Final answer:
Selective perception is a process that allows individuals to see and hear selectively, based on their personal attributes like needs and experiences.
Step-by-step explanation:
The process that involves receivers in communication selectively seeing and hearing based on their needs, motivations, experience, background, and other personal characteristics is called selective perception. This cognitive process is crucial as it affects how we interact with the environment, and it is influenced by both bottom-up and top-down processing. Bottom-up processing is the sensory-driven aspect where the environment provides stimuli, while top-down processing involves our knowledge, experiences, and expectations shaping what we perceive. Signal detection theory is a practical application of perception that helps in identifying vital stimuli amidst background noise, such as a mother recognizing her baby's murmur. Therefore, selective perception is a combination of sensory processing, integration, and interpretation that shapes our understanding of the world.