C t p ha 4 r e Copyright © 2015 Pearson Education Chapter 4 Learning Objectives 4.1 To understand the elements of perception and their role in consumer behavior. 4.2 To understand why consumers process only a small amount of the information they receive. 4.3 To understand how consumers organize consumption-related information. 4.4 To understand why and how consumers “add” biases to stimuli and the implications of this tendency for marketing. Copyright © 2015 Pearson Education Slide 2 of 32 Chapter 4 Learning Objectives 4.5 To understand the elements of consumers’ imagery. 4.6 To understand how consumers determine the quality of products and services. 4.7 To understand consumers’ perceived risks and how they handle and reduce those risks. Copyright © 2015 Pearson Education Slide 3 of 32 d e n i f e D Perception The process by which individuals select, organize, and interpret stimuli into a meaningful and coherent picture of the world. It can be described as “how we see the world around us.” Copyright © 2015 Pearson Education Slide 4 of 32 Learning Objective 4.1 4.1 To understand the elements of perception and their role in consumer behavior. Copyright © 2015 Pearson Education Slide 5 of 32 d e n i f e D Sensation The immediate and direct response of the sensory organs to stimuli (units of input to the senses, as captured by the sensory receptors). Copyright © 2015 Pearson Education Slide 6 of 32 d e n i f e D Examples of Absolute Threshold: Vision - A candle flame 30 miles away. Hearing - A watch ticking 20 feet away. Smell - A drop of perfume in a 6-room house. Taste - A teaspoon of sugar in a gallon of water. Touch - A wing of a fly on your cheek, dropped 1 cm Copyright © 2015 Pearson Education Slide 7 of 32 Audio Sensory Input Copyright © 2015 Pearson Education Slide 8 of 32 Discussion Questions What is the difference between the absolute threshold and the differential threshold (JND)? Why do marketers care about sensory adaptation? Copyright © 2015 Pearson Education Slide 9 of 32 Gradual Changes in Brand Name: Copyright © 2015 Pearson Education Slide 10 of 32 d e n i f e D Ambush Marketing Placing ads in places where consumers do not expect to see them and cannot readily avoid them. Experiential Marketing Allows customers to engage and interact with offerings in sensory ways in order to create emotional bonds between consumers and marketing offerings Copyright © 2015 Pearson Education Slide 11 of 32 Discussion Question • How might a cereal manufacturer such as Kellogg’s use the j.n.d. for Frosted Flakes in terms of: – – – – Product decisions Packaging decisions Advertising decisions Sales promotion decisions Copyright © 2015 Pearson Education Slide 12 of 32 Subliminal Perception • What is subliminal perception? • Is it effective? Copyright © 2015 Pearson Education Slide 13 of 32 Subliminal Perception: Stimuli that are too weak to be consciously seen or heard. It occurs when a stimulus is below the level of consumer’s awareness. It is actually the “Minimum Stimulus” necessary to detect a particular stimulus. It is the perception of stimuli or message without awareness. Copyright © 2015 Pearson Education Slide 14 of 32 Meaning of Subliminal: Copyright © 2015 Pearson Education Slide 15 of 32 Auditory Subliminal Perception: Copyright © 2015 Pearson Education Slide 16 of 32 Visual Subliminal Perception: Called as “Priming”. Visual priming relies on visual stimulation without the use of other stimuli types, such as semantic or verbal. It refers to an increased sensitivity to certain stimuli, resulting from prior exposure to related visual or audio messages. For Example: When an individual is exposed to the word “cancer”, and then offered the choice to smoke a cigarette, we expect that there is a greater probability that they will choose not to smoke as a result of the earlier exposure. Subliminal priming occurs when an individual is exposed to stimuli below the threshold of perception. This process occurs outside the realm of consciousness and is different from memory which relies on direct retrieval of information. Copyright © 2015 Pearson Education Slide 17 of 32 Subliminal Messages: • Subliminal messages are visual or auditory stimuli that the conscious mind cannot perceive, often inserted into other media such as TV commercials or songs. • True subliminal messages cannot be observed or discovered by the conscious mind, even if you're actively looking for them. • It is below the threshold of conscious awareness. Copyright © 2015 Pearson Education Slide 18 of 32 Types of Subliminal Messages: Copyright © 2015 Pearson Education Slide 19 of 32 Our Subconscious Mind: Copyright © 2015 Pearson Education Slide 20 of 32 Our Subconscious Mind: Copyright © 2015 Pearson Education Slide 21 of 32 Why Subliminal Messages? Copyright © 2015 Pearson Education Slide 22 of 32 Effectiveness of Subliminal Messages: Copyright © 2015 Pearson Education Slide 23 of 32 Subliminal Advertising: • Advertising that uses images and sounds that the conscious mind is not aware of, in order to influence people and make them attracted to a product. • Although the term “subliminal” has been widely used for many years, it wasn’t until 1957 that the practice became known beyond scientific and academic circles, when Vance Packard’s book, The Hidden Persuaders, brought the concept of subliminal messages to the mainstream. Copyright © 2015 Pearson Education Slide 24 of 32 Is Subliminal Advertising Effective? • There is an ongoing debate among psychologists and advertising experts about the effectiveness of subliminal advertising. • The judge in the Judas Priest trial, for example, found that there was no evidence that subliminal messages could affect behavior. • Some studies do seem to show that embedded images do affect actions and behaviors. However, the effect only lasts a very short time, and even then, only marginally. While the jury is still out on their efficacy, that hasn’t stopped advertisers and corporations from trying to harness their potential power. Copyright © 2015 Pearson Education Slide 25 of 32 Some Common Examples: • Although the term “subliminal” has been widely used for many years, it wasn’t until 1957 that the practice became known beyond scientific and academic circles, when Vance Packard’s book, The Hidden Persuaders, brought the concept of subliminal messages to the main-stream. • The book detailed the results of a study that claimed Coca-Cola had used subliminal advertising in movie theaters to drive sales of sodas and popcorn at concession stands. • The study claimed that by splicing single frames of visual messages like “Buy Coca-Cola” and “Buy popcorn” into movie reels, sales of those products had increased by 57% and 18%, respectively. Copyright © 2015 Pearson Education Slide 26 of 32 James Vicary’s Experiment: Copyright © 2015 Pearson Education Slide 27 of 32 Example with reference to Politics: • During the bitter fight for the U.S. presidency between George W. Bush and Al Gore, Gore accused Republican campaign managers of including a subliminal message in an attack ad focusing on Gore’s proposed healthcare policies • Gore alleged that, in the video, the word “RATS” appears onscreen for a fraction of a second before the ad shows a visual featuring the word “Bureaucrats.” Personally, I think it’s impossible to miss, especially if you’re looking for it Copyright © 2015 Pearson Education Slide 28 of 32 Subliminal Message: Copyright © 2015 Pearson Education Slide 29 of 32 FEDEX’S LEGENDARY ARROW: • Federal Express (usually shortened to FedEx) is a worldwide delivery company based in Atlanta, Georgia. Their iconic logo is more than just a clear and legible spelling of their name – it includes a subtle arrow between the E and the X, indicating that they are raring to go! Copyright © 2015 Pearson Education Slide 30 of 32 AMAZON’S LOGO: • At first glance, the Amazon logo looks like it is underlined by a smile but look closer – the smile is actually a kind of arrow! The smile at the bottom of the ‘AMAZ’ includes an arrowhead, starting at the A and ending with the Z. This shows you that they sell everything you need, from A to Z. Copyright © 2015 Pearson Education Slide 31 of 32 COCA COLA’S SHAPELY BOTTLE: • The shape of the glass Coca Cola bottle is one of the most recognizable shapes on the planet, but many people believe that it is designed to look like a shapely woman. It certainly is curvy! Copyright © 2015 Pearson Education Slide 32 of 32 DISNEY AND PIRATES OF THE CARIBBEAN: • Despite its beginnings as ride at Disneyland, some people forget that Pirates of the Caribbean is a Disney franchise. The posters for these films wants to help you remember! The skull of Captain Jack Sparrow has 2 torches behind it, reminiscent of the head of Mickey Mouse. This image was hugely popular and was featured on posters and t-shirts – a clear example of how subliminal advertising can even end up being used for fabric printing. Copyright © 2015 Pearson Education Slide 33 of 32 TOYOTA LOGO: • Looking at the Toyota logo, you can see that it is made up of different letters that make up the word itself. This helps to reinforce and remind viewers of their brand. Copyright © 2015 Pearson Education Slide 34 of 32 BASKIN ROBBINS’31 Flavors: • This logo design is actually quite brilliant – the number 31 is slyly included in the initials B and R. Seeing as Baskin Robbins is famous for their 31 flavors of ice cream, this is a great way to get customers to crave their product! Copyright © 2015 Pearson Education Slide 35 of 32 TOSTITOS WANTS YOU TO SHARE WITH FRIENDS: • This brand of tortilla chips may be relatively new to the UK, but they sure know how to make their brand seem fun and friendly. Look at the letters T, I and T in the center of their logo – they form a pair of friends, bonding over a bowl of chips and salsa. Copyright © 2015 Pearson Education Slide 36 of 32 Toblerone: • Hidden within the Toblerone logo is the image of a bear standing on its hind legs. Don’t see it? Take a close look at the mountain. The bear is closely associated with Bern, Switzerland (where the company was originally formed), as well as the Swiss Mountains. The word “Bern” is also hidden within “Toblerone”. Copyright © 2015 Pearson Education Slide 37 of 32 Unilever’s Logo: • Unilever’s logo was designed to include a little bit of everything. The British-Dutch company included “a spoon, an ice cream, a jar, a tea leaf, a hand and much more” in their logo design—all of which reflect the essence of their brand. According to their website, each part of the “U” has its own meaning and is a visual expression of “making sustainable living commonplace. Copyright © 2015 Pearson Education Slide 38 of 32 Conclusion : The main purpose is to induce people’s behavior through unconscious perception. There is no conclusive research evidence that subliminal stimulation & advertising works. Some research results did not support the notion that subliminal perception can persuade consumers to act in a given manner. Most researchers are of the view that “What You See is What You Get”. Copyright © 2015 Pearson Education Slide 39 of 32 Learning Objective 4.2 4.2 To understand why consumers process only a small amount of the information they receive. Copyright © 2015 Pearson Education Slide 40 of 32 The Stimulus • Contrast • Shocking or unrealistic images Copyright © 2015 Pearson Education Slide 41 of 32 Discussion Questions • What marketing stimuli do you remember from your day so far? • Why do you think you selected these stimuli to perceive and remember? Copyright © 2015 Pearson Education Slide 42 of 32 Perceptions are affected by… • Expectations • Motives • Selective Perception – – – – Selective Exposure Selective Attention Perceptual Defense Perceptual Blocking Copyright © 2015 Pearson Education Slide 43 of 32 Learning Objective 4.3 4.3 To understand how consumers organize consumption-related information. Copyright © 2015 Pearson Education Slide 44 of 32 Perceptual Organization • • • • Gestalt psychology Figure and ground Grouping Closure Copyright © 2015 Pearson Education Slide 45 of 32 Perceptual Organization Application What Element of Perceptual Organization Is Featured in This Ad? Copyright © 2015 Pearson Education Slide 46 of 32 Learning Objective 4.4 4.4 To understand why and how consumers “add” biases to stimuli and the implications of this tendency for marketing. Copyright © 2015 Pearson Education Slide 47 of 32 Perceptual Interpretation • Stereotyping • Triggers – – – – Physical appearance Descriptive terms First impressions Halo Effect Copyright © 2015 Pearson Education Slide 48 of 32 How Does This Ad Depict Perceptual Interpretation? Copyright © 2015 Pearson Education Slide 49 of 32 Learning Objective 4.5 4.5 To understand the elements of consumers’ imagery. Copyright © 2015 Pearson Education Slide 50 of 32 Brand Image • • • • Positioning Brand image updates Package image Service image Copyright © 2015 Pearson Education Slide 51 of 32 Perceived Price Copyright © 2015 Pearson Education Slide 52 of 32 Learning Objective 4.6 4.6 To understand how consumers determine the quality of products and services. Copyright © 2015 Pearson Education Slide 53 of 32 Quality • Product quality – Intrinsic cues – Extrinsic cues • • • • Service quality Price/quality relationship Store image Manufacturer image Copyright © 2015 Pearson Education Slide 54 of 32 Discussion Question Provide an example where a viral message impacted consumer perceptions of a company’s image. In your opinion, how did the viral message affect consumer perceptions of the quality of the product or service provided by the company? Copyright © 2015 Pearson Education Slide 55 of 32 Learning Objective 4.7 4.7 To understand consumers’ perceived risks and how they handle and reduce those risks. Copyright © 2015 Pearson Education Slide 56 of 32 Perceived Risk The degree of uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision Copyright © 2015 Pearson Education Slide 57 of 32 How Consumers Handle Risk Copyright © 2015 Pearson Education Slide 58 of 32 Discussion Question Think of a recent purchase that you considered risky. What type(s) of risk was (were) involved? How did you handle the risk? Explain. Copyright © 2015 Pearson Education Slide 59 of 32 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2015 Pearson Education, Inc. Copyright © 2015 Pearson Education Slide 60 of 32