BMGT451 Consumer Analysis Notes Consumer Perceptions The Consumer s Perceptual Process Consumers are constantly being exposed to new stimuli o Ads are pretty much everywhere Comparing perceptions and reality o Edit out a lot of what we see selective while processing information o More likely to pay attention if its surprising fun catches our eye The Perceptual Process Perception is the process of selecting organizing and interpreting sensations o Exposure to stimuli o Processing of stimuli o Interpretation of stimuli Stimulus Factors o Size o Color o Shape o Intensity Environmental Factors o Physical surroundings o Social surroundings o Antecedent state Individual Factors o Needs o Interests o Ability o Previous experiences Previous experiences o Confederates Trained not to do anything different than the bystander effect Perceptual Filters Adaptation to constant stimuli o Detection requires changes in stimuli o Threshold levels Absolute threshold Terminal threshold Differential threshold just noticeable difference o Just barely perceive something absolute threshold o Keep turning the volume up until you can barely hear it o Point where you can t detect any change terminal threshold o Volume 9 to 10 o Just noticeable difference differential threshold o You can tell the difference in volume from 4 to 5 o Amount to turn the light dimmer o Why would they care o Downsizing products size of the package how much can they change it before consumers notice Weber s Law The larger the base quantity the larger the change in the quantity is required for people to notice the change o Something to be done around Halloween Perceptual Selectivity Three Phases of the perceptual process o Selective Exposure o Selective Attention o Selective Interpretation Ways to combat perceptual selectivity o Increase accidental exposure Advertising in stadiums product placements o Maintain exposure o Grab the consumer s attention Subliminal Perception Limin absolute threshold Subliminal Supraliminal Mere Exposure Effect o Below the threshold to start perceiving Expectations vs Interpretations 1986 Coke changed their formula First mover advantage o Like it because you were exposed to it before you had to choose o Let s say you like papa johns and you see an advertisement for dominos pizza You say pizza sounds great and then order from papa johns Whatever brand comes to mind first Function of ads is to shape consumer expectations Interpreting Stimuli Proximity o Putting something next to something else proximity causes it to be perceived differently than it previously was o Closure makes you think of part of a word and you finish it yourself ingle ells Jingle Bells o Complete image compared to a partial image Context Closure Shaping Interpretations Categorization o Shelf location o Packaging Surrogate indicators o Price indicates quality Prototype matching o Brand leaders set certain standards Misperceptions Size shape packaging are all important when it comes to perceptions about what a product contains Perceptual Mapping Helps identify and understand current positioning and market structure Tests perceptions of new product concepts Approaches Identifies market opportunities o Attribute based approach Select dimensions Rate dimensions o Nonattribute based approach Similarity judgments Interpret dimensions Exploratory