CB - Chapter 8 (Perception)

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How does a knowledge of information processing assist the manager in the following:

(a) Formulating retail strategy? -Retailers can structure the interior of their stores to minimize information overload, and to maximize exposure to high margin items. Shelf position and amount of shelf space can be used to attract attention to high margin items. Point of purchase displays can fulfill the same task. A careful blend of store stimuli can be used to help consumers assign a positive meaning to the store. (b) Developing brand names and logos? -Knowledge of how words are interpreted, the visual images they convey, and the ease with which they are remembered, is very useful in brand name selection. In designing logos, dimensions of naturalness, elaborateness, and symmetry are important. (c) Formulating media strategy? -The fact that exposure is selective, and is correlated with demographics, lifestyle, and product use, is the basis for media strategy (d) Designing advertisements? -This knowledge can help us design ads that will both attract attention and provide the desired meaning. (e) Package design and labels? -As with ads, this knowledge can help us design packages and labels that will attract attention as well as provide the desired meaning.

What is ad avoidance? How is DVR technology affecting it? How are marketers dealing with this phenomenon?

Ad avoidance occurs when the consumer selectively avoids exposure to advertising messages, e.g., zipping, zapping, and muting. DVR are giving consumers more control over exposure to television commercials. In response, companies can utilize various strategies in a DVR context including compressed ads, still-frame ads, hybrid ads, interactive ads and dynamic ad placement. marketers are increasingly using nontraditional media to gain exposure for their messages. For example, marketers are increasingly placing ads on the sides of trucks and taxis as well as placing products in TV shows, videos and movies.

What is a consumer inference? Why is this of interest to marketers?

An inference goes beyond what is directly stated or presented. Consumers use available data and their own ideas to draw conclusions about information that is not provided. For example, consumers may use price and/or ad intensity as quality signals.

What is meant by attention? What determines which stimuli an individual will attend to? How do marketers utilize this?

Attention occurs when the stimulus activates one or more sensory receptor nerves and the resulting sensations go into the brain for processing. Attention is determined by three factors: (1) the stimulus, (2) the individual, and (3) the situation. Marketers use their knowledge of the effects of manipulating these factors, alone and in combination, to bring about attention to ads, packages, etc.

What is co-branding? Is it effective?

Co-branding (also referred to as co-marketing, brand alliances, and joint marketing) is when two brands are given to a single product. Co-branding has been shown to modify attitudes toward the participating brands. However, the effects can be positive or negative and can differ for the two brands involved. Perceived fit will determine the success of the new brand.

What is the difference between cognitive and affective interpretation?

Cognitive interpretation involves the process whereby new stimuli are placed into existing categories of meaning. Affective interpretation is an emotional response triggered by a stimulus such as an ad for wearing safety belts that depicts a rather ugly accident in which the driver was not wearing a safety belt.

What is a contextual cue? Why is it of interest to marketers?

Contextual cues present in a situation, such as the background color on a web page or the nature of the programming surrounding a brand's ad, play a role in the consumer's interpretation independent of the actual stimulus. Marketers must be aware of these cues to ensure ads are evaluated in the manner in which they are intended.

at is cross-promotion retail strategy? Provide two examples?

Cross-promotion involves placing signage in one area of the store to promote complementary products in another area. Examples: placing Stove Top stuffing signage in the chicken section of the meat counter, or mustard coupons near or on the kielbasa packages in the meat/deli section of the store.

What is meant by exposure?

Exposure occurs when a stimulus is placed within range of sensory receptor nerves

What is figure-ground?

Figure-ground involves presenting the stimulus in such a way that it is perceived as the focal object to be attended to and all other stimuli are perceived as the background.

What is information overload? How should marketers deal with information overload?

Information overload is when there is too much information available to be dealt with effectively. When more information is available than the consumer is comfortable with, he or she may ignore all the information and make inappropriate decisions. Marketers have to determine how consumers acquire information, and how much they are able to use effectively, if they want their messages to persuade consumers.

What is information processing?

Information processing is a series of activities by which stimuli are perceived, transformed into information, and stored.

What determines how an individual will interpret a given stimulus?

Interpretation is a function of the gestalt, or pattern, formed by the characteristics of the stimulus, the individual, and the situation. Individual characteristics of traits, learning/knowledge, and expectations play a role as do situation characteristics. Also, stimulus characteristics such as stimulus traits and organization (proximity, figure-ground, and closure) play a role.

What is meant by interpretation?

Interpretation is the assignment of meaning to sensations. Interpretation is related to how we comprehend and make sense of incoming information.

What ethical concerns arise in applying knowledge of the perceptual process?

Most of the ethical concerns in this area relate to the conflict between presenting one's brand in a favorable light and presenting it completely accurately.

What is meant by nonfocused attention?

Nonfocused attention is a lowinvolvement scanning of the environment. It appears to be mainly a rightbrain activity.

What is adaptation level theory?

Over time we adjust to (and no longer pay attention to) the level and type of stimulus to which we are consistently exposed.

How does information processing differ from perception?

Perception involves all but the storage function (memory). It involves exposure to the stimulus, attending to it, and interpreting it.

What impact does program involvement have on the attention paid to commercials embedded in the program?

Program involvement, particularly moving from low to moderate involvement increases the attention paid to ads in the program

How can rhetorical figures enhance attention?

Rhetorical figures involve the use of an unexpected twist or artful deviation in how a message is communicated either visually in the ad's picture or verbally in the ad's text or headline. The unexpected nature of rhetorical figures attracts and holds attention as consumers decipher the ad's meaning. A classic example of this is "Bounty's quicker picker upper."

What is the difference between semantic and psychological meaning?

Semantic meaning is the conventional meaning assigned to a word as it is found in the dictionary. Psychological meaning is the meaning assigned to a word based on experiences and the context or situation in which the word or other symbol is used.

What stimulus factors can be used to attract attention? What problems can arise when stimulus factors are used to attract attention?

Size-Smaller stimuli are more likely to be unnoticed Intensity-When using repetition, attention generally decreases across repeated exposures— attention reallocation can occur Attractive Visuals-Drawing attention to one element of an ad can detract from others, resulting in drawing attention from the brand and its selling points Color and Movement-Dull color and stagnant items are less noticeable Position-Items difficult to find and/or out of the visual field in a store will most likely lack attention. Print ads on the left-hand page receive less attention. It is also important not to place content within low impact zones. Isolation-In the extreme, can limit the amount of information presented. Format-Ads that lack a clear visual point of reference or have inappropriate movement increase the processing effort and decrease attention. Likewise, audio messages that are difficult to understand due to foreign accents, inadequate volume, or a speech rate which too fast also reduce attention. Contrast and Expectations-Consumers pay less attention to stimuli that blend in with their background. Packaging, in-store displays, and ad that coincide with our expectations tent to be unnoticed. Interestingness-Consumers find unentertaining ads to be uninteresting Information Quantity-Information overload causes consumers to pay less attention—they simply cannot attention to too much information

What is sensory discrimination?

The ability of an individual to distinguish between similar stimuli is called sensory discrimination.

What determines which stimuli an individual will be exposed to? How do marketers utilize this knowledge?

The individual does not need to receive the stimuli for exposure to occur. Most exposure is self-selected and we tend to expose ourselves to information we think will help us achieve our goals. Marketers should make media decisions, store location decisions, and layout decisions based on these exposure patterns.

What is a just noticeable difference (j.n.d.)?

The minimum amount that one brand can differ from another with the difference still being noticed is referred to as the just noticeable difference (j.n.d.)


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