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  • 1. Chapter 7 Memory, Learning, and Perception Copyright Atomic Dog Publishing, 2002
  • 2. Chapter Spotlights How consumers accept, retain, and retrieve market information from memory The relationship between learning processes and marketplace behavior How perceptions affect consumers’ buying behavior Copyright Atomic Dog Publishing, 2002
  • 3. Memory Two sources of product information:  External environment: packaging, labels, POS displays, prices, other marketing information  Memory: past experiences, word-of-mouth, family preferences  Associative network of nodes (concepts) and links (connections)  Scripts: information organized in memory around different types of events or episodes (e.g., a restaurant script) Copyright Atomic Dog Publishing, 2002
  • 4. How Information is Capturedand Stored in Memory Memory processing areas:  New information is initially captured in sensory memory.  processing is shallow; capacity is limited  Information is transmitted from sensory memory to short-term (ST)memory.  Analyzing and assigning meaning; limited capacity to a finite number of chunks (units of memory); information may be rehearsed to retain its meaning  Information rehearsed in ST memory is transmitted to long-term (LT) memory for storage and retrieval as needed; LT memory capacity is unlimited Copyright Atomic Dog Publishing, 2002
  • 5. Information Retention It refers to the amount of material previously learned that is remembered Forgetting – the loss in retention of material previously learned Retention affected by:  Incoming information  The person receiving the information Copyright Atomic Dog Publishing, 2002
  • 6. Retention: Characteristics ofIncoming Information and Processing Repetition or rehearsal Relevance Competing information (new information competes with old; ad “clutter” issue) Completeness of information (Zeigarnik Effect – if incomplete, info retained for later completion) Time (lapsed time since exposure) Mood (positive mood impact) Copyright Atomic Dog Publishing, 2002
  • 7. How Retention is Influencedby the Information Recipient Consumer familiarity or experience  Being more familiar with a product category increases the chances of remembering information about new or existing brands  Affects way information is organized in memory Consumer motivation  Higher motivation to process info is positively related to doing so at deeper levels of memory and to retain info longer and more accurately. Copyright Atomic Dog Publishing, 2002
  • 8. How Information is Retrievedfrom Memory Retrieval cues – “self-” or “externally-” generated (sensory images: sounds, shapes, colors, smells,etc.) Interference from competing cues (make cue to stand out) Consumer’s state of mind: higher retrieval levels occur when info processing and retrieval mood and/or interest levels match Copyright Atomic Dog Publishing, 2002
  • 9. Information Storage inMemory – Processing EffectsRecall of numerically-coded information is better than verbal information“Surface-level processing” (“sensory”) occurs when there is no analysis of meaning. Consumer judgment error rate higher.“Meaning-level processing” (“semantic”) implies analysis of meaning. Consumer judgment error rate lower. Copyright Atomic Dog Publishing, 2002
  • 10. Learning – Probability Theory Learning  formation of habits formed and changed through experience with products or services Strength of habit depends upon the amount of reinforcement it receives Probability models are used to predict the formation of habits:  Brand loyalty  Brand acceptance  Brand switching  New product forecasting Copyright Atomic Dog Publishing, 2002
  • 11. Learning – Behavior Analysis The relationship between marketers and consumers often resembles a negotiation Several behavior modification principles (BMPs) are used by marketers to induce consumers to buy their products and services. Copyright Atomic Dog Publishing, 2002
  • 12. Learning – Behavior Analysis(continued) Classical conditioning –learning results from a relationship between a stimulus and a response  Pavlov and his salivating dogs: a conditioned stimulus (the ringing bell before each feeding) results in a conditioned response (salivation)  Marketing applications  Higher order conditioning and celebrity advertising  Strength of the unconditioned stimulus  Number of pairings  Forward versus backward versus simultaneous conditioning  New versus existing products Copyright Atomic Dog Publishing, 2002
  • 13. Learning – Behavior Analysis(continued) Operant conditioning – a process in which the frequency of occurrence of a bit of behavior is modified by the consequences of the behavior  Especially relevant in low involvement purchases  Rewards & punishments AND consumer behavior Copyright Atomic Dog Publishing, 2002
  • 14. Learning – Behavior Analysis(continued) Generalization – the tendency to respond in similar ways to similar stimuli. Discrimination – the process through which consumers restrict their range of responses and attach themselves to a particular brand. Modeling – the process through which an individual learns a behavior by observing the behavior of others and the consequences of this behavior. Copyright Atomic Dog Publishing, 2002
  • 15. Learning – Cognitive Theory Emphasis is on thinking rather than the doing aspects of learning. Four stages:  Formulation of hypotheses (specific testable assumptions) about products or brands  Exposure to evidence (passive or active)  Encoding of the evidence  Integration of earlier hypotheses with new information into beliefs  Familiarity, ambiguity, motivation Copyright Atomic Dog Publishing, 2002
  • 16. Cognitive Theory andMarketing Strategies for market leaders (topdogs)  Reinforcement  Blocking  Explaining Strategies for market underdogs  Disruption  Facilitating trial Copyright Atomic Dog Publishing, 2002
  • 17. Perception Perception is the way in which an individual gathers, processes, and interprets information from the environment. Two views of consumer perception  Sensory perception  Gestalt theory of perception Copyright Atomic Dog Publishing, 2002
  • 18. Sensory Perception It is governed by the five senses: sight, smell, sound, touch, and taste It focuses on product specific sense attributes and how these are understood and evaluated by consumers. Copyright Atomic Dog Publishing, 2002
  • 19. Factors Affecting SensoryPerception Stimulus factors (examples)  Visual cues: color, shape, and size  Aural cues: tempo and pitch  Olfactory cues (taste + smell): sweet, bitter, salty, and floral  Tactile cues: soft, coarse, and silky Individual Response Factors  Sensory acuity: the capacity to recognize and differentiate among certain sensory cues; the “limin”  Sensory preferences: sensory product features are perceived and evaluated based on those liked or disliked  Consumer expectation: affects how product features are likely to be perceived/evaluated. When features match expectations this yields more positive preference outcomes Copyright Atomic Dog Publishing, 2002
  • 20. Gestalt Theory of Perception Gestalt principle: the whole adds up to more than the sum of its parts People perceive “form” above all else The form may remain constant even though some specific features of it may change (color, tempo, etc.) – “variations on the same theme” Applications: size, actual/illusion of motion, bordering for ads or displays while really the same Copyright Atomic Dog Publishing, 2002
  • 21. What do you perceive? Copyright Atomic Dog Publishing, 2002
  • 22. Factors Influencing GestaltPerception Stimulus factors: color and contrast, size, intensity, position, isolation, and unity Individual response factors: interest, involvement, needs, values, and cognitive set Copyright Atomic Dog Publishing, 2002
  • 23. How consumers InterpretPerceptions Categorization: the psychological process through which a consumer compares the perception of a product with a mental representation of that product in memory.  Analytic versus non-analytic (meeting or not meeting required attributes to “fit”)  Marketing implications for new products or innovations Copyright Atomic Dog Publishing, 2002
  • 24. Consumer Attributions It refers to the process through which people connect events and behavior with causes. Forms of attribution  Product perception (a product problem)  Self-perception (questioning oneself)  Person perception (questioning others motives) Copyright Atomic Dog Publishing, 2002
  • 25. Perceptions of Product/ServiceQuality Perceived quality – a perceptual outcome generated from processing product or service features (benefits delivered) that leads the consumer to make inferences about the quality of that product or service Dimensions of perceived quality for durable goods: ease of use, versatility, durability, serviceability, performance, and prestige Perceived high quality  product satisfaction Copyright Atomic Dog Publishing, 2002
  • 26. Risk Perception/RiskReduction It refers to a perceptual process and behavior outcomes generated from the perception of risk in the purchase or a product or service Components of risk:  Severity of consequences (how bad will it be)  Uncertainty related to those consequences (what are the chances the consequence will occur) Risk reduction strategies: behaviors to reduce their perception of risk in purchase situations Copyright Atomic Dog Publishing, 2002
  • 27. Price Perception Consumers perceive a price as either high or low on the basis of a comparison with an internal price (or referent price). Price perceptions and the social judgment theory – “regions”  “Assimilation” (acceptable) and “contrast” (too high or low) Copyright Atomic Dog Publishing, 2002
  • 28. Perceived Value  The trade-off between product benefits and product costs.Perceived value = perceived benefits / perceived costs Copyright Atomic Dog Publishing, 2002