Perception is a personal phenomenon. An individual will usually interpret stimuli in such a way that they will serve to fulfill personal needs, wishes, interests and so on. Same principle applies in projective techniques where respondents are asked to interpret incomplete sentences, unclear pictures or untitled cartoons. How the person interprets a vague stimulus is not a reflection on the stimulus itself but the subject’s own needs, wants, and desires. Respondents reveal a great deal about themselves.

1. CONSUMER
BEHAVIOUR
M O D U L E - 5
C O N S U M E R P E R C E P T I O N : D Y N A M I C S O F P E R C E P T I O N

2. SYLLABUS – CONSUMER BEHAVIOUR
Unit Topics Duration
(Hr)
1 Consumer Behaviour: its origin and Strategic Implications
Customer value, satisfaction and retention; consumer behaviour and decision making
3
2 Consumer Research
Consumer data capturing by companies
3
3 Consumer Motivation
Motivation as a psychological force, the dynamics of motivation, types of needs
3
4 Personality and Consumer Behaviour
Understanding personality and consumer diversity, brand personality, self and self-image
3
5 Consumer Perception
Dynamics of perception
3
6 Consumer Learning
The elements of consumer learning, behavioural learning theories, cognitive learning theory
4
7 Consumer Attitude Formation and Change
Characteristics and functions of attitudes
Sources of Attitude Development
Strategies for changing attitudes and intentions
4
8 Communication and Consumer Behaviour
Components of communication, the communication process
Designing persuasive communications
3
9 Consumer Decision Making
Problem recognition by consumer, Search & Evaluation,
Purchase, Post Purchase Behaviour
4
TOTAL HRS. 30

3. PERCEPTION ???

4. TELL A STORY…..

5. PERCEPTION IS
The process by which an individual
selects, organizes, and interprets
stimuli into a meaningful and
picture of the world
How we see the world around us

6. WHICH HORIZONTAL LINE IS LONGER?

7. WHICH HORIZONTAL LINE IS LONGER?
Despite their contrary appearance, the two
horizontal lines will be found to be of equal
length.

8. PERCEPTION IS EVERYTHING….

9. PERCEPTION IS
Perception is defined as the process by which an individual
• Selects
• Organizes and
• Interprets stimuli
into a meaningful and coherent picture of the world.
This is based on each person’s own
• Needs
• Values and
• Expectations

10. SENSORY DYNAMICS OF PERCEPTION

11. STIMULUS
• A stimulus is any unit of input to any of the senses eg. products,
packages, brand names, advertisements and commercials.
• Sensory receptors like eyes, ears, nose, mouth and skin receive sensory
inputs and we are able to see, hear, smell, taste, and touch.
• Sensation is the immediate and direct response of the sensory organs to
the stimuli.
• Fragrances make shopping experiences pleasurable.
• Touching a product influences persuasion.

13. ABSOLUTE THRESHOLD
• The lowest level at which an individual can experience a sensation is
called the Absolute Threshold
• The point at which a person can detect a difference between
“something” and “nothing” is that person's absolute threshold for that
stimulus
• For example, the distance at which a driver can note a specific billboard
on a highway is that individual’s absolute threshold.
• Two people riding together may first spot the billboard at different
times (i.e. at different distance), thus they appear to have different
threshold.

14. DIFFERENTIAL THRESHOLD OR JUST
NOTICEABLE DIFFERENCE (J.N.D)
• The minimal difference that can be detected between two similar stimuli is Differential
Threshold or Just Noticeable Difference (j. n. d)
• A nineteenth century German scientist named Ernst Weber discovered that the J.N.D
between two stimuli was not an absolute amount, but an amount relative to the
intensity of the first stimulus.
• Weber’s law, as it has come to be known, states that the stronger the initial stimulus,
the greater the additional intensity needed for the second stimulus to be perceived as
different
• For example, if the price of a one container of premium, freshly squeezed orange juice
is Rs.150, most consumer would probably not notice the Rs.2 increase in the price (i.e.
the increment would fall below J.N.D) and it may take more increase in the price for
consumer to notice it. But if this is the case with increase in petrol price then it will be
surely noticed by all consumers

18. MARKETING APPLICATIONS FOR J.N.D

19. • When it comes to product improvements marketers very much want to meet or exceed
the consumer’s differential threshold; that is, they want consumers to readily perceive
any improvements made in the original product.
• Marketers use the j.n.d. to determine the amount of improvements they should make
in the product
• Less then j.n.d is a wasted effort because the improvements may not be perceived and
more than j.n.d it is also wasteful as it reduces the chances of repeat sales
• On the other hand, when it comes to price increases, less than the j.n.d is desirable
because consumers are unlikely to notice it.

21. SUBLIMINAL PERCEPTION
• Stimuli that are too weak or too brief to be consciously seen or heard may
nevertheless be strong enough to be perceived by one or more receptors calls.
• This process is called subliminal perception because the stimulus is absolutely beneath
the threshold, or “limen,” of conscious awareness
New Jersey
Drive-in movie
theatre 1957
Inconclusive
expt.

22. IS SUBMENTAL PERCEPTION
EFFECTIVE?
• Extensive research has shown no evidence that subliminal advertising can cause
behavior changes
• Some evidence that subliminal stimuli may influence affective reactions

23. ASPECTS OF PERCEPTION
Selection
Organization
Interpretation

24. PERCEPTUAL SELECTION
Expectations: People usually see what they expect to see, and what they see is usually
based on familiarity, previous experience or preconceived set of expectations. e.g.
Feedback about a professor, feedback about a movie, etc.
Motives: People tend to perceive the things they need or want; the stronger the need,
the greater the tendency to ignore unrelated stimuli in the environment.

25. PERCEPTUAL SELECTION
Which stimuli gets selected depends on two major factors in addition to the nature of the stimuli
itself:
1. Consumers previous experience as it affects their expectation (what they are prepared, or “set”
to see).
2. Their motives at the time (their needs, desires, interest and so on).
Each of these factors can serve to increase or decrease the probability that a stimulus will be
perceived.
Nature of the stimulus
• Several stimuli including nature of the product, its physical attribute, the package design, the
brand name, the advertisements and commercials (including copy claims, choice and sex of
model, positioning of model, size of ad, typography), the position of a print ad or a commercial,
and the editorial environment.
• Ads and packs should be a contrast (stand out, clutter breaking). Consumer looks at a pack for
1/10th of a seconds only.

26. SELECTIVE PERCEPTION
4 IMPORTANT CONCEPTS CONCERNING
PERCEPTION
Selective Exposure: Consumers actually seek out messages that they find pleasant or to
which they are sympathetic to. Avoid painful and threatening ones. Selectively expose
themselves to ads that reassure them of their purchase wisdom.
Selective Attention: Tendency to selectively listen to or see, what one likes., They also
selectively pay attention to ads using this filter. Defense : e.g. when somebody sees an
ad full of vegetables, they may choose to ignore it if they eat fast food everyday.
Perceptual Blocking: Consumers simply tune out of stimuli rather
than being bombarded by them.

27. SELECTIVE PERCEPTION
V/s

28. PERCEPTUAL ORGANISATION
• According to Gestalt psychology, the whole is different than the sum of its parts.
• Based upon this belief, Gestalt psychologists developed a set of principles to explain
perceptual organization, or how smaller objects are grouped to form larger ones.
• These principles are often referred to as the "laws of perceptual organization."

29. GESTALT PSYCHOLOGY:
“LAWS OF PERCEPTUAL ORGANIZATION"
The operational principle of gestalt psychology is that the
brain is holistic, parallel, and analog, with self-organizing
tendencies. The principle that maintains that the human
eye sees objects in their entirety before perceiving their
individual parts.

30. FIGURE & GROUND, GROUPING,
CLOSURE.
Figure and Ground
• The perceived shape depends critically on
the direction in which the border (edge)
between the black and white regions is
assigned.
• If the two curvy edges between the black
and white regions are assigned inward then
the central white region is seen as a vase
shape in front of a black background.
• No faces are perceived in this case.
• On the other hand, if the edges are assigned
outwards, then the two black profile faces
are perceived on a white background and no
vase shape is perceived.

31. FIGURE & GROUND. GROUPING.
CLOSURE.
Grouping: All of us read with a whole word approach.
"From Cambridge University .
Olny srmat poelpe can raed tihs. I cdnuolt blveiee taht I cluod aulaclty uesdnatnrd waht I was rdanieg.
The phaonmneal pweor of the hmuan mnid, aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it
deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoatnt tihng is taht the frist and lsat
ltteer be in the rghit pclae. The rset can be a taotl mses and you can sitll raed it wouthit a porbelm. Tihs is
bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Amzanig huh?
yaeh and I awlyas tghuhot slpeling was ipmorantt! if you can raed tihs psas it on !!"
Closure: Incomplete stimuli create tension

32. PERCEPTUAL INTERPRETATION
• Perception is a personal phenomenon.
• An individual will usually interpret stimuli in such a way that they will serve to fulfill
personal needs, wishes, interests and so on.
• Same principle applies in projective techniques where respondents are asked to
interpret incomplete sentences, unclear pictures or untitled cartoons.
• How the person interprets a vague stimulus is not a reflection on the stimulus itself
but the subject’s own needs, wants and desires. Respondents reveal a great deal about
themselves.

33. INFLUENCES OF PERCEPTUAL DISTORTION
(THESE ARE THE SHORTCUTS TAKEN BY CONSUMER
TO PERCEIVE OBJECTS HENCE THEY DISTORT
PERCEPTION

34. BE AWARE OF STEREOTYPES
• Judging someone on the basis of the perception of the group to which they belong.
• Main factors that can trigger stereotypes:
– Physical appearances
– Descriptive terms
– First impressions
– Halo effect
Photo in the Print
Ad
Consumer Perception about the tissue
Fluffy Cat Soft and expensive.
Colourful cat Soft and colourful.
Soft sunset Soft, expensive and colourful.
Roadside sunset Neither soft, nor colourful. Inexpensive.

35. BE AWARE OF STEREOTYPES
• Descriptive terms: If truthful, work to enhance product or service appeal.
• First impressions
• Halo effect: Evaluation of multiple products on the basis of the evaluation of just one
dimension. E.g. a brand name or a spokesperson
The Complete Man

36. ISSUES IN CONSUMER IMAGERY
Product Positioning and
Repositioning
Perceived Price
Perceived Quality
Price-Quality Relationship
Perceived Risk

37. PRODUCT POSITIONING
• Positioning is more important to the ultimate success of a product than are its actual
characteristics although products that are poorly made will not succeed in the long run on the
basis of image alone.
• Marketers need to stress the benefits and not the features
• The benefits in a product’s positioning must reflect attributes that are important to and
congruent with the perceptions of the targeted consumer segment.
• Successful positioning strategy leads to distinctive brand image on which consumers rely to
make product choices.
• A positive brand image leads to
– Consumer loyalty
– Positive beliefs about brand value and
– A willingness to search for the brand
• A positive brand image also
– Promotes consumer interest in future brand promotions and
– Inoculates consumers against competitors’ marketing activities

39. POSITIONING PRODUCTS AND
SERVICES
• Model of Strategic Positioning
Positioning
Aim(s)
Positioning
Objective(s)
Positioning
Strategy(ies)
Communications Consumer
Perceptions

40. PACKAGING AS A POSITIONING
ELEMENT
• Packaging must convey the image that the brand communicates to buyers.
• Perfumes packaging constitutes 40% or more of fragrance’s cost.

41. PACKAGING AS A POSITIONING
ELEMENT
Giving sketch pencils
a personality
Simple yet eye-catching packaging
Dumbbell pack to
dramatize strength

42. PRODUCT REPOSITIONING
• The marketer may be forced to reposition the product:
– A competitor cutting into the market share
– Too many competitors stressing the same attributes
– To satisfy changing consumer preferences
– When a contemporary image is required in some categories due to changing
psychographics
– When brands desire to change their target segment
– When brands want to advertise improved offerings
– from lower-end watches to expensive watches with high technology
– When motivation to buy the category is low amongst the users

44. REVITALISING THE “TEA” CATEGORY

45. REVITALISING THE “EGG” CATEGORY

47. PERCEIVED QUALITY
• A variety of informational cues that they associate with the product, determines the
consumers’ perceived quality of a product or service
• These can be intrinsic or extrinsic.

48. DIMENSIONS OF PERCEIVED QUALITY
THE PRODUCT CONTEXT
1. Performance: How well does a washing machine clean clothes?
2. Features: Does an anti-asthmatic have a convenient dispenser?
3. Conformance with specifications: What is the incidence of defects?
4. Reliability: Will the vacuum cleaner work properly each time it is used?
5. Durability: How long will the water filter last?
6. Serviceability: Is the service system efficient, competent, and convenient?
7. Fit and finish: Does the product look and feel like a quality product?

49. SERVICE QUALITY
HOW IT DIFFERS FROM PRODUCT?
1. Services are intangible
2. Services are variable
3. Services are perishable
4. Services are simultaneously produced and consumed
5. Consumers are unable to compare competing services side by side
Doctor’s service may be evaluated by:
1. Quality of the clinic and furnishings
2. The number & source of framed degrees
on the wall/shelves
3. The pleasantness of the receptionist
4. The quantity and “gentry” of the patients

50. DIMENSIONS OF PERCEIVED QUALITY
THE SERVICE CONTEXT
1. Tangibles: Do the physical facilities, equipment, and appearance of personnel imply
quality?
2. Reliability: Will the service be performed dependably and accurately?
3. Competence: Does the repair shop staff have the knowledge and skill to get the job
done right? Do they convey trust and confidence?
4. Responsiveness: Is the sales staff willing to help customers and provide prompt
service?
5. Empathy: Does the bank provide caring, individualized
attention to its customers?

51. PRICE/QUALITY RELATIONSHIP
Perceived product value has been described
as a trade-off between the product’s
perceived benefits or quality and the
perceived sacrifice both monetary and non-
monetary to acquire it.
$2.50/cap
s
10
cents/caps
Both placebo
Pain relief reported
85% 61%
Generics less effective than
Branded??

52. RETAIL STORE IMAGE
• Retail store images serve to influence:
– The perceived quality of products they carry
– And the decisions of consumers where to shop
• Images stem from:
– The merchandise they carry (width and type)
– The brands sold and their prices
– The level of service
– The store’s physical environment and ambience (Café Coffee Day, Starbucks, Natural Ice Cream)
– Its typical clientele (Tanishq)

54. PERCEIVED RISK

55. PERCEIVED RISK
• Is defined as the uncertainty that consumers face when they cannot foresee the
consequences of their purchase decision.
• It is actually the degree of uncertainty perceived by the consumer as to the
consequences (outcomes) of a specific purchase decision
• There are
– High-risk perceivers are narrow categorizers and limit their choices to safe alternatives
– Low-risk perceivers are broad categorizers and have wide range of alternatives preferred

56. TYPES OF RISK
• Functional Risk
• Physical Risk
• Social Risk
• Psychological Risk
• Time Risk
• Sensory Risk

57. PERCEIVED RISK
• Physical - Can the product hurt me, my children or my pets?
– e.g. Side effects of drugs, harmful radiation from cellphones.
• Social - What will my peers think?
– e.g. Will I look like a nerd in this pair of spectacles?
• Psychological - Am I doing the right thing?
– e.g. Will I be embarassed to take my new girlfriend out on this “ramshackle” second-hand
bike?
• Time - How much time and effort may I expend to make this purchase? This may be
the greatest perceived risk for the plant and produce retailer to overcome.
– e.g. Will I have to look for another plastic surgeon to fix this problem?
• Sensory Risk : This risk refers to unwanted impact of any of the five senses.Smell of
leather couches, non-smoking cars for second hand, small indicators on the car.
(Volkswagen has purple light on the indicators.)

58. HOW CONSUMERS HANDLE
PERCEIVED RISK
• Seek Information
• Stay Brand Loyal
• Select by Brand Image
• Rely on Store Image
• Buy the Most Expensive Model
• Seek Reassurance

59. HOW CONSUMERS HANDLE
PERCEIVED RISK
• Consumers seek information - From word-of-
mouth, sales people, media including the
internet.
• Consumers are Brand Loyal – Safer to stick to
tried and tested brands. Risk in buying newly
introduced products.
• Consumers select by Brand Image - Well
know brands are believed to imply assurance
of quality, dependability, performance and
service.
• Consumers Rely on Store Image-Believing
that the store would have taken the care to
keep right merchandise. Also reputable and
known stores will take back/adjust defective
merchandise
• Consumers buy the most expensive model -
Expensive = Best quality.
• Consumers seek reassurance - Quality
reassurance e.g. ISO certifications, Money-
back guarantees, Warranties etc.

60. PERCEPTION AND MARKETING
STRATEGY
• Make perceptual selection work in your favour
– Increase accidental exposure
– Use the j.n.d
– Draw attention to your ad using contrast and other principles
– Find creative ways to reduce blocking
• Ensure that consumers organize and interpret messages correctly
• Develop suitable consumer imagery
• Find ways to reduce perceived risk

61. PROMOTIONAL METHODS
TO INCREASE SENSORY INPUT
Method Description/Examples
Experiential
Marketing
Nike’s iD system to create shoes
to suit identity
Scented Ads Magazines, Newspapers, Movies
Insets &Pop-ups Magazines, Newspapers, Visual
Aids
Ambush advertising Video screens, giant 3-D ads in
cricket fields, Rest rooms,
Players’ shirts and bats
Product Placements Movies, TV shows, webisodes

62. eg. of Ambush
advertising