Ch. 4 - Consumer Perception and Positioning

Question 1

Perception

Answer 1

the process by which individuals select, organize, and interpret stimuli into a meaningful and coherent picture of the world, that is, “how we see the world around us.” A highly individual process based on each person’s own needs, values, and expectations.

Act and react based on perception, not reality

Question 2

Positioning

Answer 2

the process by which a company creates a distinct image and identity for its products, services, and brands in consumers’ minds. Differentiates the company’s offering from competition.

Question 3

Repositioning

Answer 3

The process by which a company strategically changes the distinct image and identity of its products, services, and brands.

Question 4

Perception is all about…

Answer 4

consumers’ subjective understandings rather than objective realities. Influences what we add or subtract from raw sensory imputs

Question 5

What are the two different inputs for perception

Answer 5

1.Physical stimuli from the outside environment
2. People’s expectations, motives, and what they have learned from previous experiences

Question 6

What are the 3 different aspects of perception?

Answer 6

Selection, organization, and interpretation of stimuli

Question 7

Sensation

Answer 7

the immediate and direct response of the sensory organs to stimuli

depends on energy change

Question 8

Stimulus

Answer 8

any unit of input to any of the senses

ex: products, packages, brand names, commercials, etc.

Question 9

Sensory receptors

Answer 9

The human organs (the eyes, ears, nose, mouth, and skin) that receive sensory inputs.

Question 10

Human sensory sensititivity

Answer 10

refers to the experience of sensation

Question 11

As sensory input ______, however, our ability to detect changes in input or intensity ______, to the point that….

Answer 11

decreases; increases

we attain maximum sensitivity under conditions of minimal stimulation.

Question 12

Marketers can influence the perception of ____ with _____ and _____

Answer 12

taste; sights; sounds

Question 13

The absolute threshold

Answer 13

The lowest level at which an individual experiences a sensation. The point at which a person can detect a difference between “something” and “nothing.”

ex: the distance at which a driver sees a billboard

Question 14

Sensory adaptation

Answer 14

Getting used to high levels of sensory input and therefore less able to notice a particular stimulus.

ex: seen an ad so many times it no longer is “seen”

Question 15

Differential threshold

Answer 15

The minimal difference that can be detected between two similar stimuli

Question 16

Weber’s law

Answer 16

states that the stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different.

ex: during bad economy, marketers can’t change price because people are very susceptible to it, instead, they will just change the amount in the package, so the change is less noticeable

Will notice if products become smaller than bigger

Question 17

What are the two reasons manufacturers and marketers endeavor to determine the relevant JNDs for their products?

Answer 17

1. want to prevent changes from becoming readily discernible to the public and remain below the JND
2. want to ensure product improvement are very apparent to consumers without being extravagant just above JND

Question 18

Subliminal Perception

Answer 18

A situation that occurs when the sensory receptors receive stimuli that are beneath the person’s conscious awareness (i.e., the absolute threshold).

Question 19

Contrast

Answer 19

One of the most attention-compelling attributes of a stimulus; used to penetrate the consumer’s perceptual “screen”

Question 20

Consumer Motivation

Answer 20

People tend to perceive the things they need or want

Question 21

Personal expectations

Answer 21

People usually see what they expect to see, and what they expect to see is usually based on familiarity, previous experience, or a set of expectations.

Sometimes, stimuli that conflict sharply with expectations receive more attention than those that conform to expectations

Question 22

Selective exposure

Answer 22

Consumers seeking out sympathetic, pleasant messages and deliberately avoiding messages that they find painful or threatening

Question 23

Selective attention

Answer 23

Consumers’ heightened awareness of stimuli that meet their needs and interests and minimal awareness of stimuli irrelevant to their needs.

Question 24

Perceptual defense

Answer 24

A cognitive activity occurring when consumers subconsciously screen out stimuli that they find psychologically threatening, even though exposure has already taken place.

Question 25

Gestalt psychology

Answer 25

“pattern or configuration”
The principles underlying perceptual organization
figure and ground, grouping, and closure

Question 26

Figure and ground

Answer 26

An element of perception that describes the interrelationship between the stimulus itself (i.e., figure) and the environment or context within which it appears (i.e., ground).

ex: the figure’s contrast to the ground gives the figure greater definition

grandma and young lady image

Question 27

Product placement

Answer 27

A form of promotion where marketers “disguise” promotional cues by integrating products (i.e., “figures”) into TV shows, films or other entertainment content (i.e., “grounds”), or building entertainment content around products.

Sometimes produce negative emotions

Question 28

Grouping

Answer 28

refers to people’s instinctive tendency to group stimuli together so that they become a unified picture or impression.

ex: an ad for tea may show a young couple sipping tea in a beautiful room before a blazing hearth. The overall mood implied by the grouping of stimuli leads the consumer to associate the drinking of tea with romance, fine living, and winter warmth.

Question 29

Closure

Answer 29

The instinct to organize pieces of sensory input into a complete image or feeling. Individuals need closure, which means that if they perceive that a stimulus is incomplete, they are compelled to figure out its complete meaning.

ex: asking consumers to fill the blank, playing a tv ad on the radio, and completing the audio with us recalling the visuals

Question 30

Intrinsic Cues

Answer 30

physical characteristics of the product itself, such as size, color, flavor, or aroma. In some cases, consumers use physical characteristics (e.g., the flavor of ice cream or cake) to judge product quality.

Question 31

Extrinsic cues

Answer 31

Characteristics that are not physically inherent in the product, such as packaging, price, and promotions.

Ex: Wine region was the most important determinant of consumers’ perceived quality of wine

Question 32

When stimuli are highly ambiguous…

Answer 32

an individual will usually interpret them in such a way that they serve to fulfill personal needs, wishes, interests, and so on.

Question 33

What is crucial in highly competitive markets?

Answer 33

Marketing and label innovation

Question 34

Stereotypes

Answer 34

Biased notions that people carry in their minds about the meanings of various stimuli. When presented with these stimuli, people “add” these biases to what they see or hear and form mostly distorted impressions.

Makes processing sensory input quicker and easier

Positive when we pass an H&M store that just opened, we immediately know that it offers fashionable clothing at reasonable prices

Question 35

What are the triggers of stereotyping?

Answer 35

Physical appearance: highly attractive models are likely to be perceived as having more expertise regarding enhancement products (e.g., jewelry, lipstick, perfume), but not problem-solving products (e.g., products that correct beauty flaws such as acne or dandruff).

Descriptive terms: consumers eating “succulent Italian seafood filet” likely to rate it tastier and more appealing than the same foods with mundane names like “seafood filet.”
Federal Express vs Allegis name

First impressions: Because first impressions are often lasting, introducing a new product before it has been perfected may prove fatal to its ultimate success

The halo effect: An evaluation of an object based on one or several positive dimensions. Linguistically, the definition of “halo” signifies light, honor, and glory. Thus, in marketing, the term refers to a prestigious image of a product “rubbing on” other products marketed under the same brand name. perfect for extending brand name associated with online of products to another line

Question 36

Licensing

Answer 36

is based on the halo effect. Manufacturers and retailers hope to acquire instant recognition and status for their products by associating them with well-known names.

Kentucky Fried Chicken became KFC to disassociate from themselves from fried foods, which are perceived as being unhealthy.

Question 37

Consumer imagery

Answer 37

A term referring to consumers’ perceptions of all the components of products, services, and brands, and to how consumers evaluate the quality of marketers’ offerings.

Question 38

Perceived value

Answer 38

Customers’ views of the value that they receive for their money is relative.

How a consumer perceives a price—as high, low, or fair—strongly influences both purchase intentions and post-purchase satisfaction.

Question 39

Reference price

Answer 39

any price that a consumer uses as a basis for comparison in judging another price. Reference prices can be external or internal.

external: “sold elsewhere at $$$”

internal: retrieved from memory, changes

Question 40

When an advertised reference price is within a given consumer’s acceptable price range…

Answer 40

it is considered plausible and credible.

Question 41

If the advertised reference point is outside the range of acceptable prices (i.e., implausible)….

Answer 41

it contrasts with existing attitudes and will not be perceived as a valid reference point, thus adversely affecting both consumer evaluations and the advertiser’s credibility.

Question 42

When consumers encounter prices that are significantly different from their expectations…

Answer 42

they feel inharmonious (i.e., dissonant). They seek additional information, form cognitions that justify the high price, then consider buying other brands or trivialize some aspects of the buying situation.

Question 43

Perceived qualities

Answer 43

if consumers do not perceive offerings as superior products that satisfy their needs and provide value, they will not purchase them, regardless of objective evidence.

Question 44

Price-quality relationship

Answer 44

A situation occurring when consumers rely on prices as indicators of product quality and view more expensive products as having higher quality and value.

Question 45

In addition to price, consumers also use such cues as …

Answer 45

the brand and the store in which the product is bought to evaluate its quality.

Question 46

Positioning

Answer 46

The process by which a company creates a distinct image and identity for its products, services, and brands in consumers’ minds. The image differentiates the company’s offering from competition by communicating to the target audience that the product, service, or brand fulfills the target consumers’ needs better than alternatives.

Question 47

In order to build up and strengthen their bonds with customers…

Answer 47

brands “freshen” their images with slogans that convey care and happiness

Question 48

Package perceptions

Answer 48

Tide detergent version that predominantly promises stain removal comes in an orange plastic container with a large handle on its side and suggests the “heaviness” of the product, because consumers associate heaviness with the power to remove stains. In contrast, the New Tide Total Care products, which promise scents of fresh morning, rain, and spring days, come in slimmer, slicker packages in brighter shades of orange than the regular Tide, and the handle is angled and congruent with the more sophisticated benefit claim of this version of Tide.

To buyers of perfumes, the only tangible evidence of the product’s nature and quality is the packaging, the cost of which often accounts for up to 50% of the total cost of the perfume.

Question 49

What are the distinctive characteristics of services?

Answer 49

intangible
variable
perishable
simultaneously produced and consumed

Question 50

Service quality

Answer 50

In evaluating a doctor’s services, they note the quality of the office and examining room furnishings, the number (and source) of framed degrees on the wall, the pleasantness of the receptionist, and the professionalism of the nurse

Question 51

experiential attributes

Answer 51

rapport

Question 52

searchable attributes

Answer 52

income

Question 53

framework for researching service quality stems from…

Answer 53

the premise that a consumer’s evaluation of service quality is a function of the magnitude and direction of the gap between the customer’s expectations of service and the customer’s assessment (perception) of the service actually delivered

Question 54

SERVQUAL scale

Answer 54

measures the “gaps” between customers’ expectations of the services that they had purchased and their perceptions of the services that they had actually received.

Outcomes: Focus on whether or not the services purchased were delivered reliably.
Ex: did a flight you took deliver you to your destination?

Processes: focus on how the core services were delivered, such as the employees’ responsiveness, assurance, and empathy in handling customers.
Ex: how polite and understanding were the airlines’ people if, say, your flight was delayed and you came close to missing a connection?

Question 55

Retail store perceptions/image

Answer 55

Retail stores have images of their own that influence the perceived quality of the products they carry and consumers’ decisions about where to shop. These images stem from the merchandise they carry, the brands sold and their prices, the level of service, the store’s physical environment and ambiance, and its typical clientele (which can often be determined from the cars parked in the store’s parking lot).

Pricing discounts also affect store image. Stores that offer frequent, small discounts on large numbers of items are more likely to be perceived as “discount stores” and less prestigious than stores offering larger discounts on a smaller number of products.

Question 56

Institutional advertising

Answer 56

Advertising that promotes a company’s overall image without referring to specific products

Question 57

Perceived risk

Answer 57

The uncertainty that consumers face when they cannot foresee the consequences of their purchase decisions. The types of perceived risk include

functional: product will not perform as expected
physical: product can harm self and others
financial: product will not be worth the cost
psychological: poor product choice will bruise the consumer’s ego
time: time spent in product search may be wated if it does not perform as expected

Question 58

Perceived risk

Answer 58

The uncertainty that consumers face when they cannot foresee the consequences of their purchase decisions. The types of perceived risk include

functional: product will not perform as expected
physical: product can harm self and others
financial: product will not be worth the cost
psychological: poor product choice will bruise the consumer’s ego
time: time spent in product search may be wasted if it does not perform as expected

Question 59

Narrow categorizers

Answer 59

High-risk perceivers who prefer to limit their choices to a few safe alternatives rather than face the consequences of a wrong decision.

Question 60

Broad categorizers

Answer 60

Low-risk perceivers who prefer to choose from a wide range of alternatives because they would rather face the consequences of a wrong decision than limit the number of alternatives from which they choose.

Question 61

Perceived risk in shopping situation

Answer 61

because of positive shopping experiences and word-of-mouth, consumers now perceive little risk in online shopping.

Question 62

How to reduce perceived risk

Answer 62

seek additional information: word of mouth, salespeople, general media
brand loyalty: they have already been satisfied
rely on price/credibility: expensive is the best, trust judgement of reputable store

Question 63

Positioning

Answer 63

The process by which a company creates a distinct image and identity for its products, services, or brands in consumers’ minds.

Question 64

Positioning strategy

Answer 64

1. Define the market in which the product or brand competes, who the relevant buyers are, and the offering’s competition.
2. Identify the product’s key attributes and research consumers’ perception regarding each of the relevant attributes.
3. Research how consumers perceive the competing offerings on the relevant attributes (e.g., by creating perceptual maps).
4. Determine the target market’s preferred combination of attributes.
5. Develop a distinctive, differentiating, and value-based positioning concept that communicates the applicable attributes as benefits.
6. Create a position statement focused on the benefits and value that the product provides and use it to communicate with the target audiences.

Question 65

Umbrella positioning

Answer 65

a statement or slogan that describes the universal benefit of the company’s offering.

“soup is good food”

Question 66

Premier position

Answer 66

focuses on the brand’s exclusivity.

“Because We’re Worth It.”
“All the news that’s fit to print.”

Question 67

Positioning against competition

Answer 67

acknowledge competing brands
“We’re No. 2. We Try Harder”

Question 68

Key attribute

Answer 68

based on relevant attributes often expresses the brand’s superiority.
“the quicker picker upper”

Question 69

“unowned” perceptual position

Answer 69

a perception that is not clearly associated with a brand or product.

Fage yogurt for a “ridiculously thick yogurt,” stresses thickness as the product’s primary benefit, and also distinguishes Fage from the “much thinner” American yogurts.

Question 70

Repositioning

Answer 70

the process by which a company strategically changes the distinct image and identity that its product or brand occupies in consumers’ minds. Companies do so when consumers get used to the original positioning and it no longer stands out in their minds.

Chevrolet was positioned as an American icon, with such slogans as “See the USA in Your Chevrolet,” “Heartbeat of America,” and “Baseball, Hot Dogs, Apple Pie and Chevrolet.” As GM started to sell the brand globally, it needed a new slogan that would create a united, global perception of the brand. GM began to advertise under “Find New Roads,” which the company believes to be exciting, flexible, and also easily translated into other languages.

Question 71

Perceptual mapping

Answer 71

Constructing a maplike diagram representing consumers’ perceptions of competing brands along relevant product attributes. Perceptual maps show marketers: (1) how consumers perceive their brand in relation to competition; (2) determine the direction for altering undesirable consumers’ perception of their brands; and (3) find gaps, in the form of “un-owned” perceptual positions, that represent opportunities for developing new brands or products.

+ map