🛒Consumer Behavior Unit 4 – Consumer Perception & Information Processing

Key Concepts

• Sensation involves the detection of stimuli through the five senses (sight, hearing, touch, taste, and smell)
• Perception interprets and organizes sensory information to create meaning
• Absolute threshold represents the minimum level of stimulation required for a person to detect a stimulus 50% of the time
• Differential threshold (just noticeable difference) signifies the minimum difference between two stimuli required for a person to notice a change
• Subliminal perception occurs when stimuli are perceived below the level of conscious awareness
  • Subliminal advertising attempts to influence consumer behavior through messages below the conscious awareness threshold
• Selective attention filters out irrelevant stimuli and focuses on specific information
• Information processing model describes how consumers receive, process, and store information

Sensory Perception in Marketing

• Visual perception heavily influences consumer behavior through elements like color, shape, and packaging design
  • Colors evoke specific emotions and associations (red for excitement, blue for trust)
• Auditory perception involves the interpretation of sounds, music, and voice in advertising and branding
  • Jingles and brand-specific sounds create memorable associations (Intel chime)
• Olfactory perception utilizes scents to influence mood, emotions, and memory
  • Retailers use ambient scents to enhance the shopping experience and increase sales (cinnamon in bakeries)
• Gustatory perception relates to taste and plays a crucial role in food and beverage marketing
• Tactile perception involves the sense of touch, texture, and temperature
  • Product packaging and in-store displays incorporate tactile elements to engage consumers
• Sensory marketing strategies aim to create multi-sensory experiences that appeal to multiple senses simultaneously

Attention and Information Processing

• Attention is the allocation of mental resources to process specific stimuli
• Selective attention allows consumers to focus on relevant information while filtering out distractions
• Divided attention occurs when consumers attempt to process multiple stimuli simultaneously
• Perceptual vigilance heightens attention towards stimuli that align with current needs or interests
• Perceptual defense reduces attention towards threatening or contradictory stimuli
• Information processing model consists of exposure, attention, interpretation, and memory
  • Exposure involves coming into contact with a stimulus
  • Attention is the allocation of mental resources to process the stimulus
  • Interpretation assigns meaning to the attended stimulus
  • Memory stores the processed information for future retrieval
• Cognitive load refers to the mental effort required to process information

Memory and Learning

• Memory is the process of encoding, storing, and retrieving information
• Sensory memory briefly holds sensory information (visual, auditory) for processing
• Short-term memory (working memory) temporarily stores and manipulates information
  • Chunking organizes information into meaningful units to enhance short-term memory capacity
• Long-term memory stores information for an extended period
  • Explicit (declarative) memory involves conscious recollection of facts and events
  • Implicit (procedural) memory involves unconscious retention of skills and habits
• Retrieval cues (sensory, semantic, contextual) help access stored information
• Learning is the process of acquiring new knowledge, skills, or behaviors through experience
• Classical conditioning associates a neutral stimulus with a naturally occurring response
  • Pavlov's dog experiment demonstrates classical conditioning (bell paired with food)
• Operant conditioning reinforces behaviors through rewards or punishments
• Observational learning occurs by observing and imitating others' behaviors

Consumer Decision-Making Models

• Engel-Kollat-Blackwell (EKB) model outlines five stages: problem recognition, information search, alternative evaluation, purchase decision, and post-purchase behavior
• Howard-Sheth model emphasizes the importance of input variables, perceptual constructs, and learning constructs in consumer decision-making
• Nicosia model focuses on the communication flow between the firm and the consumer, leading to a purchase decision
• Stimulus-Organism-Response (SOR) model suggests that environmental stimuli influence consumers' internal states, which in turn affect their behavioral responses
• Bounded rationality acknowledges that consumers have limited cognitive resources and often use heuristics (mental shortcuts) to simplify decision-making
• Prospect theory proposes that consumers evaluate gains and losses differently, exhibiting risk aversion for gains and risk-seeking behavior for losses
• Cognitive dissonance occurs when there is a discrepancy between a consumer's beliefs, attitudes, or behaviors, leading to psychological discomfort

Factors Influencing Perception

• Individual factors, such as personality, motives, and expectations, shape perception
  • Selective perception allows individuals to perceive information that aligns with their existing beliefs and attitudes
• Social and cultural factors, including family, reference groups, and cultural norms, influence perceptual processes
• Situational factors, such as the physical environment, time pressure, and mood, affect perception
  • Atmospherics (store layout, lighting, music) influence consumer perceptions and behaviors in retail settings
• Stimulus characteristics, like size, color, and contrast, impact the salience and interpretation of stimuli
• Perceptual organization principles (figure-ground, grouping, closure) help consumers make sense of complex visual information
• Perceptual biases, such as the halo effect and stereotyping, can distort perceptions
  • Halo effect occurs when the positive impression of one attribute influences the overall perception of a product or brand
• Adaptation refers to the diminished sensitivity to a stimulus over time due to constant exposure

Applications in Marketing Strategy

• Sensory branding creates distinct brand identities through multi-sensory experiences
  • Signature scents (Abercrombie & Fitch) and sounds (Harley-Davidson engine) reinforce brand identity
• Attention-grabbing techniques, such as humor, novelty, and emotional appeals, increase ad effectiveness
• Perceptual mapping helps marketers understand consumers' perceptions of brands and products in relation to competitors
• Packaging design utilizes perceptual principles to attract attention and communicate product benefits
  • Color psychology in packaging influences consumer perceptions (green for eco-friendliness)
• In-store merchandising and displays leverage perceptual organization principles to guide consumer attention and encourage purchases
• Advertising strategies consider consumer information processing stages to create effective messages
  • AIDA model (Attention, Interest, Desire, Action) structures advertising content
• Experiential marketing creates immersive, memorable experiences that engage multiple senses and emotions

Case Studies and Real-World Examples

• Coca-Cola's "Share a Coke" campaign personalized product packaging with popular names, increasing sales and brand engagement
• Apple's retail stores provide a multi-sensory brand experience through design, lighting, and product interaction
• Volkswagen's "Think Small" campaign challenged perceptual biases about small cars, repositioning the Beetle as a practical and reliable choice
• Nike's "Just Do It" slogan and associated advertising campaigns tap into consumers' aspirational motives and self-perceptions
• Procter & Gamble's "Thank You, Mom" Olympic campaign evoked strong emotional connections by highlighting the role of mothers in athletes' success
• Ikea's store layout and displays create a perceptual journey that encourages exploration and visualization of products in home settings
• Starbucks' sensory branding encompasses store design, music, and the aroma of coffee to create a consistent and inviting atmosphere across locations
• Old Spice's "The Man Your Man Could Smell Like" campaign used humor and exaggeration to reposition the brand as modern and attractive to younger consumers