Context Effect is a term that is used in psychology to illustrate the effect of environmental factors on individuals' vision or judgment of a particular situation such as word recognition, reading proficiency, recollection, and object identification.
Hence, in this case, although Sue sees her chemistry professor several times a week, she didn't recognize the professor when she saw her in the grocery store because she was using her past experiences and knowledge to identify objects including the people she is meeting in the grocery store. This is termed or seen as illustration of CONTEXT EFFECTS
