Consumer Learning the meaning and types in consumer behaviour
- 1. CONSUMER LEARNING Prof. B. B. Mishra
- 2. OPENING VIGNETTE Why did these products fail? Listerine Toothpaste Ben-Gay Aspirin Oreo Little Fudgies Why did Pocket Paks succeed?
- 3. CONSUMER LEARNING A process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behaviour. Learning refers to a relatively permanent change in behavior that is caused by experience. Learning is an ongoing process and we can learn: Vicariously by observing events that affect others, By incidental learning which is unintentional.
- 4. LEARNING PROCESSES Intentional learning acquired as a result of a careful search for information Incidental -- learning acquired by accident or without much effort
- 5. IMPORTANCE OF LEARNING Marketers must teach consumers: where to buy how to use how to maintain how to dispose of products There are several theories to explain the learning process such as the Behavioral Theory and the Cognitive Theory.
- 6. LEARNING THEORIES Behavioural Theories: Theories based on the premise that learning takes place as the result of observable responses to external stimuli. Also known as stimulus response theory. Cognitive Theories: A theory of learning based on mental information processing, often in response to problem solving.
- 7. ELEMENTS OF LEARNING THEORIES Motivation Cues Response Reinforcement
- 8. REINFORCEMENT A positive or negative outcome that influences the likelihood that a specific behaviour will be repeated in the future in response to a particular cue or stimulus.
- 9. BEHAVIOURAL LEARNING THEORIES Classical Conditioning Instrumental Conditioning Modeling or Observational Learning
- 10. BEHAVIORAL LEARNING THEORIES Stimulus Consumer Response Consumer’s Black Box Behavioral Learning Theories Assume that Learning Takes Place as the Result of Responses to External Events.
- 11. BEHAVIORAL LEARNING THEORY: CLASSICAL CONDITIONING Classical Conditioning Occurs When a Stimulus That Elicits a Response is Paired With Another Stimulus That Initially Does Not Elicit a Response on It’s Own. Unconditioned Stimulus (UCS) Conditioned Stimulus (CS) Conditioned Response (CR)
- 12. CLASSICAL CONDITIONING Pairing a stimulus with another stimulus that elicits a known response to produce the same response when used alone.
- 13. NOTE: UR and CR represent the same behavior, but causes differ CLASSICAL CONDITIONING US ----> UR (Unconditioned stimulus) (Unconditioned response) US + CS -----> UR (Conditioned stimulus) CS ------> CR (CS alone is now (Conditioned response) able to bring E.g.: CR) SUGAR -------> insulin release SUGAR + Cola Taste -------> insulin release Cola taste -------> insulin release
- 14. FACTORS THAT AFFECT THE CLASSICAL CONDITIONING PROCESS Stimulus Generalization “Piggybacking” Stimulus Discrimination Repetition
- 15. MARKETING APPLICATIONS OF BEHAVIORAL LEARNING PRINCIPLES Behavioral Learning Brand Equity Repetition Advertising Wear-Out Conditioned Product Association Stimulus Generalization Family Branding Product Line Extension Licensing Look-Alike Packaging Stimulus Discrimination
- 18. CLASSICAL CONDITIONING – CONT’D Classical conditioning is the learning of associations among events that allows us to anticipate and represent our environment. From this viewpoint, classical conditioning is not reflexive action, but rather the acquisition of new knowledge
- 19. NEO-PAVLOVIAN CONDITIONING Forward Conditioning (CS Precedes US) Repeated Pairings of CS and US A CS and US that Logically Belong to Each Other A CS that is Novel and Unfamiliar A US that is Biologically or Symbolically Salient
- 20. STRATEGIC APPLICATIONS OF CLASSICAL CONDITIONING Repetition Stimulus Generalization The inability to perceive differences between slightly dissimilar stimuli. Stimulus Discrimination
- 21. REPETITION Repetition increases strength of associations and slows forgetting but over time may result in advertising wearout. Cosmetic variations reduce satiation.
- 22. THREE-HIT THEORY Repetition is the basis for the idea that three exposures to an ad are necessary for the ad to be effective The number of actual repetitions to equal three exposures is in question.
- 23. STIMULUS GENERALIZATION The inability to perceive differences between slightly dissimilar stimuli. Marketing applications Product Line, Form and Category Extensions Family Branding Licensing Generalizing Usage Situations
- 24. STIMULUS DISCRIMINATION The ability to select a specific stimulus from among similar stimuli because of perceived differences.
- 25. CLASSICAL CONDITIONING AND MARKETING STRATEGY Identify and pair product with a known, well-liked stimulus More attention More favourable attitudes Greater intention to buy the product Learning of key attributes Use stimulus generalization effectively Distinguish the product through effective use of stimulus discrimination
- 26. INSTRUMENTAL CONDITIONING Consumers learn by means of trial and error process in which some purchase behaviours result in more favorable outcomes (rewards) than other purchase behaviours. A favorable experience is instrumental in teaching the individual to repeat a specific behaviour. learning based on a trial-and-error process, with habits forced as the result of positive experiences (reinforcement)
- 28. INSTRUMENTAL (OPERANT) CONDITIONING BEHAVIOR REINFORCEMENT NEGATIVE REINFORCEMENT PUNISHMENT LIKELIHOOD OF BEHAVIOR LIKELIHOOD OF BEHAVIOR { NOT the same thing!
- 29. REINFORCEMENT EFFECTIVENESS Temporal proximity--conditioning is more effective if consequences immediately follow behavior (delayed reinforcement is much less effective) Recognition of relationship between behavior and consequences Schedules of reinforcement--variable ratio is most effective
- 30. STRENGTH OF LEARNING Importance Involvement Product Message—e.g., AFLAC Insurance Energizer Bunny Mood Mixed research results More elaboration and associations during positive mood if the association is pleasurable Happy people may seek to avoid thinking to avoid spoiling the good mood Individuals will tend to be more critical of claims under bad mood
- 31. BEHAVIORAL LEARNING THEORY: INSTRUMENTAL CONDITIONING Instrumental Conditioning (Operant Conditioning) Occurs as the Individual Learns to Perform Behaviors That Produce Positive Outcomes and to Avoid Those That Yield Negative Outcomes. It Occurs in One of the Following Ways: Punishment Positive Reinforcement Negative Reinforcement Extinction
- 32. INSTRUMENTAL LEARNING Reinforcement Schedules Fixed - Interval Variable - Interval Fixed - Ratio Variable - Ratio Applications of Instrumental Conditioning Reinforcement of Consumption Frequency Marketing - reinforces regular purchasers by giving them prizes with values that increase along with the amount purchased.
- 33. REINFORCEMENT Positive Reinforcement: Positive outcomes that strengthen the likelihood of a specific response Example: Ad showing beautiful hair as a reinforcement to buy shampoo Negative Reinforcement: Unpleasant or negative outcomes that serve to encourage a specific behaviour Example: Ad showing wrinkled skin as reinforcement to buy skin cream
- 34. OTHER CONCEPTS IN REINFORCEMENT Punishment Choose reinforcement rather than punishment Extinction Combat with consumer satisfaction Forgetting Combat with repetition
- 35. INSTRUMENTAL CONDITIONING AND MARKETING Make the product the ultimate reward Provide samples and free trials Provide non-product rewards Practice relationship marketing Reinforcement Schedules Shaping Massed versus Distributed Learning
- 36. DEVELOPING BRAND LOYALTY: TRICKS AND TRAPS Product quality ---> satisfaction Sales promotions Stealing loyal consumers away from others--is it worth it? Price value exclusiveness
- 37. COGNITIVE LEARNING THEORY Learning through problem solving, which enables individuals to gain some control over their environment. Three types: Observational learning Rote Learning Reasoning
- 38. COGNITIVE LEARNING THEORY: OBSERVATIONAL LEARNING Consumer’s Attention Must Be Drawn to a Desirable Model Consumer Must Remember What is Said and Done by Model Consumer Must Convert This Information Into Actions Consumer Must be Motivated to Perform These Actions Is Learning Conscious Or Not? Observational Learning Occurs When People Watch the Actions of Others and Note the Reinforcements They Receive From Others. Imitating the Behavior of Others is Called Modeling:
- 39. THE ROLE OF MEMORY IN LEARNING Encoding Information for Later Retrieval Types of Meaning Personal Relevance Flashbulb Memories Narrative Memory Systems Sensory Memory Short-Term Memory (STM) Long-Term Memory (LTM)
- 40. RELATIONSHIPS AMONG MEMORY SYSTEMS
- 41. THE ROLE OF MEMORY IN LEARNING Storing Information in Memory Activation Models of Memory Associative Networks Knowledge Structures
- 42. AN ASSOCIATIVE NETWORK FOR PERFUMES
- 43. THE ROLE OF MEMORY IN LEARNING Spreading Activation Memory Trace for an Ad Could Be Stored in One or More of the Following Ways: Brand-specific Ad-specific Brand Identification Product Category Evaluative Reactions Levels of Knowledge
- 44. THE ROLE OF MEMORY IN LEARNING Retrieving Information for Purchase Decisions Factors Influencing Retrieval State-Dependent Retrieval Familiarity and Recall Salience and Recall Von Restorff Effect Pictorial Versus Verbal Cues: Is a Picture Worth a Thousand Words?
- 45. THE ROLE OF MEMORY IN LEARNING Factors Influencing Forgetting Decay Part-List Cueing Effect Products as Memory Markers Autobiographical Memories The Marketing Power of Nostalgia Nostalgia Spontaneous Recovery Memory and Aesthetic Preferences Measuring Memory for Marketing Stimuli Recognition Versus Recall The Starch Test
- 46. THE ROLE OF MEMORY IN LEARNING Problems with Memory Measures Response Biases Memory Lapses Memory for Facts Versus Feelings
- 47. OBSERVATIONAL LEARNING individuals learn by observing the behaviour of others, and consequences of such behaviour. Also known as modeling or vicarious learning.
- 48. ICONIC ROTE LEARNING Learning concepts through simple repetition Repeated ads teach consumers about a product’s attributes
- 49. REASONING Highest level of cognitive learning Involves creative thinking Depends on how information is processed and stored
- 51. RETENTION Information is stored in long-term memory Episodically: by the order in which it is acquired Semantically: according to significant concepts
- 52. INFORMATION PROCESSING AND INVOLVEMENT THEORY Central and Peripheral Routes to Persuasion highly involved consumers are best reached through ads that focus on the specific attributes of the product (the central route) uninvolved consumers can be attracted through peripheral advertising cues such as the model or the setting (the peripheral route).
- 53. ELABORATION LIKELIHOOD MODEL (ELM) a person’s level of involvement during message processing determines which route to persuasion is likely to be effective
- 54. THE ELABORATION LIKELIHOOD MODEL Involvement Central Route Peripheral Route Message Arguments Influence Attitudes Peripheral Cues Influence Attitudes HIGH LOW
- 55. COGNITIVE LEARNING AND MARKETING STRATEGY Use rote learning to teach consumers about the brand Use reasoning or problem solving for complex or high-involvement products Use modelling to extinguish negative behaviour Use knowledge of information processing to help consumers store, retain and retrieve messages.
- 56. MEASURES OF CONSUMER LEARNING Recognition and Recall Measures Aided and Unaided Recall Cognitive Responses to Advertising Copy-testing Measures Attitudinal and Behavioural Measures of Brand Loyalty