When we categorize people as a group, based upon our own schemata while simultaneously ignoring individual differences, what perceptual process are we illustrating?

Answer: Stereotyping

Explanation: When it comes to stereotyping people, then a generalised opinion is created about these people. Then the individual differences of people within the group are neglected, and that is why such generalisation is exaggerated, that is, it is exaggerated in stereotyping people, although there are real differences between them. Based on stereotyping, they may have the expected preconceived notions of someone just because they come from a particular group, regardless of the actual traits and abilities of members of a group.