MOS 3321 Chapter 2.pdf

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Western University
Management and Organizational Studies
Management and Organizational Studies 1021A/B
Kevin Thompson

Consumers as Individuals 2013-01-10 12:26 PM Introduction • Take away meanings consistent with our own unique experiences, biases, and desires • Sensation – immediate response of our sensory receptors (eyes, ears, nose, mouth, and fingers) to such basic stimuli as light, colour, and sound • Perception – process by which these sensations are selected, organized, and interpreted • The study of perception focuses on what we add or take away from these raw sensations as we choose which to notice and then go about assigning meaning to them • People undergo stages of information processing in which stimuli are input and stored • 3 stages of perception: o Exposure o Attention o Interpretation Sensory Systems • External stimuli  sensory inputs • Inputs picked up by our 5 senses constitute the raw data that generate many types of responses • Hedonic Consumption – the multisensory, fantasy, and emotional aspects of consumers’ interactions with products Hedonic Consumption and the Design Economy • As manufacturing costs go down and the amount of “stuff” that people accumulate goes up, consumers increasingly want to buy things that will give them hedonic value in addition to simply doing what they’re designed to do • The new focus on emotional experience is consistent with psychological research that finds that people prefer additional experiences over additional possessions as their incomes rise • Form is function • Adam Lowry and Eric Ryan o Developed a line of house -cleaning products they called Method o Cleaning products in exotic scents such as cucumber, lavender, and ylang -ylang that come in aesthetically pleasing bottles o Target contracted to sell Method products in its stores • Design is substance Sensory Marketing: Harnessing Perception for a Competitive Advantage • Sensory Marketing – companies pay extra attention to impact on sensation on our product experiences • Our senses help us decide which products appeal to us Vision • Meanings are communicated on the visiual channel through a product’s size, stylinbrightness, and distinctiveness from competitors’ products • Some colours (particularly red) create feelings of arousal and stimulate appetite, and others (such as blue) are more relaxing • Products presented against a backdrop of blue in advertisements are be tter liked than those shown with a red background • People who complete tasks when the words or images are displayed on red backgrounds perform better when they have to remember details, but when blue backgrounds are used they excel at tasks that require an imaginative response • Red means good luck to the Chinese and is often the main color in their celebrations • Women tend to be drawn to brighter towns and are more sensitive to subtle shadings and patterns because women see color better than men do • Men are 16x more likely to be color-blind than men • Mature consumers are more likely to choose a white car; Lexus, which sells heavily in this market, makes 60% of its vehicles in white • Trade Dress – color combinations that come to be associated strongly with a corporation • Trade dress protection is granted only when consumers might be confused about what they are buying because o similar coloration of a competitor’s package How Your Eyes Make You Eat More • When eating foods from larger boxes, the size of the boimplicitly suggests that it’s appropriate or “acceptable” to eat more • Use our eyes and not our stomachs to tell us we’re full • “Bottomless Bowl” study o Students who ate from soup bowls that secretly refilled themselves from underneath the table ate 73% more soup than those eating from normal bowls • When we see an assortment of foods, this abundance suggests it’s appropriate to eat more Smell • The 3 more identifiable products by women were: o Johnson’s Baby Powder o Chocolate o Coconut • To some extent consumers’ reactions to odours depend on their cultural background • Limbic System – most primitive part of the brain and place where we experience immediate emotions • Fresh cinnamon buns induced sexual arousal in a sample of male students • Ad companies spend about $80 million per year on scent marketing o The Scent Marketing Institute estimates that number will reach more than $500 million by 2016 • A vanilla smell diffused into a women’s clothing store and a spicy, honey smell diffused into a men’s clothing store almost doubled sales o When scents were reversed, sales fell to levels below what they were when no scent was infused Hearing • When Delta started to play contemporary, upbeat music during the boarding process, flight attendants reported that this seemed to encourage passengers to take their seats faster o Now Delta deliberately chooses a different song lineup each month to help “herd the cattl–” and then switches to lulling melodies to help passengers relax before takeoff • Phonemes – individual sounds • Consumers infer that brands containing the vowel sound of short [i] weigh less than brands containing the vowel sound of [a] • Aging Ear – loss of the ability to hear higher-frequency sounds Touch • Haptic – touch sense • Appear to moderate the relation ship between product experience and judgment confidence, confirming the commonsense notion that we’re more sure about what we perceive when we touch it • Product judgments by individuals who do not normally possess a compulsion to touch products (low autotelics) are influenced by the “feel” of a package, while those who do have a compulsion to touch items (high autotelics) do not rely on this cue to infer a product’s quality • Those who like to touch have learned over time that “you can’t judge a book by its co ver” • Kansei Engineering – philosophy that translates customer’s feelings into design elements • Most modern perfume bottles are still made of glass because when women handle an elegantly sculpted glass container they experience a sense of luxury that more mo dern materials can’t provide • People associate the textures of fabrics and other products with underlying product qualities • The perceived richness or quality of the material in clothing, bedding, or upholstery is linked to its “feel” o A smooth fabric-like silk is equated with luxury, while denim is considered practical and durable Taste • Specialized companies called “flavor houses” try to develop new tastes to please the changing palates of consumers • Consumers’ greater appreciation of different ethnic dishes has contributed to increased desires for spicy foods, so the quest for the ultimate pepper sauce is a hot taste trend o The “heat” of peppers is measured in units called Scovilles • Wilbur Scoville – 1912 o It takes 7497 litres of sweetened water to neutr alize a teaspoon of Da’ Bomb, which claims to be the hottest sauce ever made Exposure • Exposure – degree to which people notice a stimulus that is within range of their sensory receptors Sensory Thresholds • Psychophysics – focuses on how the physical environment is integrated into our personal, subjective world • The Absolute Threshold o Threshold – the lowest intensity of a stimulus that can be registered on a sensory channel o Absolute Threshold – minimum amount of a stimulation that can be detected on a sensor y channel • The Differential Threshold o Differential Threshold – refers to the ability of a sensory system to detect changes in a stimulus or differences between two stimuli o JND – just noticeable difference; the minimum change in a stimulus that can be detect ed o Ernst Weber found that the amount of change that is necessary to be noticed is systematically related to the original intensity of the stimulus o Weber’s Law – expressed in the following equation:  K = ΔI I Where: K = the constant increase or decre ase necessary for the stimulus to be noticed (this varies across the senses) ΔI = the minimal change in intensity of the stimulus required to be just noticeable to the person (JND) I = the intensity of the stimulus before the change occurs  The main point is that the ratios, not the absolute differences, are important in describing the least perceptible differences in sensory discrimination o A rule of thumb used by some retailers is that a markdown should be at least 20% to make an impact on shoppers o Varies not only with consumers’ sensitivity and type of stimuli, but also with the absolute intensity of the stimuli being compared o Manufacturers and brand managers endeavor to determine the relevant just noticeable difference for their products for 2 reasons:  So that reductions in product size, increases in product price, or changes in packaging are not readily discernible to the public  So that product improvements are perceived by the public o Coca-Cola has reduced the size of their 335ml can by 7% to 330ml in the Hong Kong market to save on the cost of aluminum
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