Consumer Behaviour Perceptions Jnd

Case 4.1: Packaging and the J.N.D.

1. Concept of Perception, Sensation, Weber's Law (J.N.D. or Differential Threshold)

Perception is the process of attaining awareness or understanding of the environment. This is through organizing and interpreting sensory information to form a meaningful and clear picture of the world. Based on different needs, values and expectations, different people will perceive and interpret stimulus differently.

For sensation, it is when the various sense organs of the body receive a physical or mental response from a stimulus that will eventually be sent to the brain. In addition, the receptivity of our senses and the intensity of the stimuli to which it is exposed, will affect its sensitivity.

According to Weber's law, the just noticeable difference (J.N.D.) between two stimuli is relative to the intensity of the first stimuli. The J.N.D. concept is the minimal difference that can be detected between two stimuli.

2. Analysis of Articles Regarding the Change in Packaging

2.1 Coca Cola's decision to drop the "Classic" designation reflected years of planning during which this designation was continuously made smaller. This conditioned consumers to pay less attention to the "Classic" designation.

2.1.1 Altering Target Consumer Perception

With nearly 1billion Coca-Cola drinks sold everyday, it is definitely the world's most popular and recognized brand. Yet in 1985, the company went through a humbling experience when they decided to replace its most popular soft drink, the Coca Cola Classic, with a new formula called 'New Coke'.

In 2009, after 24 years, The Coca Cola Company dropped the word 'Classic' from its red labels in some Southeast regions. There can be various reasons why the company might have wanted to alter their target consumer perception by slowly removing the word 'Classic'.

The word 'Classic'

'Classic' is defined as something of lasting worth or with a timeless quality. There was a shift in target market from the past generations to the youths in this day and age. Hence, the perception of 'Classic' may be deemed as old fashioned. As a result, the word may seem stodgy to some and does not sound very modern. Since Coke has a strong positioning in the market, including the word 'Classic' to remind their consumers about its quality is unnecessary.

When Coca-Cola launched "Open Happiness," their new global campaign, Mr Scott Williamon, Coke's spokesmen said that because Classic was only used in the United States, the timing was right to create a consistency around the globe. [1] In addition, since the global campaign was made to target and appeal to the younger drinkers, taking the word 'classic' out, "will modestly contemporize the brand, because to some people, classic doesn't sound youthful and contemporary," said Beverage Digest Editor John Sicher. [2]

The 'New Coke'

Moving on, Coca-Cola Company proved to not be infallible in 1985. It was a humbling experience for the company as it went through one of its biggest marketing blunder. The company invested 4 million dollars into research, came up with a new formula and pulled the old Coke off the market due to taste tests that showed a distinct preference for the new formula.[3] However, Coca-Cola did not take into mind the emotional aspect that Coke had on its consumers.

Moreover, the skills and money spent in the research for the New Coke could not measure the deep emotional attachment that the people had with the original Coke. With the increased number of negative feedback about the New Coke (Refer to Annex A), the company had no choice but to bring back its original brand and formula. "We have heard you," replied Roberto Crispulo Goizueta, the Chairman of The Coca-Cola Company, at a press conference on 11 July 1985.[4] Therefore, due to the backlash over the introduction of New Coke, Coca-Cola Company added 'Classic' (Refer to Annex B) to its label and brought back the original formula. Till today, after 24 years of the removal of New Coke, the company believes that there is no need for the 'Classic' word to be there.

Changed perception = Changed buying behavior

Perceptions are formed over time, and they are usually hard to break. Coca Cola might have wanted to alter their target consumer perception by slowly removing the word 'Classic' that will eventually result in a change in buying behavior. Using the J.N.D. concept, Coca Cola could make improvements in their product and to market it in a different light, which would lead to an increase in sales.

2.2 In the first major change since the 1940s, Heinz replaced the pickle (preserved) that had appeared on its Ketchup product (right under the words "tomato ketchup") with a tomato (fresh), above a new slogan, "Grown not Made."

2.2.1 Reasons for the focus on freshness

The major change in the label of Heinz tomato started with ketchup consumers having the perception that its ketchup is full of artificial or potentially artificial flavours. This gives rise to a need in redesigning the label by replacing the pickle with a tomato on a vine. At the same time, the word "tomato" was enlarged within the "tomato ketchup" designation, and Heinz also came up with a new slogan, "Grown not Made". (Refer to Annex C)

The two sensory receptors used are the eyes and the mouth. Where sight is the most important sensory input, Heinz uses the various positive stimuli to strategically make changes to evoke positive emotions among consumers. The perception of the taste of the consumer will be seen as sweeter and fresher without the inclusion of the pickle.

Research from Mintel International states that the tomato image plays into modern, more educated consumers' desire for a better understanding of what they are eating, whether for health, safety or just knowledge's sake.[5] According to Credit Suisse analyst Robert Moskow, he also mentioned that the changes reflect consumer preferences in wanting a more natural food experience. [6]

As such, Heinz has to allow its consumers to understand that they use fresh tomatoes to produce the ketchup sauce, and alter their wrong perceptions of its ketchup. Noel Geoffroy, Director of Heinz Ketchup said that the new "Grown not made" label confirms the wholesomeness