Consumer Perception

Consumer Perception and Consumer Behavior

1. Are the centre circle same in size?

2. W hich one is lengthy?

3. Write a story

4. PERCEPTION The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world Perception is how we see the world around us

5. Sensation Sensation – immediate and direct response of the sensory organs to stimuli Stimulus – any unit of input to any of the senses Sensory receptors – Eyes, Ears, Nose, Mouth and Skin

6. Sensation and Perception Sensation is the immediate response of our sensory receptors (eyes, ears, nose, mouth, and fingers) to basic stimuli (light, color, sound, odor, and texture) Perception is the process by which sensations are selected, organized, and interpreted

7. Sensory Systems Vision Color provokes emotion Reactions to color are biological and cultural Trade dress: colors associated with specific companies Scents Odors creates mood and promote memories: Coffee : College days Maggi : Home Starbucks/ Odonil

8. Sensory Systems Sound Sound affects people’s feelings and behaviors Muzak uses sound and music to create mood High tempo = more stimulation Slower tempo = more relaxing Old movies instrumental songs while sleeping Touch Haptic senses or “touch”—is the most basic of senses; we learn this before vision and smell Haptic senses affect product experience and judgment Kansei engineering is a Japanese philosophy that translates customers’ feelings into design elements

9. Taste Flavor houses develop new concoctions for consumer palates Cultural changes determine desirable tastes Quality associations Male Female High class Low class Perception Wool Silk Denim Cotton Fine Coarse Heavy Light

10. Dynamics of Perception

11. The Absolute Threshold The lowest level at which an individual can experience a sensation. Detecting difference between “something and nothing” Sensory Adaptation: Getting used to senses. Sensory adaptation is defined as the diminished sensitivity to a stimulus as a consequence of constant exposure to that stimulus. Eg . People who live by busy roads typically don't even notice that there is the sound of constant traffic outside their window People who smoke no longer notice the odor of cigarette smoke A piece of jewelry such as a bracelet, initially you will notice the feel of it on your skin. Within minutes, sensory adaptation comes into play and you no longer notice the feeling of the bracelet on your wrist.

12. Differential Threshold The ability of a sensory system to detect changes or differences between two stimuli Minimum difference between two stimuli is the j.n.d . (just noticeable difference) Marketing Applications: Negative changes are not readily seen (price rise, reduce in quantity) Positive changes are clearly seen.

13. Differential Threshold Example: packaging updates must be subtle enough over time to keep current customers

14. Subliminal Perception Message below the threshold level – below the conscious level Takes place in movies : Nokia Lumia Mobile Phone with Shah Rukh Khan in Chennai Express Sheldon’s Alienware Lappy John Abhraham using Sony Vaio in Kaal All Tata cars in Singham returns Cadbury Dairy Milk in Parineeta Aston Martin in James Bond MRF Tiers in Indian Movies

15. Elements of Perception

16. Perceptual Process The perceptual process is the sequence of psychological steps that a person uses to organize and interpret information from the outside world. The steps are: Objects are present in the world. A person observes. The person uses perception to select objects. The person organizes the perception of objects. The person interprets the perceptions. The person responds. The selection, organization, and interpretation of perceptions can differ among different people . Therefore, when people react differently in a situation, part of their behavior can be explained by examining their perceptual process, and how their perceptions are leading to their responses.

17. Perceptual Selection (or selective perception) Internal factors include: Personality - Personality traits influence how a person selects perceptions. For instance, conscientious people tend to select details and external stimuli to a greater degree Motivation - People will select perceptions according to what they need in the moment. They will favor selections that they think will help them with their current needs, and be more likely to ignore what is irrelevant to their needs. Experience - The patterns of occurrences or associations one has learned in the past affect current perceptions. The person will select perceptions in a way that fits with what they found in the past.

18. Perceptual Selection (or selective perception) External factors include: Size - A larger size makes it more likely an object will be selected. Intensity - Greater intensity, in brightness, for example, also increases perceptual selection. Contrast - When a perception stands clearly out against a background, there is a greater likelihood of selection. Motion - A moving perception is more likely to be selected. Repetition & Interpretation - Repetition increases perceptual selection. Novelty and familiarity - Both of these increase selection. When a perception is new, it stands out in a person's experience. When it is familiar, it is likely to be selected because of this familiarity.

19. SELECTIVE PERCEPTION Selective exposure:- People look for pleasant and sympathetic messages and avoid painful or threatening ones Selective attention:- People look into ads which will satisfy their need Perceptual Defense:- People avoid psychologically threatening ones. Hence constantly change the ad nature. [ Smoking – warning with words, and now with images ]

20. Perceptual Organization People see everything as a whole. Gestalt Psychology Figure and Ground is a type of perceptual grouping which is a vital necessity for recognizing objects through vision. In Gestalt psychology it is known as identifying a figure from the background. Grouping Closure

21. Gestalt Psychology - Figure and Ground

22. Gestalt Psychology - Figure and Ground Face-Vase famous drawing of Danish psychologist Edgar Rubin

23. Figure and Ground in Product Placement You will certainly notice Coke kept here

24. Gestalt Psychology - Grouping Grouping: Humans naturally perceive objects as organized patterns and objects. Gestalt psychologists argued that these principles exist because the mind has an innate disposition to perceive patterns in the stimulus based on certain rules. These principles are organized into six categories: Proximity, Similarity, Closure, Good Continuation, Common Fate, and Good Form

25. Gestalt Psychology - Grouping Proximity Similarity Closure All else being equal, perception tends to group stimuli that are close together as part of the same object, and stimuli that are far apart as two separate objects. All else being equal, perception lends itself to seeing stimuli that physically resemble each other as part of the same object, and stimuli that are different as part of a different object. The mind’s tendency to see complete figures or forms even if a picture is incomplete, partially hidden by other objects, or if part of the information needed to make a complete picture in our minds is missing.

26. Gestalt Psychology - Grouping When there is an intersection between two or more objects, people tend to perceive each object as a single uninterrupted object. Good Continuation Common Fate When visual elements are seen moving in the same direction at the same rate (optical flow), perception associates the movement as part of the same stimulus. Good Form The principle of good form refers to the tendency to group together forms of similar shape, pattern, color, etc. Even in cases where two or more forms clearly overlap, the human brain interprets them in a way that allows people to differentiate different patterns and/or shapes.

27. Grouping

28. Closure

29. PERCEPTUAL INTERPRETATION Stimulus are often highly ambiguous or weak Types of Perceptual Interpretations Stereotypes Physical Appearances Descriptive terms First Impression Halo Effect

30. PERCEPTUAL INTERPRETATION Stimulus are often highly ambiguous or weak Types of Perceptual Interpretations Stereotypes Physical Appearances Descriptive terms First Impression Halo Effect People carrying biased pictures in their minds of the meanings of various stimuli. People hold meaning related to stimuli Stereotypes influence how stimuli are perceived Bias in United Colors of Benetton.

31. Problematic Ad of UCB

32. PERCEPTUAL INTERPRETATION Stimulus are often highly ambiguous or weak Types of Perceptual Interpretations Stereotypes Physical Appearances Descriptive terms First Impression Halo Effect People associate quality with people in the ads Attractive models have positive influence Colors of juices Shape of the package Average men are not considered as businessman

33. Which one is orange juice?

34. PERCEPTUAL INTERPRETATION Stimulus are often highly ambiguous or weak Types of Perceptual Interpretations Stereotypes Physical Appearances Descriptive terms First Impression Halo Effect Accenture – High Performance, Delivered. KFC – Spicy Chicken McDonald – Happy price (targeting Indians who are price conscious)

35. Descriptive Terms

36. PERCEPTUAL INTERPRETATION Stimulus are often highly ambiguous or weak Types of Perceptual Interpretations Stereotypes Physical Appearances Descriptive terms First Impression Halo Effect First impressions, last long The perceiver is trying to determine which stimuli are relevant, important, or predictive

37. PERCEPTUAL INTERPRETATION Stimulus are often highly ambiguous or weak Types of Perceptual Interpretations Stereotypes Physical Appearances Descriptive terms First Impression Halo Effect Consumers perceive and evaluate product or service or even product line based on just one dimension. Important with spokesperson choice. Tampering the halo effect is detrimental to the organization. Toyota – Quality Ford – Safety Sony - Music

38. The halo effect helps Adidas break into new product categories

39. Consumer Imagery Consumers perceived images about product, services, prices, product quality, retail stores and manufacturers. People buy product to enhance their self image (relating themselves to the product) .

40. Consumer Imagery

41. POSITIONING Image of the product in the minds of the customer is called Positioning Image of your product gear up your sales, but the product should also deliver its performance. Product BENEFITS should be focused more than it’s physical attributes.

42. Umbrella Positioning Nicolo Pome , UK marketing director for Nivea’s parent company Beiersdorf , said : “We wanted to find a more relevant role for the Nivea brand in our target markets' minds” . The awareness of the Nivea brand is vast but we needed to find a way to engage with the audience to a greater degree.  An umbrella branding strategy, is marketing  practice that involves selling many related products under a single brand name. 

43. Example: Lion Dates, Amul .

44. Positioning Products and Services Model of Strategic Positioning:

45. Typology of Strategic Positioning Top of the range – Upper class – Rolls Royce Service – Impressive service – Pizza hut – 30 mins Value for money – Affordability – Megamart , The dollar shoppe Reliability – Durability – Allwyn Fridge - 7yrs warranty

46. Typology of Strategic Positioning Attractive – Cool, Elegant – Mercedes, Bournville Country of Origin – Patriotism- Amul - The Taste of India The Brand Name – Leaders in the market – Apple, Sony Selectivity – Discriminatory – Nano , Macbook Air

47. Packaging as Positioning Element Package must convey the image of the brand Right Wrong

48. Product Repositioning To face the competitors, who offer new products or services Changing lifestyle of people - need to suit the current trend. Eg. Evolution of Tabs and Apple When brand need to change their target segment (happens rarely) Eg. Gems Why repositioning is required?

49. Perceptual Mapping

50. Positioning of Services It’s difficult to position a service because it’s intangible. Only Image differentiation helps to position better among their competitors. Examples: Flipkart.com – Reliable Smoking Joe’s – I will chose to die starving!