Definition of Consumer Perceptions

Introduction

Perception is the process of selecting, organizing and interpreting information inputs to produce meaning. The above definition of perception lays emphasis on certain features:

Perception is a mental process, whereby an individual selects data or information from the environment, organizes it and then draws significance or meaning from it.

Perception is basically a cognitive or thinking process and individual activities; emotions, feelings etc. are based on his or her perceptions of their surroundings or environment.

Perception being an intellectual and cognitive process will be subjective in nature.

The Process of Perception has Three Sub Stages

Sensation– Attending to an object/event with one of five senses

Organization – Categorizing by matching sensed stimulus with similar object in memory, e.g. color

Interpretation– Attaching meaning to stimulus, making judgments as to value and liking, e.g. bitter taste

People can emerge with different perceptions of the same object because of three perceptual processes:

Selective attention

Selective distortion and

Selective retention

Selective Attention. People are exposed to a tremendous amount of daily stimuli: the average person may be exposed to over 1500 ads a day. A person cannot possibly attend to all of these; most stimuli will be screened out. Selective attention means that marketers have to work hard to attract consumers’ notice. A stimuli is more likely to be attended to if it is linked to an event, satisfies current needs, intensity of input changes (sharp price drop).

Selective Distortion. Stimuli do not always come across in the way the senders intend. Selective distortion is the tendency to twist information into personal meanings and interpret information in a way that will fit our preconceptions. Unfortunately, there is not much that marketers can do about selective distortion. Advertisers that use comparative advertisements (pitching one product against another), have to be very careful that consumers do not distort the facts and perceive that the advertisement was for the competitor.

Selective retention. People will forget much that they learn but will tend to retain information that supports their attitudes and beliefs. Because of selective retention, we are likely to remember good points mentioned about competing products. Selective retention explains why marketers use drama and repetition in sending messages to their target market. We remember inputs that support our beliefs, forgets those that don’t.

Elements of Perception

We will examine some of the basic concepts that underlie the perception process.

Sensation is the immediate and direct response of the sensory organs to stimuli (an advertisement, a package, and a brand name). A stimulus is any unit of input to any of the senses.

Sensory receptors are the human organs (i.e., the eyes, ears, nose, mouth, and skin) that receive sensory inputs, sight, sound, smell, taste, or touch.

Human sensitivity refers to the experience of sensation. Sensitivity to stimuli varies with the quality of an individual’s sensory receptors and the amount or intensity of the stimuli to which he/she is exposed.

Sensation itself depends on energy change, the difference of input. Thus, a constant environment, whether very busy and noisy or relatively quiet, would provide little sensation because of the lack of change, the consistent level of stimulation.

As sensory input decreases, the ability to detect changes increases. This ability of the human organism to accommodate itself to varying levels of sensitivity as external conditions vary not only protects us from damaging, disruptive, or irrelevant bombardment when the input level is high but has important implications for marketers.

The Absolute Threshold - The lowest level at which an individual can experience a sensation is called the absolute threshold. The point at which a person can detect the difference between “something” and “nothing” is that person’s absolute threshold for the stimulus. Sensory adaptation is a problem that causes many advertisers to change their advertising campaigns regularly. Marketers try to increase sensory input in order to cut through the daily clutter consumers experience in the consumption of advertising. Some increase sensory input in an effort to cut through the advertising “clutter.” Other advertisers try to attract attention by decreasing sensory input.

The Differential Threshold The minimal difference that can be detected between two stimuli is called the difference threshold or the JND (just noticeable difference). A 19th century German scientist named Ernst Weber discovered that the JND between two stimuli was not an absolute amount, but an amount relative to the intensity of the first stimulus. 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. Also, an additional level of stimulus, equivalent to the JND must be added for the majority of people to perceive a difference between the resulting stimulus and the initial stimulus. Weber’s law holds for all senses and almost all levels of intensity. Retailers use the principle in reducing prices. Markdowns must amount to at least twenty percent to be noticed by shoppers.

The Nature and Process of Perception

Information processing is a series of activities by which stimuli are perceived, transformed into information and stored. There are four major stages in the information-processing model, viz., exposure, attention, interpretation and memory. It is the first three, which constitute the perception process. Exposure occurs when a stimulus such as an advertisement comes within range of a person’s sensory receptor nerves-vision. Attention occurs when the receptor nerves pass the sensation on to the brain for processing. Target customer allocates cognitive processing capacity i.e. pays attention to ad. Interpretation is the assignment of meaning to the received sensations. Target customer interprets the message i.e. message sent = message received.

Memory is the short-term use of the meaning for the immediate decision-making and the longer-term retention of the meaning. –Target customer stores the advertisement and message in memory so can be accessed when needed.

Process of Perception

There is normally a linear flow from exposure to memory.

Exposure – Attention - Interpretation – Memory

Perceptual process

As we can see in the perceptual process in figure there is a linear flow from exposure to memory. But, these processes occur virtually simultaneously and are clearly interactive. It implies that our memory influences the information we are exposed to, attend to, and the interpretation we assign. At the same time, memory itself is being shaped by the information it is receiving. Much of the interpreted information will not be available to active memory when the individual needs to make a purchase decision. The perceptual process consists of many sub processes. We can understand this by taking a note of the input-throughput – output approach. This approach is based on the fact that there is an input, which when processed gives outputs. That is, the perceptual inputs will comprise of stimuli in the environment.

Perceptual Processes

Perceptual Inputs: The first process in the perceptual processes the presence of stimuli like people, objects, events, information etc.

Perceptual  mechanism:  We  will  discuss  the  mechanism  of perception in the next section. Perceptual outputs: The perceptual outputs will be the behavior or actions of the individuals, i.e., the resultant opinions, feelings attitudes etc.

Biases in the Perceptual Process

Selective exposure- Customers only allow exposure to a small number of the 3000 daily marketing communications e.g. ‘zipping’ and ‘zapping’ TV commercials.

Selective attention - Customers ignore ads that do not relate to their interests e.g. flipping past magazine ads.

Selective interpretation - Customers use perceptual distortion to make information more congruent with existing beliefs e.g. Smoker versus non-smoker interpretations of warnings on cigarette packs.

Dynamics of Perception

Physical stimuli from the outside environment, and internal stimuli based on expectations, motives, and learning is based on previous experiences. Because each person is a unique individual, with unique experiences, needs, wants, desires, and expectations, it follows that each individual’s perceptions are also unique.

There are three aspects to perceptions—selection, organization, and interpretation of stimuli.

Individuals are very selective as to which stimuli they “recognize.”

They subconsciously organize the stimuli they recognize according

to widely held psychological principles.

And they interpret such stimuli (i.e., they give meaning to them) subjectively in accordance with their needs, expectations, and experiences.

Perceptual Selection

We as consumers subconsciously exercise selectivity as to the stimuli they perceive. Which stimuli get selected depends on two major factors in addition to the nature of the stimulus itself:

Consumers’ previous experience as it affects their expectations.

Their motives at the time (their needs, desires, interests, and so on).

Each of these factors can serve to increase or decrease the probability that a stimulus will be perceived.

The Nature of the Stimulus

Marketing stimulus contains an enormous number of variables.

Examples include:

Nature of the product.

Its physical attributes.

The package design.

The brand name.

The advertisements and commercials.

The position of a print ad or commercial.

The editorial environment.

Advertisers use extreme attention-getting devices to get maximum contrast and penetrate the consumer’s perceptual screen.

Advertisers use color contrasts, size, etc., to create stopping power and gain attention.

Expectations

People see what they expect to see. What they expect to see is usually based on familiarity, previous experience, or preconditioned set of expectations. Stimuli that conflict sharply with expectations often receive more attention than those that conform to expectations.

Motives

People tend to perceive things they need or want. The stronger the need, the greater the tendency to ignore unrelated stimuli in the environment. An individual’s perceptual process attunes itself more closely to those elements of the environment that are important to that person. Marketing managers recognize the efficiency of targeting their products to the perceived needs of consumers.

Selective Perception

The consumer’s “selection” of stimuli (selective perception) from the environment is based on the interaction of expectations and motives with the stimulus itself. Selective exposure—consumers actively seek out messages they find pleasant or with which they are sympathetic.

Consumers actively avoid painful or threatening messages. Selective attention—consumers have a heightened awareness of the stimuli that meet their needs or interests.

Consumers have a lower awareness of stimuli irrelevant to their needs.

People vary in terms of the kind of information in which they are interested and the form of message and type of medium they prefer.

Perceptual defense—Threatening or otherwise damaging stimuli are less likely to be perceived than are neutral stimuli. Individuals unconsciously may distort information that is not consistent with their needs, values, and beliefs.

Perceptual blocking— consumers screen out enormous amounts of advertising by simply “tuning out.”

Perceptual Organization

People do not experience the numerous stimuli they select from the environment as separate and discrete sensations. People tend to organize stimuli into groups and perceive them as unified wholes. Gestalt psychology (Gestalt, in German, means pattern or configuration) is the name of the school of psychology that first developed the basic principles of perceptual organization. Three of the most basic principles of perceptual organization are figure and ground, grouping, and closure.

Figure and Ground

Stimuli that contrast with their environment are more likely to be noticed. The simplest example is the contrast between a figure and the ground on which it is placed. The figure is usually perceived clearly. The ground is usually perceived as indefinite, hazy, and continuous. The figure is more clearly perceived because it appears to be dominant—the ground appears to be subordinate and less important. Advertisers have to plan their advertisements carefully to make sure that the stimulus they want noted is seen as figure and not as ground.

Marketers sometimes run advertisements that confuse the consumer because there is no clear indication of which is figure and which is ground.

Grouping

Individuals tend to group stimuli in “chunks” rather than as discrete bits of information. Grouping can be used advantageously by marketers to imply certain desired meanings in connection with their products.

Closure

Individuals have a need for closure.

As a result, people organize a perception so that they see a complete picture.

If the pattern of stimuli to which they are exposed is incomplete, they tend to perceive it as complete—they fill in the missing pieces. The very act of completion serves to involve the consumer more deeply in the message.

Perceptual Interpretation

The interpretation of stimuli is uniquely individual because it is based on what individuals expect to see in light of their previous experience. Stimuli are often highly ambiguous.

When stimuli are highly ambiguous, individuals usually interpret them in such a way that they serve to fulfill personal needs, wishes, and interests. How close a person’s interpretations are to reality depends on the clarity of the stimulus, the past experiences of the perceiver, and his or her motives and interests at the time of perception.

Perceptual Distortion

With respect to perceptual distortion, individuals are subject to a number of influences that tend to distort their perceptions.

Physical Appearances— People tend to attribute the qualities they associate with certain people to others who may resemble them. For example attractive models are more persuasive and have a more positive influence on consumer attitudes and behavior than do average-looking models.

Stereotypes—Individuals tend to carry “pictures” in their minds of the meaning of various kinds of stimuli.

First Impressions—These tend to be lasting but formed while the perceiver does not know which stimuli are relevant, important, or predictive.

Jumping to Conclusions—Many people tend to jump to conclusions before examining all the relevant evidence or hearing the beginning of an ad and drawing the incorrect conclusion.

Halo Effect—Describes situations where the evaluation of a single object or person on a multitude of dimensions is based on the evaluation of just one or a few dimensions.

Consumer imagery - Consumers attempt to preserve or enhance their self-images by buying products they believe agree with that self-image and avoiding products that do not agree. This is called consumer imagery. Consumers tend to shop in stores that have images that agree with their own self-images.

Perceptual Mapping

Perceptual mapping allows marketers to determine how their products appear to consumers in relation to competitive brands on one or more relevant characteristics. Perceptual mapping enables the marketer to see gaps in the positioning of all brands in the product class and to identify areas in which consumer needs are not being adequately met.

Marketing Application of Perception

Positioning of Services

Compared with manufacturing firms, service marketers face several unique problems in positioning and promoting their offerings. Services are intangible; image becomes a key factor in differentiating a service from its competition. The marketing objective is to enable the consumer to link a specific image with a specific brand name. Many service marketers have developed strategies to provide customers with visual images and tangible reminders of their service offerings.

Perceived Price

How a consumer perceives a price (perceived price)—as high, as low, as fair—has a strong influence on both purchase intentions and purchase satisfaction.

Reference Prices

A reference price is any price that a consumer uses as a basis for comparison in judging another price. Reference prices can be external or internal. An advertiser generally uses a higher external reference price (“sold elsewhere at...”) in an ad in which a lower sales price is being offered, to persuade the consumer that the product advertised is a really good buy.

Perceived Quality

Consumers often judge the quality of a product (perceived quality) on the basis of a variety of informational cues.

Intrinsic cues are physical characteristics of the product itself, such as size, color, flavor, or aroma.

Extrinsic cues are such things as price, store image, service environment, brand image, and promotional message.

Perceived Quality of Products

Intrinsic cues are concerned with physical characteristics of the product itself, size, color, flavor, etc.

Consumers like to think that they base quality evaluations on intrinsic cues, but in reality, they are often unable to identify that product in a taste test.

In the absence of actual experience with a product, consumers often evaluate quality on the basis of extrinsic cues, price, brand image, store image, etc.

Many consumers use country-of-origin stereotypes to evaluate products.

Perceived Quality of Services

It is more difficult for consumers to evaluate the quality of services than the quality of products. Service characteristics include—intangibility, variability, perishability, inseparability, simultaneously produced, and consumed. Consumers are unable to compare services side-by-side as they do products, so consumers rely on surrogate or extrinsic cues when purchasing services. Marketers try to standardize their services in order to provide consistency of quality. Service is consumed as it is being produced. As a result, defective services are difficult to correct. Researchers have concluded that the service quality that a customer perceives is a function of the magnitude and direction of the gap between expected service and the customer’s assessment of the service actually delivered.

Price/Quality Relationship

Perceived product value has been described as a trade-off between the product’s perceived benefits (or quality) and perceived sacrifice required to acquire it. A number of research studies support the view that consumers rely on price as an indicator of product quality. Other studies suggest consumers are actually relying on a well-known brand name as a quality indicator. Because price is so often considered to be an indicator of quality, some products deliberately emphasize a high price to underscore their claims of quality. Marketers have used the price/quality relationship to position their products as the top-quality offering in their product category.

There is a positive price/quality relationship.

Consumers use price as a surrogate indicator of quality if they have little information or little confidence in their ability to make a choice.

Retail Store Image

Retail stores have their own images that influence the perception of the quality of the products they carry. Studies show consumers perceive stores with small discounts on a large number of products as having lower-priced items than stores that offer large discounts on a small number of products. The width of product assortment also affects retail store image. The type of product the consumer wishes to buy influences his or her selection of retail outlet, conversely, the consumer’s evaluation of a product often is influenced by the knowledge of where it was bought.

Manufacturer’s Image

Consumer imagery extends beyond perceived price and store image to the producers themselves. Manufacturers who enjoy a favorable image generally find that their new products are accepted more readily than those of manufacturers who have a less favorable or even a “neutral” image. Today, companies are using advertising, exhibits, and sponsorship of community events to enhance their images.