We all perceive things differently. No two people see things the same way.

We
interpret things in the environment differently. Our senses work involuntary, but we
still make active choices as to what we divert our attention to. Marketers want their
messages to be noticed and attended to. To do this, we need to understand how
consumers process information.
Information processing
is the series of activities that happen in the brain as information is received,
processed and given meaning.
The role of perception in the decision-making process
Have you ever heard the saying the customer is always right? Even if they are not,
correcting them will probably end in
a negative attitude towards your brand, and no sale because you are challenging
their perception! Perception is a key part in the information processing chain. How
consumers perceive your offering (once they have noticed it) will not be the same
as your interpretation of your marketing offer and promotion. Their perception will
be linked to their past experience, attitudes, culture, the situation and social
influences.
Information processing
Figure 5.1 (text, p. 123) lists the steps in consumer information processing. Each
step is affected by internal influences acting on the consumer, and governing their
overall perception of stimuli.
Exposure
Consumers are exposed to stimuli whether they like it or not. Exposure occurs when
our sensory receptors detect a stimulus. Think back to the exercise where students
noticed different stimuli around them

like aromas of fresh bread etc. Marketers know they must be exposed to the
consumer to be noticed at all. Different eye-catching or attention-grabbing
techniques are used by marketers.
Attention
Attention occurs when information is transferred from the sensory receptors
(senses) to the brain for further processing. For example, if someone hears a joke on
television, and stops to work it out, they are giving attention to it.
Salience

is an important concept to consider when trying to attract attention. It refers to the

importance of a stimulus over less-important stimuli. For example, if you include
some negative aspect in your ad in order to show a positive result, you may only
attract enough attention to have the negative aspects noticed, and then associated
with your brand

nterpretation
Interpretation is the stage of processing at which consumers give meaning to the
incoming stimulus information. Information is subject to cognitive and affective
interpretation. This is illustrated in Figure 5.2 (text, p. 125). Cognitive interpretation
refers to the thought processes involved with interpreting the information. Affective
interpretation refers to how consistent the information is with existing beliefs and
feelings. To ensure honesty in research on feelings, different physiological measures
are used. Some of these are outlined in Exhibit 5.2 (text, p. 125). There are several
factors that influence the way consumers perceive (and interpret) information:

Individual characteristics

prior experience and learning (such as those taught by family).

Stimulus factors

how a message is communicated. Use examples of celebrities appropriate for

different age groups to illustrate.

Situational factors

like the weather, or a personal situation like in love, on holidays, bored, hungry, etc.

Memory
Memory will be dealt with in detail in Chapter 6. It is defined as the information
storage facility in the brain. Marketers want consumers to retrieve information
about their products when their needs are aroused.
3. Information processing and consumer behaviour
There are a number of theories related to perception and information processing
that can guide decisions to be made by marketers. Some of these are discussed
below.
Absolute threshold
The absolute threshold is the lowest point at which we perceive stimuli. When we
flick through the pages of a magazine, all the ads for similar products tend to blend
into one another. Occasionally one will stand out because of the colours, style or
size of ad.
Implications for marketers
Marketers need to ensure they can break through the clutter with different
techniques to gain the attention of prospects.
Webers concept of just noticeable difference (JND)

The concept of just noticeable difference (JND) is the minimum level of change to a
stimulus that is required in order for the change to be noticed. Change can be
related to product names, (e.g. Lipton tea

Black tea) product features (change of aromas, different functions), product sizes
(from 250ml to 200ml), pricing points (from $1.50 to $1.95). If the change is a
positive one, a marketer will tell the world. If more is included a packet, it will be
promoted through advertising and labelled clearly on the packaging. If the changes
are significant, such as a complete logo and brand name change (Grace Bros to
Myer) it may be an effort to reposition the company to a different market segment
or an attempt to rid the company of a poor image.
Implications for marketers
Marketers need to ensure that any changes to their product, if perceived as
negative, will not be noticed. A step of changes is sometimes preferred over one
major change. If the change is likely to be noticed, then it is important not to hide
that change from consumers, but point it out quite clearly to minimise backlash.

Selective exposure
There are a number of concepts linked to how we process messages and pay
attention to certain stimuli.
Consumers are exposed to many promotional messages every day, and its
impossible to pay attention
to every single one.
Selective exposure
refers to the fact that consumers make a choice about what information they take
notice of. Often
its an intentional avoidance of certain media or messages. That is why the RTA has
struggled to reduce the road toll
with
messages about speeding and alcohol limits, because young people dont want to
be told. Other age groups are the same,
with avoiding messages about breast cancer checks, financial management for
retirement, and smoking in the presence of
children. Its important not to only refer to the younger generation since they are
most likely the instructors target
audience!
Sensory distortion
Sensory distortion occurs when consumers add preconceived ideas or attitudes to
interpret new information that enters a sensory store in their memory. For example,
if you believe all home insurance policies are the same, you will only shop around to
get the best rate, not product (even if the insurers claim their offerings are
superior). Marketers therefore need to stand out with certain benefits that are
important to consumers, so that positive word-of-mouth is another tool of the trade
that can be used. People will listen to their friends over advertisers.
Selective retention
Selective retention means that we remember information we find meaningful and
interesting. Consider when you have asked someone their name only to forget it 30
seconds later! One of the keys for marketers is to make themselves memorable and
appeal to what interests the consumer, not the marketer.
Selective attention

Selective attention is the idea that individuals do not take in all the stimuli around
them. So if a piece of information is
important for consumers to take in and remember, repeat it. Dont include too much
information for consumers to
retain.
Stimulus generalisation
Stimulus generalisation occurs when a conditioned response occurs to stimuli that
are similar to the conditioned stimulus. That is, consumers see no real difference
between brands, so marketers sometimes make them as similar as possible.
Cases that have reached the courts are outlined in your text. Generic brands like No
Frills, Woolworths Home Brand,
and Farmland often tend to rely on this strategy, assuming shoppers mainly use
price as the key differentiator between brands.
Stimulus discrimination
Stimulus discrimination refers to the ability to see distinct differences between
stimuli. These differences might only be
perceived by the consumer, and may not be real differences. If a consumer is
loyal to a brand, they w
ill always be able to find their favourite brand on a shelf amongst a foray of
competitor offerings. This is why marketers strive for brand-loyal consumers.
The influence of colour on perception
Colours have a great influence on perception, and scientists have proven that
colours actually influence behaviour. The reason is that the stimuli presented by
colours have an influence on the central nervous system. But this influence has to
be learnt. Different countries have different meanings for certain colours. In
Australia white might refer to purity, but in Japan it means grieving. Marketers must
conduct research and really know their consumers when designing product styles
and colours, and promotional materials, including packaging.
The influence of semantics on perception
Words can be used interchangeably in a crossword, but dont necessarily mean
exactly the same thing in different
contexts. For example, cool might mean refreshing, but it can also mean aloof.
Words can be used in ad copy, to form pictures

in peoples minds. For example, a cream soap might offer the user a refreshing
sensation while showering.
Perceptual categorisation
A personal construct is like a personal filing system where you have a whole set of
files in your mind with related
information in them. Consumers only use a few criteria when filing, so its important
that the characteristics brought out in a marketing o
ffer are salient to the consumer and more likely to be filed where the marketer
wants. It is important
that marketers do not use too much information in their advertisements (for
example), so that the right information is stored in the right place
9. Brands
A brand is a mix of tangible and intangible elements that make up an identifying
name, mark or symbol. Consumers evaluate brands based on clusters of values
they perceive a brand to represent. It is rare for a brand to only be evaluated on one
attribute; it is usually a combination of features that provide value to customers.

As it becomes more difficult to differentiate one brand from another, brands are
becoming an important asset to stand out from the competition.

A marketers overall aim is to develop a relationship with customers, which will

result in brand loyalty. This
also helps to act as a buffer in light of competitor activity such as price reductions
or special incentives.

To be successful, brands must be customer-focused and offer value. This can be

done through continual innovation, market monitoring and consistent
communication across all levels of the marketing channel.

A brand is a way that an organisation identifies and differentiates its products, but it
is also a lot more. A brand
can also be described as a link between an organisations marketing activities and
consumers perceptions.

Brands can assist consumers to reduce perceived risk by reassuring them of

consistent quality and service.

A relationship with a service brand (such as banks, lawyers, teaching) is most

likely based on the consumers
experience with the employees, rather than the brand itself. Marketers need to
focus on the importance of their human resources when developing their brands.
10. Brand equity and branding
Brand equity is a measure of a brands worth. It incorporates brand
association and brand image. Consider the difference in value of brands by
comparing:

Coca-Cola and a suburban manufacturer (like Berts)

Subway with the local sandwich shop

Bakers Delight with a small bakery. Brand equity is influenced by all the facto

rs in a companys marketing mix

including product quality and features, service, pricing points, distribution outlets
and availability and marketing communications. It is also important that a brand
can deliver on its promises.
Brand names
Brand names can be based on functional features or intangible image aspects.
Many well-known brand names become part of everyday language. Classic
examples include Bandaid, Walkman, Panadol and Hoover.
Line and brand extensions
A line extension is the launch of a variation on an existing brand into the same
product category. A brand extension is the launch of an existing brand into a new
category.
11. The means end chain theory
Means end chain analysis is a way of determining consumer behaviour based on the
perception of brand attributes, benefits and consumer values. This tool can then
help marketers understand how they can reposition their offerings, based on the
most important aspects of their brand to consumers. Sometimes positioning a brand
based on its concrete attributes may not be appropriate. In many markets where
products are similar, it can be difficult to distinguish between brand offerings.

Chapter 5
Perception
Consumer Behaviour
by Karen Webb Page 9

Attributes gain their relevance because they allow the consumer to achieve certain
benefits. For example, laser therapy may promise to remove sun damage and fine
lines. A benefit increases in importance as the consumer has a higher need, such as
self esteem or self actualisation (eternal youthfulness). A product can have different
perceptual meanings depending on the motivations (and needs) of the consumer.
Consider the different reasons behind the purchase of a home computer. The more
closely a product or brand is linked to

the various elements in consumers means

end structures, the more likely it has personal relevance, and will be preferred over
competing alternatives. This means that market research should go beyond
identifying important brand attributes and explore what different types of customers
seek or value in their brands. Focus groups and other qualitative methods are more
valuable research tools to explore this type of information.
Consider the example of Vita Brits, and how they ran a campaign on Ill get it.
Celebrities and other people with vitality for life were featured in the ad. This ad
was subject to research that revealed that people want breakfast cereals
that provide energy so life can be enjoyed. It didnt necessarily imply that people
will win or e
xcel all the time, although sports stars like Kieran Perkins were featured.
Case in point 5.4

Bringing healthcare brands to life

Brand building is proving crucial in the healthcare industry. Brand building includes
emphasising the benefits of using products, rather than actual attributes. The four
elements of a brand that should be emphasised include: 1.

Attributes

What it is, what it does, how it looks 2.

Benefits

Actual (reduces acne) or abstract (makes you feel prettier) 3.

Personality
creation of a brands

character through qualities that resonate at a deeper level. Can include

imagery (Landcare Australias hand helping Australia), celebrity endorsement
(LOreal) or a trade character
(Crazy Johns) 4.

Values
that help mirror a customers self
-definition. Consider brands that use one or more of these elements in your
discussions.
DISCUSSION EXERCISES
1.

Visit the website for Kraft (www.kraft.com.au) and look up one of their products,
such as Vegemite. Take the link to information on how the product has changed over
the decades (most often in response to consumer feedback or rising costs). Also
refer to past ads on the product. Discuss the changes that have been made in a
stepped fashion (JND) to reduce awareness by the consumer of those changes.
Consider at least three consecutive changes. 2.

Find examples of marketing promotions that specifically use stimulus factors to

appeal to: a)

Selective exposure b)

Selective attention. 3.

A 35-year-old mother of two works part-time and lives with her husband in a threebedroom house in the suburbs.
To relax last Tuesday night she watched Better Homes and Gardens and then All
Saints

.
The next day she participated in a market research interview, and could only
remember an ad about preventing child abuse and some new cookies put out by
one of the cake-mix brands. However, she can remember quite clearly the recipes
and brands used in the cooking segment of Better Homes and Gardens and also
what happened to Terry when the heart attack patient called her name. How can
you explain this memory recall using perception concepts? 4.

Cut out three advertisements from magazines and determine which (if any) gestalt
principles are being used. Why is the advertiser using this technique to gain
attention? 5.

For the following products, identify the perceived risks that a consumer is likely to
experience during the purchase decision process. Discuss how the marketers of
these products can reduce these perceived risks. a) Winter holiday to New Zealand
b) New beer on the market c) Fragrance for a partner

Chapter 5
Perception
Consumer Behaviour
by Karen Webb Page 10

6.

Construct a positioning map for take-away food outlets using two relevant
dimensions. Then, mark the position on the map of five different brands that you
know in your local area. Describe the positioning of these five brands. Do any of
these brands need to be repositioned based on