What is Consumer Perception?
Consumer perception refers to the way a customer regards and views a brand, product, or service based on a number of different factors. These include prior experiences, previously formed attitudes, and a person’s overall beliefs and values.
Perception can be shaped by both individual circumstances (such as personal experiences) and broader influences (such as social or cultural norms). It plays a vital role in determining whether a customer chooses one brand over another competitor.
This article explores why consumer perception matters, the psychological and emotional aspects that drive it, and real-world examples of where poor understanding of consumer perception has led to failure.
The power of perception in decision making
When it comes to making purchases, it is easy to underestimate how much brand perception influences consumer choices.
Classical economics assumes ceteris paribus – that all things are equal – but in reality, consumers rarely act in such a rational way.
For example, imagine two similar 1KG laundry detergents: one priced at £4.50 and the other at £4.65. Logic suggests most consumers would choose the cheaper option. However, if a consumer heard that a friend had a bad experience with the £4.50 brand, they may choose the more expensive product instead.
This illustrates how perception, positive or negative, can override rational, price-driven decisions.
When perception leads to failure: The case of Google Glass
A striking example of negative consumer perception comes from Google’s ill-fated launch of Google Glass in the 2010s.
Despite Google’s dominance as a trusted search engine, the move into wearable technology was met with scepticism. Consumers struggled to understand why a company best known for free online tools was selling $1,500 smart glasses.
As a result, Google lost $895 million on the product. Beyond the financial hit, the company also suffered reputational damage, raising questions such as:
- How did this happen?
- What could have been done to prevent it?
The failure stemmed from a lack of alignment between Google’s brand identity and consumer expectations. At the time, trusted technology leaders like Apple and Samsung had not yet entered the smart-glasses market. Without that external validation, consumers lacked the trust and willingness to embrace such a high-cost innovation from Google.
Lessons learned: Aligning with consumer expectations
The Google Glass case illustrates the dangers of misunderstanding consumer perception. Google overlooked the fact that they were venturing into an entirely new market, one their core users did not expect them to enter.
By failing to align their vision with consumer expectations, Google launched a product for which there was little demand or trust. This misstep reinforces the value of conducting thorough research to remain in sync with consumers before making bold strategic moves.
Why understanding Consumer Perception matters
Ultimately, consumer perception can make or break a brand. Companies that fail to understand their customers risk losing ground to competitors and damaging their reputation with their core audience.
In this fast-changing environment, success depends on continually monitoring, innovating, and aligning with customer needs. Standing still, or neglecting consumer perception, risks eroding the positive image that once gave a business its competitive edge.
Want to better understand how your customers perceive your brand? Get in touch with our team to discover how high-quality research can uncover insights that drive smarter decisions.
Contact Hollie Bell at [email protected] to discuss your needs.
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