Consumer Perception

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


•      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