2.  Arslan Ahmed

4.  Perception:
 Process via which consumers select and organize
stimuli, so as to provide themselves with a meaningful
and coherent view of the world
 More than sensing something
 Assigning meaning and incorporating it into their world
 Part of the “Information Processing” process

5.  Sensation
 Absolute threshold
 Differential threshold
 Subliminal perception

6.  Sensation
 The immediate and direct response of the sensory
organs to stimuli.
 A perfectly unchanging environment provides
little to no sensation at all!

7.  Absolute threshold:
 Absolute threshold is the lowest intensity at which a
stimulus can be detected 50% of the time. The
absolute threshold can be influenced by several
different factors, such as the subject's motivations and
expectations, cognitive processes, and whether the
subject is adapted to the stimulus.

8.  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)
 Example: packaging
updates must be subtle
enough over time to keep
current customers

9.  Subliminal Perception:
 Perception of very weak or rapid stimuli received
below the level of conscious awareness.
 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

11. We receive external
stimuli through
our five senses

12.  Factors influence our perception.
 Exposure
 Attention
 Interpretation

13.  Exposure:
 Exposure involves the extent to which we encounter a
stimulus.
 We are exposed to numerous commercial messages
while driving on freeway.
 Example,
Bill boards
Radio Advertisement

14.  Attention:
 Attention is actually a matter of degree
 Our attention may be quite high when we read
directions for getting an income tax refund, but
low when commercials come on during a
television program.
 Example :
 If an advertisement for a product in which we are
interested comes on.

15.  Interpretation:
Interpretation involves making sense out of
the stimulus.
Example:
when we see a red can, we may recognize it is
a “Coke” and blue can for “Pepsi”.

17.  Weber’s Law
 Ability to note a change in a stimulus, depends on its
initial level
 Example:
 $500 increase in the price of a car
 $500 increase in the price of a personal computer
 P (notice a stimulus change) = Change in stimulus
/Initial level of stimulus

18.  Closure:
Individual tend to express their need closure by
organizing their perception so that form a complete
picture.
Example:
circle or Arc?
show piece or Two faces?

20.  Relevance:
 One of obvious issue is relevance, consumer when they
have choice , are also more likely to attend to stimuli
relevant to them.

21.  Repetition:
 Consumer often do not give much attention to stimuli, if it
seen over and over again.
 The cumulative impact will be greater here.
Surprising stimuli:
 Are likely to get more attention .
 Greater contrast:
 Difference between the stimulus and its
surroundings.
 Greater prominence:
 Greater size center placement.

22.  Make perceptual selection work in your favour.
 Increase accidental exposure
 Draw attention to your ad using contrast and
other principles
 Find creative ways to reduce blocking

23.  Ensure that consumers organize and interpret
messages correctly
 Develop suitable consumer imagery
 Find ways to reduce perceived risk

24.  Satisfaction-based Pricing
 Relationship Pricing
 Efficiency Pricing

25.  Reference prices:
 Internal
 External
 Tensile and objective price claims

26.  Evaluations least
favorable for ads stating
the minimum discount
level
 Ads stating maximum
discount levels are better
than stating a range

27.  Perceived Quality of Products
 Intrinsic vs. Extrinsic Cues
 Perceived Quality of Services
 Price/Quality Relationship

28.  The perception of price as an indicator of product
quality (e.g., the higher the price, the higher the
perceived quality of the product).

30.  Functional Risk
 Physical Risk
 Financial Risk
 Psychological Risk
 Time Risk

31.  Functional risk:
Product will not perform as expected.
 Physical risk:
Risk to self and others ...... Like use of cell phone.
 Financial risk:
The product will not be worth its cost.

32.  Social risk:
Poor product choice may result in social
embarrassment .
 Time risk:
Time spent in product search may be wasted if the
product does not perform as expected.

33.  Seek Information
 Stay Brand Loyal
 Select by Brand Image
 Rely on Store Image
 Buy the Most Expensive Model
 Seek Reassurance

34.  Ads for children; ban on TV ads containing cartoons
character promoting products during children shows
in which they themselves appear (misperceived by kids
to be part of the show)
 Thirty minute infomercials misperceived as
documentaries

37.  Example
 Red colour is perceived as sign of danger and sorrow in
chinese culture
 While in our culture Red colour is perceived as sign of
Love, Glamour & Attraction