It’s all about Perception...

At a recent meeting, a prospective client turned to me and said, “The bottom line is that if I have good products and service, my business will succeed; if not, it won’t.” I found that a bit odd because, prior to the meeting, he admitted that despite his business already offering good products and service, it was in need of rebranding. It seemed he was torn between his realistic intuition to rebrand and an inability to comprehend why it works. The following is my explanation:
The first thing we need to understand, is that even if the bottom line was really about good products, service and price, we still need the benefits of branding and marketing.
Here’s why: When you were younger, surely someone posed the following, or similar, question to you: “How do you know the color green is really green; maybe it’s a different color that your eyes just interpret as green?” An interesting question to which there is no good answer. (what a tease!) If you were a little thoughtful, (is that a big "if"?) you probably said “You may be right and I’ll never know for sure, but it makes no difference what color it really is. What’s important is that it always appears to be green.” How very profound! (I'll give you the credit for that answer)What something really is does not make a difference; how you perceive it and how it relates to you, does.
There are hundreds of research studies to prove perception influences more than reality. Here’s one I’m sure you will recognize:
A study of Danish general practitioners in 2002 found that 48% of the doctors surveyed prescribed a placebo (the sugar pill that does absolutely nothing except give someone the perception that he is taking medicine) at least 10 times during that year. A 2004 study in the British Medical Journal of physicians in Israel found that 60% of the doctors used placebos in their medical practice. A meta-analyses in 1998 found that 75% of the effectiveness of anti-depressant medication is due to the placebo effect rather than the treatment itself. "Them Doctors" (to paraphrase Rev. Wright) and research scientists obviously believe in the scientific validity of treatment through perception (or some might argue-deception).
Here’s a product that directly addresses the desire for good service-through perception: According to Storming Images LLC, research indicates that digital flash menu boards produce a 46% customer experience enhancement due to perceived wait time in lines being less than static menu boards. Bill Yackey reporting for Fast Casual (April 2009) writes, “Digital signage gives customers something to look at….The perceived wait time is shortened, and the customer remains happy to be where he is.”
The perception of a good deal or the “need” for low prices was the subject of an extensive research study that concluded: the best thing to do when customers feel the price of an item is too high is to introduce an even higher priced model into the very same category. Customers then perceive the original item as being an affordable alternative.
Having good quality, service and price, is not what wins over customers. What does win over them is the perception of good quality, service and price. It so happens, that reality is usually necessary in order to sustain the perception. However, branding and marketing is what creates and reinforces such perception.
The truth is though, the perception of good quality, service and price, does not by itself motivate people to buy either. If it did, we’d all be broke in a day. People buy things only because they have unmet desires or needs they want fulfilled. The offering that best meets those desires or needs will get the order.
Branding is the process of infusing an offering with signals that signify and create the perception that the product best corresponds to and fulfills their particular needs or desires. If the signals are in place, the objective perception should follow- followed by a sale!

Yaacov Weiss is a brand strategist and founder of Tug branding and marketing, based in Lakewood, NJ. If you’d like Yaacov to position your business, call 732-276-6432. You may also email Yaacov at yaacov@tugbranding.com.