Discuss process and functions of perceptions Marketing communication Strategic marketing implications. LISTEN: The Global Digital Banker podcast, Episode 8 – ‘’The consumer view of a cashless society & the payments proposition in an ever-changing economy’’, accessible from https://globaldigitalbanker.podbean.com/e/episode-8-the-consumer-view-of-a-cashless-society-the-payments-proposition-in-a-ever-changing-landscape/ (last accessed on 9 January 2019).

5. 4.1 Introduction (cont.). 4.1.1 Defining perceptions Initially: perception defined as purely physiological Perception is a process of activating sensory receptors S timulus : any physical object or event to which a person is exposed P erception is a process of selecting, organising and interpreting stimuli (assignment of meaning) Perception is subjective: we react to stimuli on our own terms Moved beyond basic senses – to involve learning and experiences Thus, perception is defined as: A person’s awareness of reaction to and interpretation of stimuli. Image source: http://list25.com/25-things-psychology-tells-you-about-yourself/ accessed on 1 July 2013.

6. 4.1 Introduction (cont.). Image accessed from: https://abetteryoucentre.ca/different-people-different-perceptions/

7. 4.2 The process of perception

8. 4.2 The process of perception (cont.) 4 .2.1 Stimuli

9. 4.2 The process of perception (cont.). 4.2.2 Sensory receptors R eceive the stimulus WATCH: 10 Shocking Subliminal Messages Hidden In Commercials, accessed from: https://www.youtube.com/watch?v=jbzb_4ThBNI (last accessed on 9 January 2019).

10. 4.2 The process of perception (cont.). 4.2.3 Attention Exposure to multiple stimuli and short attention spans must be compensated for Consumers are sophisticated Attracting and keeping attention Brands assist in this Brand: image, value proposition, unique offering of a good or service Product design also assists Humour is important as well.

11. 4.2 The process of perception (cont.). 4.2.4 Interpretation First phase in forming meaning Grasp / understand the message Place the stimulus into a category or ‘file’ E xposure to adverse stimuli have had identifiable neurological effects in certain parts of the brain Becoming aware of a stimulus & recognising it is called the cortical process Unconscious processes bypass the cortical process Marketers try to ensure favourable interpretations.

12. 4.2 The process of perception (cont.). 4 .2.5 Memory Refers to a consumer remembering a message Information stored in memory can be retrieved and utilised in purchasing decisions Stimulus should be sufficiently strong & differentiated in order to be stored in memory. READ: ‘’30 of the best advertising slogans’’, accessible from: https://superdream.com/news-blog/best-advertising-slogans (last accessed on 9 January 2019).

13. 4.2 The process of perception (cont.). 4.2.6 Decision Final step in the perception process Decision to purchase not only based on the sensory process, it is also based on: Consumer’s personality Previous information about the product Past experience with same or similar product Consumer beliefs, values and attitudes.

14. 4.3 Functions of perceptions Primitive humans: perceptions linked to survival Present day health consciousness is critical Socially responsible producers Counterfeit goods – major issue Developed vs. developing nations differ in terms of consumer perceptions.

15. 4.3 Functions of perceptions (cont.). Consumer perceptions in developed nations Post mass-market era Buy what they want, not what they need Social responsibility Seek to differentiate Authentic consumer Self-concept & self-identity Small elite Individualism Scarcity of time, attention & trust Involved, independent & well-informed. Consumer perceptions in developing countries Aware of social responsibility Affordability often overrides Basic needs Less inclined to compromise on product price & quality.

16. 4.4 Theories that are relevant to perceptions Gestalt psychology asserts that a person organises stimuli in order to make them meaningful S ingle stimulus never seen in isolation Perceptual organisation Figure (focal point) and ground (undefined) Closure (form a meaningful whole) Refer to Figure 4.7 in the textbook.

17. 4.4 Theories that are relevant to perceptions (cont.). Neuropsychology Brain functions monitored to understand how marketing messages trigger neurological reactions What happens in the brain when people are exposed to certain stimuli? Messages processed in primitive part (fight, flight, protection) of the brain are often most compelling S ense preferences Neurolinguistic Learning Programming (NLP) READ: http://www.nlp.com/what-is-nlp/ (last accessed on 9 January 2019)

18. 4.4 Theories that are relevant to perceptions (cont.). Depth psychology Understanding of the unconscious mind Consumption may have to do with an unconscious need for fulfilment. Source: http://uploads.neatorama.com/images/posts/464/59/59464/1364491369-0.jpg accessed on 1 July 2013.

19. 4.5 Marketing communication and consumer perception: getting the attention of consumers How is it possible to get the attention of consumers? How is it possible to encourage consumers to develop a positive perception of the product/service? How is it possible to convince consumers to purchase specific product? Attention getting or a marketing disaster? Visit: http://www.businessnewsdaily.com/2174-guerilla-marketing-wrong.html (last accessed on 9 January 2019)

20. 4.5 Marketing communication and consumer perception: getting the attention of consumers (cont.). 4.5.1 The changing nature of consumer perception Past: low-priced, mass-produced goods Present: mass-market era more discerning consumer Sophisticated consumer Finds meaning in consumption Totally new approach to marketing Satisfy inner hunger, rather than external appetite Marketplace is their soul New approach needed.

21. 4.5 Marketing communication and consumer perception: getting the attention of consumers (cont.). 4.5.2 Communicating with the new consumer New messages in new media E-shopping and social media marketing Marketing principles have shifted Consumers connected to one another Consumers shape each other’s perceptions Authenticity can be contrived Authenticity myths Companies not ready to deal with social media marketing.

22. 4.5 Marketing communication and consumer perception: getting the attention of consumers (cont.). Accessed from: http://stephenslighthouse.com/files/oldroot/other/harris-interactive-linkedin-opinion-twitter-effectiveness-us-adults-july-2009.jpg on 1 July 2013.

23. 4.5 Marketing communication and consumer perception: getting the attention of consumers (cont.). 4.5.2 Communicating with the new consumer (cont.). Marketers should create “buzz” and not “hype” H ard selling less and less successful S ocial media marketing is relationship based M en and women pay attention to stimuli differently

24. 4.5 Marketing communication and consumer perception: getting the attention of consumers (cont.). Accessed from http://i.marketingprofs.com/assets/images/daily-data-point/how-company-pages-influence- consumer-perceptions-of-brands-polaris.jpg on 1 July 2013.

25. 4.6 Strategic marketing applications The consumer’s perception is reality Social media marketing is here to stay Social responsibility and environment Health is big business Brand perception Success of marketing.

26. Consumer behaviour in reality Case study: “Consumer perceptions of electric cars” Clip-to-case: “ South Africa not ready for electric cars: Expert” https://www.youtube.com/watch?v=oE1Ug9G3c2g “ Kenya to have 150 electric cars by 2020” https://www.youtube.com/watch?v=iW-iapGRcZE

27. Summary