This document provides an overview of consumer perception and learning. It discusses the dynamics of perception including sensation, thresholds, and subliminal perception. The elements of perception like selection, organization, and interpretation are also covered. Consumer imagery and positioning are explained. Regarding consumer learning, the summary discusses behavioral learning theories like classical and instrumental conditioning as well as cognitive learning theory. It also outlines measures of consumer learning like recognition, recall, and brand loyalty.

1. PRESENTATION
ON
CONSUMER PERCEPTION
Ch. 6

2. CHAPTER OUTLINE
• Dynamics of Perception
– Sensation
– The Absolute Threshold
– The Differential Threshold
– Subliminal Perception
• Elements of Perception
– Selection
– Organization
– Interpretation
• Consumer Imagery

3. PERCEPTION
• The process by which an individual
selects, organizes, and interprets stimuli
into a meaningful and coherent picture of
the world.
• How we see the world around us

4. DYNAMICS OF PERCEPTION
Sensation
The
Absolute
Threshold
The
Differential
Threshold
The
Subliminal
Perception

5. SENSATION
• Sensation – The immediate
and direct response of the
sensory organs to stimuli
• Stimulus – A stimulus is any
unit of input to any of the
senses.
• Sensory receptors – The
human organs i.e. Eyes, Ears,
Nose, Mouth and Skin

6. SENSATION AND PERCEPTION
• Sensation is the immediate
response of our sensory
receptors (eyes, ears, nose,
mouth, and fingers) to
basic stimuli (light, color,
sound, odor, and texture)
• Perception is the process
by which sensations are
selected, organized, and
interpreted

7. SENSATION
• Sensation itself depends on energy change within the
environment where the perception occurs(i.e. on
differentiation of input).
• As sensory input decreases, however our ability to
detect changes in input or intensity increases, to the
point @ maximum sensitivty and minimal
stimulation.
• Ex. “It was so quiet I could hear a pin drop.”

8. THE ABSOLUTE THRESHOLD
• The lowest level at which
an individual can
experience a sensation.
Detecting difference
between “something and
nothing”
Ex.
• People who live by busy
roads typically don't even
notice that there is the
sound of constant traffic
outside their window.
Ex.
• People who smoke no
longer notice the odor
of cigarette smoke

9. • Sensory adaptation: is a problem that concerns
many national advertisers, which is they try to change
their advertising campaigns regularly.
• Ex. Airtel 4g advertise.

10. THE DIFFERENTIAL THRESHOLD
• The ability of a sensory
system to detect
changes or differences
between two stimuli
– Minimum difference
between two stimuli
is the j.n.d. (just
noticeable
difference)
Ex.
packaging updates must
be subtle enough over time
to keep current customers

11. German Scientist Ernst
Weber
Weber’s law:
• He discovered that the j.n.d. between
two stimuli was not an absolute
amount, but an amount relative to the
intensity of the first stimuli.
• Weber’s law states that the stronger the
initial stimulus, the greater the
additional intensity needed for the
second stimulus to be perceived as
different.

12. MARKETING APPLICATIONS
OF THE J.N.D.
• Marketers need to determine the relevant
j.n.d. for their products
– so that negative changes are not readily
discernible to the public(i.e. remain below the
j.n.d.)
– so that product improvements are very apparent
to consumers(i.e… they are at or just above the
j.n.d)

13. SUBLIMINAL PERCEPTION
• Stimuli that are too weak or too brief to be
consciously seen or heard may be strong enough
to be perceived by one or more receptor cells.
• Message below the threshold level
– Takes place in movies:
• Nokia Lumia Mobile Phone with Shah Rukh Khan in Chennai
Express
• John Abhraham using Sony Vaio in Kaal
• All Tata cars in Singham returns
• Aston Martin in James Bond

14. All Tata cars in Singham returns

15. Aston Martin in James Bond

16. 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

17. ELEMENTS OF PERCEPTION
Perceptual Selection
Perceptual Organization
Perceptual Interpretation

18. Elements of Perception
• Human Beings stimuli change during every
minute and every hour of every day..
The selection, organization, and interpretation of
perceptions can differ among different people .
Therefore, when people react differently in a
situation, part of their behavior can be explained
by examining their perceptual process, and how
their perceptions are leading to their responses.

19. PERCEPTUAL SELECTION
• Consumers subconsciously are selective as to what
they perceive.
• Stimuli selected depends on two major factors
– Consumers’ previous experience
– Consumers’ motives
• Selection depends on the
– Nature of the stimulus
– Expectations
– Motives

20. SELECTIVE PERCEPTION
• Selective exposure:-
– People look for pleasant and sympathetic messages and avoid
painful or threatening ones
• Selective attention:-
– People look into ads which will satisfy their need
• Perceptual Defense:-
– People avoid psychologically threatening ones. Hence constantly
change the ad nature. [ Smoking – warning with words, and now
with images ]
• Perceptual Blocking:-
– Consumers avoid being bombarded by:
• Tuning out
• TiVo

21. PERCEPTUAL ORGANIZATION
• People see everything as a whole
• There are three most basic principles of perceptual
Organization are also referred by the name Gestalt
psychology. (Gestalt, in German, means “pattern or
configuration.”)
– Figure and Ground
– Grouping
– Closure

22. Figure and Ground
• It is a type of perceptual grouping which is a vital
necessity for recognizing objects through vision. In
Gestalt psychology it is known as identifying a figure
from the background.
• People tend to organize perceptions into figure-and-
ground relationships.
• The ground is usually hazy.
• Marketers usually design so the figure is the noticed
stimuli

23. Grouping
• People group stimuli to form a unified impression or
concept.
• Grouping helps memory and recall.
• Humans naturally perceive objects as organized
patterns and objects. Gestalt psychologists argued that
these principles exist because the mind has an innate
disposition to perceive patterns in the stimulus based
on certain rules.

24. Closure
• People have a need for closure and organize
perceptions to form a complete picture.
• Will often fill in missing pieces
• Incomplete messages remembered more than
complete

25. Closure

26. PERCEPTUAL
INTERPRETATION
• Stimulus are often highly ambiguous or weak
Types of Perceptual
Interpretations
Stereotypes
Physical Appearances
Descriptive terms
First Impression
Halo Effect

27. STEREOTYPES
• People hold meanings related to stimuli
• Stereotypes influence how stimuli are perceived
– People carrying biased pictures in their minds of
the meanings of various stimuli.

28. PHYSICALAPPEARANCES
• Positive attributes of people they know to those who
resemble them
• Attractive models are more persuasive for some
products
– People associate quality with people in the ads
– Attractive models have positive influence
– Colors of juices
– Shape of the package
– Average men are not considered as businessman

29. DESCRIPTIVE TERMS
– McDonald – Happy price (targeting Indians who are price
conscious
– KFC – Spicy Chicken
FIRST IMPRESSION
• First impressions, last long
• The perceiver is trying to determine which stimuli are
relevant, important, or predictive

30. Halo Effect
• Consumers perceive and evaluate product or service
or even product line based on just one dimension.
• For example, a man is trustworthy, fine, and noble
because he looks you in the eye when he speaks.
• Important with spokesperson choice
• Tampering the halo effect is detrimental to the
organization.
• Toyota – Quality
• Ford – Safety
• Sony - Music

31. The halo effect
helps Adidas
break into new
product
categories
Marketers takes advantages of the halo effect when they extended
a brand name associated with one line of products to another.

32. CONSUMER IMAGERY
• Consumers perceived images about product, services,
prices, product quality, retail stores and
manufacturers.
• People buy product to enhance their self image
(relating themselves to the product).

33. POSITIONING
• Image of the product in the minds of the customer is
called Positioning.
• Image of your product gear up your sales, but the
product should also deliver its performance.
• Product BENEFITS should be focused more than it’s
physical attributes.

34. POSITIONING TECHNIQUES
• Positioning Based on a Specific Benefit
For example, the activity of washing clothes, where
the benefit provided to customer is clean clothes- a
straightforward and obvious benefit.
• Product Positioning
Positioning is more important to the ultimate
success of a product than are its actual characteristics ,
but products are poorly made will not succeed in the
long run and image alone not benefited.

35. POSITIONING TECHNIQUES
• Product Repositioning
The marketer may be forced to reposition it in response to
market events, such as competitors cutting into the brand’s
market share or too many competitors stressing the same
attributes. Another reason to reposition a product or service is
to satisfy changing consumer preferences.
• Umbrella positioning
suzuki , the maker of many car model, is using the same
slogan to describe the consumer benefits that its products
provided. Another example, Amul.

36. POSITIONING PRODUCTS AND
SERVICES
• Model of Strategic Positioning:
Positioning
Aim(s)
Positioning
Objectives
Positioning
Strategy
(ies)
Communic
ations
Consumer
Perceptions

37. Typology of Strategic Positioning
• Top of the range – Upper class –
Rolls Royce
• Service – Impressive service –
Pizza hut – 30 mins
• Value for money – Affordability
–Megamart, The dollar shoppe
• Reliability – Durability – Allwyn
Fridge - 7yrs warranty

38. Typology of Strategic Positioning
• Attractive – Cool, Elegant –
Mercedes, Bournville
• Country of Origin –
Patriotism- Amul- The Taste
of India
• The Brand Name – Leaders
in the market – Apple, Sony
• Selectivity – Discriminatory
– Nano, Macbook Air

39. PRODUCT REPOSITIONING
• To face the competitors, who offer
new products or services
• Changing lifestyle of people -
need to suit the current trend. Eg.
Evolution of Tabs and Apple
• When brand need to change their
target segment (happens rarely)
Eg. Gems
• When motivation to buy the
category is low among customers
Why repositioning is required?

40. ISSUES IN PERCEIVED PRICE
• Perceived price – It should reflect the value that the customer
receives from the purchase. For example, low price for fast
food meal and high price for restaurant meal.
• Reference price – any price that a consumer uses as a basis for
comparison in judging another price
– Internal reference prices are those prices or price ranges
retrieved by the consumer from memory.
– External reference prices are in an ad offering a lower sales
price, to persuaded the consumer that the product is really
good buy.

41. Three Pricing Strategies
Focused on Perceived Value
Pricing Strategy Provides Value By… Implemented As…
Satisfaction-based
pricing
Recognizing and reducing
customers’ perceptions of
uncertainly, which the
intangible nature of services
magnifies
Service guarantees
Benefit-driven pricing
Flat-rate pricing
Relationship pricing Encouraging long-term
relationships with the company
that customers view as
beneficial
Long-term contracts
Price bundling
Efficiency pricing Sharing with customers the cost
savings that the company has
achieved by understanding,
managing, and reducing the
costs of providing the service
Cost-leader pricing.

42. PERCEIVED QUALITY
• Perceived Quality of Products
– Intrinsic concerns physical attributes
– Extrinsic concerns to judge quality
• Perceived Quality of Services
• Price/Quality Relationship

43. PERCEIVED QUALITY OF
SERVICES
• Difficult due to characteristics of services
– Intangible
– Variable
– Perishable
– Simultaneously Produced and Consumed
• SERVQUAL scale used to measure gap between
customers’ expectation of service and perceptions of
actual service delivered.

44. 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.)

45. PERCEIVED RISK
• The degree of uncertainty perceived by the consumer
as to the consequences (outcome) of a specific
purchase decision
• Types
– Functional Risk
– Physical Risk
– Financial Risk
– Psychological Risk
– Time Risk

46. How Consumers Handle Risk
• Seek Information
• Stay Brand Loyal
• Select by Brand Image
• Rely on Store Image
• Buy the Most Expensive Model
• Seek Reassurance

47. CONSUMER LEARNING
CH.7

48. Chapter Outline
• The Elements of Consumer Learning
• Behavioral Learning Theories
• Cognitive Learning Theory
• Measures of Consumer Learning

49. Learning
• The process by which individuals acquire the
purchase and consumption knowledge and experience
that they apply to future related behavior
• Marketers must teach consumers:
– where to buy
– how to use
– how to maintain
– how to dispose of products

50. ELEMENTS OF LEARNING THEORIES
• Motivation :
Uncovering consumer motivates is the prime
tasks of marketers, who then try to teach
motivated consumer segments why and how their
products will fulfill the consumers’ needs.
Unfilled needs lead to motivation.
• Cues :
The ad is the cue, or stimulus, that suggests a
specific way to satisfy a salient motive.

51. • Response :
How individuals reacts to a drive or cue- how
they behave- constitute their response.
• Reinforcement :
Reinforcement increases the likelihood that a
specific response will occur in the future as the result of
particular cues or stimuli.

52. Learning Theories
Behavioral
Learning
Theory
Cognitive
Learning
Theory
Theories based on the basis
that learning takes place as
the result of observable
responses to external
stimuli. Also know as
stimulus response theory.
A theory of learning
based on mental
information processing.
Often in response to
problem solving.

53. BEHAVIORAL LEARNING
THEORY
• Classical Conditioning
• Instrumental Conditioning
• Modeling or Observational Learning

54. CLASSICAL CONDITIONING
Pavlovian Model
of
Classical Conditioning
Analogous Model
of
Classical Conditioning

55. Paviovian Model of Classical Conditioning
AFTER REPEATED PAIRINGS
Unconditioned Stimulus
Meat Paste
Conditioned Stimulus
Bell
Conditioned Stimulus
Bell
Unconditioned
Response
Salivation
Conditioned
Response
Salivation

56. Unconditioned Stimulus
Dinner aromas
Conditioned Stimulus
6o’clock news
Conditioned Stimulus
6o’clock news
Unconditioned
Response
Salivation
Conditioned
Response
Salivation
Analog Model of Classical Conditioning
AFTER REPEATED PAIRINGS

57. Instrumental Conditioning
• A behavioral theory of learning
based on a trial-and-error
process, with habits forced as
the result of positive
experiences (reinforcement)
resulting from certain
responses or behaviors.
What am
I
purchase
“I’m
Hungry
”

58. Types of Reinforcement
• Positive
• Negative
• Forgetting
• Extinction

59. Model of Instrumental Conditioning
Stimulus
Situational
(need good
looking
jeans)
Try
Brand
A
Try
Brand B
Try
Brand C
Try
Brand D
Unrewarded
Legs too loose
Unrewarded
Tight in seat
Unrewarded
Baggy in seat
Rewarded
Perfect fit

60. Modeling or Observational Learning
• Modeling is the process
through which individuals
learn behavior by observing
the behavior of other and the
consequences of such
behavior.

61. • Holds that the kind of learning most characteristic of
human beings is problem solving, which enables
individuals to gain some control over their
environment.

62. INFORMATION PROCESSING
• Relates to cognitive ability and the complexity of the
information
• Individuals differ in imagery – their ability to form
mental images which influences recall

63. INFORMATION PROCESSING
AND MEMORY STORES

64. Issues in Involvement Theory
1. Consumer Relevance
2. Central and Peripheral Routes to Persuasion
3. Measure of Involvement

65. 1. Consumer Relevance
• Involvement depends on degree of personal
relevance.
• High involvement is:
– Very important to the consumer
– Provokes extensive problem solving

66. 2. Central and Peripheral Routes
to Persuasion
• Central route to persuasion
– For high involvement purchases
– Requires cognitive processing
• Peripheral route to persuasion
– Low involvement
– Consumer less motivated to think
– Learning through repetition, visual cues, and
holistic perception

67. 3. Measures of Consumer
Learning
Recognition and Recall
Measures
Recognition and recall tests are conducted to
determine whether consumers remember seeing an ad
and extent to which they have read it or seen it and can
recall its content.

68. Brand Loyalty
• Function of three groups of influences
– Consumer drivers
– Brand drivers
– Social drivers
• Four types of loyalty
– No loyalty
– Covetous loyalty
– Inertia loyalty
– Premium loyalty

69. Harley-Davidson Has Strong Brand
Loyalty

70. Brand Equity
• Refers to the value inherent in a well-known brand
name
• Value stems from consumer’s perception of brand
superiority
• Brand equity reflects learned brand loyalty
• Brand loyalty and brand equity lead to increased
market share and greater profits