Customers perception

According to Business Dictionary "A marketing concept that encompasses a customer's

impression, awareness and/or consciousness about a company or its offerings. Customer
perception is typically affected by advertising, reviews, public relations, social media, personal
experiences and other channels. Consumer perception applies the concept of sensory
perception to marketing and advertising. Just as sensory perception relates to how humans
perceive and process sensory stimuli through their five senses, consumer perception pertains to
how individuals form opinions about companies and the merchandise they offer through the
purchases they make. Merchants apply consumer perception theory to determine how their
customers perceive them. They also use consumer perception theory to develop marketing and
advertising strategies intended to retain current customers -- and attract new ones.
Perception is how human recognize and interpret stimuli (Sitter, 2008). Consumers
perception of quality is measured a essential determinant of product choice (Zenithal, 1988) In
other words perception is the first impression that individual draw and on the basis of it select,
and interpret information to form a meaningful picture of the world (Munnukka, 2008). Thats
why it is believed that consumer perception influence customer level of satisfaction and so their
buying and usage decisions.
CONSUMER PERCEPTIONS
In order to reap the benefits from their environmental actions the companies must make the
consumers aware about them. Communication strategies spread the information, but what info
actually reaches the consumers depends on what is perceived. This perception is dependent on
what gets the consumers attention, and the goal is to find ways around peoples filters that help
decide what information to process. (Solomon, M. 2007) Personal experience is one filter which
makes people aware of things they have come in contact with before.
Another filter is based on biases. People tend to project their own desires, expectations or
assumptions onto products or ads. (Friedmann, R. & Zimmer, M. R, 1988) For instance, a
consumer with a high skepticism towards new products tends to focus on the negative qualities,
whereas a more liberal consumer focuses on the positive; the product is the same, but the
consumers perceive the product different.
Also, a confirmatory bias can also occur when consumers go back to their original beliefs of a
product, even though new disconfirming information has been presented. The consumer puts
more weight in his first judgment than he should have if he was presented a new product, and
this bias is common in cases where the consumer has strong and well-developed attitudes
towards the product. (Nisbett& Ross, 1980)
In biology, perception refers to the senses that any organism uses to collect information
about its environment. Wade &Tavris (1987) note that the senses corresponding to the human
sense organs have been categorized at least since Aristotle's time as: vision (our eyes), hearing
(our ears), taste (our tongues), touch (our skin) and smell (our noses). Walters & Bergiel (1989)
continue the biological viewpoint by explaining that according to the modem outlook, our sense
of smell and taste are our olfactory senses due to the fact that our senses of smell and taste are so
closely entwined. They continue by stating that humans also perceive in a kinesthetic mode
(using muscles and joints) and in a vestibular mode (through our internal organs).
In consumer behavior, however, perception refers to much more than just the biological
use of our sense organs. It includes the way stimuli are interacted and integrated by the
consumer. Although there are numerous definitions in literature explaining perception from a
consumer behavior perspective, the one used by Walters et al (1989, p. 333) provides particular
clarity on the topic: The entire process by which an individual becomes aware of the
environment and interprets it so that it will fit into his or her frame of reference.
Walters et al (1989) expand on the definition by stating that every perception involves a
person who interprets through the senses something, event, or relation which may be designated
as the percept. Van der Walt (1991) adds that perception occurs when sensory receptors receive
stimuli via the brain, code and categorize them and assign certain meanings to them, depending
on the person's frame of reference. A person's frame of reference consists of a/l his previous held
experiences, beliefs, likes, dislikes, prejudices, feelings and other psychological reactions of
unknown origin.
From the discussion it is eminent that the perception process has long been recognized as
the most significant barrier to effective communication. It is at this point that the sender does or
does not get through to the receiver (Aaker et ai, 1987). Since correct decoding of marketing
information hinges on the consumer's perception of the communication content (Van der Walt,
1991).
A problem though with perception and related studies (Schiffman et ai, 1991) is that two
individuals may be subject to the same stimuli under apparently the same conditions, but how
they recognize, select, organize and interpret them is a highly individual process based on each
person's own needs, values, expectations and the like. Individuals furthermore act and react on
the basis of their perceptions, not on the basis of objective reality. With this in mind (Schiffman
et ai, 1991), it is important that marketers understand the whole notion of perception and its
related concepts so that they can more readily determine what influences consumers to buy. The
perception process is also complicated due to the possibility that individuals may be stimulated
below their level of conscious awareness (known as subliminal perception), i.e. they can perceive
stimuli without being consciously aware of the stimuli in question.Individuals also experience a
certain amount of risk when making a purchasing decision and have a limited capacity to process
the different stimuli directed at them. This leads to a selective perception process where
individuals will expose themselves selectively to marketing stimuli pay selective attention to
these stimuli and then interpret it to conform to previous held beliefs and attitudes. Only
messages conforming to held beliefs will be retained.


FRAME OF REFERENCE
The relevance of briefly referring to the frame of reference while researching consumer
perception can be explained by the following statement by Van der Walt (1991, p. 295,296):
"Merely seeing or hearing, however, cannot be referred to as perception. Perception is seeing or
hearing it in terms of a person's frame of reference." He continues by explaining that a person's
frame of reference consists of all his previous experiences, beliefs, likes, dislikes, habits,
prejudices, feelings and other psychological reactions of unknown origin. Furthermore, it is
important to note that a person's frame of reference is unique to that person. The frame also acts
as a filter for any stimuli that a person is exposed to, or as Mowen (1993) suggests, it acts as an
anchor to which any rising issue is compared to on a judgmental scale. Stanton, Etzel &
Walker (1991) expand on the latter statement by explaining that if an inconsistency is
discovered, the new information will be distorted to conform to the established beliefs.
Operation of the frame of reference
As noted earlier, the frame of reference acts as a filter. According to Van der Walt (1991),
however, exactly how this filter works remains a mystery which could possibly never be solved.
The frame entails the evaluation of every stimulus to which a person is exposed in the light of
previously held emotions, behavioral intentions and beliefs. These evaluations are concluded in
an overall orientation or attitude towards a certain object, also referred to as a mental set. The
three main components through which all information must flow in the frame of reference are the
cognitive, affective and behavioral components.
Cognitive component
The cognitive component consists of the total configuration of beliefs and knowledge about a
certain object, as well as previously gained experience.
Affective component
The affective component involves emotions, feelings and prejudices. Prejudices refer to faulty
interpretations made previously, and such prejudices cannot be changed easily.
* Behavioral component
The behavioral component has to do with habits, reactions and intentions. Any information
contradicting one's habits and intentions will not be accepted easily.
Therefore, it can be said that if it is stated that a message was perceived, it means that the
stimuli have passed through all three components of the individual's frame of reference in such a
way that the person is ultimately able to come to a decision. The fact that stimuli are passing
through a person's frame of reference does not mean that the message was perceived correctly or
that the decision that flows from it will be positive. According to Walters et al (1989) it is
important to note that the meaning of the market stimulus depends on the context in which it is
perceived. All our senses have some limit to responsiveness to stimulation. These limits are
referred to as thresholds.
Thresholds
Wade et al (1987) note as introduction to the discussion on thresholds that the relationship
between the physical properties of stimuli and the human psychological experience of them is
studied in the field of psychophysics. Drawing on principles of both physics and psychology,
they examine how varying the intensity or strength of a stimulus affects the strength of sensation
in an observer. Schiffman et al (1991) explain that sensation is the immediate and direct
response of the sensory organs to simple stimuli (eg an advertisement, a brand name etc.).
Human sensitivity refers to the experience of sensation, where the sensitivity to stimuli varies
with the quality of an individual's sensory receptors (eg smell or eyesight) and the amount or
intensity of the stimuli to which he is exposed. Sensation itself depends on energy change or
differentiation of input. It can therefore be said that an unchanging environment, regardless of
the strength of the sensory input, provides little or no sensation at all.
The following example by Schiffman et al (1991) may provide more clarity on the above
discussion: A person living in a busy street of mid-town Manhattan would probably receive little
or no sensation from the inputs of noisy stimuli such as tires screeching, sirens of fire-engines,
or horns honking, since such sounds are so common in New York City. One honk more or less
would not make any difference. The reason is that in situations where there is a great deal of
sensory input, the senses do not detect small intensities or differences in input. As the sensory
input decreases however, our ability to detect changes in input or intensity increases, to the point
where we attain maximum sensitivity under conditions of minimal stimulation. This leads to the
statement of Assael (1992, p. 131) which reads as follows: "The ability of consumers to detect
variations in light, sound, smell or other stimuli is determined by their threshold levels". Wilkie
(1990) states that a threshold simply is a point at which an effect begins to occur.


The consumer perception process
The perception process consists of five distinct activities. The first activity is that of
exposure to stimuli. The second states that attention to stimuli has to occur. During the third
activity, organization, people organize stimuli so that it can be comprehended and retained. The
fourth activity is that of interpretation of the message. Information is retained during the last
activity. A successful perception process leads to a purchasing and consumption decision.
Exposure
Exposure, the first step of the perception process, occurs when a stimulus comes within the range
of our sensory receptor nerves, i.e. when stimuli come within the range of one of our senses.
Exposure is therefore simply the minimum requirement of perception. No matter how great a
message is, it will not be perceived unless a person is exposed to the stimulus (Wells et ai,
1989). Bisschoff (1992) explains that exposure to stimuli is of either an intentional or an
accidental nature. Intentional exposure occurs when an individual is exposed to market related
information because of his own intentional, goal-directed behavior, i.e. it reflects a person's
interests, reading habits, information needs and life style. Accidental exposure to stimuli occurs
when the individual is exposed to intensive marketing campaigns, such as the messages
portrayed by the broadcasting media, billboards, point-of-sale displays in the retail store and the
vast number of magazine and newspaper advertisements. Furthermore, the individual is also
accidently exposed to information such as testimonies from friends or relatives concerning a
specific product. Such testimonies first lead to interest, and then to intentional exposure.
Aaker et al (1987) conclude by emphasizing the importance of exposure by stating that there
can be no communication (or a perception process for that matter) without exposure.
Attention
An individual is exposed, whether intentionally or accidentally, to thousands of different
marketing stimuli during a normal living day ranging from thousands of different products in a
retail store, all differing in packaging, color and design to as many as 1 500 advertisements
(Belch et ai, 1995; Assael, 1992; and Aaker et ai, 1987). From a marketing perspective
attention is of crucial importance, since no matter how often a consumer is exposed to marketing
stimuli, if no attention took place, the message is of no use. Assael (1992, p. 709) defines the
attention process as: "The momentary focusing of a consumer's cognitive capacity on a specific
stimulus."Attention to a given stimulus has taken place only if a consumer notices or attends to
the stimulus. If a consumer does not focus on a stimulus, e.g. an advertisement, although he has
been exposed to it, attention did not take place. The attention process can therefore be viewed as
an information filter - a screening mechanism that controls the quantity and nature of information
any individual receives (Aaker et ai, 1987).
Before attending to the factors determining attention, it is important to note that the so called
attention filter operates at three different levels of effort and consciousness that vary from active
search to passive attention.
Levels of effort and consciousness in the attention process
Hawkins et al (1992) pointed out the importance of there being three different levels in the
attention process. The same person may devote different levels of attention to the same stimulus
in different situations. The three levels involved are active search, passive search and passive
attention. According to Aaker et al (1987) a receiver actually seeks information at the first level
of the attention filter, active search. Information might be gathered from magazines not normally
read, or by soliciting the opinions of friends. At the second level, passive search, a receiver
searches for information only from sources to which he is exposed during the normal course of
events. No effort is made to obtain information from sources not usually exposed to. At the final
level, passive attention, a receiver has little immediate need for information. Although no
conscious effort is made to obtain information, some may nevertheless enter the system.
Factors determining attention
For the marketer to attempt to gain attention to his marketing efforts, it is useful to note the
different factors determining attention. The three factors are the stimulus, the individual, and the
situation (Hawkins et al. 1992).
Stimulus factors
According to Hawkins et al (1992) stimulus factors are physical characteristics of the situation
itself. Mowen (1993), supported by Assael (1992), Hawkins et al (1992), Schiffman et al
(1991), Wilkie (1990), Aaker et al (1987), and Berkman & Gilson (1986), explains that a
number of stimulus characteristics tend to attract our attention independently of our individual
characteristics. These stimulus characteristics are size and intensity, color, movement and
contrast, position, isolation, format and information quantity.
Size and intensity
The size and intensity of the stimulus influence the probability of paying attention to it.
Large stimuli are more likely to attract attention than smaller ones, simply because a consumer is
more likely to notice them (Wilkie, 1990). Intensity of the stimulus can be used to draw
attention. Loud noises, strong scents and brighter lights are all commonly used for this purpose.
Color, movement and contrast
Both color and movement serve to attract attention. Bright colors and moving objects are
normally more noticeable. An example of the element of contrast suggests that a black and white
advertisement is likely to be noticed in a full-color context. Wilkie (1990) explains that contrast,
because it represents a change to our sensory systems, will activate our sensory receptors and
stimulate our attention processes.
Position
Position is one of the most interesting determinants of perception. Position refers to the
placement of an object in a person's visual field. Items placed more to the centre of the visual
field are more likely to be noticed than those placed near the edge of the field. This explains why
consumer goods manufacturers compete fiercely for eye-level space in grocery stores. Likewise,
advertisements placed on the upper half of a page get more attention than the lower part and left-
hand side more than the right.
Isolation
Isolation is the process of separating the stimulus object from other objects. For example,
if a small object is placed in a virtually blank page, it draws immediate attention due to the
isolation principle.
Format
The concept of format refers to the manner in which the message is presented. A general
rule is that simple, straight forward presentations receive more attention than complex
presentations. The concept of compressed information is related to format since the speeding of a
message can increase attention; whereas elements in the message that increase the effort required
processing the message tend to decrease attention. Aaker et al (1987) agree that in printed
advertising a short, simple copy can be informative, but add that if a reader has real use for
information and if the information is well packaged, he can be induced to read a long copy.
Format, like the other stimulus elements, must be developed with a specific target market in
mind (Hawkins et al, 1992).
Information quantity
Information quantity relates more to the total stimulus field than to any particular item in
that field. Although there are substantial variations among individuals, all consumers have
limited capacities to process information. Information overload occurs when consumers are
confronted with so much information that they cannot or will not attend to all of it. Instead, they
become frustrated and either postpone or give up the decision, make a random choice, or use a
suboptimal portion of the total information available.
Individual factors
Individual factors are characteristics of the individual. The most important individual
factors are personal interests or needs. Berkman et al (1986) focus our attention on the
importance to remember that interests and needs vary from individual to individual and that
individual response factors cannot be gauged with the scientific precision of stimulus factors as
explained above.
Wilkie (1990) is of the opinion that our physical needs cause us to be more sensitive to
potential stimuli that might satisfy those needs. Hawkins et al (1992) refer to interest and
explain that interest can also influence personal perceptions since it is a reflection of our overall
lifestyle as well as a result of long-term goals and short-term needs. Short-term goals and needs
are heavily influenced by the situation. Our goals furthermore cause us to be more attentive to
specific stimuli that might help to satisfy them (Wilkie, 1990).
A practical example would be to notice how many petrol stations one observes once the
petrol gauge begins to drift towards the "Empty" mark. Aaker et al (1987) continue the
discussion by explaining why a person obtains information. It is important to note that there are,
of course, as many reasons as there are situations and individuals. It, however, is instructive to
examine four general motives for attending to stimuli. Information is first of all of practical
value. It can also be supportive, stimulating and interesting.
Information of practical value
The objective of gaining information of practical value is that it will be of use to a person.
In an advertising context, an individual will obtain information that will help him make better
purchasing decisions. More information might be needed about certain products such as
expensive and new products with which the consumer is not familiar.
Information of practical value would also be used once consumers are actively searching
for information. This may result in gathering information from sources normally not exposed to,
such as advertisements in specialist magazines, by soliciting information from others, or by
reading technical reports, especially when adequate information is not available through prior
experience. Such an active search for information generates exposure that is extremely important
because such exposure will be more likely to affect product knowledge and attitude structure
than that not associated with effort. Furthermore, the receiver is apt to be close to a purchase and
the chances of forgetting the message is therefore lower.
The purchase, however, need not be imminent for a person to collect product information.
Individuals often acquire information for future reference, using processes such as passive search
or passive attention.
Information that supports
People have a psychological preference for supportive information, i.e. they may be
motivated to be exposed to information that supports their opinion - selective exposure. They
therefore tend to avoid non-supportive or discrepant information.
Information that stimulates
It is a common fact that people get bored very easily and are therefore motivated to reduce
that boredom by seeking stimuli that are novel, unusual and different. In particular, people may
be motivated to seek out information that does not support their positions due to influenced
exposure patterns.
Information that interests
People tend to notice information that interests them. In turn, they are interested in subjects
with which they are involved. They are essentially interested in themselves and in various
extensions of themselves.
Situational factors
The final factor determining attention, the situation, are stimuli in the environment other
than the focal stimulus, focusing only on one stimulus source (e.g. an advertisement or package),
or temporary characteristics of the individual that are induced by the environment, such as time
pressure or a very crowded store. As mentioned earlier, it is important to note that one person
may devote different meanings to the same stimulus in different situations. Aaker et al (1987)
conclude by stating that advertisers should try to attract attention, but at the same time be
cautious not to divert interest from the important points of the message. In particular, it is of no
use to attract an individual's attention if the brand and its message get lost in the process.
Perceptual interpretation
Mowen (1993, p. 778) defines interpretation as: "A process whereby people draw upon
their experience, memory, and expectations to interpret and attach meaning to a stimulus."
Schiffman et al (1991) and Van derWalt (1991) explain that the interpretation phase is
uniquely individual, since it is based upon what individuals expect to see in the light of their
previous experience, on the number of plausible explanations they can envision, and on their
interests and motives at the time perception occurs. Mowen (1993) adds to this by stating that
during this phase, people will retrieve from long-term memory information pertinent to the
stimulus. Expectancies regarding what the stimulus "should be like" are also retrieved from
memory and used to interpret the stimulus. Mowen (1993) notes a problem with interpretation,
namely that individuals may interpret the same stimulus differently. He adds that personal
inclinations, bias, and most important of all, expectations of the individual, will influence his
interpretation of a stimulus. Assael (1992), supported by Wilkie (1990), continues by explaining
that perceptual interpretation consists of two basic principles, namely categorization and
inference. Categorization assists the individual to process known information quickly and
efficiently and classify new information. Inference involves the development of an association
between two stimuli.
Perceptual categorization
Perceptual categorization is defined by Assael (1992, p. 710) as: Tendency of consumers to
place marketing information into logical categories in order to process information quickly and
efficiently, and to classify new information. Wilkie (1990) explains that the categorization
process is extremely important since it underpins all our interactions with our external world. He
expands his explanation by stating that the way an individual initially categorizes a stimulus, will
affect how interested that individual will be in the stimulus, what to expect from it, and whether
it will be evaluated positively or negatively. Furthermore, it is important to note that the
categorization process works at an extremely rapid speed, and usually at the unconscious level.
When an individual has previously encountered a specific external stimulus and has a strong
category for it in long-term memory (Wilkie, 1986), the process is similar to "recognizing" the
stimulus pattern and calling forth the right node from long-term memory. If an individual has not
encountered a particular stimulus before, the categorization process must rely on matching
"cues" from the stimulus to possible categories in long-term memory, therefore arriving at what
possible identity seems right for it.
Perceptual inferences
According to Assael (1992, p. 716) inference: Involves the development of an association
between two stimuli. Wilkie (1986, p. 397) expands on the definition by stating that "an
inference is a belief that we developed based on other information". If a person's name is Sue for
example, that person is likely to be a woman; if a product has a high price, it is likely to be of
higher quality. Wilkie (1986) explains that not all inferences will be correct, although we would
like them to be so. Again, most of these inferences will be made at an unconscious level due to
the high speed involved in the processing of stimuli. Perceptual inferences that are made at a
conscious level will be termed conscious inferences.
Assael (1992) concludes that there are three types of inferences: evaluation-based, similarity-
based, and correlation-based inferences. Evaluation-based inferences are judgments leading to a
consistently positive or negative evaluation of a brand. Similarity-based inferences are beliefs
about an object based on its similarity to other objects. Because of similarity, individuals develop
inferences about unfamiliar products by linking them to products they are familiar with.
Correlation-based inferences are those based on associations from the general to the specific.
Retention
Van der Walt (1991) explains that even if the total perception process was successful it serves
no purpose if the individual is unable to recall the information when he is required to act on it.
The message has failed if a person cannot remember its content. Retention is therefore the actual
storage of processed information in the memory of the individual. Hawkins et al (1992) expand
the explanation by stating that memory plays a critical role in guiding the perception process.
Memory has a long-term storage component and a short-term active component. Bisschoff
(1992) adds to the discussion by explaining that, since short-term memory is the active
component, it deals with problem-solving by using newly acquired information. This, however,
can only be true if no knowledge about a certain subject exists, and that is rarely the case. Long-
term memory is activated to help solve the problem by supplying relevant past stored
information. Long-term memory is once again activated to retain the information once the
processing has been completed, and this will remain dormant for future reference purposes.
Walters et al (1989) conclude by expressing the opinion that retention is of a temporal nature,
i.e. of short duration. A stimulus with constant intensity therefore needs repetition if it is to be
brought to the consciousness.
Perceptual defence
Assael (1992, p. 720) defines perceptual defense as: "Distortion of information by
consumers so that it conforms to their beliefs and attitudes. This function operates to protect the
individual from threatening or contradictory stimuli."
Schiffman et al (1991) view perceptual defense as a subconscious distortion of stimuli that
are important for the consumer not to see, even though exposure may already have taken place.
Therefore, threatening or otherwise damaging stimuli are less likely to achieve awareness than
neutral stimuli at the same level of exposure.
Van der Walt (1991) explains that there are two reasons why people apparently feel a
need to defend themselves against information. The two reasons are perceived risk and
perceptual overload. Perceived risk deals with the different kinds of risk associated with a
purchasing decision, while perceptual overload holds that the consumer has a limited capacity to
process the variety of stimuli directed at him. Because of the above, consumers erect perceptual
defense barriers, also known as the selective perception process. Before attending to the selective
perception process, the focus will be directed towards perceived risk and perceptual overload.
Perceived risk
Mowen (1993 p. 782) defines perceived risk as: "A consumer's perception of the overall
favorability of a course of action based upon an assessment of the possible outcomes and on the
likelihood that those outcomes will occur."
Van der Walt (1991) explains that because the consumer constantly needs to make
decisions regarding products and services that best satisfy his needs, and the consequences of
such decisions are often uncertain, he faces some degree of risk when making a purchasing
decision.
Schiffman et al (1991), supported by Van der Walt (1991), stress the importance to note
that the consumer is influenced only by the risk he perceives, regardless of whether or not such
risk actually exists. If no risk is perceived, there will be no reaction, even in dangerous situations.
Schiffman et al (1991) furthermore stress that the amount of money involved in a purchasing
decision is not directly related to the amount of risk perceived. Therefore, selecting the right
mouthwash may present as great a risk to a consumer as selecting a new television set. There are
several kinds of risk associated with a purchasing decision. Some people are more vulnerable to
some kinds of risk than others, and some are more vulnerable to all kinds and experience great
difficulty making up their minds.
Perceptual overload
Van der Walt (1991), supported by Walters et al (1989), explains that the second reason
why consumers have a need for perceptual barriers (selective perception), is that they have
limited capacities to process all the information directed at them. She states that perceptual
overload occurs because the mind of the individual fails to comprehend all the sensations, often
of conflicting nature, which bombard one's senses at any given moment. Marketing stimuli
bombarding the senses include an enormous number of variables, all of which compete for the
consumer's attention. Different shapes, sizes, colors and conflicting messages are but a few
examples of the variables. Van der Walt (1991) concludes that perceptual defense occurs
throughout the perception process. Man's ability to be selective when dealing with information
helps him to adjust and make consumer decisions without undue difficulty. As stated earlier, it is
understandable that these decisions will not always be completely logical or rational.
SELECTIVE PERCEPTION
Selective perception can be defined (Assael, 1992, p. 722) as the process where:
"Consumers perceive marketing stimuli selectively to reinforce their needs, attitudes, past
experiences, and personal characteristics. Selective perception means that the identical ad,
package, or product can be perceived very differently by two consumers"
Schiffman et al (1991) and Wells et al (1989) add to the definition by describing selective
perception (referred to as defense barriers by Van der Walt, 1991) as a heightened awareness of
stimuli that interest the consumer, a process of screening out information that does not interest
him, and retaining information that does.
Belch et al (1995), supported by Van der Walt (1991) and Walters et al (1989), justify the
existence of a selective perception process by explaining that such a process is required because
of the sheer number of stimuli that a person is exposed to every day (advertisements alone
account for between 300 and 1 500 per normal working day). The individual mind simply fails to
comprehend and interpret all the sensations that bombard the senses at any given time due to the
limited capacity of a person's sensory system. The selective perception process to be discussed
consists of selective exposure, selective attention, selective interpretation and selective retention.
The stage of organizing stimuli is the same as discussed in the perception process, since
individuals will during both the perception and selective perception process attempt to organize
stimuli so that they can better comprehend (interpret) and retain it.
Selective exposure
According to Schiffman et al (1987, p. 710) selective exposure can be defined as the
"Conscious or subconscious exposure of the consumer to certain media or messages, and the
subconscious or active avoidance of others." Schiffman et al (1991), supported by Van derWalt
(1991) and Wilkie (1986), expand on their definition by explaining that consumers actively seek
messages that are pleasant or with which they are sympathetic, and actively avoid painful or
threatening ones. Assael (1992) adds to the discussion by stating that selective exposure can be
explained by the consistency theories, such as dissonance theory, which suggest that people have
a cognitive drive to develop consistent cognitions and behaviors about objects. The dissonance
theory predicts that cognitive dissonance, the existence of conflicting cognitive elements, is
discomforting and that people will try to reduce it. One mechanism of reducing dissonance is
selective exposure, by obtaining supportive information and avoiding discrepant information.
Schiffman et al (1991) confirm this viewpoint by adding that consumers selectively expose
themselves to advertisements that reassure them of the wisdom of their purchasing intention.
Van der Walt (1991) concludes by stating that exposure to a message only means that it has
been seen. There is no guarantee that the individual will choose to pay attention to it.
Selective attention
Wilkie (1990) stresses that while selective exposure vastly reduces the range of stimuli available
to a person, it does not decide which remaining stimuli will be perceived. This is determined by
selective attention. Selective attention can be defined (Mowen, 1993, p. 784) as: "The concept
that consumers selectively decide to which stimuli they should attend."As stated in the definition,
it is clear that the process of selective attention is the focusing of attention on selective aspects of
the environment and blocking out of others (Belch et ai, 1995; Assael, 1992; and Wade et ai,
1987). People vary according to the kind of information they are interested in and the form of
message and type of medium they prefer (Schiffman et al. 1991). Van der Walt (1991) adds by
stating that a person will only pay attention to a message that fits within his frame of reference.
She continues by explaining that consumers have a heightened awareness of stimuli which meet
their needs and depressed awareness of stimuli irrelevant to their needs. Therefore, consumers
are likely to pay attention to advertisements for products that may satisfy their needs.
In studying the concept of selective attention, it is important to note the following:
Selective attention shows that the brain is not focused on responding to everything the
sense receptors send its way (Wade et ai, 1987).
Because we pay attention by exception, and because of the incredible speed at which our
perceptual system works, only those marketing stimuli with the power to capture and
hold our attention have the potential of being perceived (Stanton et ai, 1991 and
Wilkie, 1990).
Selective interpretation
Assael (1992, p. 722) defines selective comprehension (selective interpretation) as:
Interpreting discrepant information so that it is consistent with beliefs and attitudes.
Wilkie (1990) states that once an external stimulus receives attention from an individual, it
begins to be consciously processed by his conceptual system. Belch et al (1995) explain that
consumers interpret information based on their own attitudes, beliefs, and previous experiences.
Furthermore, in selective interpretation, consumers will often interpret information in a manner
that will support their own position.
Van der Walt (1991) supports this viewpoint by adding that the information which has
succeeded in passing through the exposure and attention barriers "flows" through the selective
interpretation barrier which enables the consumer to discard some bits of information, to change
the meaning of others, or to place undue emphasis on certain sections. This may result in the
meaning of the message being quite different from the message of the communicator originally
intended. According to Van der Walt (1991), two possible reasons for the faulty decoding of
messages due to selective interpretation could be that of misindexing the message or distorting
the meaning.
Misindexing refers to the way people tend to classify or categorize the meaning of the message
and can often be ascribed to poor message construction. For example, an advertisement is so
amusing or novel that the situation itself becomes the message while the originally intended
message (product name or benefits) is overlooked. Another possibility is that the attention-
getting device becomes the message, resulting in thoughts being steered away from the real
meaning.
Distortion refers to the way the meaning of a message is changed by the consumer, whether
done purposely or subconsciously. Conflicting stimuli, i.e. stimuli in contrast with previously
held beliefs, habits, likes and dislikes create an imbalance in a person's cognitive structure,
making him feel uncomfortable. To rectify the imbalance, the consumer must either change the
meaning of the message or bring about changes in his cognitive structure. The meaning of the
message can be distorted by either leveling or sharpening.
Leveling suggests that an important portion of information in the message is overlooked.
It is important to note that if the brand name is overlooked, consumers might end up
buying the competitor's product.
Sharpening claims that the consumer reads additional information into a message, i.e.
information that does not actually appear in the message.
In conclusion, Van der Walt (1991) adds that if the nature of the message does not fit into
the person's frame of reference it may be discarded entirely.
Selective retention
Selective retention can be defined (Assael, 1992, p. 722) as follows: "Consumers remember
those messages or portions of messages most relevant to the decision and most likely to conform
to their beliefs and attitudes."
According to Belch et al (1995) the meaning of selective retention is that consumers do not
remember all the information they see, read or hear, even after attending to and correctly
interpreting the message. The advertiser should therefore attempt to ensure that information will
be retained in the consumer's memory so as to be available when it is time to make a purchase.
As noted earlier, repetition of advertising messages aims to increase retention, especially at the
time of the purchasing decision.
Van der Walt (1991) mentions two phenomena that may occur during the selective retention
process, namely a positive sleeper effect and a boomerang effect.
The positive sleeper effect causes the consumer who has not been convinced by the
advertisement to react in the desired way anyway, that is by purchasing the product. The
only possible reason for this behavior is that retention was not complete, and therefore
the consumer forgot the nature or theme of the message and remembered only the
recommendation that the product should be bought.
The boomerang effect causes the consumer to reverse his previous held conviction and
intention to purchase the product and to take directly the opposite course of action by
purchasing a competitive product. A possible reason for this behavior is that the
consumer could not recall the differential product benefits mentioned in the original
advertisement. This means that the message did not succeed to cross the just-noticeable-
difference threshold.

Using symbols and signs in order to reach the consumers attention is common, and this field of
study is called semiotics. Semiotics are split into three parts; the object, the sign and the
interpretation. The object is the product that the message is promoting, the sign is that image
chosen to be connected to the product, and the interpretation is the meaning of the image. To
exemplify, if milk is the object and a cow walking happily in a green meadow is the sign, the
interpretant will be treating the environment well. (Mick, D. 1986)
Labeling products with emblems known to the consumer as eco-friendly leads to a higher
preference among the consumers. (Fitzgerald Bone, P, Russo France, K. 2001; Linder, N.S.
etal., 2010) Researchers suggest that using colored organic emblems that may appear more
visually salient than a less colorful non-organic logo strengthens the consumers attitudes
towards the product. (Zink et al., 2003; Linder, N.S. et al., 2010) Graphically presented
information, such as using images related to organic and natural production processes, can bias
consumer beliefs even when the consumers are motivated to take in the verbal information that
might contradict the image projected. (Paula Fitzgerald Bone, Karen Russo France, 2001)
The product attributes that come to the consumers attention are of both functional and symbolic
nature. The overall image of a product is therefore a result of what the consumers perceive and
expect based on these attributes, and this image constitutes the products market position.
Companies use this information to create a brand for the product that is attractive to the
consumer. (Solomon, M. 2007) Examples of this can be to market a product as the safest one if
that is position it has in the market.
CONSUMER PERCEPTION AND SOCIO-CULTURAL BACKGROUND OF CONSUMERS
The fashion events which take place are promoted by the presence of celebrities and socialites
who actually contribute to the making of the particular brand. In the events we generally notice
that the people, who are from higher sect of the society, are seated on the front rows of a fashion
show or any other big social event (Henry, W. A., 1976). Though sometimes the product does
not necessarily fulfill a need, they create desire and emotion. So these products are generally
preferred by this particular sect. Therefore brand preference occurs.
Socio-cultural variables like patriotism, ethnicity, socioeconomic status, father absence, and
family size play an important role in developing positive perception of the consumers. As a
survey conducted in Poland results that the Polish students prefer Polish products like
electronics, clothing, cosmetics and various other products. It is proved that these socio-cultural
factors motivate or influence the consumers to buy only those products made in their own
country. Patriotism is a key dimension in this scenario as it influences the consumer behavior.
Likewise even some Indians would prefer products made only in India (Kahle, L. R., 1983).
In todays time, global warming is the topic of prime importance. Due to the condition of the
country, people may prefer to use products that are eco-friendly and productive to the
environment. In this, the socio-cultural variable is attached. It is because of global warming that
people use eco-friendly products (Keller,K.L., 2003) Gender, family sizes are the other variables
that lead to a brand preference. If a family size is small they may prefer a brand that is suitable
for them and which they can afford. Males and females have different brand choices and they
follow them.
CONSUMER PERCEPTION ACROSS GENDERS
Gender differences are observed as male adolescents display more favorable attitudes towards
stores, greater consumer affairs knowledge, more materialistic values, and stronger social
motivations for consumption. On the other hand, females show more favorable attitudes towards
advertising and score
Significantly higher on information seeking and cognitive differentiation measures. In general,
female children have stronger influence in family purchase decisions and use influence strategies
such as reasoning, asking, and persuading more frequently than boys (Schultz, M., & de
Chernatony, L., 2002). Sundberg reported that Indian girls perceived their families as
significantly more cohesive than Indian boys; however, the absolute difference was not great.
Sex differences in decision making were also found to be stronger in India than in America.
CONSUMERS` PERCEPTION AND THEIR ECONOMIC BACKGROUND
The target audience plays a very important role in the success of the product. The markets today
are overflowing with multiple choices but the consumer takes his pick according to his financial
capacity. The size of the dent in his pocket makes him prioritize his needs. For example: In spite
of there being number of shampoos in the market, an average middle class family chooses to buy
sun silk because it fits into their monthly budget. However the key word here is necessity over
want. In comparison, a more well off family would use a better brand because end result is of
more importance to them. So the point to be noted is that the brand preference depends on the
monetary capability of the consumer. Usually a product and its brand image also signify the
social status of its consumer (Jones, B., 1996).
For the second year, high net-worth consumers rated Libber the most prestigious luxury handbag
brand in the 2009 Luxury Brand Status Index (LBSI) survey from the independent New York
City-based Luxury Institute. Respondents who would recommend Libber say, "They are works
of art," are "very unique and collectible," and "can be passed down through the years." Hermes
and Todds tied for second, Jimmy Choo was rated third. "As high net-worth consumers become
more discerning about their investments in luxury goods, the coveted luxury handbag category
players are raising the bar in uniqueness, exclusivity and artistic value to satisfy consumer
demand for true luxury," said Milton Pedraza, CEO of the Luxury Institute. "The Judith Leiber
brand is rated as much for being a work of art as it is rated a luxury by the only pundits who
count -- wealthy consumers who can buy the brands. Our impartial surveys are based on the
principle that highly educated; discerning luxury consumers have the ultimate expertise and
trustworthiness in luxury consumption. The Luxury Institute conducts its research with
independent panels, and uses third party analytical firms to tabulate the results so that the true
voice of luxury consumers is amplified for the benefit of their peers and industry executives
alike." (Barry Berman and Joel R. Evans, 2007)
CONSUMER PERCEPTION AND ADVERTISING
Marketing is defined as an activity an organization engages in to facilitate an exchange between
itself and its customers/clients. Advertising is one type of marketing activity. Advertising is a
type of marketing activity central to the marketing of the US food supply. The US food system is
the second largest advertiser in the American economy (the first being the automotive industry)
and is a leading buyer of television, newspaper, magazine, billboard, & radio advertisements
(Vignali, C., Gomez, E. Vignali, M. and Vranesevic, T., 2001).
The reasons that the food advertising market is so large include the following:
1) Food captures 12.5% of US consumer spending and so there is vigorous competition,
2) Food is a repeat-purchase item and consumers' views can change quickly.
3) Food is one of the most highly branded items, which lends itself to major advertising. Over
80% of US grocery products are branded.
Advertising expenditures for US food products were $7.3 billion in 1999. ( Vignali,C., Gomez,
E. Vignali, M. and Vranesevic, T., 2001).
The heavy marketing directed towards youth, especially young children, appears to be driven
largely by the desire to develop and build brand awareness/recognition, brand preference and
brand loyalty. Marketers believe that brand preference begins before purchase behavior does.
Brand preference in children appears to be related to two major factors: 1) children's positive
experiences with a brand, and 2) parents liking that brand. Thus, marketers are intensifying their
efforts to develop brand relationships with young consumers, beginning when they are toddlers.
Marketers know that toddlers and preschool children have considerable purchase influence and
can successfully negotiate purchases through what marketers term the "nag factor" or "pester
power" (Punit Purohit, 2007).
The facebook example, as given below, discusses the issue of advertisement with brand
preference and individual consumer tastes. Facebook has implemented a program where in they
would advertise products with messages from individual facebook users, the policy being to only
send in a message promoting the product to a person from a friend. This can be termed as brand
promotion as such a message displays the preference of that particular brand by the friend and as
people are most influenced by their friends, they can help in promoting the product in question. It
is interesting to note that this kind of advertisement might tend to violate the privacy rights of
individuals on facebook as they would be used without written consent to advertise products but
at the same time its a strong way to promote a brand. Mark Zuckerberg, Facebooks founder,
discussed his companys social advertising plan with marketers in New York. Facebook.com is a
social networking site that lets people accumulate friends and share preferences and play
games with them. Each member creates a home page where he or she can post photographs, likes
and dislikes and updates about their activities. In a twist on word-of-mouth marketing, Facebook
began selling ads that display peoples profile photos next to commercial messages that are
shown to their friends about items they purchased or registered an opinion about. For example,
going forward, a Facebook user who rents a movie on Blockbuster.com will be asked if he would
like to have his movie choice broadcast out to all his friends on Facebook. And those friends
would have no choice but to receive that movie message, along with an ad from Blockbuster
(Marchetti, Michele, 2006).
CONSUMER PERCEPTION AND SALES PROMOTION
Sales Promotion refers to short term incentives to encourage purchase or sale of a product or a
service. It is estimated that in consumer packaged goods industries, 74% of marketing
expenditures is made on sales promotion. Following are the tools of sales promotion:
1. Consumer tools:
Samples, coupons, cash refunds, price packs, premiums, advertising specialties, patronage
rewards, point of purchase displays and materials, contests sweepstakes
2. Trade promotions: discounts, allowance, push money, specialty advertising items, business
promotions, convention and trade shows, sales contests
3. Public relations: building up a good corporate image, handling unfavourable rumors, press
relations, product publicity, public affairs, lobbying, investor relations, news, speeches, special
events, mobile marketing, published materials, website public service activities (Kotler, Philip,
Neil Rackham, and Suj Krishnaswamy, 2006)
CONSUMER PERCEPTION & VISUAL MERCHANDISING
Visual means serving, resulting from, or pertaining to the sense of sight, capable of being seen
by the eye, optical, having the nature of or producing a image in the mind. Merchandising means
to promote the sale of, as by advertising or display. (Bloch, P. H., Brunel, F. F., & Arnold, T.
J., 2003).Visual Merchandising includes combining products, environments, and spaces into a
stimulating and engaging display to encourage the sale of a product or service. It has become
such an important element in retailing that a team effort involving the senior management,
architects, merchandising managers, buyers, the visual merchandising director, designers, and
staff is needed. Visual merchandising starts with the store building itself. The management then
decides on the store design to reflect the products the store is going to sell and how to create a
warm, friendly, and approachable atmosphere for its potential customers (Keller, K.L., 2003).
There are eight key components of store design and visual merchandising: Image, Layout,
Merchandise presentation, Signing and graphics, Display, Lighting, Floor, ceiling, fixtures and
walls, Peripherals colors, music and video, smell and cleanliness Tools of Visual
Merchandising: Windows, Focal point, High point, Promotional tables, Signages (Bloch, P. H.,
Brunel, F. F., & Arnold, T. J., 2003)

ROLE OF PRICING IN CREATING CONSUMER PERCEPTION
Price sensitivity is an important aspect in the market today, as an average consumer would
definitely prefer a product that is cheaper than a product which is above his budget. Although
brand image comes into picture, but its the money quotient that plays the key factor in the
consumer behavior. It is the pricing of the product that influences the consumer to go ahead and
pick up a product that he desires (Richins, M. L., & Dawson, S, 1992).
Choices made by consumers new to a market are driven by two competing forces: consumers
desire to collect information about alternatives and their aversion to trying risky ones. These
forces give rise to three stages of purchasing: an information collection stage that focuses
initially on low-risk, big brand names; a stage in which information collection continues but is
extended to lesser-known brands; and a stage of information consolidation leading to preference
for the brands that provide the greatest utility. The authors use a logic-mixture model with time-
varying parameters to capture the choice dynamics of different consumer segments. The results
show the importance of accounting for product experience and learning when studying the
dynamic choice processes of consumers new to a market. Insights from this study can help
marketers tailor their marketing activities as consumers gain purchasing experience (SimQes, C.
& Dibb, S., 2001)
A consumer has his own framework in his mind. He tries a new product keeping in mind two
factors-
The consumers desire to collect information about alternatives
Their aversion to trying risky ones.
Thus when a consumer is new to the market he will definitely want to try out new products,
which means risking and the other factor involves the information that he has collected from the
market which lead to his brand preference. After experiencing different products only then will
he be choosing a brand as per his want and preference (Snyder, M., & Gangestad, S., 1986).
ROLE OF BRAND PREFERENCE AND BRAND IMAGE IN CONSUMER PERCEPTION
People begin to develop perception at an early age. Various products exists in a market and
consumers have a wide variety to choose from. Substitutes exist in large numbers. This is where
brand preference comes into play along with brand image (Shapiro, Benson, 2002).
Comparatives are used between different brands to increase their sales or brand preference. This
is because of various strategies pre decided and plans by the company. Pricing, promotional
deals and product availability all have tremendous impact on the position of your brand in the
consumers preference set. It takes time, however, and constant reevaluation to build positive
perception which in turn leads to brand preference. (Neuborne, Ellen, 2003).
INFLUENCE OF BRAND AMBASSODORS ON CONSUMER PERCEPTION
When you recognize a chocolate bar as Dairy Milk and noodles as Maggi, you have made a
contribution to a brand managers success by recognizing the brands name that represents the
product. If you can build a powerful brand, you will have a powerful marketing program. If you
cant then all the advertising, fancy packaging, sales promotion and public relations in the world
wont help you achieve your objective. (Aronson, E., Wilson, T.D. and Akert, R.M., 2005)
The very first thing that strikes our mind when we hear the word fast food is either a pizza from
Pizza Hut, burger from McDonalds. The same thing happens when we think of toothpaste, the
first thing that strikes our mind is the brand Colgate or in soft drink as Coca- cola. These brand
names are just fitted in our minds dictionary to represent the product itself; this is the basic goal
where the brand management concept works.
Brand management consultant, Mr. Ritvik Motwani says, There is tough competition in the
market nowadays, so if a particular brand has to survive in the market, it should be designed,
packed and presented in such a way that a product carves a permanent niche in the consumers
mind. Brand management is all about furnishing innovative and creating effective strategies and
marketing techniques which may create a standing for the product during fierce market
competition (Gupta, Monica, 2007)
This process is then developed with assertive promotions and campaigning using various media
and non-media platforms. (Dwarika Prasad and Gandhi, AmritaV., 2007)
Brand management requires planning, developing, and directing marketing strategies. It includes
refining the brands quintessence; as a brand manager one should first identify the competitors
brand building strategies and should be smart enough to face potential threats by the competitors
before launching your companys product (Erdem, Oumlil and Tuncalp , 1999).


BRAND AND ETHICS- ITS INFLUENCE ON CONSUMER PERCEPTION
Elaine Giles, research executive, TNS World panel Fashion, said: With the recent bad publicity
surrounding the factory conditions employed by some of the UKs leading clothing retailers,
ethical fashion is high on the consumer agenda. Over the past few years we have watched
consumers flock to the cheapest outlets on the high street, but increasing awareness of the
potential cost to humanity for these bargains is hitting home. Some 7.1 million consumers say
ethical issues are important to them but feel availability of such items is poor. This creates a
great potential market for the clothes industry (Bombeck, E., 1985).
Nearly half (45%) of Britains consumers do not believe the claims made by high street fashion
stores about their ethical credentials, according to the latest findings from TNS World panel
Fashion. Despite this skepticism towards retailers, TNS saw a significant rise in the number of
shoppers appreciating the importance of ethical production in its annual ethical clothes report
some 28.4 million consumers felt ethics were an important factor in their choice of clothing and
footwear, equivalent to 59% of the population. (Pitts. R. E., & Woodside, A. G., 1983)
Young consumers tend to be less cynical about retailers ethical claims, with only 34% doubting
the legitimacy of ethical practices. However, under 25s are also the least likely to buy ethical
fashion; whilst a significant 54% claim its important to them in theory, 6 in 10 admit they buy
the clothes they want without caring how they are produced. Consumers aged over 55 are the
most likely to consider ethical issues before purchasing, as well as being the most skeptical about
claimed ethics, some 34% of older consumers will look at the country of origin before buying
clothes (Sochis, George P., 1985)
Ethical issues are more critical to women than men: 63% of women say its an important
consideration compared to 54% of men. In addition, women are more likely to be attracted to
stores that promote ethical clothing and 32% of women say there are clothing brands or retailers
they would never buy for ethical reasons. Consumers believe the most significant factor for an
item to be considered ethical is that no sweatshops or child labor were involved in the
production, with 70% of consumers saying this was very important. A fair price paid to the
producer and no environmental damage caused were the second and third most important
factors respectively. Shoppers rate the use of organic materials to be the least important factor in
ethical wear, with just 15% of consumers saying this was very important (Kahle, L. R., 1983)