CHAPTER 4
Consumer Perception and Positioning
LEARNING OBJECTIVES
After reading, studying and analyzing this chapter, students should be able:
4.1 To understand how perception shapes sensory input and subsequent consumer behavior.
4.3 To understand why consumers notice some stimuli but not others.
4.5 To understand how consumers use integral and external factors to evaluate products.
4.7 To understand consumers’ perceived risks and how to lower them.
4.8 To understand the process of positioning and repositioning.
CHAPTER SUMMARY
Learning Objective 4.1: To understand how perception shapes sensory input and subsequent
consumer behavior.
Perception is the process by which individuals select, organize, and interpret stimuli into a
meaningful and coherent picture of the world. Perception has strategy implications for marketers
because consumers make decisions based on what they perceive rather than on the basis of
objective reality. The lowest level at which an individual can perceive a specific stimulus is that
Learning Objective 4.2: To understand the distinction between the sensory absolute and
differential thresholds.
Consumers’ selections of stimuli from the environment are based on the interaction of their
expectations and motives with the stimulus itself. People usually perceive things they need or
want, and block the perception of unnecessary, unfavorable, or painful stimuli. The principles of
selective perception include the concepts of selective exposure, selective attention, and
perceptual defense. Which stimuli get selected depends on two major factors, in addition to the
nature of the stimulus itself: (1) consumers’ previous experience as it affects their expectations
(what they are prepared, or “set,” to see), and (2) their motives at the time (their needs, desires,
interests, and so on). Each of these factors can increase or decrease the probability that a stimulus
will be perceived.
Learning Objective 4.3: To understand why consumers notice some stimuli but not others.
messages. Marketers try to obscure the difference between figure and ground so that their ads do
not “stand out” from the contents of entertainment, such as movies and TV shows. They often
use product placements, which occur when an advertised product (i.e., the figure) is deliberately
integrated into a TV show or film (i.e., the ground). The perception of stimuli as groups or
chunks of information, rather than as discrete bits of information, facilitates memory and recall.
People instinctively try to organize pieces of sensory input into a complete image or feeling (i.e.,
they seek closure). Thus, if they perceive that a stimulus is incomplete, they feel compelled to
figure out its complete meaning.
Learning Objective 4.4: To understand how people organize stimuli.
The interpretation of stimuli is highly subjective and is based on what the consumer expects to
see in light of previous experience, on motives and interests at the time of perception, and on the
clarity of the stimulus itself. Individuals carry biased pictures in their minds of the meanings of
Learning Objective 4.5: To understand how consumers use integral and external factors to
evaluate products.
Consumers perceive images of products and brands. The perceived image of a product or service
(how it is positioned) is more important to its ultimate success than are its actual physical
characteristics. Products and services that are perceived distinctly and favorably have a much
better chance of being purchased than products or services with unclear or unfavorable images.
The main elements of consumer imagery are consumers’ perceptions of brands, packages,
services, and prices.
Learning Objective 4.6: To understand the elements of consumer imagery.
Consumers often judge the quality of a product or service on the basis of a variety of
informational cues; some are intrinsic to the product (such as color, size, flavor, and aroma),
whereas others are extrinsic (e.g., price, store image, brand image, and service environment).
In the absence of direct experience or other information, consumers often rely on price as an
quality of products and services is based on a variety of informational cues that they associate
with the offerings. Some of these cues are intrinsic to the product or service; others are extrinsic.
Either singly or together, such cues provide the basis for perceptions of product and service
quality.
Learning Objective 4.7: To understand consumers’ perceived risks and how to lower them.
Consumers often perceive risk in making product selections because of uncertainty as to the
consequences of their product decisions. In most situations, consumers’ perceived risk is a
function of multiple factors. The elements of perceived risk are functional risk, physical risk,
financial risk, social risk, psychological risk, and time risk. Consumer strategies for reducing
perceived risk include increased information search, brand loyalty, buying a well-known brand,
Learning Objective 4.8: To understand the process of positioning and repositioning.
After segmenting the market and selecting targeting prospects, marketers must persuade
prospective buyers to buy the products that they offer, rather than competing products.
Positioning is the process by which a company creates a distinct image and identity for its
products, services, or brands in consumers’ minds. The image and unique identity are called a
“position.” The “position” in intangible, exists in the consumer’s mind, and represents how
consumers perceive the product. Positioning is more important to the ultimate success of a
product than are its actual characteristics, although products that are poorly made will not
CHAPTER OUTLINE
Introduction
2. Two individuals may be exposed to the same stimuli, but each person recognizes, selects,
organizes and interprets the stimuli based on their own needs, values and expectations.
3. Consumers act/react on the basis of their perceptions, not on the basis of objective reality.
a) Reality is a totally personal phenomenon, based on that person’s needs, wants, values,
4. Sometimes, changing a brand image, or repositioning a brand to create a different distinct
image and identity for the product/service, is necessary.
*****Use Key Terms perception, repositioning Here; Use Figure #4.1 Here *****
Sensory Information
1. Perception is all about consumers’ subjective understandings and not objective realities.
*****Use Learning Objective #4.1 Here*****
2. Sensory input does not produce or explain the coherent picture of the world that most adults
possess.
a) We subconsciously add to or subtract from sensory inputs to produce our own private
picture of the world.
b) Intensive stimulation bounces off most individuals.
c) Physical stimuli from the outside environment are one type of input into perceptions.
3. Sensation is the immediate and direct response of the sensory organs to stimuli.
a) A stimulus is any unit of input to any of the senses (e.g. products, packaging, brand
names, advertisements, commercials).
b) Sensory receptors are human organs that receive sensory inputs.
c) Human sensory sensitivity refers to the experience of sensation.
d) Sensation itself depends on energy change, or the differentiation of input.
e) As sensory input decreases, the ability to detect changes increases.
*****Use Key Terms sensation, stimulus Here *****
4. Types of sensory input include:
a) Sight – brand colors, store layouts, website design, packaging, etc.
b) Scent – people associate memories with smells; ambient smells can enhance the
shopping experience
*****Use Table 4.1 Here *****
e) Taste – there are five fundamental tastes in the human palate: salty, sweet, sour, bitter,
and umami.
The Absolute and Differential Thresholds
1. The lowest level at which an individual can experience a sensation is called the absolute
threshold.
a. The point at which a person can detect the difference between “something” and
2. Sensory adaptation refers specifically to “getting used to” certain sensations or becoming
accustomed to a certain level of stimulation. Sensory adaptation is a problem that causes
many advertisers to change their advertising campaigns regularly.
*****Use Learning Objective #4.2 Here; Use Key Terms absolute threshold and sensory
adaptation Here; Use Review and Discussion Question #4.1 Here *****
3. The minimal difference that can be detected between two stimuli is called the differential
threshold or the JND (just noticeable difference).
*****Use Key Terms differential threshold, JND (just noticeable difference), and Weber’s
law Here; Use Review and Discussion Question #4.2 Here*****
b. Manufacturers and marketers endeavor to determine the relevant JND for their
products so that negative changes—reductions or increases in product size, or reduced
quality—are not readily discernible to the public, so that product improvements are
readily discernible to the consumer without being wastefully extravagant.
c. Marketers use the JND to determine the amount of change or updating they should
make in their products to avoid losing the readily recognized aspects of their
products.
***** Use Review and Discussion Question #4.2 Here; Use Figures #4.2, 4.3, and 4.4
Here*****
4. People are also stimulated below their level of conscious awareness—they can perceive
stimuli without being consciously aware of it via a process called subliminal perception
(because the stimulus is beneath the threshold, or “limen,” of conscious awareness, though
obviously not beneath the absolute threshold of the receptors involved).
a. Over the years, there have been sporadic reports of marketers using subliminal
messages in their efforts to influence consumption behavior.
*****Use Key Term subliminal perception Here; Use Review and Discussion Question #4.4
Here *****
Perceptual Selection
1. Consumers subconsciously exercise selectivity as to the stimuli they perceive.
2. Which stimuli get selected depends on two major factors in addition to the nature of the
stimulus itself:
3. Marketing stimuli that affect perceptions include:
a) Nature of the product
b) Its physical attributes
2. Contrast is one of the most attention-compelling attributes of a stimulus.
a) Advertisers use extreme attention-getting devices to get maximum contrast and
penetrate the consumer’s perceptual screen.
b) Advertisers use color contrasts, size, unexpected and unrealistic images to create
stopping power and gain attention.
*****Use Learning Objective 4.3 Here; Use Figure #4.5 Here; Use Review and Discussion
Question #4.5 Here *****
3. People see what they expect to see based on familiarity, previous experience, or
preconditioned set expectations.
a) Stimuli that conflict sharply with expectations often receive more attention than those
that conform to expectations.
*****Use Key Term expectations Here*****
4. People tend to perceive things they need or want; the stronger the need, the greater the
tendency to ignore unrelated stimuli in the environment.
a) An individual’s perceptual process attunes itself more closely to those elements of the
5. The consumer’s “selection” of stimuli from the environment is based on the interaction of
expectations and motives with the stimulus itself. These factors give rise to four important
concepts concerning perception.
a) Selective exposure—consumers actively seek out messages they find pleasant or with
which they are sympathetic and actively avoid painful or threatening messages.
blocking stimuli from conscious awareness.
*****Use Key Terms selective exposure, selective attention, and perceptual defense
Here; Use Hands-on Assignment #4.11 Here*****
Perceptual Organization
1. People do not experience the numerous stimuli they select from the environment as separate
2. Gestalt psychology (Gestalt, in German, means pattern or configuration) is the name of the
a) Stimuli that contrast with their environment are more likely to be noticed; an example is
the contrast between a figure and the ground on which it is placed.
i) The figure is usually perceived clearly.
ii) The ground is usually perceived as indefinite, hazy, and continuous.
iii) The figure is more clearly perceived because it appears to be dominant—the ground
appears to be subordinate and less important.
iv) Advertisers have to plan their advertisements carefully to make sure that the
stimulus they want noted is seen as figure and not as ground.
v) A marketing technique experience growth and stems from the figure-and-ground
concepts is product placement (or “branded entertainment”).
b) Grouping, or a tendency to group stimuli into chunks, can be used advantageously by
marketers to imply certain desired meanings in connection with their products.
Interpretation: Cues
1. The interpretation of stimuli is also uniquely individual because it is based on what
individuals expect to see in light of their previous experiences, the number of plausible
explanations they can envision, and their motives and interests at the time of purchase.
a) Intrinsic cues are concerned with physical characteristics of the product itself: size,
color, flavor or aroma.
i) Consumers like to think they base quality evaluations on intrinsic cues because that
enables them to justify their product decisions as being “rational” or “objective.”
ii) More often than not, however, they use extrinsic characteristics to judge quality.
iii) In the absence of actual experience with a product, consumers often evaluate
quality on the basis of extrinsic cues, price, brand image, store image, etc.
b) Extrinsic cues are characteristics that are not inherent to the product.
***** Use Learning Objective 4.4 Here; Use Review and Discussion Exercise 4.9 Here; Use
Key Terms perceived quality, intrinsic cues, and extrinsic cues Here *****
c) When stimuli are highly ambiguous, individuals usually interpret them in such a way
that they serve to fulfill personal needs, wishes, and interests.
d) How close a person’s interpretations are to reality depends on the clarity of the
stimulus, the past experiences of the perceiver, and his or her motives and interests at
the time of perception.
***** *****
2. Stereotypes are the biased “pictures” consumers carry in their minds of the meaning of
c) The main factors that can trigger stereotypes are:
i) Physical Appearance—people tend to attribute the qualities they associate with
certain people to others who may resemble them. Culturally attractive models are
likely to be more persuasive and have a more positive influence on consumer
attitudes and behavior than do average-looking models.
ii) Descriptive Terms—stereotypes are often reflected in verbal messages. Distinct
brand names are important to all products or services, associations that consumers
Consumer Imagery
1. Consumer imagery is consumers’ perceptions of all the components of products, services
and brands and how consumers evaluate the quality of marketers’ offerings.
a) Products and brands have symbolic value for individuals who evaluate them on the
basis of their consistency with their personal pictures of themselves.
b) Imagery affects perceptions of products, brands, services, prices, product quality, retail
stores, and manufacturers.
2. Perceived value is the customer’s view of the value that the customer receives from the
purchase.
a) How a consumer perceives a price —as high, as low, as fair—has a strong influence on
both purchase intentions and purchase satisfaction.
b) Perception of price unfairness—customers pay attention to the prices paid by other
customers (e.g., senior citizens, frequent fliers, affinity club members) – affect customer
satisfaction, perceptions of product value and willingness to patronize a store or service.
c. A reference price is any price that a consumer uses as a basis for comparison in judging
another price.
a. An advertiser generally uses a higher external reference price (“sold elsewhere
at…”) in an ad in which a lower sales price is being offered to persuade the
consumer that the product advertised is a really good buy.
d. Consumers’ internal reference prices change.
e. When an advertised reference price is within a given consumer’s acceptable price
range, it is considered plausible and credible.
f. If the advertised reference point is outside the range of acceptable prices (i.e.,
implausible), it will be contrasted and thus will not be perceived as a valid
reference point.
*****Use Key Term reference price Here *****
3. A price/quality relationship forms when consumers rely on price as an indicator of product
quality.
a) Because price is so often considered to be an indicator of quality, some products
deliberately emphasize a high price to underscore their claims of quality.
b) Consumers also use cues such as the brand and the store in which the product is bought
to evaluate quality.
c) Consumers rely on the price and brand name when evaluating the product’s prestige and
symbolic value and use more concrete attributes of a product, such as performance and
durability, to judge its overall performance.
*****Use Hands-on Assignment 4.13 Here; Use Key Term price-quality relationship
Here*****
4. Positioning is the distinct image that a product has in the mind of the consumer.
a) How a product is positioned in the mind of the consumer is more important to the
product’s success than are the product’s actual characteristics.
*****Use Key Term positioning Here; Use Figure #4.9 Here *****
5. Packaging must convey the image that the brand communicates to buyers.
*****Use Figure #4.10 Here*****
6. Compared with manufacturing firms, service marketers face several unique problems in
positioning and promoting their offerings.
a) Services are intangible, so image becomes a key factor in differentiating a service from
its competition.
b) Services are also variable, perishable, and simultaneously produced and consumed.
c) The marketing objective is to enable the consumer to link a specific image with a
specific brand name (using painted delivery vehicles, restaurant matchbooks, packaged
hotel soaps and shampoos, and a variety of other specialty items).
***** Use Key Term SERVQUAL scale Here; Use Review and Discussion Question #4.8
Here *****
7. Retail stores have images of their own that serve to influence the perceived quality of
products they carry and the decisions of consumers as to where to shop.
a) 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.
b) The width and type of product assortment affects retail store image.
c) The unique benefit that a store provides is more important than the number of items it
carries in forming a favorable store image in consumers’ minds.
8. Manufacturers who enjoy a favorable image generally find that their new products are
accepted more readily than those of manufacturers who have a less favorable or even a
“neutral” image.
a) Consumers generally have favorable perceptions of brands that are the first in a product
category and are more likely to purchase.
Risk Perception
1. Perceived risk is the uncertainty that consumers face when they cannot foresee the
consequences of their purchase decision.
a) The degree of risk that consumers perceive and their own tolerance for risk taking are
factors that influence their purchase strategies.
b) Consumers are influenced by risks that they perceive, whether or not such risks actually
*****Use Learning Objective 4.7 Here; Use Key Term perceived risk Here; Use Table 4.2
Here*****
2. The amount of risk perceived depends on the specific consumer, the product, the situation,
and the culture.
a) High-risk perceivers are narrow categorizers because they limit their choices.
*****Use Key Terms narrow categorizers and broad categorizers Here*****