Perception Influences on Buying Behavior

As a consumer, as an employee, as a parent, as a friend, as a person – perception is the most important psychological factor in all human behavior. According to Radhika Duggal at Forbes, “Perception is defined as the process by which individuals select, organize and interpret stimuli into a meaningful and coherent picture of the world.”

As a consumer, perception becomes shaped by advertising, word of mouth, past experiences, social media, pricing, quality, and customer service. Through these efforts, brands can redefine themselves as not just a product but also as a part of the consumer’s lifestyle choices.

Consumers make choices based on price, need, opportunity, packaging, brand ethics, and more. Shifting how consumers perceive these things can dramatically impact whether they purchase any given brand and why. If consumers perceive that a product or a brand is a bad choice, whether it’s based on ethos, quality, or price, then it really doesn’t matter if it actually is a bad choice because customer perception dictates consumer action, and that action becomes reality.

“If you want to win the heart of a person, first win the perception.” Those are the wise words of author Santosh Avvannavar, and it’s true for brands, too. If brands can create a public perception that their product is high quality, their prices are fair, their service is responsible and attentive and that the brand stands behind what they do, they’ll gain more customers and enjoy great loyalty. It’s that simple – and that hard.

• Pricing: Establishing the right price for a product is a huge factor in how the public perceives a brand. Consumers want to save money, yes, but if a product is priced too low, it can be perceived as “cheap” and consumers may question what’s wrong with it – were corners cut, is a quality lacking, why is it being sold at such a crazy price? Pricing is an art, not a science. Too low, the public gets suspicious; too high, the public resents the brand.
• Quality: This is a no-brainer; bad quality makes consumers angry. End of story. Quality is key to success or failure, and if a brand starts selling products that don’t live up to their past reputation, they won’t just lose sales, they’ll lose trust and damage their reputation – things that can take years to rebuild.
• Packaging: How products are packaged definitely impacts consumer perception; look at the first-generation iPod through to the iPhones. The look defined the user experience, but then the packaging clinched how unique it was. Just opening the box felt amazing – high-quality cardboard, carefully packaged, a beautifully printed user manual on heavy-gauge paper. Soon iPod, then iPhone, took over the device market around the world.
• Brand Reputation/History: Having a good reputation can take years to build, but losing it can happen overnight. One of the companies considered to have among the world’s best reputations right now is Netflix, whose brand soared after they sacrificed one of their most successful series by killing off the character of Frank Underwood in “House of Cards” after disturbing sexual assault allegations were made against Kevin Spacey.
• Responsibility and Ethics: Responsibility, environmental practices, and political allegiances can all define how companies are perceived. Just ask Nike, whose Colin Kaepernick sponsorships and other social justice stances have made buying Nike a political act that transcends consumerism. How companies behave on the world stage matters to the bottom line. Another example is Patagonia, the outdoor clothing company, who has taken strong political stances on protecting parklands in North America and through establishing parks worldwide, like in buying thousands of square miles of land to make parks in its namesake region Patagonia.

What Affects Consumer Perception?

Customer perception isn’t influenced by just one factor — it’s a result of everything your brand says, does, and puts out into the world.

Whether it’s a new packaging design, a controversial social media post, or a special holiday offer, absolutely everything your brand does affects customer perception.

Product Pricing

Imagine you’re comparing two bottles of wine.  One costs $10, and the other costs $500.  Do you have a different perception of the two brands?  Of course, you do — product pricing is one of the largest factors affecting perceptions of your brand.

The effects of pricing on your reputation can vary, however, making it more of an art than a science.

In some cases, high prices convey luxury, quality, and excellent customer experience. In others, they might seem out-of-touch, snobby, and unrealistic. On the other side of the coin, low prices might attract customers looking for a bargain, or drive away customers worried about quality issues. However, you decide to price your products, remember that it has a huge influence on how others see your brand.

Product Packaging      

Product packaging has a big influence on how customers view your brand — so much so that it can be considered a selling point in itself.  Everything from color, design, text, eco-friendliness, and sturdiness will affect consumer opinions.

Luxury products might be packaged in black and gold, while budget options will stick to basic colors like black, white, and red.

Packaging for expensive tech products will usually be sturdy and secure, to reflect the quality of the product. Items aimed at environmentally-conscious consumers will be packaging in recycled materials, using colors like green and brown. Packaging could be the first contact many customers have with your brand — make sure you get it right.

Product Quality

Ever had to send a product back because the quality was so bad? How’s your perception of that brand now?  Chances are, not good.

Product quality has a massive effect on brand perception — it’s a no-brainer.  The quality of your products should match your pricing, branding, and the promises you make about your product.  That doesn’t mean that everything you sell has to be the best quality in the world -it just has to meet customer expectations.

For a luxury brand, that might mean the best quality in the industry. For a budget chain, it might be a product that works well but doesn’t have any fancy features.

Brand Values and Ethics

Buying from a brand isn’t just about getting hold of something you need. It’s also an emotional experience — and one that should leave customers feeling good about themselves.

Your brand values and ethics have a big role to play when it comes to consumer perception and how customers feel after buying from you.

If your company is known for fair treatment of workers, generous charity donations, and a commitment to reducing pollution, customers should feel pretty good about buying your products. On the other hand, if you’re known for treating workers badly, overpriced products, and damaging the environment, public perception of your brand will suffer.