In: Operations Management
Perception is defined as the ability of human beings to become aware of something based on his/her senses ie., through smell, touch, sight, taste and sound. These are also called five elements of perception.
Smell: Ability of judging something based on the smell. For example, a perfume is assessed as of good or bad quality based on the quality of the smell.
Touch: Ability of judging a product by the touch or feel of the object. For example, customers purchase the golf and cricket bats based on the touch and feel of the bats in their hands. Quality of the grip and weight of the bat influences the purchasing decisions.
Sight: Judgement based on the visual appeal of the object. For example, purchasing a painting or an automobile can be done due to its visual appeal and elegance.
Taste: Ability to assess or choose based on the good taste. For example, preference to a restaurant over others due to better taste can be an example of perception based on taste.
Sound: Selecting or purchasing a music records due to the reputation of artists and quality of music can be an example of perception based on sound.
Various brands have used perception to create positive brand images. For example, Walmart and McDonalds have successfully created a perception of being low cost providers. This has helped them create a positive brand image among mid and low-income families who were regular customers to the stores. Also, Brands like Rolls Royce have created perceptions of exclusivity and luxury based on their marketing and consumer approach strategies.
Humans make judgements based on what they feel about the product. The means to feel the product is through their five senses as mentioned above. As discussed earlier, depending on the type of product being sold, consumers use one or more of their senses to make the purchasing decision. For example, Pepsico has launched a beverage called Zero implying a healthier offering to the customers. This has created an impression among the customers as a healthy option for drinking although the research has suggested otherwise. This was made possible by aggressive TV advertisements and posters appealing to visual and hearing senses.
Service providers have also created effective brand images based on their aggressive marketing strategies. For example, Accenture one of the leading brands has used Tiger woods in earlier times with a tagline of "High Performance delivered". This campaign along with increased customer focus has helped them creating a more positive image among the professional service firms. On the other hand, Arthur Andersen, accounting firm went out of business due to their corporate malpractices during Enron scandal. Its heavily damaged reputation due to high profile coverage during the scandal has caused irreparable damage to its public perception along with sanctions and made it impossible to survive. It is therfore equally important to manage perceptions in a service landscape also.