Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski 5 PERCEPTION AND INFORMATION PROCESSING
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
5PERCEPTION AND INFORMATION PROCESSING
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Perception and information processing
At the end of this session, you should understand:• The nature of perception and its role in consumer behaviour• The concepts of exposure, attention, interpretation, memory
and their role in the interpretation of marketing information• The information processing process as it relates to consumer
behaviour• The communication processes involved in perception• The relevance of gestalt theory to consumer theory• The concept of semiotics and its relevance to consumer
perception• The role of risk and risk reduction strategies• The nature of positioning and consumer behaviour• The importance of brands in consumer marketing
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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What do you see?
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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What do you see now?
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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What colour comes to mind?
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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So….what then is perception?
• How we interpret stimuli from the environment
• Perception is how we organise and give meaning to new information from the environment
• A sensation is the immediate experience generated by an incoming stimulus from our sensory receptors
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Information processing
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Exposure
• Exposure occurs when our sensory receptors detect a stimulus
• Implication for marketers:– Consumers must be exposed to your marketing efforts
for them to perceive anything– Ad placement - being in the right place at the right time!!– Road blocking - catch them at every corner:
Ads on competing channels Use multiple media
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Attention
• Attention occurs when information is transferred from the sensory receptors to the brain for further processing
• Attention-getting techniques could include the use of:
– Colour, size, intensity, contract, novelty, humour
– Salience - we tend to pay attention to things that we think are important to us - make the ad seem important!
– Repetition
See EXHIBIT 5.1 Unicef uses a striking statement to gain attention, page 124.
PowerPoint slides supplied on the Instructor Resource CD to accompany Consumer Behaviour include advertisement images.
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
5-10
Physiological measures of attention
• Eye pupil dilatation• Eye tracing• Tachistoscopic tests• Theatre tests• Brain-wave analysis
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Interpretation
• Interpretation occurs when consumers give meaning to the incoming stimulus information
• Information is subject to:– Cognitive interpretation - the process of adding meaning
from existing knowledge– Affective interpretation - the processing of information
and adding meaning based on feelings
• Influences on interpretation:– Individual characteristics– Stimulus factors– Situational factors– The way the information is presented
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
5-12
Memory
• Memory is the information storage facility in the brain.
– See Chapter 6 for more information
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Perception theories that guide marketing decisions
• Absolute threshold
– Lowest point that we perceive stimuli
– Adaption - the process of flipping through the pages and ‘ignoring’ the advertisements
– Marketers need to break through the clutter
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Perception theories that guide marketing decisions
• Weber’s concept of Just Noticeable Difference (JND)
– Just Noticeable Difference - the minimum level of change to a stimulus that is required in order for the change to be noticed
– Weber’s law states: ‘the stronger the initial stimulus, the greater the change required for the stimulus to be seen as different’
– Some things you want your customers to notice - e.g. specials, improvements
– Others you don’t - changes in packaging, size
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
5-15
Perception theories that guide marketing decisions
• Selective exposure– We don’t notice everything!– We filter out unwanted information
• Selective distortion– We add preconceived ideas or attitudes to interpret new
information that enters the sensory store of the memory
• Selective retention– We remember information that we find meaningful and
interesting
• Selective attention– We don’t take in all the information around us– Marketers need to identify what their customers will notice
and pay attention to
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Perception theories that guide marketing decisions
• Stimulus generalisation– When a conditioned response occurs to stimuli that are
similar to the conditioned stimulus– When you find it hard to tell the difference between two
stimuli - e.g. ‘me-too’ products
• Stimulus discrimination– Ability to see a distinct difference between stimuli– What marketers want to achieve from their products
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Perception theories that guide marketing decisions
• The influence of colour on perception– Colours have different meanings, which can vary from culture
to culture– What do these colours mean to you?
Blue Red White Green
– Choose colours carefully for advertising, signage and packaging as it can influence what they mean to your target audience
• The influence of semantics on perception– Words can have double meanings - choose them carefully
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Perception theories that guide marketing decisions
• Perceptual categorisation– Personal constructs - we categorise related information
into sets in our mind
– Applications for marketers Family branding
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Communication process
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Gestalt theory
• Gestalt is about patterns or configurations
• Individuals categorise incoming stimuli into patterns that are meaningful to them
– e.g. a setting with two adults and children picnicking in the park may be perceived as a traditional family
• The view is of the whole rather than the parts of a message
• Categorisation occurs at the interpretation stage of information processing
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Figure and ground perception
• Figure and ground perception– The way in which we
distinguish between a figure and its background
See EXHIBIT 5.4 This advertisement demonstrates figure and ground perception, page 140.
PowerPoint slides supplied on the Instructor Resource CD to accompany Consumer Behaviour include advertisement images.
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
5-22
Grouping
• Grouping stimuli to make sense of messages
– Similarity Use of family branding
– Proximity
– Closure Taking existing
information from our memory and relating it to new information to make sense of incomplete messages
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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‘Copycats trip over spitting images’ - Activity
• Case in point 5.1– ‘Big brands, after a landmark court win, have a new
weapon against imitators - the gestalt factor’
• Read the above case study and discuss the associated questions
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Semiotics
• Use of symbols or signs to establish an image and convey a message
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Perceived value
• Three types of consumer value:– Extrinsic vs. intrinsic
Extrinsic – consumption satisfies some further goal• e.g. mobile phone in order to communicate
Intrinsic – consumption for its own sake• e.g. CD for pleasure
– Self orientated vs. others oriented– Active vs. reactive
Active – doing something with a product, such as eating a meal
Reactive – responding to a product, such as the pleasure of visiting an art gallery
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Perceived risk
• The fear that products or services purchased may result in disappointment or unpleasant consequences
• For services, perceived risk can be diminished by:– Advertising to make intangible aspects tangible– Demonstrating the service – Encouraging word of mouth communication about the
service– Aiming for brand building
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Types of risk
• Financial risk
• Physical risk
• Social risk
• Ego risk
• Opportunity risk
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Strategies to reduce risk
• ‘Try before you buy’ techniques• Extended warranty and money back guarantee• Building a strong brand image• Extensive advertising and promotion using
respected spokespeople• Providing rewards for reinforcement of purchase• Providing back up customer service and technical
support
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
5-29
Reducing risk
See EXHIBIT 5.6 Reducing perceived financial risk and EXHIBIT 5.7 Another risk reduction promise, page 145.
PowerPoint slides supplied on the Instructor Resource CD to accompany Consumer Behaviour include advertisement images.
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
5-30
Positioning
• How your offering or organisation is perceived in the mind of the consumer
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Positioning maps
• A graphical representation of the market according to consumer perceptions
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Positioning strategies
• Positioning:– In relation to competitors– On the basis of product
attributes and benefits– On the basis of usage
occasion (e.g. Emporio biscuits)
• Repositioning brands
See EXHIBIT 5.8 Arnott’s Emporio are positioned for a usage situation, page 149.
PowerPoint slides supplied on the Instructor Resource CD to accompany Consumer Behaviour include advertisement images.
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
5-33
Brands
• A brand is a mix of tangible and intangible elements that make up an identifying name, mark or symbol
• Important to differentiate products that are essentially the same– e.g. to create feelings, emotions, loyalty– Aaker’s brand identity model, a brand is a person
• A brand is ‘a link between the organisation’s marketing activities and consumer perceptions’
• Brand evaluation– Functional and feature orientated, or abstract and intangible
• Brand equity– The value customers attribute to the brand itself
• Brand names• Line and brand extension
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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The means end chain theory
• A way of determining consumer behaviour,based on perception of brand attributes, benefits and customer values
• Links the tangible attributes of a product with the individual and social needs (benefits and values) of customers
Copyright 2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen WebbSlides prepared by Sarah Fletcher and Morena Dobrowolski
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Positioning and brand building in the pharmaceutical industry
• Case in point 5.4– ‘Bringing healthcare brands to life’
• Read the above case study and discuss the associated questions