Manipulating Perceptions of Price and Value Perception and Consumer Behaviour TWO DEFINITIONS OF PERCEPTION: "A complex process by which people select, organize and interpret sensory stimulation into a meaningful picture of the world." R. J. Markin, (1974) Consumer Behaviour. New York: Macmillan. "The process by which an individual selects, organizes and interprets stimuli into a meaningful and coherant picture of the world." L. G. Schiffman, and L. L. Kanuk. (1978) Consumer Behaviour. Prentice-Hall. STIMULI AND SENSORY RECEPTION • Sensory Inputs • Sensory Receptors The Process of Perception Horizontal-Vertical Illusion Which line is longer? ILLUSIONS IN MARKETING • • • • • a) SIZE: b) QUALITY: c) QUALITY AND SIZE: d) COLOUR: e) PRICE PERCEPTION: AWARENESS AND PERCEPTION • ABSOLUTE THRESHOLD • THE DIFFERENTIAL THRESHOLD: (OR THE JND - THE 'JUST NOTICEABLE DIFFERENCE' • WEBERS LAW • USE OF WEBERS LAW IN MARKETING AND CONSUMER RESEARCH • OTHER MARKETING APPLICATIONS OF THE 'J.N.D.' PRINCIPLE Sensory Thresholds Absolute Threshold The minimum amount of stimulation that can be detected on a sensory channel. JND: ‘Just Noticeable Difference’ Weber’s Law Differential Threshold The ability of a person’s sensory system to detect changes or differences between two stimuli. Sequential changes in the ‘Betty Crocker’ symbol apparently fall below the JND Stimulus Generalization/Perceptual Confusion Health Warnings SUBLIMINAL PERCEPTION • J. K. Adams, (1957) "Laboratory Studies of Behaviour Without Awareness." Psychological Bulletin, 54, pp. 383-405. • Timothy E. Moore, (1982) "Subliminal Advertising: What You See Is What You Get." Journal of Marketing, 46, Spring, pp. 38-47. • Del Hawkins, (1970) "The Effects of Subliminal Stimulation on Drive Level and Brand Preference." Journal of Marketing Research, 7, Aug., pp. 322-326. Amstel Lager Tennents Lager 1 Tennents Lager 2 MARKETING STIMULI TECHNIQUES • 1: CONTRAST: • (See): Bernard Berelson and Gary A Steiner, (1964) "Human Behaviour: An Inventory of Scientific Findings." New York: Harcourt, Brace & World, p. 95. • NOISE CONTRASTS IN T.V. COMMERCIALS: • (See e.g.): John Koten, (1984) "To Grab Viewers' Attention, T.V Ads Aim for the Eardrum." The Wall Street Journal, 26, p. 33. • 2: EXPECTATIONS • 3: INTENSITY AND SIZE: • 4: POSITION: J Yamanaka (1962) "The Production of Advertising Readership Scores." Journal of Advertising Research, p. 2. (See): Media/Scope. (1964) How Important is Position in Consumer Magazine Advertising?" June. • 5: MOVEMENT: • 6: REPETITION: Perceptual Set and Context • What you see in the centre figures depends on the order in which you look at the figures. – If you scan from the left, see an old woman. If you scan from the right, see a woman’s figure • We use other cues in the situation to resolve ambiguities • Is this the letter B or the number 13? • PERCEPTUAL BLOCKING: • GROUPING AND CLOSURE: The Closure Principle “Schhhhh . . . . . You know who.” The Principle of Closure BRAND IMAGE PERCEPTIONS OF BRAND IMAGE AND QUALITY • Makens (1965) • Brown (1958) Marlboro Cigarette Ads Perceptual Mapping Perceptual Mapping is a tool for visually depicting and determining consumers’ perceptions of a product in the marketplace and their prioritizing and differentiating of different brands and their attributes in that marketplace . Mapping is typically based on axes representing dimensions that are believed to be important to consumers. Average Rating Snake Plot of Brand Ratings 1 1: 2: 3: 4: 5: 6: 7: 8: 9: 10: 11: 12: 13: 14: 15: Design Stylish Comfortable Fashionable I feel Good Ideal Swimming Designer Label Easy to Swim In Style Appearance Comfortable to Swim Desirable A Look I like Like the Colours Functional 2 3 4 5 Aqualine Sunflare Islands AR PERCEPTUAL MAP OF SWIMSUIT BRANDS Comfort Aqualine Islands Gap 1 Molokai Fashion Splash Sunflare Gap 2 Positioning Map: Fast Food Restaurants Source: adapted from James H. Myers.Segmentation and Positioning for Strategic Marketing Decisions (American Marketing Association,Chicago, 1996), S. 187 Perceptual Map of U.S.A. Beer Market (Products and Attributes) Heavy Heavy • Budweiser Full Bodied Old Milwaukee • Meister Brau • Good Value Miller • Popular with Men Beck’s • Stroh’s Budget • Heineken Special Occasions • Coors Blue Collar • Dining Out Premium Premium • Michelob • On a Budget • Pale Color Old Milwaukee Light Light Miller Lite Light • Coors Light Less Filling Popular with Women Consumer Perceptions of Food Risks FAMILIAR Salmonella Saturated Fats Sugar C Botulinum NOT DREADED DREADED Colouring Organic Produce BSE Pesticide Residue Hormone Residue Nitrates Genetically Altered Foods UNFAMILIAR (Fife-Schaw and Rowe, 2000) Banner Types - Non-Picture Banners Banner Types - Lottery / Game Banners Movement – Shaking Banners Flashing vs. Non-Flashing CTA eHome Copy Comparison (2938 Bytes) CTR = 0.33% (303:1) (3668 Bytes) CTR = 0.06% (1667:1) Banner Syle and Format Test 2: CTR = 3.03% (33:1) 3: CTR = 2.52% (40:1) 4: CTR = 2.20% (45:1) 5: CTR = 2.16% (46:1) 1: CTR = 1.55% (64:1) 6: CTR = 1.43% (70:1) Basic Eye Manipulation to the CTA Involvement - Eye Manipulation to CTA Involvement - Eye Manipulation to CTA (Poor Examples) Visual - Attention Grabbing Visual Visual - ‘Click Here’ Strategy Elementary Copy Errors - Poor Colour Contrast Better Colour Contrast Additional Materials Gestalt Organizational Principles Sensation and Perception • Sensation: – The immediate response of our sensory receptors (eyes, ears, nose, mouth, fingers) to basic stimuli such as light, color, sound, odors, and textures • Perception: – The process by which sensations are selected, organized, and interpreted • The Study of Perception: – Focuses on what we add to raw sensations to give them meaning Sensory Systems • External stimuli, or sensory inputs, can be received on a number of different channels. • Inputs picked up by our five senses are the raw data that begin the perceptual process. • Hedonic Consumption: – The multisensory, fantasy, and emotional aspects of consumers’ interactions with products Attention Attention: extent to which processing activity is devoted to a particular stimulus • Competition for our attention – 3,500 ad info pieces per day – Sensory overload: consumers exposed to far more information than they can process • Younger consumers can multitask—process information from more than one medium at a time • Marketers need to break through the clutter Prentice-Hall, cr 2009 2-47 Attention to Stimuli • Interpretation: – The meaning that we assign sensory stimuli. • Schema: – Set of beliefs to which the stimulus is assigned. • Priming: – Process by which certain properties of a stimulus typically will evoke a schema, which leads consumers to evaluate the stimulus in terms of other stimulus they have encountered and believe to be similar. Attention • Attention: – The extent to which processing activity is devoted to a particular stimulus. • Attention economy: – The Internet has transformed the focus of marketers from attracting dollars to attracting eyeballs. • Perceptual selection: – People attend to only a small portion of the stimuli to which they are exposed. Selection • Selective attention: filtering out and attending only to important sensory messages. • Feature detectors: specialized cells in the brain that respond only to certain sensory information • Habituation: tendency of the brain to ignore environmental factors that remain constant Personal Selection Factors • Experience: – The result of acquiring and processing stimulation over time • Perceptual vigilance: – Consumers are aware of stimuli that relate to their current needs • Perceptual defense: – People see what they want to see - and don’t see what they don’t want to see • Adaptation: – The degree to which consumers continue to notice a stimulus over time Personal Selection (cont.) • Perceptual vigilance: consumers are more likely to be aware of stimuli that relate to their current needs – Example: you’re in the market for a car—so you tend to notice car ads more than before • Perceptual defense: people see what they want to see—and don’t see what they don’t want to see – Example: heavy smoker may block out images of cancer-scarred lungs 2-52 Stimulus Selection Factors • Size: – The size of the stimulus itself in contrast to the competition helps to determine if it will command attention. • Color: – Color is a powerful way to draw attention to a product. • Position: – Stimuli that are present in places we’re more likely to look stand a better chance of being noticed. • Novelty: – Stimuli that appear in unexpected ways or places tend to grab our attention. Advertisements Appeal to Our Sensory Systems • This ad for a luxury car emphasizes the contribution made by all of our senses to the evaluation of a driving experience. Barriers to Successful Risk Communication • Optimistic bias – I am less at risk form a specific hazard than a comparative other – I also have more knowledge and more control about the hazard • Habitual behaviour – (where an individual behaves in a set pattern without conscious deliberation). • These effects are most prominent in lifestyle or frequently repeated behaviour (Fischer & De Vries, submitted) Optimistic Bias - Risk Ratings Alcohol Fat Food poisoning (home) Food poisoning (outside) Pesticides Microwave ovens Irradiation GM animal GM micro-organisms GM plants 0 Frewer, Shepherd & Sparks (1994) 10 20 30 society 40 50 60 other people 70 80 90 100 personal