Theory of Perception and Its Implications for Marketers Essay Example
Theory of Perception and Its Implications for Marketers Essay Example

Theory of Perception and Its Implications for Marketers Essay Example

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  • Pages: 16 (4345 words)
  • Published: November 20, 2017
  • Type: Research Paper
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Executive Summary: In the past, Australians viewed potatoes as uninteresting and time-consuming to cook, as well as high in carbohydrates, resulting in a decrease in consumption and a negative reputation. Western Potatoes and other boards are working towards changing customers' perceptions. This report examines Western Potatoes' marketing campaign between 2008 and 2009.

The purpose of the report was to assess whether the actions taken by Western Potatoes were appropriate according to existing theories and concepts of perception. Additionally, the report provided possible recommendations for improvements. The first section examined contemporary literature to establish a foundation for further analysis. This research uncovered valuable insights for marketers: Perception significantly impacts the image consumers associate with a brand or product. The customer's perception can be influenced by personal, situational, and stimulus factors. The image represents the long-term perc

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eption of a brand and has an impact on consumers' purchasing decisions. A positive image leads to economic benefits. The positioning of a brand is the link between perception and image.

The text discusses five main positioning strategies that marketers use to influence consumers' perception of a brand and transform the image of a product or brand. It also examines the strategic marketing plan in the following section. In an effort to change the perception of potatoes, Western Potatoes focuses on providing information and education to customers, retailers, and school children. They utilize various communication methods, including self-produced brochures (such as Feel Good Magazine), advertisements, educational materials, and point-of-sale activities.

The report concluded that Western Potatoes' strategic plan is sufficient and does not have any notable deficiencies. Several of the planned activities are in line with perception theories and concepts, indicating their

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suitability and rationality. The report recommended improving interactivity in communication activities to enhance the effectiveness of these activities. It also suggested implementing clearer labeling and packaging for better results.

Introduction

Perception involves the way individuals interpret abstract stimuli like sound, light, or odor to form a coherent and meaningful comprehension of the world (Spector 2006).

Perception is crucial in shaping a person's reality and understanding how customers develop perceptions of brands or products is important in consumer behavior. The theory of perception assists marketers in developing communication and marketing strategies. In the past, Australian consumers perceived potatoes as dull, time-consuming to cook, and high in carbohydrates. However, organizations like AusVeg and Western Potatoes took steps in 2008 to change this negative perception (O'Tool 2008). This case study examines Western Potatoes' marketing campaign and analyzes how they are working to influence people's perception of potatoes. It also evaluates whether their chosen methods align with existing theories and concepts of perception.

This paragraph provides a summary of the upcoming chapters in the text. Chapter two will focus on perception theories and concepts, which will lay the groundwork for subsequent analysis. Chapter three will delve into Western Potatoes' campaign, encompassing background details, specific strategies, and activities. The latter part of chapter three will evaluate these actions within the context of perception theory.

The report will end with recommendations and a conclusion.

Theory of Perception

Perception is the act of acquiring, interpreting, choosing, and organizing sensory information (Spector 2006). The surrounding environment consistently provides stimuli that shape our current understanding of the world. The factors that impact perception include all stimuli detectable by the human senses (Schiffman et. al. 2008).

Every day, individuals encounter numerous separate sensations

that include TV commercials, the aroma of a friend's perfume, or the flavor of food. These stimuli, along with one's previous experiences, play a role in shaping a unique personal perception of the world. This divergence in perception helps explain why identical stimuli can yield different results for various individuals. The following section will delineate the three stages involved in perceiving: selecting, organizing, and interpreting stimuli.

Perception involves the selection of stimuli from the infinite number of stimuli people are exposed to. To perceive stimuli as a unified whole, they are organized through the process of grouping. Perceptual organization is guided by three principles: figure and ground, grouping, and closure. Figure and ground refers to the tendency of focusing on specific stimuli while other stimuli are perceived as background.

Music can serve as either background for another activity or as the focal point, with other stimuli creating the background. Additionally, people can group information to enhance comprehension and recall. For instance, to remember how to spell "together," individuals often break it down into syllables: "TO-GET-HER." People also search for closure.

This passage emphasizes the significance of organizing perception to achieve a thorough comprehension. It utilizes the instance of reading to demonstrate this notion. The specific order of letters within a word is not essential for understanding; as long as the initial and final letter are in the right position, one can still read and grasp the word (Gillman 2008). Consequently, people assign meaning to organized stimuli based on their previous experiences and other influencing elements. Although this stage of interpretation is mainly influenced by individuals, upcoming chapters will explore several additional factors that also affect interpretation.

The interpretation stage

is crucial for marketers as it determines how customers perceive, think, and make purchases (Elliott 2006).

Factors that Influence Perception

Solomon (2004) and Neal, Hawkins and Quester (2004) state that three factors impact the perception process (see Appendix 1):

  • The characteristics of the stimuli being transmitted.
  • The individual qualities of the receiver.
  • The circumstances in which stimuli are received and processed.

Stimulus characteristics, such as color, size, or position of an advertisement, have an impact on the selection and processing of stimuli (Schiffmann et al. 2008; Curndall, Van Loon ; Underwood 2006). Studies indicate that consumers tend to notice stimuli that stand out from others in terms of contrast (Neri ; Levi 2007). Additionally, individual characteristics also play a role in consumers' perception process. Consumer needs and goals, for instance, determine the perceived importance of a stimulus (Koivisto & Revonsuo 2007). Another significant individual characteristic is past experience, as it creates "perceptual filters" that guide our attention (Solomon 2004).

The third influencing factor in perception is the characteristic of the situation, such as the mood of a customer or the surrounding in which a stimulus is presented (Neal, Hawkins & Quester 2004). Appendix 2 provides additional examples of stimuli, individual characteristics, and situational characteristics that affect perception.

The Connection between Perception and Image

The image of a brand or product is the overall perception formed from various perceptions accumulated over time (Mr F. Wang 2008, pers.comm.

Brand image, also known as the function or value perceived by customers, can be formed or changed through positioning. Research indicates that positioning strongly influences consumer perception of company performance. Positioning is primarily influenced by product features, quality, price category, promotion style, and distribution channels. Additionally, the country of

origin plays a significant role in brand and product evaluation, as demonstrated by a study in Australia which found this to be especially true for fast-consuming products and when customers are familiar with a brand or product.

However, the subsequent sections will detail the significance of image for marketers and outline different strategies for positioning that can alter perceptions.

The Significance of Image for Marketers

Due to evolving trends and a marketplace that is more global and competitive, a brand with an unclear or unappealing image runs the risk of failing because customers will not comprehend the brand's primary advantages (Dimitras, Slowiski, Susmaga ; Zopounidis 1999). According to Kahle, Kim and Chin (2006), image has a substantial impact on consumers' purchasing behavior. If a product or brand is perceived positively, consumers are more likely to consider purchasing it. Conversely, a negative image not only deters consumers from buying but may also drive them towards competitors. While firms cannot afford to lose customers to rivals, understanding the concept of image must be taken into consideration (Dimitras et al 1999).

Research suggests that marketers have the ability to alter consumers' perception through image, which subsequently impacts their attitudes, intentions, and behavior (Kahle et al 2006). Therefore, it is crucial to prioritize image in order to effectively change consumers' perception of products. In terms of consumer behavior, brand image plays a significant role as it influences the perception of product value (Schiffmann et al. 2008) and influences the consumer's willingness to pay a higher price or recommend the product (Belen del Rio, Vazques & Iglesias 2001). This underscores the importance of actively changing perception (as discussed in section 2).

Perceptions can be altered

by implementing different approaches to positioning various products and services. These positioning strategies aim to change how products and services are interpreted in the perception process by modifying beliefs, values, and experiences. This, in turn, influences the consumer's attitude towards the product or brand, which subsequently affects their intentions and behaviors. (see Appendix 3) Contemporary marketing literature identifies five specific positioning strategies that can be employed to transform consumers' image and perception of a brand or product. (Ries ; Trout 2000) One of these strategies is Umbrella Positioning, which involves creating an overall company image that aligns with the individual features of the product.

This strategy is often accompanied by the use of a single brand name to encompass various product categories. Beiersdorf, for instance, sells a wide range of products under its brand NIVEA. This approach is beneficial for expanding product lines. Moreover, adopting a global slogan can aid in reshaping the perception of a brand. Volvo, for example, has changed its positioning strategy by replacing the slogan 'where safety comes first' with 'Volvo for life'. This shift allows Volvo to go beyond emphasizing safety and present itself as a lifestyle-focused automotive company (Ramsey 2007).

These examples demonstrate how companies attempt to alter consumers' perception using integrative images and slogans.

One strategy involves positioning against the competition, where weaknesses and lack of features in competitors are portrayed to create a superior brand image. This approach is rather aggressive, but it may lead to counterattacks from competitors due to deliberate conflicts. As a result, legal disputes often accompany this strategy. A successful instance of positioning against competitors can be seen in Duracell's promotion campaign, which claimed their

batteries last up to 3 times longer than Eveready Super Heavy Duty batteries (Forsythe 2007).

Another strategy is based on highlighting a specific benefit of the product or service. This approach aims to emphasize the advantages provided by the offering.

Through the approach of the company, they aim to persuade the customer that they offer the best solution for their problems or needs. Instead of positioning against competitors, this strategy emphasizes the company's strengths rather than others' weaknesses. FedEx provides an example of this with their 1982 message, 'When it absolutely, positively has to be there overnight' (Business Slogan 11, 2007). This strategic approach is beneficial in informing and reminding consumers of the product's benefits. However, it is crucial to position and deliver a benefit that consumers want and believe in. Gillette's 'For Oily Hair Only' shampoo serves as an unsuccessful example because most consumers do not consider themselves to have oily hair. Another strategy involves finding a niche position in a mature marketplace that is not occupied by competitors.

There are several examples of companies taking unique approaches to their products. One such example is a Taiwanese Cigarette company (520) that has become the first in the country to create a plum flavored cigarette. Another example comes from the Japanese soft drink company Tomomasu, which developed a beer-like soft drink without alcohol specifically for children (Ampontan 2007). Additionally, some companies focus on filling multiple positions by offering distinct products to different target markets. Starwood hotels, for instance, have various brands tailored to specific customer preferences. Four Points by Sheraton positions itself as 'Comfortable and Uncomplicated', W Hotel emphasizes being 'Warm, Wonderful, Witty and Wired', and the Luxury

Collection aims to provide exceptional service to an elite clientele (Starwood Career 2008).

The strategy mentioned in the previous paragraph has two main advantages. The first advantage is that it allows a company to cater to different types of customers by offering products that meet their individual needs. The second advantage is that it helps customers differentiate between different brands and understand the specific benefits of each brand.

The Western Potatoes Case

Company Background, General Activities and Market Conditions

Established in 2004 as a response to government restructuring, Western Potatoes Limited aims to streamline and improve the potato industry in Western Australia.

Western Potatoes Limited has identified four core businesses to achieve its main goals, including value adding and intellectual property. The company's marketing strategy focuses on creating campaigns for stakeholders in the West Australian Potato industry. One of the most successful campaigns is the "Australia's Feel Good Food" marketing campaign (Western Potatoes 2008a), which has been widely used by producers and suppliers to increase potato sales. The main objectives of Western Potatoes' campaigns are to increase awareness of health and nutritional benefits, and to promote the versatility and convenience of potatoes. The channels utilized by the company include educational programs in schools, supermarkets, Point of Sales materials, in-store cooking demonstrations, and print media (see Appendix 4).

Furthermore, the website of Western Potatoes provides information about the use of potatoes and contains recipes, background information, and interesting facts about potatoes (Western Potatoes 2008b). Western Potatoes also offers important information for producers regarding the export of potatoes. With their long experience, WP provides advice on packaging, scheduling, and shipping of potatoes, making it easier for Western Australian producers to export their potatoes.

This is crucial for Australia if they want to strengthen their position in the potato export market. Moreover, WP enhances the appeal and convenience of cooking potatoes by offering potato dressings and ready-to-heat meals. This provides a viable alternative to "easy-to-cook" meals like Uncle Ben's 2-minute rice and others.

Additionally, WP holds plant breeder rights for various types of potatoes from European breeding houses, ensuring Australians have a diverse selection of delicious potato varieties. The potato market is a significant aspect of the vegetable industry in Australia, as it represents the largest vegetable crop market in the country. In the 2005/2006 period, it accounted for 17.4% of Australia's overall vegetable production. Although slowly, potato production has been consistently declining. Potato consumption in Australia had been increasing for approximately twenty years, but it started decreasing in the early 2000s. Per capita potato consumption decreased from 68kg in the period of 1997-2000 to 61kg.

According to AusVeg (2008a), the decline in potato consumption, which amounted to 9 kg between 2003 and 2006 (refer to Appendix 5), can largely be attributed to a shift in lifestyle and increased awareness about carbohydrate intake. Moreover, the Australian potato market faces competition from imported frozen potatoes, which are utilized in the manufacturing of potato-based products like chips and crisps. To enhance our comprehension of the potato industry, we conducted web-based research.

Market research was conducted by investigating different websites, including Western Potatoes, AusVeg, and the British Potato Council. In addition, an email containing Western Potato's strategic plan for the years 2008/2009 was written to Mr. Ray Wilson, Chief Executive Officer of Western Potatoes Limited.

3.

Strategies and Activities of Western Potatoes in

2008

In Appendix 6, Western Potatoes presents its strategic plan for promoting potatoes as a fresh ware product. All budget statements have been omitted for confidentiality. The plan includes a detailed list of strategies and activities that address five major issues:

  • Re-invigorate the image of WA grown fresh Potatoes.
  • Improve quality consistency by better targeting promotion and defining the target market more clearly.
  • Label potatoes based on their cooking use.
  • Address blunt pricing signals.

These issues, along with issue two, supply chain coordination and industry leadership, are directly related to perception theory and will be analyzed in the next section. In general, Western Potatoes aims to change the perception of potatoes through information and education provided to customers, retailers, and school kids.

The primary forms of communication include brochures created by Western Potatoes, advertisements, educational materials, and point-of-sale activities. The actions of Western Potatoes are examined in relation to perception theory. Each issue is analyzed individually, and some redundant or irrelevant strategies are not directly addressed. The relationship between the strategies, activities, and perception theories is outlined in Appendix 7.

The WA grown fresh Potato is in need of image reinvigoration. By altering the image through positioning, consumer perceptions can be changed. WP's strategy for repositioning potatoes focuses on highlighting their product features. Potatoes are promoted as a natural, fashionable, nutritious, and versatile vegetable that can bring variety to daily meals. This approach aims to create a new image for potatoes and counter any negative perceptions. Moreover, WP differentiates potatoes

from rice and pasta, which are its main competitors.

According to this strategy, the main weaknesses of potato's direct competitors are brought to the attention of consumers. This includes information about the calorie and carbohydrate intake when consuming pasta or rice, as well as the fact that potatoes are unprocessed. The strategy also considers situational characteristics that attract consumers' full attention, such as their mood or the surrounding environment in which the stimulus is presented. The FeelGoodFood Magazine provides further information about potatoes and recipes, allowing for easier selection and interpretation of chosen stimuli. Additionally, Point of Sale material creates a distinct situation in stores where consumers' attention is fully focused on the stimulus.

Issue

WP collaborates with the entire supply chain to prevent inconsistent quality of potatoes. This is crucial because Western Potatoes is striving to improve the potato's reputation and invests considerable effort in this endeavor. The perception and image of potatoes can only be positively altered if the manufacturers' perspectives align with the advertised potato image (Schiffmann et al. 2008).


Issue 3:

To enhance promotional efforts, it is important to clearly define the target market. As mentioned earlier, individual characteristics significantly impact consumer perception. Different target markets may have varying attitudes towards food, different levels of involvement in food preparation, and distinct shopping behaviors.

Every promotional campaign needs to be customized to meet the specific needs and wants of the target market. Western Potatoes has identified various target markets (refer to Table 3, Appendix 3). The target market called "house proud" consists of experimental and conscientious cooks. Hence, promotional campaigns should incorporate new recipes and cooking suggestions while

emphasizing the benefits of potatoes to fulfill the requirements of this target market.

Issue 4: Label potatoes by cooking use. Issue 4 includes three sub strategies: packaging and branding, tasting, and cooking demonstrations. The packaging and branding, as well as the tasting, focus more on the characteristics that attract consumers' attention. Cooking demonstrations, on the other hand, focus on the situational characteristics. The freshness and the "Buy West, Eat Best" approach aim to give potatoes a distinct personality.

This branding creates a distinct and more appealing image for potatoes, allowing them to be differentiated from competitive products like rice or pasta and potatoes from other states. Tasting activities at the Points of Sale engage senses that are not aroused by print or TV campaigns. By involving taste and smell, a completely new experience is introduced, resulting in increased attention towards potatoes. This leads to a fresh perception and possibly stronger attitudes towards the product. Additionally, a customer's mood and the environment in which a stimulus is presented are important factors in stimulus selection.

Furthermore, the interpretation of a stimulus is influenced by situational characteristics. Cooking demonstrations create a situation where the focus is on the product and the related information. Additionally, this situation allows for showcasing attributes such as the ease and variety of cooking potatoes.

Issue 5:

Weak pricing signals The promotion of unique characteristics is necessary to cater to specific segments and provides an opportunity to vary the communicated message. The planned promotion of Western Potatoes (WP) appears to exceed the just noticeable difference (j. n.

d) or differential threshold. It is somewhat surprising, but it could be understandable in the case of WP. Typically, companies attempt to communicate

changes below the just noticeable difference (j.n.d.). Qantas and Kentucky Fried Chicken both modified their logos in gradual increments that were below the j.n.

d. in order to remain recognizable. Reflecting on the evolution of their logos, it is evident that they underwent significant transformations over the years, albeit with subtle variations from one logo to another. Western Potatoes finds itself in a predicament where alterations are needed beyond the letter j.

Currently, the perception of potatoes is not favorable. Therefore, it may require a significant amount of time to incrementally alter the perceived image of potatoes from unfavorable to favorable.

WP may find this approach inappropriate because they have a shorter timeline for altering the image of potatoes. Being an organization that represents potato growers in Western Australia, WP may not face the same level of recognition issues (Schiffman et. al. 2008) since they don't have any direct competition in the region. As a result, WP employs two strategies based on price and quality.

They have a keen interest in customizing the price, quality, and variety to suit their target markets. This is crucial because price often serves as a gauge of quality. Therefore, a low price can have a detrimental effect on the perception of quality, while a high price can diminish the perceived value and reduce the desire to purchase a product (Schiffman et. al. 2008).

Consequently, in order to align the price with consumer expectations, WP aims to secure a market premium and increase the variety of available potatoes. This strategy would enable retailers to make a profit and encourage them to offer a wider range of potatoes.

Issue 6: Supply Chain Coordination and Industry Leadership

This issue

involves examining the relationship between WP, producers, and retailers.

The primary objectives include prioritizing the needs of consumers, constructing, influencing, and molding leadership on a comprehensive industry level, and involving stakeholders in future planning. These aforementioned objectives will indirectly impact consumers. By establishing strong relationships with consumers, enhancing the caliber of retailers, and coordinating future planning with retailers, the quality of potato-selling retailers will improve. Consequently, this will enhance the perception of the retailer and its quality. As the perception of a retailer's quality influences the perception of purchased goods, it will have positive effects on both the potato industry and its sales.

Recommendations

Western Potatoes has implemented a variety of strategies to alter customer perceptions towards potatoes.

There are various strategies to enhance Western Potatoes' market position and perception in comparison to their main competitors, such as rice and pasta. These strategies include repositioning, educating, better segmenting the market, changing the perceived image, and establishing differentiation.

The Western Potatoes website provides crucial information about potatoes, including recipes for different seasons and purposes, as well as games for children. However, the webpage can be further improved to increase interactivity. A comparison with the British Potato Council's webpage reveals that they offer more comprehensive information about potatoes. Additionally, their webpage features tools to locate fish and chips restaurants and entertaining movies featuring "potatoes".

Increased interactivity on the website can lead to a longer time spent on the site and higher user engagement. In addition to improving the webpage, WP could also consider changing the design of the product. According to a study conducted by Pride et al (2006), there is a correlation between product packaging and how

consumers perceive the quality of the product inside. The study shows that visually appealing packaging, combined with a slightly higher price, can create the perception of superior product quality. Ideally, the brand name should be displayed in green as green is often associated with freshness. Modifying the labeling of the product can help alleviate any uncertainty.

Due to the variety of potatoes available, it can be challenging to find the appropriate type for specific uses. By providing labels indicating the ideal use for each potato variety (e.g., salad potatoes), the purchasing process would be made easier, resulting in greater satisfaction among consumers with their cooking results. This is particularly important for individuals unaccustomed to potatoes due to cultural differences in food preferences. For example, Asian individuals may prefer purchasing rice as they are more familiar with its cooking and purchasing procedures.

Therefore, in order to make potatoes more appealing as a cooking ingredient, it may be beneficial to provide a guide outlining various ways in which they can be used. 5. Conclusion: The strategic plan for Western Potatoes is tailored to the years 2008/2009, and as such, there is currently no available data indicating whether the implemented actions have increased potato consumption. Additionally, it is not currently feasible to evaluate the proper implementation of these strategies. However, based on conducted research and the investigation into recommendations, this report determines that the strategic plan developed by Western Potatoes is suitable and does not lack essential activities.

In terms of perception theories and concepts, many of the planned activities are suitable and reasonable, but some adaptation may improve their effectiveness. However, Western Potatoes' biggest challenge for the next 18 months

is the proper implementation of these strategies and activities.

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