Why customer perceptions matter just as much as price and product features
The majority of people believe that price and what the product does are only two factors that people consider when choosing one brand over the other, however perception plays just as big of a role. The way people process information, organize it, and give it meaning. In this post, we’ll focus on how perception ultimately shapes marketing outcomes and influences brand loyalty.
Our perception of something is shaped not only by what our senses pick up, but also how we select, organize, and interpret information based on our needs, out past experiences, and our values. For example, think about a coffee shop: the smell of fresh coffee, the cozy furniture, the soft and often times seasonal music all work together in order to create an experience for customers. However, not everyone sees it the same way. While one person might think that the coffee shop feels authentic and inviting, another might see it as expensive and out of reach. This happens because each individual person’s needs, past experiences, and values shape the way that they interpret what they see, hear, and feel.
It's essential for marketers to keep this in mind when designing messages and products. The idea of an absolute threshold means that a stimulus must be strong enough for people to even notice it (like letters on a billboard being big enough to read while driving). The differential threshold, or just noticeable difference (JND), is about the smallest change that people can detect. For example, if a coffee shop increases the price of their $5 latte by 10 cents, most people probably wouldn’t even notice, but if they do the same for an item that’s usually $1, it may feel like a big jump.
Once information is taken in through the senses, the next step is for people to interpret it. This step is powerful because first impressions and mental shortcuts (like stereotypes or the halo effect) can shape how people end up feeling about a brand long after they’ve even had their first interaction. A pretty strong example of this is Apple. Apple’s sleek and modern designs and reputation for innovation make people expect quality before they have even used the product at all. This shows how perception goes beyond the product itself and becomes the foundation for long-term loyalty.
