CONSUMER PSYCHOLOGY

PRESENTATION
TEAM MEMBERS:-

TANISHA MALHOTRA - A1698920016

HARSHITA KAPOOR - A1698920032
SUPRIYA PUROHIT - A1698920037
AFZA NAQVI - A1698920042
 MODULE 4:

Consumer Information
Processing: Attention and
Perception
 CONSUMER INFORMATION
PROCESSING
Process through which consumers are:

1 2 3
Attend to the Coprehend the
Exposed to Information Information
Information

4 5
Place it in memory Retrieve it for later use
 STAGES OF CONSUMER
INFORMATION PROCESSING

Perception Exposure Stage Attention Stage

Consumer Involvement Comprehension Stage

 PERCEPTION STAGE
Process through which consumer’s are exposed to:

Comprehend the
Information Attend the Info
Info
Exposure: Attention: Comprehension:
Consumers receive Consumers allocate Consumers interpret
information processing capacity the information to
through their to a stimulus obtain meaning
senses Comprehension from it
 EXPOSURE STAGE
Process through which consumer’s sensory organs are activated by
stimulus:
Selective Exposure Sensation

Consumers can The stimulation of a

actively choose person's sensory
whether or not to receptors and the
expose themselves to transmission of the
information sensory information
Skipping through advertisements to the brain
Subliminal Perception Butterfly Curve

The idea that stimuli At adaptation level,

presented below the Consumer Adaptation consumer preference for a
level of conscious stimulus declines due to
awareness might The amount or level of habituation. Preference for
influence behavior and the stimulus to which a stimulus is greatest at
feelings the consumer has points just higher or lower
become accustomed. A than the adaptation level
reference point to
which changes in the Changing Fashion Trends
level of the stimulus are
compared
 ATTENTION STAGE
The process of the allocation of cognitive capacity
to an object or task

Involuntary
Voluntary Selective
attention
attention attention
Consumers actively Consumers Consumer is exposed
search out selectively focus to something
information that has attention on surprising, novel,
personal relevance relevant information threatening, or
unexpected
 COMPREHENSION STAGE
The process through which individuals organize and
interpret information
Perceptual Organization Gestalt Psychology
The way people perceive shapes, Attempts to understand how people
forms, figures, and lines in their perceive patterns in the world
visual world

Interpretation processes Expectations

People draw upon their experience, Prior beliefs about what should happen
memory and expectations to attach in a given situation can influence the
meaning to a stimulus interpretation of information
 ATTENTION
Attention involves the Consumers are Companies have the
amount of mental bombarded with formidable task of
processing that is product breaking through the
devoted to a particular information and clutter to attract
stimulus. It aims to advertisements consumer’s attention
engage and acquire each day and
new customers connect with
through different consumer’s needs &
techniques expectation
 Target Ads
Johnson & Johnson is the perfect example for
targeting and grabbing the attention of a new
mother/Parent.

This specific advertisement has been created to

target new mothers and remind them that their
baby does not have to cry during bath and their
eyes will not be irritated.
 PERCEPTION
Perception is the process through which a person forms an opinion
about the various stimuli he receives from his sensory organs. In
marketing, perception is concerned with understanding how the
consumer views a product or service. The five senses of a person
help him in this process. The marketer uses various props to
stimulate the consumer, that is, through the use of colors, sound,
touch, taste, or smell, to observe the product.

The marketer must distinguish his message from the competitor's

message. This is when Just Noticeable difference (JND) comes to
their aid. JND is the minimum difference that the consumer can
detect between two stimuli he receives. It helps the consumer to
distinguish changes in prices among purchase alternatives.
Marketers thus use stimuli to grab customers' attention and most
often these efforts are clearly visible and known to the customer.
 PERCEPTION
• However, they sometimes use indiscernible stimuli that are just below a
consumer's threshold so as to influence him. This is called subliminal
message. Of all the stimuli a consumer comes into contact with, he pays
attention to only a few and interprets the messages that he remembers.
This is called the process of perception and has the three steps: 1)
exposure, 2) attention, and 3) interpretation.

How well the consumer pays attention will depend on the stimulus, and
also the consumer's interest and need for that product. The consumer
interprets the information in two ways: 1) the literal meaning or the
semantic meaning and 2) the psychological meaning. Hence we are guided
by our learning as well as the semantic meaning of a word. A consumer
also interprets the symbols and other physical features of the product on
the basis of his experience and cultural beliefs. This is called semiotics.

Marketers make use of perception to formulate marketing strategies. The

marketers use a perceptual map, wherein they find out the attributes or
the characteristics that the consumer associates with the product and they
create the product accordingly. Thus, development of a brand or the logo
of the product, packaging of the product, etc., have to be made keeping
the consumer's perception in mind.
 Evoking Sensory System
Companies use sensory system of consumers to grab their attention in
various ways

Vision Smell Sound Touch Taste

Meaning, Evoke Functional Packaging to Evoke strong
Colour memories, Music, Stimulus arouse consumer memories, can
Combination relieve stress Progression interest be childhood

Watching a Smell of Sound of Special Sample product

advertisement coffee in the drinking in packaging of tasting in
of purple morning, advertisements, product to have a supermarkets
drapes, creating the creates a good feeling to customers
making it feel crave for it craving for a while unpacking
like royalty drink
 Coca Cola
How Coca Cola uses sound and taste

• Most Coca Cola advertisement has one thing in

common

• They all have bottle/can opening sound,

drinking sound and the satisfying “Ahh” sound
in the end

• They target a customers sense of sound and

taste through this process which creates a
craving for their product.
 Dunkin’ Donuts
How Dunkin’ Donuts used smell and sound

● Dunkin’ Donuts increased their sales many

folds by using this technique
● It was target towards morning office
travelers in a hurry
● They fitted each bus in Seoul, South Korea
with coffee fragrance dispenser
● As soon as the Dunkin Donuts
advertisement was played, it dispensed the
fragrance
● This created craving for coffee and the ad
was usually played before a bus stop with a
Dunkin’ Donut outlet
Memory, Fluency &
Familiarity

-Supriya Purohit
 Memory
Memory refers to a consumer's ability to understand the marketing messages and assign them value and
meaning.
The value and meaning assigned is largely determined by internal factors, (thoughts, feelings, emotion,
attitude, perception, motivation, personality, lifestyle) which are different for each consumer.

It is well-known that memory affects our buying behavior.

For example, if you have fond memories of a sweet that you loved as a kid, for example,
Laddu,
you most likely still like that sweet.
The scent and the taste of that sweet bring back memories,
experiences, and comfort from your childhood.
You might, for example, remember you want the specific ice-cream your mother bought
for you at the grocery
store.
 Types of Memory
Sensory Memory Short-term Memory Long-term memory
• Permits storage of the information we • Also stores information for a limited • It’s the system that allows us to retain
receive from our senses. period of time, and it has limited information for a long period of time.
• This storage is very temporary; lasts a capacity. Information passes from STM into
couple of seconds at most. • This is similar to working memory in a LTM via the process of elaborative
• For example, when walking to work computer; it holds the information we rehearsal.
you pass by a French bistro cafe and are currently processing. • Advertisers sometimes assist in the
you get a quick, aromatic whiff of • Our memories can store verbal process when they devise catchy
espresso and fresh croissants. input acoustically (in terms of how it slogans or jingles that consumers
Although this sensation lasts only a sounds) or semantically (in terms of repeat on their own and retain in their
few seconds, it is sufficient to allow what it means). We store it when we LTM.
you to consider whether you should combine small pieces of data into • A great slogan is memorable, includes
investigate further. larger chunks. a key benefit, differentiates the brand,
• If you retain this information for • A chunk is a configuration that is and imparts positive feelings about the
further processing, it passes into short- familiar to the person and that they can brand.
term memory. think about as a unit. For example, a
brand name like Beats by Dre can be a
chunk that summarizes a great deal of
detailed information about the product.
The various factors that come to a consumer’s mind when he thinks of Coca Cola or
Bata Shoes are shown in the figure. Similarly, meanings can be associated with
various brands and products when one thinks of them. These can be recalled both by
short-term or long-term memory.
Product Positioning
• Marketers try to position their brands in the minds of the
consumer. It relates to the memory of the brand in relation to
competing products. By this, the marketer tries to enhance the
image of his brand which suits the consumer, promotes the image
of the products and the stores as well. Product position evolves
over time, as the marketer gets to know more about the
preference of the consumers. Consumers usually have an “ideal
brand” concept and, they want to be as close to the ideal brand as
possible. The marketer also tries to offer a product by positioning
and repositioning the product which comes as close as possible
to the consumer’s ideal brand. This can be done by finding out
the critical dimensions which are preferred. In the case of a soft
drink, the dimension could be:
• If the ideal brand as perceived by the consumer is (X) that is
(5,2) on the graph. The marketer tries to make a product as close
to the ideal brand as possible.
Fluency and Familiarity

Processing fluency is the ease with which

information is processed. Perceptual fluency is the
ease of processing stimuli based on manipulations to
perceptual quality. Retrieval fluency is the ease with
which information can be retrieved from memory.

On a semantic level, you can also play with how easy

it is to understand advertisements or product
descriptions. Poetic and rhetorical devices make
things more fluent, as does more simple vocabulary.
For example, many electronic products will have
specs that the average consumer doesn’t understand,
meaning that this information is Disfluent. Finding a
way to rewrite these specs in a way that looks and
feels more accessible will make customers more
confident that they understand the information, and
this can lead to greater interested in the product.
Familiarity comes into play as you get more
exposed to a brand, the more familiar it becomes. If
a brand continues to meet our expectations, it can
even become preferred in the mind of the consumer.
Familiar brands are like a cozy blanket or your
favorite pair of jeans - they make us feel confident
and secure and always seem to fit just right.
How do they give us confidence? Let's talk French
fries for a minute. There are many different drive-
thrust that offer those delectable, golden-fried spuds.
While they're all delicious, often times there is one
brand that just seems to stand out among the others.
You're familiar with the brand and know the
characteristics of those fries, compared to others out
there, are exactly what you're looking for. Because
of brand familiarity, you feel sure you made the
right decision before you even got to the window to
pick up your order.
Consumer and
Behavioural
Learning
- Afza Naqvi
 Learning through experience
Learning refers to the relatively permanent change in knowledge or behavior that is the result of
experience. Learning is perhaps the most important human capacity. Learning allows us to create
effective lives by being able to respond to changes.

Theories of learning range from those that focus on simple stimulus-response connections (behavioral theories)
to perspectives that regard consumers as solvers of complex problems who learn abstract rules and
concepts as they observe others (cognitive theories).
Basic learning principles are at the heart of many advertising efforts.

Learning refers to the process by which consumers change their behaviour after they gain information or
experience. It’s the reason you don’t buy a bad product twice. Learning doesn’t just affect what you buy; it
affects how you shop. People with limited experience about a product or brand generally seek out more
information than people who have used a product before.

Companies try to get consumers to learn about their products in different ways. Car dealerships offer test drives.
Pharmaceutical reps leave samples and brochures at doctor’s offices. Other companies give consumers free
samples. While sampling is an expensive strategy, it gets consumers to try the product
and many customers buy it, especially right after trying in the store.
Behavioral Learning Theories
These assume that learning takes place as the result of responses to external events. For example, if
a song we remember fondly from high school gets repeatedly paired
with a brand name, over time our warm memories about the tune
will rub off onto the advertised product.

According to this perspective, the feedback we receive as we go through life shapes our experiences.
Similarly, we respond to brand names, scents, “jingles” (a short song used in advertisements), and
other marketing stimuli because of the learned connections we form over time. People also learn
that actions they take result in rewards and punishments;
this feedback influences the way they will respond in similar situations in the future.

Consumers who receive compliments on a product choice will be more likely to buy that brand again,
but those who get food poisoning at a new restaurant are not likely to return to it in the future.
Classical Conditioning and Consumer
Classical conditioning has long been, and continues to be, an effective tool in marketing and advertising
(Hawkins, Best, & Coney, 1998). The general idea is to create an advertisement that has positive features such
that the ad creates enjoyment in the person exposed to it.

The enjoyable ad serves as the unconditioned stimulus (US), and the enjoyment is the unconditioned response
(UR). Because the product being advertised is mentioned in the ad, it becomes associated with the US, and
then becomes the conditioned stimulus (CS). In the end, if everything has gone well, seeing the product online
or in the store will then create a positive response in the buyer, leading them to be more likely to purchase the
product.
A similar strategy is used by corporations that sponsor teams or events. For instance, if people enjoy watching
a university basketball team playing basketball, and if that team is sponsored by a product, such as Red Bull,
then people may end up experiencing positive feelings when they view a can of Red Bull.
Of course, the sponsor wants to sponsor only good teams and good athletes because these create more
pleasurable responses. Advertisers use a variety of techniques to create positive advertisements, including
enjoyable music, cute babies, attractive models, and funny spokespeople.
 Stimulus
Generalization
Pavlov also experimented with presenting new stimuli that
were similar, but not identical, to the original conditioned
stimulus. For instance, if the dog had been conditioned to
being scratched before the food arrived, the stimulus would
be changed to being rubbed rather than scratched. He
found that the dogs also salivated upon experiencing the
similar stimulus, a process known as (stimulus)
generalization. refers to the tendency to respond to stimuli
that resemble the original conditioned stimulus. The ability
to generalize has important evolutionary significance. If we
eat some red berries and they make us sick, it would be a
good idea to think twice before we eat some purple berries.
Although the berries are not the same, they nevertheless
are similar and may have the same negative properties.
 Lewicki (1985) conducted research that demonstrated the influence of stimulus
generalization and how quickly and easily it can happen. In his experiment, high
school students first had a brief interaction with a female experimenter who had
short hair and glasses.
The study was set up so that the students had to ask the experimenter a question,
and (according to random assignment) the experimenter responded either in a
negative way or a neutral way toward the students. Then the students were told to
go into a second room in which two experimenters were present and to approach
either one of them. However, the researchers arranged it so that one of the two
experimenters looked a lot like the original experimenter, while the other one did
not (she had longer hair and no glasses).
The students were significantly more likely to avoid the experimenter who looked
like the earlier experimenter when that experimenter had been negative to them
than when she had treated them more neutrally.
The participants showed stimulus generalization such that the new, similar-looking
experimenter created the same negative response in the participants as had the
experimenter in the prior session.
 Creating Loyal Customers
through Operant Conditioning
Operant conditioning studies how the effects of a behaviour influence the probability that it will occur
again. For example, the effects of the rat’s lever-pressing behaviour (i.e., receiving a food pellet)
influences the probability that it will keep pressing the lever. For, according to Thorndike’s law of
effect, when a behaviour has a positive (satisfying) effect or consequence, it is likely to be repeated in
the future. However, when a behaviour has a negative (painful/annoying) consequence, it is less likely
to be repeated in the future (). Effects that increase behaviours are referred to as reinforcers, and
effects that decrease them are referred to as punishers.

Marketers have developed several sales and marketing techniques based on the principles
of instrumental conditioning and specifically positive reinforcement. Each of these commonly known
tactics encourages consumers to be loyal, frequent, and high-spending shoppers:
• Discounts
• Rewards Programs
• Frequency Marketing Programs
• Gifts & Giveaways
 Cognitive
Interpretation
Every consumer reacts depending on the stimulation intensity
(satisfaction or dissatisfaction from the purchased product or
service), in correlation with the mental mechanisms, i.e. processes.
Cognitive learning is a complex mental process of inclusion of all
consumer mental activities in resolving the problem of purchasing
certain products or services and resolution of the situation
occurred. It involves learning of ideas, concepts, attitudes and
reasoning abilities. Cognitive learning allows consumers to utilize
the stored information (memory) for building new knowledge used
for the current behaviour, or it stores it in the memory as
additional information for future use. The impact of cognitive
learning is directly connected with decision making, while the
probability that the brand has been remembered may
considerably increase the chances of that brand being bought.
The purchased product or service which the individual remembers
directly determines individual’s future selection.
 In situations where consumers do not consider alternatives which are physically present and which are
being offered to them, their assessment and decisions my completely depend on the previously
remembered knowledge and experience.

Cognitive learning means storing short-term memory into a long-term memory. These two memory forms
are the result of cognitive learning, thus the key factors for their establishment are repetition and
elaboration.
Repetition involves mental recycling (processing) of information through the short-term memory which is
identified with the process of thinking.
Elaboration determines the degree of integration between the current knowledge and the already existing
knowledge. The quantity of elaboration depends on consumers’ motivation and their learning ability.
Elaboration allows acquiring and integrating of information into a stable, stored, knowledge within the
frames of the long-term memory.
The consumer reaction depends on several factors, one of which is cognitive learning, which is considered
as a key factor. It would be very beneficial for the companies to have available certain indicators for the
possible expected (unexpected) consumer reaction (both active and potential).
Examples and
Cases
Presented by: Harshita Kapoor
 The Power of Managing Value

Value represents the overall association between the set of benefits

received by the consumer and the price paid by him/ her. The manner
in which it is perceived determines if the value is ‘high’ or ‘low’.
Choosing a value depends on two basic factors:
• Perception of value in the mind of the consumer

• Evolving market structure with regard to the category

 Perception of value in the mind of the consumer
● Price sends a signal towards value perception (value meaning quality in this
context). An exclusive clothes showroom, such as pricey Park Avenue or Levi's,
gives the impression of excellent quality. In certain circumstances, this may even
deter customers from visiting the showroom since they believe the offering is too
expensive. While this segment perceives good quality in the associated offering,
they are unable to see value due to the price. One strategy is to emphasise the
price in advertisements so that the customer does not believe the price is not as
high as he had assumed. This brings the consumer closer to the acceptance of
value. Levi’s and Tanishq have adopted this approach.
● At times consumers may perceive a value with regard to component or part used in the
product. Puf used in Godrej brand of refrigerators became a major selling point in the past.
● Herbal offerings may be perceived as products which are very safe. Brands like Himalaya
Herbals, Khadi Natural, Vaadi Herbals, Forest Essentials, and Biotique have ensured
customers of natural products thereby creating a positive perception of their products and
brand in general.
● After becoming popular, brand names may have a detrimental impact on consumer
perception. Titan was linked with elitism, thus the business had to create Sonata for the
lower end of the market, which accounts for a substantial portion of the company's
volume).
 Evolving market structure with regard to the category
● Perception is largely dependent on the context in which products or services are
introduced. Procter and Gamble had to change over to environment-friendly packaging
in Germany because of consumer resistance to anything that is not environment-
friendly.
● The perception of value in the mind of the consumer evolves over a period of time
with competition. This is one of the strong reasons for marketers to introduce brand
personality whenever possible.
● In the early days of motorbikes, speed, acceleration, and style were all that mattered.
Later, the focus switched to the personality of the brand. Despite the fact that Hero
Honda actually started a revolution when it introduced bikes that delivered twice the
mileage of any competitive brand at the time of introduction, this happened. Caliber's
success is based on a shift in consumer perceptions about what matters to them at a
given point in time in a constantly changing environment.
● With the "honest concept" of giving value at a fair price, Peter England gained a
foothold in the history of readymade clothing. When one analyses the market structure
at the time the brand was launched, the timing of the brand with the proposition, and
more significantly, the latter's delivery, was ideal. Higher-end brands were well-
established, there were a few brands in the intermediate price range, and there were
regional offerings.
Examples
of Sensory
Branding
Sensory Branding by Visa
• Visa has started incorporating a sensory branding
experience at the end of their users’ transactions. That’s
because they’ve found that sound plays a part in how
consumers make purchases.
• Once a Visa cardholder uses their card and their transaction
is officially complete, consumers hear a unique sound —
one the company worked long and hard to perfect.
• When customers hear this sound, they know their purchase
was finalized successfully and securely.
• This type of sensory branding provides comfort and
consistency for Visa cardholders.
• The Visa Checkout sound fosters a .feeling of trust and
safety that consumers associate with the brand.
Sensory Branding Dunkin Donuts
● Dunkin’ Donuts increased their sales many folds by
using this technique
● It was target towards morning office travelers in a
hurry
● They fitted each bus in Seoul, South Korea with
coffee fragrance dispenser
● As soon as the Dunkin Donuts advertisement was
played, it dispensed the fragrance
● This created craving for coffee and the ad was
usually played before a bus stop with a Dunkin’
Donut outlet
Sensory Branding Dunkin Apple
• Apple’s Packaging gives buyers a sensory experience that
strengthens the brand.
• Most of us will be able to picture the minimalist white box
with those shimmering metallic fonts.
• Apple taps into numerous senses at once with their branding.
Their stores, for example, are all white, minimalist, and clean
— this gives customers the feeling of a modern, sleek, and
high-end tech company. Their packaging provides the same
feeling through a similar look.
• In addition to sight and touch, Apple targets its customers
through sound.
• For example, when one of the hundreds of millions of iPhone
users go to lock their iPhones, the devices all make the same,
identifiable, and memorable sound.
Researches on
consumer
perception,
learning and
behaviour
● Advertisers use a variety of techniques to create positive
advertisements, including enjoyable music, cute babies, attractive
models, and funny spokespeople.
In one study, Gorn (1982) showed
And Schemer, Matthes, Wirth, and research participants pictures of different
Textor (2008) found that people writing pens of different colours, but
were more interested in products that paired one of the pens with pleasant
had been embedded in music videos music and the other with unpleasant
of artists that they liked and less music. When given a choice as a free gift,
likely to be interested when the more people chose the pen colour
products were in videos featuring associated with the pleasant music.
artists that they did not like.
● Another type of ad that is based on principles of
classical conditioning is one that associates fear
with the use of a product or behaviour, such as
those that show pictures of deadly automobile
accidents to encourage seat belt use or images of
lung cancer surgery on cigarette boxes to
discourage smoking.
● These ads have also been found to be effective
(Das, de Wit, & Stroebe, 2003; Perloff, 2003;
Witte & Allen, 2000), due in large part to
conditioning. When we see a cigarette and the
fear of dying has been associated with it, we are
hopefully less likely to light it up.
REFERENCES
● https://www.voucherify.io/blog/cognitive-fluency-and-customer-decision-making-in-
sales
● https://hmhub.in/learning-and-memory-influences-on-buying-
behavior/#:~:text=It%20is%20well%2Dknown%20that,and%20comfort%20from%20yo
ur%20childhood.
● http://www.ftms.edu.my/images/Document/MOD001176%20-
%20Consumer%20Behaviour/Week%204%20Consumer%20memory.pdf
● https://www.researchgate.net/publication/288259412_Consumer_memory_dynamic
s_Effects_of_branding_and_advertising_on_formation_stability_and_use_of_consume
r_memory
● https://kpu.pressbooks.pub/introconsumerbehaviour/chapter/behavioural-learning-
theories/