Psychological Factors Perception

Psychological Factors of Consumer Behaviour: Perception : 

© Copyright 2010 Anupam Kumar 1 Psychological Factors of Consumer Behaviour: Perception Authored By: Anupam Kumar Reader, SMS Varanasi Email: anupamkr@gmail.com

Perception : 

© Copyright 2010 Anupam Kumar 2 Perception The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world How we see the world around us

Elements of Perception : 

© Copyright 2010 Anupam Kumar 3 Elements of Perception Sensation Absolute threshold Differential threshold Subliminal perception The immediate and direct response of the sensory organs to stimuli A stimulus is any unit of input to any of the senses. The absolute threshold is the lowest level at which an individual can experience a sensation.

Elements of Perception : 

© Copyright 2010 Anupam Kumar 4 Elements of Perception Differential threshold Differential threshold Subliminal perception Minimal difference that can be detected between two similar stimuli Also known as the just noticeable difference (the j.n.d.) Stimuli that are too weak or too brief to be consciously seen or heard may be strong enough to be perceived by one or more receptor cells.

Subliminal Perception : 

© Copyright 2010 Anupam Kumar 5 Subliminal Perception

Weber’s Law : 

© Copyright 2010 Anupam Kumar 6 Weber’s Law The just noticeable difference (j.n.d.) between two stimuli is not an absolute amount but an amount relative to the intensity of the first stimulus Weber’s law states that the stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different.

Marketing Applications of J.N.D. : 

© Copyright 2010 Anupam Kumar 7 Marketing Applications of J.N.D. Marketers need to determine the relevant just noticeable difference (j.n.d.) for their products so that negative changes are not readily discernible to the public so that product improvements are very apparent to consumers

JND at Play for Product Extension : 

© Copyright 2010 Anupam Kumar 8 JND at Play for Product Extension

Aspects of Perception : 

© Copyright 2010 Anupam Kumar 9 Aspects of Perception Selection Organization Interpretation

Aspects of Perception : 

© Copyright 2010 Anupam Kumar 10 Aspects of Perception Selection Organization Interpretation

Perceptual Selection : 

© Copyright 2010 Anupam Kumar 11 Perceptual Selection Consumers subconsciously are selective as to what they perceive. Stimuli selected depends on two major factors Consumers’ previous experience Consumers’ motives Selection depends on the Nature of the stimulus Expectations Motives

Perceptual Selection : 

© Copyright 2010 Anupam Kumar 12 Perceptual Selection Selective Exposure Selective Attention Perceptual Defense Perceptual Blocking Consumers seek out messages which: Are pleasant They can sympathize Reassure them of good purchases

Perceptual Selection : 

© Copyright 2010 Anupam Kumar 13 Perceptual Selection Selective Attention Heightened awareness when stimuli meet their needs Consumers prefer different messages and medium

Selective Attention : 

© Copyright 2010 Anupam Kumar 14 Selective Attention Find all the complete dogs and cats

Perceptual Selection : 

© Copyright 2010 Anupam Kumar 15 Perceptual Selection Perceptual Defense Screening out of stimuli which are threatening

Perceptual Selection : 

© Copyright 2010 Anupam Kumar 16 Perceptual Selection Perceptual Blocking Consumers avoid being bombarded by: Tuning out TiVo

Perceptual Blocking : 

© Copyright 2010 Anupam Kumar 17 Perceptual Blocking

Aspects of Perception : 

© Copyright 2010 Anupam Kumar 18 Aspects of Perception Selection Organization Interpretation

Organization : 

© Copyright 2010 Anupam Kumar 19 Organization Figure and ground Grouping Closure People tend to organize perceptions into figure-and-ground relationships. The ground is usually hazy. Marketers usually design so the figure is the noticed stimuli.

Figure & Ground : 

© Copyright 2010 Anupam Kumar 20 Figure & Ground

Organization : 

© Copyright 2010 Anupam Kumar 21 Organization Grouping People group stimuli to form a unified impression or concept. Grouping helps memory and recall.

Organization : 

© Copyright 2010 Anupam Kumar 22 Organization Closure People have a need for closure and organize perceptions to form a complete picture. Will often fill in missing pieces Incomplete messages remembered more than complete

Closure : 

© Copyright 2010 Anupam Kumar 23 Closure

Aspects of Perception : 

© Copyright 2010 Anupam Kumar 24 Aspects of Perception Selection Organization Interpretation

Interpretation : 

© Copyright 2010 Anupam Kumar 25 Interpretation Physical Appearances Stereotypes First Impressions Jumping to Conclusions Halo Effect Positive attributes of people they know to those who resemble them Important for model selection Attractive models are more persuasive for some products - A perceptual distortion

Interpretation : 

© Copyright 2010 Anupam Kumar 26 Interpretation Selection of Model - A perceptual distortion

Interpretation : 

© Copyright 2010 Anupam Kumar 27 Interpretation Stereotypes People hold meanings related to stimuli Stereotypes influence how stimuli are perceived - A perceptual distortion

Interpretation : 

© Copyright 2010 Anupam Kumar 28 Interpretation - A perceptual distortion

Interpretation : 

© Copyright 2010 Anupam Kumar 29 Interpretation First Impressions First impressions are lasting The perceiver is trying to determine which stimuli are relevant, important, or predictive - A perceptual distortion

Interpretation : 

© Copyright 2010 Anupam Kumar 30 Interpretation Jumping to Conclusions People tend not to listen to all the information before making conclusion Important to put persuasive arguments first in advertising - A perceptual distortion

Jumping to Conclusion : 

© Copyright 2010 Anupam Kumar 31 Jumping to Conclusion

Interpretation : 

© Copyright 2010 Anupam Kumar 32 Interpretation Halo Effect Consumers perceive and evaluate multiple objects based on just one dimension Used in licensing of names Important with spokesperson choice - A perceptual distortion

Halo Effect : 

© Copyright 2010 Anupam Kumar 33 Halo Effect Lux Effectively use celebrity endorsements to use the Halo Effect

Issues in Consumer Imagery : 

© Copyright 2010 Anupam Kumar 34 Issues in Consumer Imagery Product Positioning and Repositioning Positioning of Services Perceived Price Perceived Quality Retail Store Image Manufacturer Image Perceived Risk

Brand / Consumer Imagery : 

© Copyright 2010 Anupam Kumar 35 Brand / Consumer Imagery

Positioning : 

© Copyright 2010 Anupam Kumar 36 Positioning Establishing a specific image for a brand in the consumer’s mind Product is positioned in relation to competing brands Conveys the concept, or meaning, of the product in terms of how it fulfills a consumer need Result of successful positioning is a distinctive, positive brand image

Positioning Techniques : 

© Copyright 2010 Anupam Kumar 37 Positioning Techniques Umbrella Positioning Positioning against Competition Positioning Based on a Specific Benefit Finding an “Unowned” Position Filling Several Positions Repositioning

Perceptual Mapping : 

© Copyright 2010 Anupam Kumar 38 Perceptual Mapping A research technique that enables marketers to plot graphically consumers’ perceptions concerning product attributes of specific brands

Examples of Perceptual Mapping : 

© Copyright 2010 Anupam Kumar 39 Examples of Perceptual Mapping

Issues in Perceived Price : 

© Copyright 2010 Anupam Kumar 40 Issues in Perceived Price Reference prices used as a basis for comparison in judging another price Internal External Acquisition and transaction utility One study offers three types of pricing strategies based on perception of value.

Pricing Strategies Focused on Perceived Value : 

© Copyright 2010 Anupam Kumar 41 Pricing Strategies Focused on Perceived Value

Utility Perception : 

© Copyright 2010 Anupam Kumar 42 Utility Perception Acquisition utility The consumer’s perceived economic gain or loss associated with the purchase Function of product utility and purchase price Transaction utility 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

Perceived Quality : 

© Copyright 2010 Anupam Kumar 43 Perceived Quality Perceived Quality of Products Intrinsic Cues Extrinsic Cues Perceived Quality of Services Price/Quality Relationship

Perceived Quality of Services : 

© Copyright 2010 Anupam Kumar 44 Perceived Quality of Services Difficult due to characteristics of services Intangible Variable Perishable Simultaneously Produced and Consumed SERVQUAL scale used to measure gap between customers’ expectation of service and perceptions of actual service

Price/Quality Relationship : 

© Copyright 2010 Anupam Kumar 45 Price/Quality Relationship The perception of price as an indicator of product quality the higher the price, the higher the perceived quality of the product

Perceived Risk : 

© Copyright 2010 Anupam Kumar 46 Perceived Risk The degree of uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision Types Functional Risk Physical Risk Financial Risk Psychological Risk Time Risk

How Consumers Handle Risk : 

© Copyright 2010 Anupam Kumar 47 How Consumers Handle Risk Seek Information Stay Brand Loyal Select by Brand Image Rely on Store Image Buy the Most Expensive Model Seek Reassurance

Bibliography : 

© Copyright 2010 Anupam Kumar 48 Bibliography Lindquist, Jay D. and Sirgy, M Joseph. Consumer Behaviour. New Delhi: Cenage Learning India Private Limited, 2009. Hawkins, Del I., Best, Roger J., Coney, Kenneth A. and Mookerjee, Amit. Consumer Behaviour: Building Marketing Strategy. Ninth Edition New Delhi: Tata McGraw-Hill Publishing Company Limited, 2007. Schiffman, Leon G. and Kanuk, Leslie L. Consumer Behaviour. Ninth Edition. New Delhi: Dorling Kindersley (India) Pvt. Ltd. Licenses of Pearson Education in South Asia, 2009. Loudon, David L. and Della Britta, Albert J. Consumer Behaviour. Fourth Edition. New Delhi: Tata McGraw-Hill Publishing Company Limited, 2002. Assael, Henry. Consumer Behaviour: A Strategic Approach. New Delhi: Biztantra, An Imprint of Dreamtech Press. By arrangement with Houghton Mifflin Co., USA, 2009. Khan, Martin. Consumer Behaviour. Second Edition. New Delhi: New Age International (P) Limited, 2004. Nair, Suja R. Consumer Behaviour in Indian Perspective. Mumbai: Himalya Publishing House, 2007. Kumar, S Ramesh. Consumer Behaviour and Branding: Concepts Reading and Cases. Noida: Dorling Kindersley (India) Pvt. Ltd. Licenses of Pearson Education in South Asia, 2009. Gupta, S.L. and Pal Sumitra. Consumer Behaviour: An Indian Perspective. New Delhi: Sultan Chand & Sons, 2001. Datta, Debraj and Datta Mahua. Consumer Behaviour & Advertising Management. Delhi: Vrinda Publications (P) Ltd., 2009. Acknowledgements: for images and advertisement frames Coca Cola, Bank of Baroda, Union Bank of India, Axe, Lux, Godrej, Ceat, Shoppers Stop pakalert.wordpress.com, vidsurf.net, psychol.ucl.ac.uk, encefalus.com, warezone.com,

For further details / comments : 

© Copyright 2010 Anupam Kumar 49 For further details / comments Contact: Anupam Kumar Reader, SMS Varanasi Email: anupamkr@gmail.com