Description
This presentation explains the elements of perception and what is perceived risk. It explains various types of perceived risk and how customers handle risk.
? How
consumers view the World? ? Consumer selects, organises and interprets stimuli into a meaningful and coherent picture. ? They make decisions based on what they perceive rather than objective reality. ? They see what they want to see!
Consumer Behavior
2
?
Perception
• Process by which sensations are selected, organized,
and interpreted
? Adding meaning to raw sensations
? Sensation:
Stimuli & Intensity ? Absolute Threshold (e.g, Seeing an ad) ? Sensory Adaptation (Phenomenon of Getting used to) eg; change ad campaigns, package. ? Differential Threshold (j.n.d) (Weber’s Law) Product Improvement Decisions ? Negetive Changes (Price rise, size, quality reductions etc.)
Consumer Behavior
4
? Nature
of the stimulus: ? What Consumers to perceive or see is determined by past experiences & their motives at that point of time. ? Selective Exposure: Pleasant ads ? Expectations & Previous experience
Consumer Behavior
5
? An
uncertainty faced when consumers cannot foresee the consequences of their purchase decision.
on the person characteristics, the product, the purchase situation.
? Depends
Consumer Behavior
6
? Product
Level Risk e.g. to buy a digital camera or a laptop ? Choice level Risk e.g. Should I buy an Indian or Foreign company made car
Consumer Behavior
7
? Functional
Risk : The Risk that the product will not perform as expected. Will the cell phone I bought work for the given warranty period? ? Physical Risk : The Risk to self and others that the product may pose . Will the Cell phone damage my Health? is it safe to use?
Consumer Behavior
8
? Financial
Risk :The Risk that the Product will not be worth its price. Will mobile / Laptop price drop after I buy? Risk : The Risk that a poor product choice may result in some form of social embarrassment. Will my choice of cell phone model will be viewed by my peer group as an outdated model ?
Consumer Behavior
? Social
9
?
Psychological Risk : The Risk that a poor product choice will bruise the consumer’s ego. If I buy this model of 2 wheeler / cell phone, will my friends and colleagues laugh at my choice? Time Risk / Timing of Buying : The time spent in search for the right product may turn out to be a sheer waste if the model does not perform as expected. Spent so much time in buying a new camera/ laptop, Was it worth the effort?
?
Consumer Behavior
10
? Seek
information from trusted source word of mouth, Buy known Brands / become Loyal e.g. Buy Annapurna Atta. ? Select well known names / ? Brand Image
e.g.buying Sony Products
Consumer Behavior
11
? Rely
on Store image e.g. Buying from known Shops ? Buy the most expensive model e.g.Nokia ? Seek Reassurance (money back guarantees, pre purchase trial, warranty period)
Consumer Behavior
12
Thank You
doc_362029863.pptx
This presentation explains the elements of perception and what is perceived risk. It explains various types of perceived risk and how customers handle risk.
? How
consumers view the World? ? Consumer selects, organises and interprets stimuli into a meaningful and coherent picture. ? They make decisions based on what they perceive rather than objective reality. ? They see what they want to see!
Consumer Behavior
2
?
Perception
• Process by which sensations are selected, organized,
and interpreted
? Adding meaning to raw sensations
? Sensation:
Stimuli & Intensity ? Absolute Threshold (e.g, Seeing an ad) ? Sensory Adaptation (Phenomenon of Getting used to) eg; change ad campaigns, package. ? Differential Threshold (j.n.d) (Weber’s Law) Product Improvement Decisions ? Negetive Changes (Price rise, size, quality reductions etc.)
Consumer Behavior
4
? Nature
of the stimulus: ? What Consumers to perceive or see is determined by past experiences & their motives at that point of time. ? Selective Exposure: Pleasant ads ? Expectations & Previous experience
Consumer Behavior
5
? An
uncertainty faced when consumers cannot foresee the consequences of their purchase decision.
on the person characteristics, the product, the purchase situation.
? Depends
Consumer Behavior
6
? Product
Level Risk e.g. to buy a digital camera or a laptop ? Choice level Risk e.g. Should I buy an Indian or Foreign company made car
Consumer Behavior
7
? Functional
Risk : The Risk that the product will not perform as expected. Will the cell phone I bought work for the given warranty period? ? Physical Risk : The Risk to self and others that the product may pose . Will the Cell phone damage my Health? is it safe to use?
Consumer Behavior
8
? Financial
Risk :The Risk that the Product will not be worth its price. Will mobile / Laptop price drop after I buy? Risk : The Risk that a poor product choice may result in some form of social embarrassment. Will my choice of cell phone model will be viewed by my peer group as an outdated model ?
Consumer Behavior
? Social
9
?
Psychological Risk : The Risk that a poor product choice will bruise the consumer’s ego. If I buy this model of 2 wheeler / cell phone, will my friends and colleagues laugh at my choice? Time Risk / Timing of Buying : The time spent in search for the right product may turn out to be a sheer waste if the model does not perform as expected. Spent so much time in buying a new camera/ laptop, Was it worth the effort?
?
Consumer Behavior
10
? Seek
information from trusted source word of mouth, Buy known Brands / become Loyal e.g. Buy Annapurna Atta. ? Select well known names / ? Brand Image
e.g.buying Sony Products
Consumer Behavior
11
? Rely
on Store image e.g. Buying from known Shops ? Buy the most expensive model e.g.Nokia ? Seek Reassurance (money back guarantees, pre purchase trial, warranty period)
Consumer Behavior
12
Thank You
doc_362029863.pptx