Chapter 6 Consumer Perception
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Chapter 6
Consumer Perception
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PerceptionPerception
The process by which anindividual:
SELECTS ,
ORGANIZES ,
and
INTERPRETS STIMULI
into a meaningful andcoherent picture of theworld.
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Elements of Perception• Some basic concepts relating to
PERCEPTUAL PROCESS (within theframe-work of Consumer Behavior)– Sensation– The absolute threshold– The differential threshold
– Subliminal perception
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Elements of Perception– Sensation– The absolute threshold– The differential threshold– Subliminal perception
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SensationSensation
•The immediate & directresponse of sensory organs to
stimuli (e.g. advertisements / packaging / brand name)
•Stimulus = any unit of inputto any of the senses
•Sensory receptors = eyes, ears,nose, mouth, & skin
•An unchanging environmentprovides little or no sensationat all
•E.g. effect of honking inBangalore
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Elements of Perception– Sensation– The absolute threshold– The differential threshold– Subliminal perception
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AbsoluteAbsoluteThresholdThreshold
•The lowest level at which anindividual can experience a
sensation•In other words, it is the “point”
at which a person can detect adifference between “something”and “nothing”- this is thatperson’s absolute threshold forthat stimulus
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“G tti d t ” t i ti
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SensorySensory
AdaptationAdaptation
•“Getting used to” certain sensations;becoming accommodated to a certainlevel of stimulation
•For advertisers sensory adaptation
concept is very important- i.e.consumer gets “used to “ an advt.and hence, the advt. will no longer
provide sufficient sensory input to benoted. That explains the need tochange the advts. Frequently
•Analogy : “getting used” to a hotbath / cold bath / bright sun – after
the initial response the individualgets conditioned to the stimulus andhence no further res onse is elicited
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SensorySensory
AdaptationAdaptation
•Marketers have two options to overcome“advertisement clutter”, either by :
•Increasing the sensory inpu t byflooding consumers with a plethora of ads (e.g Advertisement of Colgate
Toothpaste on Mumbai’s local trains) –the exposure is so high that a person hasto be blind if she/he has to miss the ad•Decreasing the sensory input usingunexpected “features” (e.g. using“silence” for TV ads – the absence of music or audio effects) to gain attention•Marketers seek unusual media to attainthe “Absolute Threshold”
•E.g. Mailing perfume samples, balloon
advertsements, using elephants to promoteHERO (cigarette brand) in rural areas, etc.
Increasing the
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Increasing theSensory Input
(example)
The ad depicts
the use of aplethora of ads
for increasedsensory input
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Decreasing the Sensory Input (example)
ONIDA HAS WASHED THE
NATION CLEAN
AIRTEL
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Elements of Perception– Sensation– The absolute threshold– The differential threshold– Subliminal perception
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DifferentialDifferential
ThresholdThreshold
•The minimal difference
that can be detectedbetween two similar
stimuli.
•Also known as the j.n.d.(just noticeable difference) .
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WeberWeber ’’s Laws Law
A theory concerning theperceived differentiation
between similar stimuli of varying intensities (i.e., the
stronger the initialstimulus, the greater theadditional intensity neededfor the second stimulus tobe perceived as different).
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WeberWeber ’’s Laws Law
(Example)(Example)
•If the price of a SkodaOctavia is increased by Rs.1000/-, it may not havemuch of an impact (i.e. theincrement would fall belowthe j.n.d.)
•But, if the price of petrol is
increased by Rs. 10/- it willhave a tremendous impact (because it is a significant %
of the base cost of petrol)
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WeberWeber ’’s Laws Law
(A Paradox)(A Paradox)
•Company X has a hair dyethat’s positioned as “Lastslonger”•Competing brands offerlasting duration of 15 days•If Company X offers 40 days,then repeat purchase rate willreduce•If company X offers 12 days,then “lasts longer” perception
won’t last long•But, if Company X offers 18days, then consumers may
notice the difference withcompeting brands
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Marketing Applications of the JND
• Need to determine the relevant j.n.d. for their products– so that Negative Changes
(reduction in product size, increasein product price etc.) are notreadily discernible to the public
(i.e. keeping such negative changesbelow the j.n.d.) e.g. web transaction fee
– So that Positive Changes (product
improvements like lower price,increased quantity etc.) becomeapparent to the consumers without
being extravagant (i.e. keeping thePositive changes at the j.n.d. level)
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Marketing Applications of the JND
Anything below the j.n.d. is wasted effort
Anything above the j.n.d. is extravagant& wasteful
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Application of j.n.d.
•Marketers often want to update their symbolswithout losing the ready recognition of consumers who have been exposed to years of cumulative advertising impact
•In such cases, they usually make a number of small changes, each carefully designed to fall
below the j.n.d., so that consumers will perceiveminimal difference between succeeding versions
Application of j n d (example 1)
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Application of j.n.d. (example 1)
Betty Crocker, the General Mills symbol, has beenupdated seven times from 1936 to 1996
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Application of j n d
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Application of j.n.d.(example 2)
•LEXMARKbought the office
supplies & eqpt.line from IBM inMarch’91 &agreed torelinquish IBM
name by ’96•Accomplished in a
4-stage process
Application of j n d
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Application of j.n.d.(example 2)
TransitionComplete :
LEXMARKstands alone
Application of j n d (example 3)
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Application of j.n.d. (example 3)
Application of j n d (example 3)
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Application of j.n.d. (example 3)
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Elements of Perception– Sensation
– The absolute threshold– The differential threshold
– Subliminal perception
P l i ti li
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SubliminalSubliminal
PerceptionPerception
•People can perceive stimuliwithout being consciouslyaware that they are doing so
•Perception of very weakor rapid stimuli receivedbelow the level of conscious
awareness
•Stimuli that are too weak ortoo brief to be consciously seenor heard may nevertheless be
strong enough to be perceivedby one or more receptor cells
Case of the 1950’s
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• Widely reported that consumers were being exposed to
subliminal ad messages they were not aware of receiving• These messages were meant to persuade products
indirectly• In 1957, an experiment was conducted in New Jersey,
USA in a movie theater
• Messages like ‘Eat Popcorn’ & ‘Drink Cola’ wereflashed on-screen : these messages had very shortexposure time and viewers were unaware of having seen
an ad• In a span of 6 weeks popcorn sales went up by 58% and
Coke sales went up by 18% - thereby confirming thepotency of subliminal perception as an advertisingconce t!
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• However, there is a debate on using subliminal
perception as an advertising tool because they make theconsumers make unconscious acts of purchase
• The debate on whether to ban subliminal perception asan advertising tool still rages on in the USA……..
Dynamics of Perception
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•Perception study is a study of what we subconsciously addto OR subtract from raw sensory inputs to produce ourown private picture of the world•Perception is not a function of sensory inputs alone, BUT
Perception = f(2 different types of inputs that interactto form the personal picture that each individualexperiences)
•Type 1 : physical stimuli from outside environment•Type 2 : in the form of certain predispositions(expectations, motives & learning) based on previous
experience•Hence, perceptions are unique:
•E.g. “Only 2% people in Africa wear shoes” wasperceived as a weakness by many but for Mr. Bataperceived this as an opportunity !
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Aspects of Perception
Selection Organization
Interpretation
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Selection
Perceptual Selection
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• Consumers subconsciously exercise a great deal of
selectivity as to which aspects of the environment (i.e.which stimulus) they perceive– Example : A woman in a supermarket is exposed to
thousands of stimuli:• different number of products of different colors, sizes etc.
• different number of people (looking, walking, searching,
talking etc.)• different smells (fruits, perfumes, disinfectants, etc.)
• different sounds (A/C, talking, etc.)
– Yet, she manages to select the items she needs, pay for themand leave the place, all within a short period of time –HOW?
• Because of her SELECTIVITY IN PERCEPTION!
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Which stimuli gets selected?
• Depends on two majorfactors– Consumers’ previous
experience (affects theirexpectations)– Consumers’ motives at
that time (their needs,desires etc.)
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Some Marketing Variables InfluencingConsumer Perception
• Nature of Product• Physical Attributes of Product• Package Design
• Brand Name• Advertisements &
Commercials• Position of Ad• Editorial Environment
Nature of the Stimulus
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Nature of the Stimulus
• Marketing Stimuli include severalvariables that affect consumer’sperception (package, brand name, adsetc.)
• Marketers often use “CONTRAST”as a differentiator in the clutter of ads
• E.g. Hutch ads – just the word ”Hi”
printed at the top of the page
Application of
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Contrast
An illustration of the attention-
getting nature of adramatic product
in an ad
Dramatic Images& Contrast
Attract Attention
Application of
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Contrast
Attention-getting natureof white space
in
advertisements
Expectations
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Expectations
• People usually see what they expect to see
• What they expect to see = f( familiarity,previous experience, expectations)
• E.g. : If a person’s friend tells him that“Yellow Fields food” is bad, he may also feel
the same after eating - not because the foodis bad but maybe he perceives that it will bebad
Application of“E i ”
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“Expectation”
Stimuli thatconflict sharply
with expectationsreceive more
attention
The UnexpectedAttracts Attention
Unexpected
Application of“U d”
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“Unexpected”
The UnexpectedAttracts Attention
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Concepts Concerning SelectivePerception
• Selective Exposure• Selective Attention
• Perceptual Defense• Perceptual Blocking
•Consumers seek out
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Selective
Exposure
Consumers seek outmessages that they findpleasant andpurposefully avoid
painful or threateningmessages (e.g. greyinghair, decaying teeth etc.)
•They also selectively
expose themselves to adsthat reassure them of thewisdom of their purchasebehavior
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Selective
Attention
•Consumers display a greatdeal of selectivity in terms of attention they give tocommercial stimuli
•E.g. some give more attentionto pricing, some give moreattention to appearance, etc.
•Consumers subconsciously
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Perceptual
Defense
Consumers subconsciouslyscreen out stimuli that theyfind psychologicallythreatening
•E.g. a smoker will blockout stimuli that carries themessage that “smokingcauses cancer”
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Perceptual
Blocking
•Consumers block out stimuli
from conscious awareness
•E.g. Zapping of TVcommercials with remote
control
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Organization
Principles of Perceptual Organization
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• People don’t experience the numerous stimuli asseparate and discrete sensations– They tend to organize them into groups and perceive
them as unified wholes
• The specific principles underlying perceptual
organizations are called GESTALT PSYCHOLOGY• 3 most basic principles of perceptual organization:
– Figure and ground– Grouping– Closure
• Zeigernik effect
C t t th
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FigureFigure&&
GroundGround
•Concentrates on the
background &foreground of admessages
•E.g Advertisersneed to be carefuland ensure thatmusic(background)never becomesmore than the
voice (foreground)
Application ofFigure & Ground
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Figure & Ground
Print advertisersoften silhouette
their productsagainst a whitebackground to
make sure that thefeatures they want
are noted clearlyperceived
•Individuals tend to groupstimuli so that they form a
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GroupingGrouping
stimuli so that they form a
unified picture / impression•Marketers use this conceptextensively:
•An ad for a tea brand,showing a man & womansipping tea in front of afireplace in a tastefullydecorated room•The overall mood implied bythe Grouping of stimuli leadsthe consumer to associate
drinking of tea with romance,fine living and warmth
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Classic Example of Closure
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ClosureClosure
• A video on TV showingbacon frying in an iron potand a voice-over in cowboyaccent with a soft cowboysong as a backdrop
• After 24 hours,telephone surveys indicatedthat people remembered
much more from the video –horses standing in thebackground and the flamesreflecting on the faces of thecowboys !!!
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ZeigernikZeigernik
EffectEffect
A person beginning a task
needs to complete it. Whenhe or she is prevented fromdoing so, a state of tensionis created that manifests
itself in improved memory
for the incomplete task.
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ImplicationsImplicationsof Closureof Closure
(failed love story!!)(failed love story!!)
Marketing Implication forClosure
Incomplete ad messages“BEG” for completion byconsumers – this involvesthem more deeply into themessage, thereby leading togreater degree of recall
Application ofClosure
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Using the need forCLOSURE to
increase attention
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Interpretation
•Interpretation is “uniquely
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InterpretationInterpretation
p q y
individual”
•Since stimuli is often highly
ambiguous (brief burst of noise, etc.), it leads toindividual interpretation
•This is what forms the basisfor projective techniques ( likeincomplete sentences, captioncontests etc.) for Consumer
Research
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Distorting Influences• Physical Appearances
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y pp
– Selection of models become important for persuasiveness• E.g. Sachin for “Boost” & Aishwarya for “Lux”
• Stereotypes– Individuals tend to carry “pictures” in their minds of the
meanings of various kinds of stimuli (i.e. expectations of
what specific situations, people and events will be like)• E.g. T-Series cassettes are always perceived as “pirated”
stuff
• Irrelevant Cues– Consumers often respond to irrelevant cues
• E.g. A person may buy a Skoda based on the luxury optionsrather than on the technical superiority
Distorting InfluencesFi I i
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• First Impression– “You never get a second chance for a first
impression” - i.e. first impressions are long-
lasting!• Jumping to Conclusions
– Many people jump to conclusions withoutseeing the whole thing (form opinionsbeforehand)
– Hence, for such persons – advertisers givetheir most persuasive arguments first
Distorting InfluencesH l Eff
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• Halo Effect– Evaluation of an object on a multitude of
dimensions is based on the evaluation of just one
or a few dimensions• E.g. “A man is considered trustworthy because he
looks in the eye and speaks”
– Marketing Implication: Marketers take advantageof the Halo Effect when they extend a brand nameassociated with one product line to another
– E.g. “Reliance Infocomm” from the Reliancestable !!!
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CONSUMER IMAGERY
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ConsumerConsumer
ImageryImagery
•Products and brands have
symbolic value forindividuals, who evaluatethem on the basis of theirconsistency with theirpersonal pictures of
themselves
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ConsumerConsumer
ImageryImagery
Using Imagery to conveya product benefit
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The ad uses thesymbolism of a
widely recognizedlandmark, as a
negative goal, topromote thebenefits of a
calciumsupplement
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Issues In Consumer Imagery
• Product Positioning and Repositioning• Positioning of Services• Perceived Price
• Perceived Quality• Retail Store Image• Manufacturers Image• Perceived Risk
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PositioningPositioning
Establishing a specificimage for a brand in
relation to competingbrands.
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RepositioningRepositioning
Changing the way aproduct is perceived byconsumers in relation toother brands or product
uses.
Repositioning
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In the renewedemphasis on home &
hearth that followedthe tragedy of 9/11,
Berkshire repositionedits blankets as a cozy
nesting place
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Issues in Perceived Price
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Issues in Perceived Price
• Reference prices• Tensile and objective price claims
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ReferenceReference
PricePrice
•Any price that a consumeruses as a basis for
comparison in judginganother price
•Two kinds of referenceprices exist – External &Internal
Reference Prices
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Reference Prices
• External Reference Price– e.g. - a dealer claims : “elsewhere this same
product is sold for Rs.100 whereas I amselling for Rs. 75”
• Internal Reference Price
– e.g. - Consumer says “I saw the other dealerselling this same product for Rs. 75”
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Tensile and Objective Price Claims(contd.)
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• Objective Price Claims :• Such claims are used to promote
a single discount
• Important : Research shows that
Tensile & Objective Price claimshave greater effect on consumershopping than a reference priceadvertisement
Perceived Quality
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Q y
• Perceived Quality of Products– Intrinsic vs. Extrinsic Cues
• Perceived Quality of Services
• Price/Quality Relationship
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Intrinsic CuesIntrinsic Cues
Physical characteristics of the product (such as size,color, flavor, or aroma)
that serve to influence theconsumer’s perceptions of product quality.
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ExtrinsicExtrinsic
CuesCues
Cues external to the
product (such as price,store image, or brandimage) that serve to
influence the consumer’sperception of a product’s
quality.
Characteristics of Services
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• Intangible• Variable• Perishable
• SimultaneouslyProduced andConsumed
Perceived Quality of Services
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• More difficult for consumers to evaluate the qualityof services than the quality of products. This isbecause services are intangible / variable / perishable
/ simultaneously produced and consumed
• Some researchers believe that consumer’s evaluationof service quality = f (magnitude and gap betweencustomer’s expectations of service and his perceptionof the service actually delivered)
Quality of Service
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An ad centeredaround customer
expectations
Brussels Airlines
Conceptual Model of the Behavioral &Financial Consequences of Service Quality
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Superior
Inferior
Favorable
Unfavorable
Remain
Defect
+Rs.•Ongoing Revenue•Increased Spending•Price Premium
•Referred CustomersFinancial
Consequences-Rs.
•Decreased Spending•Lost Customers•Costs to AttractNew Customers
Service
Quality
Behavioral
Intentions
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Price/QualityPrice/Quality
RelationshipRelationship
The perception of price as
an indicator of productquality (e.g., the higher the
price, the higher theperceived quality of theproduct).
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Types of Perceived Risk
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• Functional Risk
• Physical Risk• Financial Risk• Social Risk• Psychological Risk• Time Risk
Types of Perceived Risk
F i l Ri k Th d f
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• Functional Risk : The product may not perform asexpected or claimed (e.g. “Will I really get 100Km/Litre if I buy a TVS Centra?”)
• Physical Risk : The risk to self and others that theproduct may pose (e.g. “Is using a mobile phone
really safe?”)• Financial Risk : The risk that the product will not
be worth its price (e.g. “If I purchase a PC for Rs.40,000 today, will it become obsolete in the next oneyear?”)
S i l Ri k
Types of Perceived Risk (contd.)
Th i k th t th d t h i
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• Social Risk : The risk that the product choice mayresult in social embarrassment (e.g. “If I buy aReva will my neighbors laugh at me?’)
• Psychological Risk : The risk that a poor productchoice may hurt the consumer’s ego (e.g. Will I be
embarrassed to invite my “rich” friends to my newtiny flat ?”)
• Time Risk : The risk that the time spent in productsearch may be wasted if the product doesn’tperform as expected (e.g. ‘Will I have to go
through the shopping effort all over again?”)
How Consumers Handle Risk
• Consumers characteristically develop their
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own strategies for reducing perceived risk
• Some of the risk-reducing strategiesadopted by the consumers are as follows:– Seek Information
– Stay Brand Loyal– Select by Brand Image– Rely on Store Image
– Buy the Most Expensive Model– Seek Reassurance
How Consumers Handle Risk (contd.)
• Consumers seek information
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– This is the most straightforward, logical andcommon method adopted by consumers. They
search for information from whatever sourcethey can lay their hands on
• Consumers become brand loyal– Consumers avoid risk by remaining loyal to a
brand which they have used before and havebeen satisfied with the performance
How Consumers Handle Risk (contd.)
• Consumers select by brand image
When consumers have no previous experience with
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– When consumers have no previous experience witha product, they tend to “trust” a well-known brandname
• Consumers rely on store image– If consumers have no information on a product they
may rely on the image of the store• Consumers buy the most expensive model
– When in doubt, consumers may feel that the mostexperience model is probably the best in terms of quality (i.e. they equate price with quality)
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