Consumer Perception of Product Stimuli

Consumer perception of product value is central to all stages of the process of bringing products to markets, from design and manufacture to distribution and retail. As a result, product strategy needs to respect customer needs in order to achieve or retain competitive advantage in providing innovative and differentiated products. Increasingly however, markets are becoming saturated with homogenous product offerings with little differentiation in terms of technology or function. In many mature markets the process of consumer decision making is no longer governed by intrinsic factors such as pricing or performance; instead it is extrinsic factors such as brand, service and ethical behaviour that is becoming increasingly influential to consumer product choices. As one of the most important emerging markets, India has attracted a large number of international brands. The Dramatic changes within the economy have resulted in many new opportunities. There has been a significant rise in consumer disposable income, a development of modern urban lifestyles, and an increase in consumer awareness. These changes have affected buying behaviour and the consumer decision making process. However, relatively little is still known about how Indian consumers perceive products. This paper examines the visual associations and the correlation between various product stimuli in the decision making process of Indian consumers from the perspective of consumer cognitive psychology and psychoanalysis. Based on an original survey of 128 respondents, the paper postulates that the stimulus of ‘visual aesthetics’ can have a ‘collective sub-conscious’ psychological association and therefore can be analysed and considered within the chosen demographic group. The data also suggests that ‘visual aesthetics’ is now as equally important to the consumer decision making process in India as the traditional elements of price and functionality. However, the study suggests that intrinsic factors are still far more important than extrinsic ones in the Indian consumer decision making process The implications to design strategy and the new product development process in India are addressed. The study concludes that (i) a psychological approach towards understanding Indian consumer associations is both possible and can act as an important tool in determining consumer needs. (ii) ‘Visual Aesthetics’ is one of the key factors in the decision making process of the Indian consumer, however, ‘extrinsic’ factors are still not as significant a contributor as ‘intrinsic’ factors such as product visuals and features. THE INDIAN CONSUMER MARKET India is the second most populous country in the world with an estimated population of more than 1.2 billion (www1: prb.org, viewed on 06 Jan 2009) and it may, at current rates of growth, be the most populated country within a decade. India’s market potential is greater than that of many countries in Western Europe with more middleclass consumers and increasing local purchasing power (Kulkarni, 1993). The middle class currently numbers some 50 million people, but by 2025 will have expanded dramatically to 583 million people—some 41 percent of the population (www2: mckinsey.com, viewed on 15 Jan 2009). Rapid socio-economic changes are taking place in India following the economic liberalization in the early 1990s and a recent economic expansion, the country is experiencing the creation of many new markets and a further expansion of existing ones. It is estimated that over 300 million people will advance from the category of rural poor to rural lower middle class between 2005 and 2025, and that rural consumption levels will rise to the current urban levels by 2017 (www3: ibef.org, viewed on 06 Jan 2009). One of the major trends in India has been in the growth of outsourced IT and business process outsourcing (BPO) services. In the past few years, there has been an increase in the number of skilled professionals in India employed by both local and foreign companies to service customers in the US and Europe in particular. As a result, a new Indian middle class has developed around the wealth that the IT and BPO industries have brought to the country and a new consumer base has developed. International companies are also expanding their operations in India to service this massive growth opportunity (www4: economywatch.com, viewed on 12 Dec 2008). This has lead to significant social changes within the Indian market which is beginning to adopt the Western model of consumer capitalism. The process of consumption and its related services has become the dominant social activity, even its philosophy. This has progressively led to the creation of its own characteristics and ideological framework; social ranks and exclusivities; membership of which and identification toward is gauged by the level of consumer participation. The Indian market has witnessed a lowering of the employed age group, an increase in disposable incomes, younger earners, nuclear families, a younger consumer market, and a shift in consumption choices and spending patterns. At the same time, the Indian market today is saturated with imported products from many countries. This has increased competition and collaborative ventures, indigenous brands and international brands are all competing to exploit the growing market opportunities. This is exemplified by the Indian automobile industry, one of India’s largest and fastest growing consumer sectors, the depth of penetration of global brands and the level of competition in the market is extremely high. Since the 1990s, around two dozen global auto brands have been established in India, including Hero-Honda Motors, Yamaha Motor India, Kinetic Engineering, competing with local brands such as TVS Motor and Bajaj Auto. (www5: articlesbase.com, viewed on 11 Jan 2009) Consumer research, therefore, becomes a critical tool to businesses in assessing market requirements. The need to understand the behavioural patterns of buyers and consumers and their future trends has become paramount. This is particularly relevant to certain mature markets in India where manufacturers are seeking to differentiate themselves. There is still however, a need to improve current levels of understanding of consumer psychology and its use in relation to design in India. UNDERSTANDING PRODUCT IMAGE Product Image is a psychological concept which describes consumers’ beliefs in relation to a particular product; it is the image of the product that the consumer carries in their mind. In current market scenarios, where product life cycles are continually reducing, it is imperative to maintain positive product associations in the minds of consumers if organisations are to maintain sales in the medium to long term and organisations also need to be aware that consumers associations will constantly develop as markets and cultures progress. Wilkie (1994) indicates the fact that consumers translate stimulus inputs into mental identification, also known as perceptual categorisation. For consumers, this process happens extremely rapidly and is not usually perceived at a conscious level. A product with a strong image categorised in a consumer's longterm memory is likely to be purchased when a need for that product arises (Wilkie, 1994). A good product image may also increase the level of product equity (the value that consumers assign to a product above and beyond the functional characteristics of the product) (Hawkins et al., 1998). Visual Aesthetics in Product Image In assessing the relative importance of visual aesthetics to product image it is difficult to extrapolate the effect from other important determinants of product image such as price and functionality. It is also important to recognise the role of visual aesthetics in conveying those elements to consumers. Given that all stimuli are inputted primarily through the visual sense of the viewer, visual aesthetics (the tangible and visually perceivable attributes in the physical product, for example – colour, shape and size) is a critical determinant of consumer response and product success. Judgments are often made on the elegance, functionality and social significance of products based largely on visual information (Coates, 2003). These judgments relate to the perceived attributes of products and frequently centre on the satisfaction of consumer wants and desires, rather than their needs (Lewalski, 1998). Visual aesthetics impact primarily on consumers emotional responses to products, this can have a far greater effect on the ‘response’ or at least the ‘Behavioural Intent’ as opposed to ‘rational’ or analytical factors. It can lead to emotional attachments and desires that may outweigh so called ‘logical’ factors in the decision making process. There are many historical examples of product successes based on appeals to emotional values Previous research indicates that the relationship between cognitive response and product appearance can be classified into 3 elements (Crilly et al., 2004) • Aesthetic impression – This is the emotional response resulting from the aesthetic attractiveness of the product. Responses can be positive or negative • Semantic interpretation – This can be defined as what the product intends to describe about its function, performance and qualities. This can also be a response to function which the form is trying to underline • Symbolic association – This is the perception of social status and significance of the product, the design represents what the product says about its owner or user. The personal significance of the design may outweigh the social significance. A review of existing literature reveals a strong relationship between the visual aesthetics of consumer products and the associated analysis of consumer psychology. It indicates that the design of product’s visual appearance is more than just the individual expression of designers’ creativity but reflects the entire amalgamation of collective sociological and psychological factors, activating a sub-conscious response by conforming to the prevailing psychological paradigms. Products use design to appeal to the emotional values associated with the product by the consumer or user. During the last two decades, there has been a significant change in the views of manufacturers and marketers towards the importance of visual product design in India. Until the early 90’s there was little consideration of visual aesthetics within Indian industry. The concentration was primarily toward function, cost, manufacture and price. This is evident from any study of the then available products in comparison to equivalent global offerings. The sector also suffered from low levels of investment and a ‘copy cat’ approach to design, however, there has been a revolution over the last decade, with increasing consumer demand due to better product knowledge and the global influx of products. The importance of aesthetic appeal in industrial products has seen a huge increase in significance in almost all consumer market sectors and none more so than in the automobile industry. Indian designs are on a par with most global products and almost all automobile makers have invested in highly skilled inhouse design teams. The number of external product design consultancies along with the number of product design teaching institutions have increased significantly: from only 2 premium institutions in the early nineties to 18 listed and recognized institutions.(www6: sourcingmag.com, viewed on 17 Jan 2009). This transformation from factors such as functionality towards product visuals in Indian design reflects the changes in consumer perceptions of product image. The first aim of this paper is therefore, to demonstrate that the visual aesthetics of a product act as an expression of a sub-conscious collective psychological response to the prevalent socio-economic and cultural atmosphere, and is perceived as such by the target audience. The intention is to identify the psychological response to design in the actions of the chosen target audience. Product Image in Consumer Decision Making Product image exists within the minds of consumers and interacts with the cognitive process when consumers are presented with a number of stimuli, including visual aesthetics, functions, prices, brand names, service quality, and ethical associations. Consumers take these stimuli into account when they make purchase decisions, however each may not be of equal weight. Many studies have attempted to differentiate between various factors in relation to the consequences of purchase decisions. For example, the ‘Kano Model’ classifies the perceived importance of product attributes into three distinct categories: delighters/exciters, satisfiers, and dissatisfies (Kahn, 2001). Product strategies have to react to the most relevant product stimuli during the process of consumption. When customers’ appetite for usability and quality features are satisfied, further improvements in these attributes are ineffective; and features that were once delighters often become redundant or over-exposed in the market and so no longer generate excitement. In either case the company cannot rely on the same features to generate customer interest and competitive advantage. Studies understanding the psychology of consumers must address such issues and help organisations face them, even if this requires a paradigm shift of attitudes. One of the greatest differences between mature and emerging consumer markets lies in the significance of the attributes in the overall decision making process of consumers. Many Western markets have evolved to accommodate and prioritise extrinsic factors (e.g. brand, service and ethical associations) over intrinsic factors (e.g. product visual aesthetics, usability, functionality, and price) in their preferences and the cognitive processes of the consumers have reciprocated accordingly. Many leading brands have adjusted their strategies to emphasise corporate social responsibility by, for example, introducing ‘fair trade’ product lines to address the growing ethical needs from consumers. However, it is questionable whether this is the case in emerging markets. For example, the motorcycle market in India has been rapidly saturated as shown by the increased competition level and diversity of choices. However, it is unclear whether consumers have altered the basis of their decision making. In fact, little is known about what factors Indian consumers consider as key in purchasing. Therefore, the second aim of this study is to explore (i) whether ‘visual Aesthetics’ has reached the same level of importance as the recognised factors such as function, usability, and price; and (ii) whether, extrinsic stimuli (such as brand, service and ethical associations), has the same impact on consumer decision making as the intrinsic factors. THEORETICAL ONTOLOGY Cognitive Consumer Behaviour The entire premise of the study of consumer behaviour and their decision making abilities is based on the study of ‘Perception’ or the ‘Cognitive Process’. The process of perception is primarily a conscious act. The building blocks to this process are units known as ‘Beliefs’ or ‘Schema’. ‘Schema’ originates from the Greek word ‘skhēma’ meaning ‘plan’. The stimuli are input through the sensory organs; ‘exploration’ can be elaborated as action or response towards the schemata leading to behaviour such as physical responses, psychological responses and in marketing terms buying, using or consumption. ‘Schema’ or ‘Belief’ can be explained as a framework of knowledge, episode of experiences, and network of expectations or anticipations. Even if beliefs about one particular object or product are considered, the beliefs associated are too many to recognise, isolate and influence. Therefore, there has to be beliefs and ‘beliefs’. This can be better explained by the concept of ‘Salient’ and ‘latent’ beliefs (Solomon, 2006). Salient beliefs are beliefs which are brought to the forefront of perception from a large amount of stored beliefs in memory. Salient beliefs are the important beliefs, those which play the lead role in the decision making process. These are the beliefs that marketers have to recognise and influence, if not create. Consumer Psychoanalysis The initial premise is that consumers are rational subjects, capable of governing their thoughts and actions by the principles of reason when faced with purchase decisions. According to the view that became dominant with the enlightenment, human nature is divided into a rational part, the faculty of reason, and a non-rational part comprised emotions, appetites and desires (Damasio, 1994). These two parts are distinct and opposed. Reason is universal, objective and autonomous in its operation. The emotions and appetites, by contrast, are partial, particular and subjective. They are a force hostile to reason in human life (Damasio A., 1994; and Mann J., 2002). There is a definite distinction between perceiving and reasoning, for it is to reasoning that one had to look for the correction of the senses and the establishment of the truth. This is in accordance with the rationality and irrationality discussions with a marked difference being suggested in the acts of perceiving and the act of reasoning, reasoning is the judging factor of the psychological process. This is a scientific expression as opposed to an artistic expression which is usually perceived and not reasoned. Perception, especially sensory perception and reasoning were established as antagonists, in need of each other but different from each other in principle. Yet, perception consists in fitting the stimulus material with templates of a relatively simple shape which corresponds with Jung’s concept of ‘Archetypes’. Product design provides the consumer with this sense of metaphorical opposites, the sense of being a part of the collective infinite and also the individual identity. Thus, the primary motivation in human beings is intimacy and a connection to others, followed with the secondary motivation which is pleasure. (www7: mythosandlogos.com, viewed on 17 Nov 2008). Symbolism in Product Image The process of symbolic communication with its audience and the behavioural response towards these symbols happens at an unconscious level, this process is known as ‘Symbolic interactionism’. The concept of symbolic interactionism is based on the premise that individuals interact with society at large and with reference groups, and this usually occurs at the sub conscious levels of the human psyche, in determining the structure of the individual behaviour. Individuals are, therefore, assumed to relate to objects or events based on their symbolic meaning given by society (Mead and Morris, 1967). Symbolic interactionism is manifested in consumer behaviour in the form of symbolic purchasing behaviour. This refers to buyers acting on the sub conscious associations of the structure of the product, in its visual form, feel, brand image, and product image (Assael, 1987). Symbolic meanings of the products can be examined from different viewpoints: • Society driven symbolic meanings: The symbolic meaning of the product including its intrinsic and extrinsic product attributes such as visual aesthetics, brand image, features etc. are shared and are defined by society. • Symbolic individual associations: The visual aesthetics or the product itself acts as symbol of the individual user or consumer in the society. • Symbolic transfusion: Products associated with positive or negative symbolisms tend to transfuse the same set of meanings to other products in similar categories or sets of products used by reference group members, leading to respective behavioural actions such as possession of the sets, or avoidance of the symbol transfused products. • Psychoanalytical symbolism: Symbolism that operates at the sub-conscious level of the individual, beyond the conscious perception or reasoning usually having a catalystic effect on the choices made by the user. Symbolic power, the capacity of symbolic associations of the human mind, often leads to mystical adorations of the visual aesthetics or the product itself. According to Sigmund Freud (Freud, 1965), phallic symbols are strong attractions in products in a male culture. The mental processes used in creating or associating sub-conscious psychological symbols are predominantly visual (Hodder, 1991). This justifies the need for designers to have both a psychoanalytic and symbolic perspective.