Description
This is presentation highlights the customer preception and perceived risk.
CONSUMER IMAGERY & PERCEIVED RISK
CONSUMER IMAGERY
Consumers have a number of enduring perceptions/images and products/ brands have symbolic value for individuals who evaluate them on the basis of their consistency with their personal picture of themselves
Issues in Consumer Imagery
• • • • • • • Product Positioning and Repositioning Positioning of Services Perceived Price Perceived Quality Retail Store Image Manufacturer Image Perceived Risk
Product Positioning
• Establishing a specific image for a brand in the consumer’s mind • Product is positioned in relation to competing brands • Conveys the concept, or meaning, of the product in terms of how it fulfills a consumer need • Result of successful positioning is a distinctive, positive brand image.
Repositioning
• Is done in response to market events . • Another reason being to satisfy changing consumer preferences. eg. J&J repositioned its baby lotion, powder, and shampoo as products for grown ups.
Positioning of services
• Many service marketers developed strategies to provide customers with visual images and tangible reminders of their service offerings. eg. Packaged hotel soaps and shampoos, vehicles painted in distinct colors.
Perceived price
Reference prices – used as a basis for comparison in judging another price • Internal: prices retrieved by the consumer from memory • External: advertisers use a higher external reference price in an ad in which a lower sales price is being offered 2 types of theories associated with consumer purchases • Acquisition utility • Transaction utility
Perceived quality
Of products
• Consumers often judge the quality of a product (perceived quality) on the basis of a variety of informational cues: • Intrinsic to the product or service • Extrinsic Cues
Continued…
Of Services ?Difficult due to characteristics of services ?Intangible ?Variable ?Perishable ?Simultaneously Produced and Consumed ?Service quality that a customer perceives is a function of the magnitude and direction of the gap between expected service and the customer’s assessment of the service actually delivered
Retail store image
• 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 • Consumers tend to perceive stores that offer a small discount on a large number of items as having lower prices overall than competing stores that offer larger discounts on a larger discounts on a smaller number of products
Continued…
?The width of product assortment also affects retail store image ?The type of product the consumer wishes to buy influences his/her selection of a retail outlet ?conversely, the consumer’s evaluation of a product often is influenced by the knowledge of where it was bought. ?When a second extrinsic cue is available (e.g. price and store image), perceived quality is sometimes a function of the interaction of both cues on the consumer
Manufactures image
• 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 of even a “neutral” image • Researchers have found out that consumers generally have favorable perceptions of pioneer brands (the first in a product category), even after follower brands become available. eg. Disney studios to Touchstone pictures
Perceived Risk
The degree of uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision Consumer perception of risk varies, depending on: The person The product The situation The culture
• • • •
Continued…..
• High-risk perceivers:
described as narrow categorizers because they limit their choices (e.g. product choices) to a few safe alternatives
• Low-risk perceivers:
described as broad categorizers because they tend to make their choices from a much wider range of alternatives
TYPES OF RISKS
? ? ? ? ? ? Functional Risk Physical Risk Financial Risk Social Risk Psychological Risk Time Risk
How Consumers Handle Risk
• • • • • Seek Information Stay Brand Loyal Select by Brand Image Buy the Most Expensive Model Seek Reassurance
doc_410582527.ppt
This is presentation highlights the customer preception and perceived risk.
CONSUMER IMAGERY & PERCEIVED RISK
CONSUMER IMAGERY
Consumers have a number of enduring perceptions/images and products/ brands have symbolic value for individuals who evaluate them on the basis of their consistency with their personal picture of themselves
Issues in Consumer Imagery
• • • • • • • Product Positioning and Repositioning Positioning of Services Perceived Price Perceived Quality Retail Store Image Manufacturer Image Perceived Risk
Product Positioning
• Establishing a specific image for a brand in the consumer’s mind • Product is positioned in relation to competing brands • Conveys the concept, or meaning, of the product in terms of how it fulfills a consumer need • Result of successful positioning is a distinctive, positive brand image.
Repositioning
• Is done in response to market events . • Another reason being to satisfy changing consumer preferences. eg. J&J repositioned its baby lotion, powder, and shampoo as products for grown ups.
Positioning of services
• Many service marketers developed strategies to provide customers with visual images and tangible reminders of their service offerings. eg. Packaged hotel soaps and shampoos, vehicles painted in distinct colors.
Perceived price
Reference prices – used as a basis for comparison in judging another price • Internal: prices retrieved by the consumer from memory • External: advertisers use a higher external reference price in an ad in which a lower sales price is being offered 2 types of theories associated with consumer purchases • Acquisition utility • Transaction utility
Perceived quality
Of products
• Consumers often judge the quality of a product (perceived quality) on the basis of a variety of informational cues: • Intrinsic to the product or service • Extrinsic Cues
Continued…
Of Services ?Difficult due to characteristics of services ?Intangible ?Variable ?Perishable ?Simultaneously Produced and Consumed ?Service quality that a customer perceives is a function of the magnitude and direction of the gap between expected service and the customer’s assessment of the service actually delivered
Retail store image
• 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 • Consumers tend to perceive stores that offer a small discount on a large number of items as having lower prices overall than competing stores that offer larger discounts on a larger discounts on a smaller number of products
Continued…
?The width of product assortment also affects retail store image ?The type of product the consumer wishes to buy influences his/her selection of a retail outlet ?conversely, the consumer’s evaluation of a product often is influenced by the knowledge of where it was bought. ?When a second extrinsic cue is available (e.g. price and store image), perceived quality is sometimes a function of the interaction of both cues on the consumer
Manufactures image
• 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 of even a “neutral” image • Researchers have found out that consumers generally have favorable perceptions of pioneer brands (the first in a product category), even after follower brands become available. eg. Disney studios to Touchstone pictures
Perceived Risk
The degree of uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision Consumer perception of risk varies, depending on: The person The product The situation The culture
• • • •
Continued…..
• High-risk perceivers:
described as narrow categorizers because they limit their choices (e.g. product choices) to a few safe alternatives
• Low-risk perceivers:
described as broad categorizers because they tend to make their choices from a much wider range of alternatives
TYPES OF RISKS
? ? ? ? ? ? Functional Risk Physical Risk Financial Risk Social Risk Psychological Risk Time Risk
How Consumers Handle Risk
• • • • • Seek Information Stay Brand Loyal Select by Brand Image Buy the Most Expensive Model Seek Reassurance
doc_410582527.ppt