Consumer Perception
Consumer Perception
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Consumer Perception
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LEARNING OBJECTIVES
After reading this chapter, you should be able to:
➠ Understand the process of perception, from how it is organized to how it is interpreted
➠ Know the concept of sensations and thresholds and how these impact on brand
perceptions
➠ Explain the factors affecting perception such as intensity, size and novelty
➠ Discuss consumer image and its marketing applications
➠ Evaluate the different types of risks and how to mitigate the perceptions of these
Perception is the process by which people select, organize, and interpret sensations, i.e. the
immediate response of sensory receptors (such as the eyes, ears, nose, mouth, and fingers) to such
basic stimuli as light, colour, odour, texture, and sound. Anything that activates a receptor is called
a stimulus. The study of perception focuses on what we add to raw sensations in order to give them
meaning. Each individual interprets the meaning of a stimulus to be consistent with his or her own
unique biases, needs, and experiences. As Figure 7.1shows, the three stages of exposure, attention,
and interpretation make up the process of perception.
Overall, perception is simply the process of (i) selecting, (ii) organizing, and (iii) interpreting
information inputs in order to produce meaning that would aid in consumption decision-making.
At the exposure phase, information inputs are sensations received through our sense organs (i.e.,
sight, taste, hearing, smell, and touch). For example, when we see or hear an advertisement, smell
or touch a product, we receive information inputs. These processes are collectively referred to as
the process of perception.
Process of Perception
The following is the process of perception:
1. Exposure
Exposure occurs when a stimulus comes within the range of someone’s sensory receptors—
sight, smell or touch. Consumers may either tend to concentrate on certain stimuli while being
completely unaware of others, or they may even go out of their way to ignore certain messages.
2. Attention
Attention refers to the extent to which processing activity is devoted to a particular stimulus.
Consider, for example, the thought of having to sit through both interesting and “less
interesting” lectures. This can vary depending on both the characteristics of the stimulus
(i.e., the lecture itself) and the recipient (i.e., your mental state at that time). Consumers
often are in a state of sensory overload, where they are exposed to far more information
than they can process. Taken from a marketing perspective, we are often bombarded with
marketing stimuli from commercial sources, thus making the competition for our attention
an ever-increasing phenomenon.
3. Interpretation
Interpretation refers to the meaning that we assign to sensory stimuli. Just as people differ in
terms of the stimuli that they perceive, the meanings we assign to these stimuli vary as well.
Two people can see or hear the same event, but their interpretation of it can be as different
as night and day, depending on what they had expected the stimulus to be. The meaning
we assign to a stimulus depends on the schema (i.e., set of beliefs), to which we assign it.
Identifying and evoking the correct schema is crucial to many marketing decisions because
this determines what criteria consumers will use to evaluate the product, package, or message.
Perceptual Organization
Our brains tend to relate incoming sensations to others already in memory, based on some
fundamental organizational principles. These principles derive from Gestalt psychology, a school
of thought that maintains that people interpret meaning from the totality of a set of stimuli rather
than from any individual stimulus. In other words, the concept suggests that “the whole is greater
than the sum of its parts.” By implication, a piecemeal perspective that analyses each component
of the stimulus separately cannot capture the total effect. The Gestalt perspective provides several
principles relating to the way our brains organize stimuli. Three principles are worth elaborating here:
1. The closure principle states that people tend to perceive an incomplete picture as complete.
For example, when we hear only part of a jingle or theme. Marketing strategies that use the
closure principle encourage audience participation, which increases the chance that people
will attend to the message.
2. The principle of similarity tells us that consumers tend to group together objects that share
similar physical characteristics. Green Giant relied on this principle when the company
redesigned the packaging for its line of frozen vegetables. It created a “sea of green” look
to unify all of its different offerings.
3. The figure-ground principle states that one part of a stimulus will dominate (the figure),
and other parts recede into the background (the ground). The figure is dominant, and the
eye goes straight to it. For example, 70% off could be the eye catcher for a pair of ray ban
sunglasses but, on closer inspection, you might notice that the offer is subject to certain
terms and conditions.
Sensory Systems
Talking of the process of perception, you may recall that we are first exposed to stimuli before
any serious attention may be given. Such exposure is obviously to our sensory receptors and the
processing occurs within our sensory systems. For example, we can receive external stimuli, or
sensory inputs, on a number of channels. We may see a billboard, hear a jingle, feel the silkiness of
a quality saree (traditional South Asian dress), taste a new flavor of Turkish coffee, or smell of the
Arabian musk. The inputs our five senses detect are the raw data that begin the perceptual process.
For example, sensory data emanating from the external environment (e.g., hearing a music clip on
the radio) can generate internal sensory experiences when the song triggers a young man’s memory
of his encounter with his bride and brings to mind the smell of her perfume as they finally get to
meet in her court. The unique sensory quality of a product can play an important role in helping it
stand out from competition, especially if the brand creates a unique association with the sensation.
In recent years, the sensory experiences we receive from products and services have become an
even larger priority when we choose among competing products and/or brands. Table 7.1 provides
an illustration of the five senses and how these impact upon our perceptual processing.
1. Smell
Smell, good or bad (i.e. aroma or odour), can stir up emotions or create a calming effect –
especially in the case of aromas. They can also invoke memories or relieve stress, as in the
case of aromatherapy (where scents are used for healing). One study found that consumers
who viewed ads for either flowers or chocolate and who also were exposed to flowery or
chocolatey odours spent more time processing the product information and were more likely
to try out different alternatives within each product category. Many consumers control the
odours in their environments and this growing interest has created and/or re-created a lot of
new products in recent years. Overall, the sense of smell is related to pleasure and well-being
and is closely connected to emotions and memories.
2. Sound
The sense of sound is linked to emotions and feelings and the sense impacts brand experiences
and interpretations. It is by no coincidence that we are bombarded with the sound of music all
the time. Obviously, our senses and especially vision (sight) cannot seem to work in isolation
in today’s consumerist world. Think about how Radio advertisements tend to trail their TV
counterparts in marketers’ ad spend. Better still think about how you would feel watching
a movie while the volume control is on mute. Could it be pure accident that electronics
manufacturers launched the “home theatre” surround system for our enjoyment of movies?
3. Taste
Our taste receptors obviously contribute to our experience of many products. So-called
“flavour houses” keep busy developing new concoctions to please the changing palates
of consumers. Scientists are right behind them as they develop new devices to test these
flavours. Coca-Cola and PepsiCo use the tongue to test the quality of corn syrups, whereas
drugs manufacturers such as Roche have been known to use the device to devise medicines
that do not taste bitter.1 Changes in our culture also determine the tastes we find desirable.
For example, consumers’ greater appreciation of different ethnic dishes has contributed
to increased desires for spicy foods. For example, Nandos, the Portuguese/South African
restaurant chain, is popular for its peri peri chicken and dishes.
4. Touch
Although scientists have done relatively little research on the effects of tactile stimulation
on consumer behaviour, common observation tells us that this sensory channel is important.
Consider the classic, contoured Coca-Cola bottle, which was designed to satisfy the request
of a US bottler for a soft-drink container that people could identify even in the dark. Indeed
sensations that reach the skin, whether from a luxurious massage or the chill of a winter
wind, stimulate or relax us. Researchers even have shown that touch can influence sales
interactions. Britain’s Asda supermarket (a part of the Walmart Group) is reported to have
removed the wrapping from several brands of toilet tissue in its stores so that shoppers could
feel and compare textures—an experiment that resulted in soaring sales for its own in-store
brand by up to 50% increase in shelf space.2
5. Vision
Marketers rely heavily on visual elements in advertising, store design, and packaging. They
communicate meanings on the visual channel through a product’s colour, size, and styling.
Philips gives its electronics a younger feel by making them thinner and more colourful.
Colours may even influence our emotions more directly. Evidence suggests that some
colours (particularly red) create feelings of arousal and stimulate appetite, and others (such
as blue) create more relaxing feelings. Yet others such as pink may represent the symbol of
independence—or resistance as in the case of the Indian State of Uttar Pradesh (see Exhibit
7.1).
Exhibit
7.1
Fancy a Lady in Pink?
Mind you that’s the colour of independence!
The Gulabi (in Hindi, gulabi means pink) gang is an all-female, pink-clad vigilante group that
strikes fear in the hearts of adulterers, wife beaters and other wrongdoers. Since their formation
in 2007 in Banda, an impoverished and lawless district in the rural interiors of the Indian State
of Uttar Pradesh, the Gulabi gang has gone after wife beaters with lathis, the traditional Indian
bamboo baton. They have also taken their fight to corrupt policemen.
Dressed in pink saris, thousands of women have banded together in the Gulabi gang to help
the poor, the powerless and themselves in India’s troubled Uttar Pradesh region. Bundelkhand in
south-east Uttar Pradesh is among the most underdeveloped and poverty-stricken areas in India.
Crime and government corruption are rampant. The upper-caste people rule by the strength of
their money and influence. The poor, lower-caste people are daily wage labourers or work as
farmers in the fields owned by the elite.
The situation for women in Bundelkhand is even worse. To prevent free mixing with boys,
residents do not send their girls to school. Girls are generally married off at an early age. There
are many instances in which in-laws torture and even burn young girls if the parents cannot
satisfy them materially after marriage, even though the dowry has been paid. Abandoning a girl
after a few years of marriage is also common here, as most of the marriages are not registered in
the civil court. Domestic violence is prevalent. Most of the rape and sexual abuse cases are not
reported to the police for fear of social stigma, and hence the rates are high. Sampat Pal Devi,
48 and a mother of five, has emerged as a voice for these women. She got together with a group
of like-minded women from the area and they christened themselves the “Gulabi Gang.” They
quickly became popular for their gulabi (pink) saris—pink is an ‘independent’ colour in India,
not aligned, as are other colours, with a particular political party—and for their fierce ways of
solving problems and helping each other.
The gang came into prominence in 2007, when they beat up the then-officer in charge
of the police station in the nearby town of Attara. The incident happened when Devi and her
group intervened in a matter on request from a lower-caste woman whose husband was kept in
police custody for 13 days without charges. Devi demanded the officer register a case or release
the man. When the officer abused her verbally, Devi says, she flared up and slapped him, and
the other gang members then beat him. The officer was eventually suspended on disciplinary
grounds. The incident drew media attention and ignited a debate over the use of violence to
solve problems. The gang was noticed by government and local officials, and their reputation
grew. The group that began with a few members now boasts of 300,000 members in the state
of Uttar Pradesh alone. Nowadays, they not only deal with people’s personal problems but also
intervene in public matters. They first try to solve a problem in a non-violent manner, and if that
does not work, they resort to other methods. In cases of corrupt or irresponsible government
officials, gang members may shame them in public, threaten them or beat them up. According
to Devi, physical violence has proved the most effective solution, although she now says it has
mostly become unnecessary:
Sources: Chopra, A. (17 January 2009), Pink-clad women fight for justice in an Indian village, The National, Online at: http://
www.thenational.ae/news/worldwide/south-asia/pink-clad-women-fight-for-justice-in-an-indian-village; Arindam Mukherjee
(The National, 26 February 2011), Pink sari gang fights against India’s oppressors. online at: http://www.thenational.ae/news/
worldwide/pink-sari-gang-fights-against-indias-oppressors.
Some reactions to colour come from learned associations. In Western countries, black is the
colour of mourning, whereas in most Arab countries, white plays this role. In addition, while the
colour black may be associated with power in western world (think of the New Zealand All Blacks
rugby team), the same may not be the case in the Arab world in which the black colour is worn by
women of decency in the traditional Abaya. Other reactions are a result of biological and cultural
differences. Women are drawn toward brighter tones and they are more sensitive to subtle shades
and patterns. Some scientists have argued that age influences our responsiveness to colour—as we
get older, our eyes mature and our vision blurs. Consequently, colours tend to look duller to older
people, so they prefer white and other bright tones. This helps to explain why mature consumers
are much more likely to choose a white car—Lexus, which sells heavily in this market, makes 60%
of its vehicles in white. Coincidentally, most consumers in the Arab world tend to opt for white
cars as being very good heat conductors (arguably white cars tend to be cooler especially in the
hot summer months). Meanwhile, there have been muted perceptions about white coloured cars
having very marginal second-hand value in countries such as the UK.
Perceptual Distortion
People can form different perceptions of the same stimulus due to three perceptual processes—notably
selective attention, selective distortion, and selective retention. The first of the three—selective
attention is the tendency of people to screen out most of the information to which they are exposed.
This means that marketers would need to strive or work hard in order to attract the attention of
consumers. Selective or perception distortion simply means the lack of correspondence between the
way a stimulus is commonly perceived and the way an individal perceives under the given conditions
or circumstances. In other words, it describes the tendency of people to interpret information in a
way that will support what they already believe. For example, if a consumer distrusts a particular
bank, he might perceive the even honest offers of credit cards, savings rates or even insurance deals
as questionable. What this, then, means for marketers is that they must try very hard to understand
the mindsets of consumers and how these will affect their interpretations of any sales information
or advertisements by the firm. However, as we discussed in Chapter 6, people are also bound to
forget much of what they learn. Under such circumstances, consumers tend to retain information
that supports their attitudes and beliefs (see Chapter 4). As a result of selective retention, therefore,
consumers are likely to remember good points made about competing brands. Interestingly, although
most marketers worry about whether their products, services or ideas will be pereceived at all,
some consumers worry that they will be affected by marketing messages without even realizing
it—through subliminal advertising (yet another controversial topic).
Halo Effect
The Halo Effect was first identified in 1920 by American psychologist, Edward Thorndike. The
concept describes how an overall impression shapes specific judgments. In business, a company’s
overall performance, which is usually defined by tangible financial results, shapes our evaluation of
other less tangible things. As highlighted by Rosenweig3 the example of Cisco Systems, which was
admired for its customer focus, efficient organization and charismatic CEO, but when performance
slipped, it was criticized for the exact same thing. Indeed, it seems rather obvious that in the business
world, companies that have been successful in terms of financial performance have tended to arouse
our general positive perception towards every other aspect of the company such as innovation, social
responsibility and product quality as was conferred upon the coffee giant—Starbucks (exaggerating
our perception of the company as the most admired). Other examples have included Apple and
Wal-Mart (see for example, The Economist, 2011).
Weber’s Law
Ernst Weber, a nineteenth century psychophysicist, found that the amount of change required for
the perceiver to notice a change is systematically related to the intensity of the original stimulus.
In other words, the stronger the initial stimulus, the greater a change must be, for us to notice it.
For example, some retailers have been known to markdown prices in order to boost sales. But the
argument is not whether you mark down but by how much. Research has shown that the markdown
should be at least 20 percent for the reduction to make an impact on shoppers. If this is the case,
a pack of washing up liquid that retails for ` 10 should be put on sale for ` 8 (an ` 2 discount) for
shoppers to realize a difference. However, a pair of Ray Ban sunglasses selling for ` 1000 would
not benefit from a “mere” ` 2 discount. A retailer would have to mark it down to ` 800 to achieve
the same impact. Because the brain’s capacity to process information is limited, consumers are very
selective about what they pay attention to. The process of perceptual selection means that people
attend to only a small portion of the stimuli to which they are exposed (see Exhibit 7.2 and think
about what grabs your attention). Consumers practice a form of “psychic economy,” picking and
choosing among stimuli to avoid being overwhelmed. How do they choose? Both personal and
stimulus factors should help to decide.
Exhibit
7.2
Bollywood Dreams—Your Worst Nightmare?
Bollywood, in the past, had been content with addressing its domestic and/or indigenous audience
due to its size. However, marketers and producers soon realized the significance of the diaspora
market, where ticket, video and DVD sales accounted for up to 40 percent of revenues. Indeed
Bollywood had put in great promotional effort—via newspapers, TV and local radio – in order
to appeal to the diasporic community (also regarded as the non-resident Indians or NRIs).
There have been some suggestions that film producers have started developing movies that
appeal to ‘diaspora’ tastes by including at least one foreign character. According to him, films
are continually reflecting the confusion of a society in transition. The new aspirational model of
NRIs, who have succeeded in terms of material wealth, but still want to hold onto their Indian
values.
However, although Bollywood movies have incorporated more from MTV-style
choreography, graphics and editing—product attributes, it remains entrenched with cultural
values and absolutism. One school of thought argued that Bollywood films exuded their own
narrative, which informs a range of products and practices and is in fact a ‘culture industry.’
Another school of thought sees the industry as a commoditized and globalized export which
provides a ‘feel good’ version of ‘Indian culture.’ Indeed the increasing importance of the
diaspora audience is evident through proliferation of film award ceremonies held in the UK and
the US where titles such as Veer-Zaara won major awards based upon votes cast by diasporic
audiences. Moreover, the Cannes Film Festival of 2005 witnessed the opening of the Indian
Pavilion, funded through Government sources and thus providing a showcase opportunity for
Indian movie producers. Cannes also recognized the important contributions made by the Indian
film industry in general—especially ‘Pather Panchali’ opening the Cannes Classics Series.
Overall, while it is arguable that Bollywood exists and caters for a diasporic audience of
Indians, this has been largely due to its heavy media influence and ‘hype’, and the fact that
much of the Bollywood phenomenon has been enacted in London and other western locations
rather than in India (i.e. changing photo shoot locations). Spencer (2002) cites the examples of
Webber’s Bollywood dreams; Selfridge’s month long Bollywood extravaganza, the British Film
Institute’s Bollywood movies tour and Channel 4 (UK) Bollywood Women season.
Source: Adapted from Madichie, N. (2010), The Nigerian Movie Industry “Nollywood”—A Nearly Perfect Marketing Case
Study. Marketing Intelligence & Planning, Vol. 28, No. 5, pp. 625–649.
Subliminal Perceptions
Subliminal perception refers to the ability to perceive a stimulus that is below the level of conscious
awareness. The concept holds that a brief exposure of a message would cause people to experience
a sudden mysterious desire to act. In other words, the theory holds that such messages would flash
(appear and disappear in a matter of seconds) to the extent that they would slip through or bypass
the normal perceptual safeguards and thereby register on the individual’s consciousness unedited,
e.g. flashing messages unto these claims were so powerful that subliminal advertising was banned
in some countries and regulated in others. For more on this, see Aspan4 and Nelson5.
Adaptation
Adaptation simply refers to the degree to which consumers continue to notice a stimulus over time.
The process of adaptation occurs when consumers no longer pay attention to a stimulus because it
is so familiar. A consumer can “habituate” and require increasingly stronger “doses” of a stimulus
in order to notice it. A commuter on his way to work might read a billboard message when it is first
installed, but after a few days, it simply becomes part of everyday living. Several factors can lead
to adaptation—you may refer to this as DRIED, a memory marker (i.e. for easier recall):
Semiotics
Many researchers have come to the conclusion that, on the surface, many marketing images have
virtually no literal connection to actual products. Therefore, in their attempt to better understand
how consumers interpret the meanings of symbols, some marketers have turned to a field of
study called semiotics, which is the study of the correspondence between signs and symbols and
their roles in how we assign meanings.Semiotics is important to the understanding of consumer
behaviour because consumers use products to express their social identities. Products have learned
meanings, and we rely on marketers to help us figure out what those meanings are. From a semiotic
perspective, every marketing message has three basic components: an object, a sign (or symbol), and
an interpretant. The object is the product that is the focus of the message (e.g., Marlboro cigarettes).
The sign is the sensory image that represents the intended meanings of the object (e.g., the Marlboro
cowboy). The interpretant is the meaning derived (e.g., rugged, individualistic, American). Signs are
related to objects in one of three ways—(i) they can resemble objects; (ii) be connected to them; or
(iii) be conventionally tied to them.8 Consider the interactions between icons, index and symbols
thus:
▲▲ Icon—A sign that resembles the product in some way (e.g., the Ford Mustang has a galloping
horse on the hood).
▲▲ Index—A sign that is connected to a product because they share some property (e.g., the pine tree
on some of Procter & Gamble’s Spic and Span cleanser products conveys the shared property
of fresh scent).
▲▲ Symbol—A sign that relates to a product by either conventional or agreed-on associations. The
Nissan Xterra combines the word terrain with the letter X, which many young people associate
with extreme sports, to give the brand name a cutting-edge, off-road feel.
A University Professor once created a perceptual map for Toyota models for his class of Middle
Eastern pedigree. He wanted to find out how students in his marketing class perceived the different
models they either already have or planned to buy. He asked students to plot perceptions of such
attributes of competitors as rational versus emotional consumption, and prestige versus value brands.
Based on this class exercise, Toyota’s strengths could be identified in terms of having a range of
products for every kind of consumer.
This map may also enable Toyota to bounce back from its recall crisis, if the experiment was
thrown open to the wider Middle eastern population—enabling the struggling car giant to make
informed strategic decisions as to what brands it cannot afford to discontinue especially in that
region. This can also effectively become Toyota’s positioning strategy, which is a fundamental
component of a company’s marketing efforts as it uses elements of the marketing mix (i.e.,
product design, price, distribution, and marketing communications) to influence the consumer’s
interpretation of its meaning in the marketplace relative to its competitors.
Brand Image
Why do burgers, French fries, chicken nuggets, and even milk and carrots all taste better to children
if they think they came from McDonald’s? In taste tests with 63 children aged between three and
five years9, there was only a slight preference for the McDonald’s-branded hamburger over one
wrapped in plain paper, not enough to be statistically significant. But for all the other foods, the
McDonald’s brand made all the difference. Almost 77%, for example, thought that McDonald’s
French fries served in a McDonald’s bag tasted better, compared with 13 percent who liked the
fries in a plain white bag. Apparently, carrots, too, taste better if they are served on paper with the
McDonald’s name on it.
Perception of Risk
Although many marketers view their products or services as bundles of attributes, consumers
tend to think about them in terms of consequences (or risks), i.e. those outcomes that consumers
experience when they consume products. Two broad types of consequences have been identified in
the literature—functional and psychosocial.10 Functional risks are concrete outcomes of product/
service usage that are tangible and directly experienced by consumers, e.g. the acceleration or
fuel consumption of a car. Psychosocial risks, on the other hand, are abstract outcomes that are of
an intangible nature and therefore more subjective—e.g. what does it feel like to be a Jaguar (the
car) owner. Indeed, evaluative criteria can be objective or subjective. In buying an automobile,
consumers use objective attributes such as price, warranty and fuel economy as well as subjective
factors such as image, styling and performance.11 The five basic kinds of risk include both objective
(e.g., physical danger) and subjective factors (e.g., social embarrassment). Consumers with greater
‘risk capital’ are less affected by perceived risks associated with purchases. The five basic kinds
of risk include:
1. Monetary or financial risk – This is mostly related to money and property. Those with
relatively little income and wealth are most vulnerable. Common for high-ticket items that
require a substantial expenditure such as cars and houses.
2. Functional risk – It relates to alternative means of performing the function or meeting the
need. Practical consumers are the most sensitive. More applicable to purchases requiring
the buyer’s exclusive commitment.
3. Social risk – It is closely linked to self-esteem and confidence. Those who are insecure and
uncertain are most sensitive. Typical for socially visible or symbolic products such as clothes,
jewellery, homes, or sports equipment.
4. Psychological risk – It is similar to social risk, but consists of affiliations and status. Those
lacking respect or attractiveness to peers are most sensitive. Common with expensive personal
luxuries that may engender guilt, durables, and services whose use demands self-discipline
or sacrifice.
5. Physical risk – This is concerned with the aspect of physical vigour, health, and vitality.
Those who are elderly, frail, or in ill health are most vulnerable. Applicable to mechanical
or electrical goods (e.g. flammables), drugs and medical treatment, as well as food and
beverages, e.g. wine.12
e-commerce.17 With respect to reducing consumer perceived risk and uncertainty, word-of-mouth is
more relied on by consumers than any other information, because it is based on consumer experience
and is especially vivid information, which tends to have a stronger influence on product judgment
and risk reduction. For example, eBay’s Cafe, a chat room, posts a daily mix of remarks, user tips,
sociable banter or complaints, good experiences, and even advice for the lovelorn. Moreover, the
site is most active when consumers purchase products while in a situation of high involvement.
Consequently, marketers must participate actively in creating positive word-of-mouth, because
dissatisfied customers will disseminate news of their bad experiences with the retailer. That is,
dissatisfied customers participate in negative word-of-mouth communication, and this means that
new and existing customers become aware of a perceived risk or uncertainty for future purchase
opportunities. Thus, marketers must effectively maintain and develop their website communities,
forums, and feedback sites in order to retain satisfied customers and reduce their perceived risk.18
S ummary
➠➠ Perception is the process by which physical sensations, such as sights, sounds, and smells, are selected,
organized, and interpreted. The eventual interpretation of a stimulus allows it to be assigned meaning.
➠➠ Many stimuli compete for our attention, and most are hard to notice, if ever. This is simply because
people have different perceptual thresholds.
➠➠ A stimulus must be presented at a certain level of intensity before our sensory detectors actually pick
them up. Furthermore, a consumer’s ability to detect whether two stimuli are different (the differential
threshold) is an important issue in many marketing contexts, such as package design, the size of a
product, or its price.
➠➠ Some of the factors that determine which stimuli (above the threshold level) do get perceived include the
amount of exposure to the stimulus, how much attention it generates, and how it is interpreted.
➠➠ Although evidence of the effectiveness of subliminal persuasion is virtually nonexistent, many consumers
continue to believe that advertisers use this technique to lure them into making purchase decisions.
➠➠ A semiotic analysis involves the correspondence between stimuli and the meaning of signs. The intended
meaning may be literal (e.g., an icon such as a sign to the ladies toilet).
➠➠ A perceptual map is a widely used marketing tool that evaluates the relative standing of competing
brands along relevant dimensions.
➠➠ We rely on colours, odours, sounds, tastes, and even the “feel” of products whenever we make our
purchase evaluations.
➠➠ The five basic kinds of risk include both objective (e.g., physical danger) and subjective factors (e.g.,
social embarrassment).
➠➠ There are numerous ways by which marketers can reduce the perceived risk of consumers and WOM is
a very powerful risk reduction strategy.
R e v iew Q uestio n s
1. How does the sense of touch influence consumers’ reactions to products?
2. Identify and describe the three stages of perception.
3. Does the size of a package influence how much of the contents we eat? Provide an example.
4. Explain the implications of the absolute threshold for marketers attempting to appeal to the elderly.
5. Define a “schema” and provide an example of how this concept is relevant to marketing.
6. List the three semiotic components of a marketing message, giving an example of each.
7. Using examples, compare and contrast the concepts of absolute and differential thresholds.
8. Discuss the advantages and challenges of the halo effect in consumer behaviour.
A cti v ities
1. Purchase decisions that involve extensive search also entail some kind of perceived risk (a belief that the
purchase potentially could have negative consequences). Name five perceived risks, indicate the kinds
of consumers most vulnerable to each risk, and indicate the types of purchases most sensitive to each.
Answer:
The five basic kinds of risk include both objective (e.g., physical danger) and subjective factors (e.g.,
social embarrassment). Consumers with greater ‘risk capital’ are less affected by perceived risks
associated with purchases. The five basic kinds of risk include:
•• Monetary risk—e.g. for high-ticket items that require a substantial expenditure such as cars and
houses.
•• Functional risk—mostly for products or services whose purchase and use requires the buyer’s
exclusive commitment and precludes redundancy.
•• Physical risk—linked to mechanical or electrical goods (such as vehicles, flammables), drugs and
medical treatment, food and beverages.
•• Social risk—based on socially visible or symbolic goods such as clothes, jewellery, cars, homes,
or sports equipment.
•• Psychological risk—concerned with expensive personal luxuries that may engender guilt, durables,
and services whose use demands self-discipline or sacrifice.
2. In groups of three or four, discuss the differences between sensation and perception.
Answer:
•• Sensation—the immediate response of sensory receptors (such as the eyes, ears, nose, mouth, and
fingers) to such basic stimuli as light, colour, odour, texture, and sound. Anything that activates a
receptor is called a stimulus.
•• Perceptions—the process by which people select, organize, and interpret these sensations. The
eventual interpretation of stimulus allows it to be assigned meaning. It is of critical importance
to marketers.
References
1. Tagliabue, J. (2002),“Sniffing and Tasting with Metal and Wire,” New York Times Online (February
17).
2. Ellison, S., and White, E. (2000), “‘Sensory’ Marketers Say the Way to Reach Shoppers Is the Nose,”
Advertising (November 24): 1–3.
3. Rosenweig, P. (2007), From Halo to Hell: On a winning streak? Don’t let success spoil your prospects,
Chief Executive (June), p. 24.
4. Aspan, M., “Horror Movie at High Pitch in TV Ad Aimed at Teenagers”, New York Times Online Edition
(February 19, 2007).
5. Nelson, M. (2008), The Hidden Persuaders: Then and Now, Journal of Advertising (Spring); Vol. 37,
No. 1, pp. 113–126.
6. Solomon, M. (2009), Consumer Behaviour: Buying, Having, and Being, 8th Edition, Upper Saddle
River, New Jersey: Pearson Education.
7. McCarthy 2001
8. Solomon, op. cit.
9. Bakalar, N. (August 14, 2007), “If It Says McDonald’s, Then It Must Be Good,” New York Times
Online Edition, http://www.nytimes.com/2007/08/14/health/nutrition/14nugg.html [accessed October
10, 2011].
10. Ibid.
11. Belch and Belch 2009.
12. Johnson, T., and Bruwer, J. (2004), Generic Consumer Risk-Reduction Strategies (RRS) in Wine-Related
Lifestyle Segments of the Australian Wine Market, International Journal of Wine Marketing, Vol. 16,
Issue 1, pp. 5–35.
A dd i t i o n a l R e a d i n g
Bao, Y. Shibin Sheng, S., Bao, Y., and Stewart, D. (2011), “Assessing quality perception of private labels:
intransient cues and consumer characteristics”, Journal of Consumer Marketing, Vol. 28, No. 6,
pp. 448–458.
Crowley, A. (1993), “The Two-Dimensional Impact of Color on Shopping,” Marketing Letters 4 (January).
Davis, T. (1987), Taste tests: Are the blind leading the blind? Beverage World, 3 (April), pp. 42–44.
Dean, D. (2011), Young adult perception of visible tattoos on a white-collar service provider, Young Consumers:
Insight and Ideas for Responsible Marketers, Vol. 12, Issue 3, pp. 254–264.
Elliott, S. (2005), “TV Commercials Adjust to a Shorter Attention Span,” New York Times Online (April 8).
Forbes, T., “P&G Noses Its Way into Youthful Air Freshener Market”, (January 3, 2007), available from
mediapost.com, accessed January 3, 2007.
Frank, M., and Gilovich, T. (1988), “The Dark Side of Self and Social Perception: Black Uniforms and
Aggression in Professional Sports,” Journal of Personality and Social Psychology, 54: 74–85.
Gorn, G., Chattopadhyay, A., and Yi, T. (1994), “Effects of Colour as an Executional Cue in an Ad: It’s in
the Shade,” (unpublished manuscript, University of British Columbia).
Kahn, G. (2002), “Philips Blitzes Asian Market as It Strives to Become Hip,” Wall Street Journal Interactive
Edition (August 1).
Madichie, N. (2010), The Nigerian Movie Industry “Nollywood”—A Nearly Perfect Marketing Case Study,
Marketing Intelligence & Planning, Vol. 28, No. 5, pp. 625–649.
Madichie, (2011a), ‘Made-in’ Nigeria or ‘Owned-by’ Ireland? Country-of-origin cues and the Narratives of
Guinness consumption in London, Management Decision, Vol. 49, Issue 10 (Forthcoming).
Matzler, K., Grabner-Kräuter, S., and Bidmon, S. (2008), Risk aversion and brand loyalty: the mediating role
of brand trust and brand affect, Journal of Product & Brand Management, Vol. 17, Issue 3, pp.154–162.
Rosenzweig, P. (2008), The Halo Effect, Tharawat Magazine (November), pp. 30–31.
Zweig, J. (2011), The Halo Effect: How it Polishes Apple’s and Buffet’s Image, Wall Street Journal, (online)
27 August. Retrieved online at: http://online.wsj.com/article/SB10001424053111904009304576532861
636564194.html—last accessed on 12 October 2011.
CASE
Slumdog Millionaire
Slumdog Millionaire broke into the UK market on a wave of Oscar hype and critical praise and
our movie critic (our original blogger for this article anonymised now as Rakesh) was looking
forward to seeing it even though the reasons ‘why’ it was good seemed a bit vague to him. On the
one hand, it seemed set in the gritty poverty of India, with descriptions of some very unpleasant
scenes. On the other hand, it was described as being uplifting and the feel-good movie of the year.
Rakesh was curious how this conflicting information resolves itself within one film without off-
balancing it. As he perceived it, the overall sweep of the film is very much a rag-to-riches story
with love being the real heart of the film even if ‘money’ was also central. In this regard, it is an
excellent film because you are engaged throughout, are totally on the side of the main characters
and ultimately the viewer would give anything if they could only end the film happily. In this way,
it is uplifting—and a really cheering film that is worth seeing with an audience because it is one of
those things that unite an audience with a common feeling of cheer and goodwill.
Rakesh really enjoyed the fragmented time structure that uses the re-watching of the Millionaire
questions in the police station as a trigger for flashbacks. This means we are gripped by several
threads rather than it being a straight flow. It is not an amazingly unique device but the manner of
it being put together prevents it ever being clumsy or obvious by how it transitions from one time
to the other. Speaking of delivery and style, the film is understandably an Oscar contender due to
its upbeat nature, but the areas where it stands a great chance are those of cinematography, editing
and direction.
Visually the film is a treat—it captures the colour of India with great camera work that puts us
right in the scene. An example is the early chase through the slum, with a frantic camera, plenty
of colours (in terms of palate, places and people) and a great visual style with the sun hitting the
camera from above as it moves. With this much movement in the camera throughout the film, editing
is the key in making these scenes work and it is excellent throughout – even putting the subtitles
in a stylish and arresting fashion which helped sell the use of Hindi but does also match the style
of the film more than standard text could have. As director Boyle delivers on all this and his use
of music is great as well. It does feel like we have the grit and style of City of God, but yet also
the warm uplifting story of the very best the ‘underdog’ genre can provide. That it achieves this
is a testament to how well the film is delivered because it does have to overcome the fact that the
majority of the film presents us with a terrible world of poverty and suffering and then gradually
pulls the main characters out of it. This is a problem that the delivery covers but ultimately the
viewer is left with some fairly harrowing realities that have not gone away by the end of the film.
Rakesh totally understands those who love the film unquestioningly, but he agrees with those
that take pause on this issue and note that it is an aspect of the film that really does not stand up in
the cold light of day. Although not based on a true story, this is a reality in our world and to see so
much of it in a film that ultimately leaves you feeling good about life and happy that everything
worked out alright is not a mix that sat particularly well with Rakesh. It is not helped by the dance
number over the end credits, which involved lots of people and pushed the “isn’t everything great”
idea more than the proper conclusion of the story did.
The cast mostly play to the ‘fairytale’ side of the film more than the grit, although the young
children are very impressive in the first sections of the story. Patel took a minute to grow on Rakesh
but, although not the most charismatic of performers, he is really steady as the underdog who is
driven. Kapoor is a great villain, driven by a hate that says a lot about the class system in place.
Pinto is stunning and has a much stronger presence than Patel. Khan works the investigation scenes
well, which was important as these are where the story is told from. The film is not as perfect as you
will hear, but it is still very good at what it does—wonderfully stylish and slick romantic fairytale
that is cheering and uplifting but also features horribly real images of cruelty and poverty. It does
not manage to reconcile this, but it is strong enough to make you ignore this for the vast majority
of the time, leaving you tense, hopeful and weepy.
Source: Adapted from the online review by Bob the moo from Birmingham, UK (1 January 2009). The Virtual
Linguist. Online at:http://virtuallinguist.typepad.com/the_virtual_linguist/2009/07/nostalgie-de-la-boue.html
Discussion Questions
1. The author claims that the cast mostly play to the ‘fairytale’ side of the film more than the
grit. To what extent would you agree or disagree with this claim?
2. Slumdog Millionaire has been described as “stylish, slick and uplifting film that features
horribly real images of cruelty and poverty” in India. What sensory stimuli can you use to
analyse this statement?
3. Visually the film is a treat—it captures the colour of India with great camera work that puts us
right in the scene. What other senses is the film capable of appealing to? Justify your answer
with clear illustrations.
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