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BB Chapter Eight: Perception

This chapter discusses consumer perception and the processes that occur within an individual when receiving marketing messages. It covers the three main phases of perception: sensing, organizing, and reacting to stimuli. Attention and interpretation are influenced by characteristics of the stimulus, the individual, and the situation. The chapter also examines exposure, attention, and interpretation in detail, outlining key factors that influence each step of information processing for consumer decision making.

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Chapter Eight: Perception 8-1
Chapter 8: Perception Introduction • Attention now shifts from the different steps involved in purchase decision making to the processes that occur primarily within the individual. These are discussed in: • Chapter 8 Perception • Chapter 9 Learning and memory • Chapter 10 Motivation, personality and emotion • Chapter 11 Attitude and attitude change 8-2
Processes that occur primarily within the individual 8-3
Chapter 8: Perception 1. The nature of perception 2. Different steps involved in information processing 3. Which stimulus’ factors influence this process 4. Which individual factors influence this process 5. Which situational factors influence this process 6. The way children process information 7. Implications of perception for retail, brand and communication strategies 8-4
A simplified model of perception • Before we go into the details of the concepts in this chapter, look through the next four slides • Shows the essence of what perception involves 8-5
Consumer Perception Phases 8-6
The 3 phases • Sensing: deciding what stimuli to pay attention to (subject to ‘selective perception’) • Organizing: how to arrange information in our minds (categorization) • Reacting: responding to stimuli; experiences will then feedback and influence future sensing 8-7
Selective Perception Selective exposure Selective exposure Selective attention Selective attention Selective distortion Selective distortion 8-8
Organization Process Like sorting mail! (information is sorted by categories) 8-9
The Nature of Perception Information processing is a series of activities by which stimuli are perceived, transformed into information, and stored. Perception consists of the first three steps or stages of information processing: exposure, attention, and exposure attention interpretation. 8-10
The nature of perception • Exposure • Attention • Interpretation • Memory – Short-term – Long-term 8-11
Information processing for consumer decision making 8-12
The Nature of Perception Information Processing for Consumer Decision Making Exposure occurs when a stimulus comes within range of a person’s sensory receptor nerves (vision). Attention occurs when the stimulus is “seen” (the receptor nerves pass the sensations on to the brain for processing). 8-13
The Nature of Perception Information Processing for Consumer Decision Making Interpretation is the assignment of meaning to the received sensations. Memory is the short-term use of the meaning for immediate decision making or the longer-term retention of the meaning. 8-14
The Nature of Perception Information Processing for Consumer Decision Making These processes occur virtually simultaneously and are clearly interactive. Perceptual defenses - individuals are not passive recipients of marketing messages. Both perception and memory are extremely selective. 8-15
Exposure Exposure occurs when a stimulus is placed within a person’s relevant environment and comes within range of their sensory receptor nerves. Exposure provides the opportunity for attention but in no way guarantees it. 8-16
Exposure • Occurs when a stimulus comes within range of our sensory receptor nerves • Deliberate exposure to stimuli – Consumers seek information that will help achieve certain goals immediate long-range • Random exposure to stimuli 8-17
Exposure Types of Exposure 1. Selective Exposure • The highly selective nature of consumer exposure is a major concern for marketers, since failure to gain exposure results in lost communication and sales opportunities. 2. Voluntary Exposure • Although consumers often avoid commercials and other marketing stimuli, sometimes they actively seek them out for various reasons including purchase goals, entertainment, and information. 8-18
Exposure Selective Exposure Ad avoidance includes ways consumers selectively avoid exposure to advertising messages and can include: • Zipping--occurs when one fast-forwards through a Zipping commercial on a prerecorded program • Zapping--involves switching channels when a Zapping commercial appears • Muting--is turning the sound off curing commercial Muting breaks. 8-19
Exposure Selective Exposure (cont.) Product placement involves incorporating brands into movies, television programs, and other entertainment venues in exchange for payment or promotional or other consideration. • Firms expend tremendous effort into placing their products within entertainment due to the exposure provided that consumers don’t try to avoid. • Product placement also shows the consumer how and when to use the product and enhances its image. 8-20
Exposure Voluntary Exposure Infomercials are program-length commercials to which consumers voluntarily expose themselves. Voluntary exposure also occurs online. Examples: • A consumer who clicks on a banner ad or pop up (clickthrough) is voluntarily being exposed to the target site and its marketing message. 8-21
Exposure Voluntary Exposure (cont.) • Consumers also voluntarily expose themselves to marketing messages by deliberately visiting a firm’s home page and other marketer sites. • Permission-based marketing occurs when a consumer “opts in” to receive email-based promotions. • The voluntary and self-selected nature of such online offerings can enhance effectiveness. 8-22
Attention Consumers are given the opportunity to attend to the marketer’s message. 8-23
Attention Attention occurs when the stimulus activates one or more sensory receptor nerves, and the resulting sensations go to the brain for processing. Attention requires consumers to allocate limited mental resources toward information processing. 8-24
Attention • Occurs when stimulus activates one or more sensory receptor nerves and the resulting sensations go to the brain for processing • Determined by: – Stimulus – Individual – Situation 8-25
Attention Attention is determined by three factors: 1. Stimulus Factors • Are physical characteristics of the stimulus itself 2. Individual Factors • Are characteristics which distinguish one individual from another 3. Situational Factors • Include stimuli in the environment other than the focal stimulus and temporary characteristics of the individual that are induced by the environment 8-26
Attention Stimulus Factors Size Intensity Attractive Visuals Color and Movement Position Isolation Format Contrast and Expectations Interestingness Information Quantity 8-27
Attention paid to prime-time TV ads 8-28
Stimulus’ factors • Size and intensity – Insertion frequency • Colour and movement • Position • Isolation • Format • Contrast – Adaptation level theory • Compressed messages • Information quantity—information overload 8-29
Attention Stimulus Factors Size Larger stimuli are more likely to be noticed than smaller ones. Size also affects attention to advertising. Source: 1Cahners Advertising Research Report 110.1B (Boston: Cahners Publishing, undated). 8-30
The impact of advertisement size 8-31
Attention Stimulus Factors Intensity The intensity (e.g., loudness, brightness, length) of a stimulus can increase attention. In online contexts, one aspect of intensity is intrusiveness, or the degree to which one is forced to see or interact with a banner ad or pop up in order to see the desired content. Repetition is related to intensity. It is the number of times an individual is exposed to a given stimulus, such as an ad or brand logo, over time. Consumers may shift the focus of their attention from one part of the ad to another across repetitions, resulting in attention reallocation. 8-32
Attention Stimulus Factors Attractive Visuals Individuals are attracted to pleasant stimuli and repelled by unpleasant stimuli. An ad’s visual or pictorial component can have a strong influence, known as a picture superiority effect. Any factor that draws attention to itself and away from the brand Does Pepsi Gets Lost in this Ad? has to be used with caution. 8-33
Attention Stimulus Factors Color and Size Impact on Attention1 Color and Movement Color and movement attract attention. A brightly colored package or display is more likely to received attention. Color and movement are also important in ads. Source: 1”How Important is Color to an Ad?” Starch Tested Copy. February 1989, p.1. Roper Starch Worldwide, Inc. 8-34
Attention Stimulus Factors Position Position is the placement of an object in physical space or time. In retail stores, items that are easy to find or stand out are more likely to attract attention, such as end-caps and kiosks. High impact zones in print ads in the U.S. tend to be toward End-caps provide a way to capture the top left portion of the ad. the shopper’s attention 8-35
Attention Stimulus Factors Isolation Isolation is separating a stimulus object from other objects. Examples of isolation include: • In store use of a stand-alone kiosk • In an advertisement, the use of “white space” • In a radio commercial, surrounding a key part with a brief moment of silence. 8-36
Attention Stimulus Factors Format Format refers to the manner in which the message is presented. Simple, straightforward presentations receive more attention than complex presentations. What can decrease attention? • Elements in the message that increase processing effort • Ads that lack a clear visual point of reference or have inappropriate movement • Audio messages that are difficult to understand 8-37
Attention Stimulus Factors Contrast and Expectations Consumers pay more attention to stimuli that contrast with their background. Expectations drive perceptions of contrast. Ads that differ from expectations for a product category often motivate more attention. Adaptation level theory suggests This billboard ad provides contrast that if a stimulus doesn’t change for enhanced attention. over time we habituate to it and begin to notice it less. 8-38
Attention Stimulus Factors Interestingness What one is interested in is generally an individual characteristic. However, certain characteristics of the message, store, and in- store display can generate consumer interest. In advertising, factors that increase curiosity, interest and attention include: • Ongoing plot • The possibility of a surprise ending • Uncertainty as to the point of the message until the end 8-39
Attention Stimulus Factors Information Quantity Information quantity represents the number of cues in the stimulus field. Cues can relate to the features of the brand itself, typical user of the brand, typical usage situations, etc. Information helps consumers make decisions. But too much information can have negative consequences. Information overload occurs when consumers are confronted with so much information that they cannot or will not attend to all of it, resulting in suboptimal decisions. 8-40
Attention (cont.) • Individual factors – Interest – Need • Situational factors – Involvement • Non-focused attention – Hemispheric lateralisation – Subliminal stimuli 8-41
Attention Individual Factors Motivation Motivation is a drive state created by consumer interest and needs. Product involvement indicates motivation or interest in a specific product category. Product involvement can be temporary or enduring. Smart banners are banner ads that are activated based on terms used in search engines. These search terms are used to gauge involvement. 8-42
Attention Individual Factors Ability Ability refers to the capacity of individuals to attend to and process information. Ability is related to knowledge and familiarity with the product, brand, or promotion. Brand familiarity is an ability factor related to attention. Those with high brand familiarity may require less attention to the brand’s ads due to their high existing knowledge. 8-43
Attention Situational Factors Clutter Program Involvement 8-44
Attention Situational Factors Clutter Clutter represents the density of stimuli in the environment. Research suggests cluttering of the in-store environment with too many point-of-purchase displays decreases the attention consumers pay to a given display. Consumers pay less attention to a television commercial in a large grouping of commercials than they do to one in a smaller set. 8-45
Attention Situational Factors Program Involvement Program involvement refers to interest in the program or editorial content surrounding the ads. Program involvement has a positive influence on attention (see graphs on the next two slides). 8-46
Involvement and magazine advertising effectiveness 8-47
Involvement in a television program and advertising effectiveness 8-48
Attention Nonfocused Attention Hemispheric lateralization Subliminal Stimuli 8-49
Attention Nonfocused Attention Hemispheric Lateralization refers to activities that take place on each side of the brain. The left side of the The right side of brain controls the brain deals activities related to with images and rational thought. impressions. 8-50
Attention Nonfocused Attention Subliminal Stimuli A message presented so fast, softly or masked by other messages that one is not aware of seeing or hearing it is call a subliminal stimulus. stimulus A subliminal ad “hides” key persuasive information within the ad by making it so weak that it is difficult or impossible for someone to physically detect. Subliminal advertising has been the focus of intense study and public concern. 8-51
The Vicary Subliminal “Persuasion” Study Is this subliminal stuff true? 8-52
Interpretation Interpretation is the assignment of meaning to sensations. Interpretation relates to how we comprehend and make sense of incoming information. It is influenced by characteristics of the stimulus, the individual, and the situation. 8-53
Factors Affecting Comprehension (comprehension= interpretation) Source: Babin and Harris 8-54 (Note: you don’t need to know all- just understand a few factors)
Physical Characteristics of the Message Fonts Numbers 8-55
Simplicity/Complexity Simple phrases such as “fat free” often communicate more clearly than detailed information. 8-56
Congruent or Incongruent Message Sequences? 8-57
Message Source Factors Likeability Likeability Expertise Expertise Trustworthiness Trustworthiness Attractiveness Attractiveness 8-58
Interpretation Three aspects of interpretation: interpretation 1. It is generally a relative process rather than absolute, referred to as perceptual relativity. relativity 2. It tends to be subjective and open to a host of psychological biases. 3. It can be a cognitive “thinking” process or an affective “emotional” process. • Cognitive interpretation is a process whereby stimuli are placed into existing categories of meaning. • Affective interpretation is the emotional or feeling response triggered by a stimulus such as an ad. 8-59
Interpretation • Cognitive interpretation – Process of adding meaning – From existing knowledge semantic meaning psychological meaning • Affective interpretation – Processing and adding meaning by feeling 8-60
Affective interpretation used in an advertisement 8-61
Determinants of interpretation 8-62
Interpretation (cont.) • Individual characteristics – Learning – Expectations • Situational characteristics – E.g. hunger, moods, temperature etc. – Proximity • Stimulus’ characteristics – Semiotics • Misinterpretation of marketing messages 8-63
Interpretation Individual Characteristics Traits Learning and Knowledge Expectations 8-64
Interpretation Individual Characteristics Traits Physiological and psychological traits drive our needs and desires. These traits influence how a stimulus is interpreted. Physiologically Psychologically Consumers have natural cognitive, Consumers differ in their sensitivity to emotional, and behavioral stimuli, e.g., taste. predispositions, e.g., affect intensity. 8-65
Interpretation Individual Characteristics Learning and Knowledge The meanings attached to such “natural” things as time, space, relationships, and colors are learned and vary widely across cultures. Consumers also learn about marketer-created stimuli like brands and promotions Color is used in the Wrigley’s ad to through their experiences mean “icy and cool.” with them. 8-66
Interpretation Individual Characteristics Expectations Interpretations tend to be consistent with expectations, an effect referred to as the expectation bias. Consumers often evaluate the performance of a well-known brand as higher than that of an identical product with an unknown brand Brands create expectations and can thus bias perceptions. name. 8-67
Interpretation Situational Characteristics The situation provides a context within which the focal stimulus is interpreted. The Contextual cues present in the situation play a role in consumer interpretation independent of the actual stimulus. 8-68
Interpretation Stimulus Characteristics Traits Organization Changes 8-69
Interpretation Stimulus Characteristics Traits Specific traits of the stimulus such as size, shape and color affect interpretation. Consumers appear to prefer stimuli that they perceive as easy to process. Incongruity is an unexpected stimulus and increases attention. This billboard ad features a simple message. 8-70
Interpretation Stimulus Characteristics Organization Stimulus organization refers to the physical arrangement of the stimulus objects. The mannequin’s position (right) makes it “appear” to be looking at the Calvin Klein ad. This likely draws shoppers to the ad and store as well. This store front shows a mannequin turned toward a Calvin Klein ad. 8-71
Interpretation Stimulus Characteristics Organization (cont.) Proximity means that stimuli positioned close together are perceived as belonging to the same category. Ambush marketing draws on proximity by making it appear that a company is associated with an event when it’s not. Closure involves presenting an incomplete stimulus with the goal of getting consumers to complete it and become more engaged and involved. Figure-ground involves presenting the stimulus in such a way that it is perceived as the focal object to be attended to and all other stimuli are perceived as the background. 8-72
The Figure and Ground Distinction 8-73
Apple i-pod ads 8-74
Interpretation Stimulus Characteristics Changes Interpreting change requires both the ability to detect change and then assigning meaning to that change. Sensory Discrimination is the physiological ability of an individual to distinguish between similar stimuli. Just Noticeable Difference (j.n.d.) is the minimum amount that one brand can differ from another (or from its previous version) with the difference still being noticed. 8-75
JND (Just Noticeable Difference) • Represents how much stronger one stimulus has to be relative to another so that someone can notice that the two are not the same. • Weber’s Law – the ability to detect differences between two levels of a stimulus is affected by the original intensity of the stimulus. 8-76
JND formula ∆I K: JND ∆ I : change in K= intensity of stimuli I I : original intensity of stimuli 8-77
JND: Marketing Implications Pricing Pricing Quantity Quantity Add-on Add-on Quality Quality Purchases Purchases 8-78
JND and Pricing • Depends on whether you are increasing or reducing price • JND for reducing price should be large (‘above the jnd’- noticeable) • JND for increasing price should be imperceptible (‘below the jnd’) 8-79
JND and Quantity • Increasing or decreasing quantity • Increase= above the JND • Decrease= below the JND • Examples – Extra value package (more quantity) – But if you have to reduce size (like burger patty or chocolate bars, make sure it is imperceptible – below the jnd) 8-80
JND and Quality • Changes in quality • Improvements: above the jnd • Reduction : below the jnd • Examples??? 8-81
Interpretation Consumer Inferences When it comes to marketing, “what you see is not what you get.” That’s because interpretation often requires consumers to make inferences. An inference goes beyond what is directly stated or presented. Consumers use available data and their own ideas to draw conclusions about information that is not provided. 8-82
Interpretation Consumer Inferences Quality Signals Interpreting Images Missing Information and Ethical Concerns 8-83
Interpretation Consumer Inferences Quality Signals Some product quality inferences Quality signals include: are consistent across consumers and are termed quality signals. • Price-perceived quality Quality signals tend to operate • Advertising intensity more strongly when consumers • Warranties lack the expertise, when involvement in the decision is •Country of origin (COO) low, and when other quality- •Brand name related information is lacking. 8-84
Interpretation Consumer Inferences Interpreting Images Consumer inferences are becoming increasingly important as advertisers increase their use of visual imagery. A picture is worth a thousand words not just because it may convey reality more efficiently than words but because it may convey meanings that words cannot adequately express. Courtesy Partnership for a Drug-Free America 8-85
Interpretation Consumer Inferences Missing Information and Ethical Concerns How can consumers be misled? 1. Companies can make direct claims that are false. 2. Other types of deception are more subtle and fall under the broad category of claim-belief discrepancies. 8-86
Children’s information processing Stage Description 1. Sensorimotor Primarily motor intelligence (0-2 yrs) 2. Pre-operational thought Language and (3-7yrs) conceptual development 3. Concrete operations Logical thought applied (8-11yrs) 4. Formal operations Logical thought has been (12-15yrs) developed and can be applied 8-87
Perception and marketing strategy 1. Retail strategy 2. Brand name and logo development 3. Media strategy 4. Advertisement and package design 5. Warning labels and package designs 8-88
Perception and marketing strategy (cont.) • Perceptions of marketing messages and ethics – Ethics of the ads e.g. Heart tick can’t be used by all ‘healthy’ foods – Advertising aimed at children children can’t always distinguish between ads and programs more research required 8-89
Perception and Marketing Strategy Retail Strategy Retailers often use exposure very effectively. Store interiors are designed with frequently purchased items separated so consumers will travel through more of the store, increasing total exposure. Shelf position and amount of shelf space influence which items and brands are allocated attention. Cross-promotions, where signage in one area of the promotions store promotes complementary products in another can also be effective. 8-90
Retail strategy • Store layout – Cold and hot zones – Traffic and islands • Lighting and fit-out • Placement of products on shelves – Eye levels (for adults and for children!) – Number of facings to maximise visual impact 8-91
Perception and Marketing Strategy Retail Strategy Shelf space and position help to gain attention. In this case, the shelf is protruding out into the shopping aisle! 8-92
Perception and Marketing Strategy Brand Name and Logo Development Brand names can influence anything from food taste to color preference. Given the tendency toward global brands, it is easy to imagine how complex creating an appropriate name can be. Linguistic Consideration Logo Design Branding and Strategies Typographics 8-93
Perception and Marketing Strategy Brand Name and Logo Development Linguistic Considerations Sometimes brand names start out having no inherent meaning, but gain associations over time as consumers gain experience with them. Marketers increasingly tap into linguistic characteristics of words to create brand names with inherent meaning. • Semantic meaning or morpheme -- (e.g., NutraSweet) • Phonemes -- Sounds of letters and words can symbolize product attributes (e.g., Charmin’s soft sounds) 8-94
Brand name and logo development • Important for consumer and industrial products • Creating a brand is a long and expensive process • Brand names and logos require constant management and rejuvenation • Take into account where the brand name/logo will be used – Is it easily transferable to a range of media? 8-95
Perception and Marketing Strategy Brand Name and Logo Development Branding Strategies Marketers engage in numerous strategies to leverage strong existing brand names. • Brand extension • An existing brand extends to a new category with the same name. • Co-branding • An alliance where two brands are put together on a single product. A key issue with both branding strategies is perceived fit. 8-96
Perception and Marketing Strategy Brand Name and Logo Development Logo Design and Typographics How a product or service name is presented—its logo—is very important. Dimensions include: •Naturalness •Elaborateness •Symmetry 8-97
Perception and Marketing Strategy Advertisements Advertisements must perform two critical tasks: Capturing attention Conveying meaning 8-98
Simple, straight-forward advertisements can gain attention 8-99
Perception and Marketing Strategy Advertisements Strategy examples can include: Utilizing stimulus characteristics to attract attention (bright colors or surrealism) Tying the message to a topic in which the target market is interested (relevance) Using humor, sex appeal, and celebrities in ways that are relevant to the product or message 8-100