Consumer Behavior,
9th Edition
Chapter 6
Consumer Perception
What do you see?
What do you see now?
What colour comes to mind?
What’s in the picture?
So….what then is perception?
• The process by which an individual selects,
organizes, and interprets stimuli into a
meaningful and coherent picture of the
• How we see the world around us
Elements of Perception
Absolute threshold
Differential threshold
Subliminal perception
The immediate and direct
response of the sensory
organs to stimuli.
A perfectly unchanging
environment provides little
to no sensation at all!
As sensory input decreases,
our ability to detect
changes in input or
intensity increases.
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
Sensory Adaptation
• As our exposure to stimulus increases, we
notice it less.
• Factors leading to adaptation:
– Intensity, duration, discrimination, exposure,
• Promotional methods aimed at increasing
sensory input:
– Experiential marketing, Sophisticated scented ads,
inserts and pop-ups, ambush advertising, Product
Increased Sensory Input increased intensity
Increased Sensory Input
3D/digital billboard
Stimulus Factors
• Size
• Isolation
• Intensity
• Format
• Attractive visuals
• Contrast & expectations
• Color and movement
• Remarkability
• Position
• Information Quantity
Differential Threshold
The minimal
differences that can
be detected
between two
similar stimuli
A theory concerning the
perceived differentiation
between similar stimuli of
varying intensities (i.e., the
stronger the initial stimulus,
the greater the additional
intensity needed for the
second stimulus to be
perceived as different).
Marketing Applications
of the JND
• Need to determine the relevant 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
Betty Crocker Changes Fall Below the J.N.D.
Changes in Brand
Name Fall Below the
Perception of very
weak or rapid stimuli
received below the
level of conscious
Subliminal Perception
• 1957: Drive-In Movie Theater
• 1974: Publication of Subliminal Seduction
• 1990s: Allegations against Disney
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
Aspects of Perception
Perceptual Selection
• People receive only a small fraction of the
stimuli to which they are exposed.
• Depends on two major factors
– Consumers’ previous experience
– Consumers’ motives
Concepts Concerning Selective Perception
Selective Exposure
Selective Attention
Perceptual Defense
Perceptual Blocking
Principles of Perceptual Organization
• Referred as Gestalt psychology
– Figure and ground
– Grouping
– Closure
Influences of Perceptual Distortion
• Stereotypes
– Physical Appearances
– Descriptive Terms
– First Impressions
– Jumping to Conclusions
– Halo Effect……………………….
The iPod has had positive effects on
perceptions of Apple's other products
“Safed Teeka”
Use of cultural habits to formulate imagery involving steriotypes
associated with product category
Issues In Consumer Imagery
Product Positioning and Repositioning
Positioning of Services
Perceived Price
Perceived Quality
Retail Store Image
Manufacturer Image
Perceived Risk
Using Imagery
Positioning & Repositioning
• Establishing a specific image
for a brand in relation to
competing brands.
• Involves changing the
identity of the product
relative to the identity of the
competing brands in the
collective minds of the
target market
• If a brand does not
reposition at the right time ,
it may not get a second
Repositioning of Cadbury Dairy
• “Kid in all of us”
• “Spontaneous Joy”– (girl dancing in the cricket field)
• “Real Taste of Life”– A girl is shown breaking the security barriers and entering thecricket
field to celebrate the victory of the country in the crickedmatch under
the tag line “Kuch Khaas Hai Zindagi mein”. Thiscampaign went on to
be awarded The Campaign of theCentury, in India at the Abby (Ad
Club, Mumbai) awards.
Different Ad Campaigns by
Cadbury Dairy Milk
“Khaane Waalon Ko Khaane Ka Bahana Chahiye”
“Kuch Meetha Ho jaye”
“Pappu Paas Ho gaya”
“Radha Miss Palampur ban gaye “
“Meetha hai Khaana aaj pehli tarrekh hai”
“Is Diwali aap kise khush kar rahe hain”
– Sister tying rakhi to her brother and receiving a box of chocolates in
• “Shubh Aaarambh”
Positioning Techniques
• Umbrella
• Positioning Against •
• Positioning Based •
on a Specific Benefit
Conveying a Product
Taking an Unowned
Positioning for
Several Positions
Apple’s 1984 Ad Positions Against
the Competition
Click icon to reach ad
A research technique
that enables
marketers to plot
concerning product
attributes of specific
Perceptual Mapping
Perceptual Mapping
Pricing Strategies Focused on
Perceived Value
• Satisfaction-based Pricing
• Relationship Pricing
• Efficiency Pricing
Issues in Perceived Price
• Reference prices
– Internal
– External
• Tensile and objective price claims
Acquisition-Transaction Utility
• Transaction utility
• Acquisition utility
concerns the perceived
represents the
pleasure or displeasure
consumer’s perceived
associated with the
economic gain or loss
financial aspect of the
associated with the
• Determined by the
• Function of product
difference between the
utility and purchase
internal reference price
and the purchase price
Tensile and Objective
Price Claims
• Evaluations least
favorable for ads stating
the minimum discount
• Ads stating maximum
discount levels are better
than stating a range
Perceived Quality
• Perceived Quality of Products
– Intrinsic vs. Extrinsic Cues
• Perceived Quality of Services
• Price/Quality Relationship
The perception of
price as an indicator
of product quality
(e.g., the higher the
price, the higher the
perceived quality of
the product).
Perceived Risk
The degree of
perceived by the
consumer as to the
of a specific
purchase decision.
• Functional Risk
• Physical Risk
• Financial Risk
• Psychological Risk
• Time Risk
• Social 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