Presentation Transcript Turn off transcript Chapter 5: Consumer Learning and Memory Chapter 5 Consumer Learning and Memory Why Marketers are Concerned about How Consumers Learn: Why Marketers are Concerned about How Consumers Learn Marketers want to “teach” consumers about their products product attributes where to buy them how to use and dispose of them They want to know how effective they have been in communicating with the consumer directly, through advertisements Indirectly, through product appearance, packaging, price and distribution channels What is Learning?: What is Learning? Generally, learning is a process by which changes occur in the content or organization of an individual’s long-term memory From a marketing standpoint, learning can be thought of as the process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior Range of Learning Situations: Range of Learning Situations Learning occurs at various levels of consumer involvement Low-level involvement : consumers have little or no motivation to process the information High-involvement learning : consumers are highly motivated to process the information Learning Theories: Learning Theories There are many theories about how people learn They fall into two general categories: Behavioral learning theories Cognitive theories Behavioral Learning Theories: Behavioral Learning Theories Are also referred to as stimulus-response theories because based on premise that observable responses to specific external stimuli signal learning has taken place When a person responds in a predictable way to a known stimulus, he or she is said to have learned There are two behavioral theories with relevance to marketing: Classical conditioning Instrumental/operant conditioning Classical Conditioning: Classical Conditioning The theory that conditioned learning results when a stimulus that is paired with a stimulus that elicits a known response serves to produce the same response when used alone Classical Conditioning: Classical Conditioning Schematic Presentation of Classical Conditioning Conditioned Stimulus (CS) Unconditioned Stimulus (US) Unconditioned Response (UR) Elicits Comes to Elicit PowerPoint Presentation: The use of a well-known, admired individual to advertise a product can condition consumers to have positive feelings about the product “Cause marketing” Strategic Applications of Classical Conditioning: Strategic Applications of Classical Conditioning Three basic concepts derive from classical conditioning Repetition Stimulus generalization Stimulus discrimination 1. Repetition: Increases the strength of the association between a conditioned stimulus and an unconditioned stimulus (learning) It is used by advertisers when scheduling media exposure for an advertising campaign Too much repetition can lead to advertising wearout Consumers may become annoyed with repetitive ads and develop a negative image of the product as a result 1. Repetition 2. Stimulus Generalization: 2. Stimulus Generalization Learning relies not only on repetition, but on peoples’ ability to generalize --that is, respond in the same way to slightly different stimuli Explains why some manufacturers try to make their generic/store brands similar in appearance to name brands PowerPoint Presentation: Marketers use this principle to take advantage of a well-known and trusted brand in a number of ways Product line extensions Product form extension Product category extension Referred to as the halo effect 3. Stimulus Discrimination: 3. Stimulus Discrimination Opposite of stimulus generalization Results in the selection of a specific stimulus from among similar stimuli Forms the basis for marketers’ positioning strategy Permits marketers to differentiate their product from competitors’ (through, e.g. different features, colors, ingredients, etc.) Operant (Instrumental) Conditioning: Operant (Instrumental) Conditioning B.F. Skinner Learning occurs through trial and error Habits are formed as a result of rewards for certain behaviors Consumers who try different brands, models, styles until they find the one that “fits” are engaged in instrumental learning Operant Conditioning: Operant Conditioning Specific Behavior Reinforcement or Punishment Increased or Decreased Probability of Response Schematic Presentation of Operant Conditioning Reinforcement: Reinforcement A reward given to acknowledge a desired behavior and increase the probability it will be repeated Positive reinforcement Events that strengthe n the likelihood of a specific response Negativ e reinforcement A negative outcome that also serves to encourage a specific behavior Fear appeals Punishment: Punishment Punishment discourages behavior as opposed to encouraging behavior to avoid a negative result Extinction: Extinction When a learned response is no longer reinforced, it diminishes to the point of extinction—i.e., there is no longer a link between the stimulus and the expected reward Strategic Applications of Instrumental Conditioning: Strategic Applications of Instrumental Conditioning Customer Satisfaction In order to keep its customers, a marketer or business must maximize positive reinforcement This can be done through the product itself Can also be done with other elements of the purchase situation Reinforcement Schedules: Reinforcement Schedules The pattern in which reinforcements are given Marketers have found that while product quality needs to remain high to satisfy consumers, non-product positive reinforcement does not have to be offered every time PowerPoint Presentation: Three types of reinforcement schedules: Continuous/total (every time) Systematic/fixed ratio (every “nth” time) Random/variable ratio Reinforcement Schedules & Forgetting: Time Time Behavior Maintenance Behavior Maintenance Reinforcement Schedules & Forgetting Forgetting occurs more quickly Forgetting occurs gradually over time and the residual effects of learning persist Continuous Reinforcement Intermittent Reinforcement Cognitive Learning Theory: Cognitive Learning Theory Learning based on mental activity (i.e. thinking and problem-solving) Unlike simpler organisms, we learn not only by trial and error, but by searching for information evaluating the information, and making a decision about what is best for us Marketing Implications of Cognitive Learning Theory: Marketing Implications of Cognitive Learning Theory Primary implication is to emphasize the importance of providing information to consumers Providing information can be a promotional strategy as well Cognitive Associative Learning: Cognitive Associative Learning Also called Neo-Pavlovian theory Learning involves not only the acquisition of new reflexe s; it is the acquisition of new knowledg e about the world Under this theory, consumers are viewed as information seekers who use logical and perceptual relations among events, along with their own preconceptions, to form a sophisticated representation of the world Implications for Marketers: Implications for Marketers Marketers draw on both cognitive and operant conditioning theories Providing information about a product (e.g., eggs are OK to eat) draws on cognitive theory Providing rewards (e.g., frequent flyer miles, coupons, etc.) draws on classical conditioning theory Vicarious (Observational) Learning: Vicarious (Observational) Learning The process through which individuals learn behavior by observing the behavior of others and the consequences of such behavior Role models tend to be people consumers admire because of traits such as appearance, accomplishment, skill, or social class PowerPoint Presentation: Another alternative form of observational learning involves representation of negative consequences of not using the advertised product Brand Loyalty: Brand Loyalty A consumer’s consistent preference for and purchase of a specific brand In high-involvement purchases (e.g., a car) it reduces risk and facilitates selection In low-involvement purchases (e.g., tissues) it saves time and effort Brand loyalty generally results from consistent positive experiences with a company and/or its products PowerPoint Presentation: There has been a recent decline in brand loyalty Boredom or dissatisfaction with the products Variety-seeking Increased concern with price To counter these actions, marketers have adopted a number of programs (e.g., frequent flyer) that reward brand loyalty
Why do you suppose they are concerned? In order to do all this, they have to understand how consumers learn
There are many definitions
When would that (low-level involvement) occur? When consumers see ads for products they do not want or need When would that occur? Consumers are likely to read or watch ads for products they may purchase in the near future
In other words, when…
What is it? What does that mean? Can you identify the best-known example? Pavlov’s experiments
My recollection is the behavior was salivating, not barking (but couldn’t get clip art of saliva?)
In the consumer behavior context, how does this work? Examples? Tiger Woods/Buick Wheaties After 9/11, almost anything using the flag What is it? Associating a product with a worthy, charitable cause by donating money to it (we’ll see this next class)
What is the effect of repetition on classical conditioning? Did Pavlov’s dog salivate the first few times the bell rang? Do advertisers use repetition? In fact… Can you have too much of a “good thing?” Can it have negative effects? You bet…
What does this mean? For example, Pavlov’s dogs salivated when he jangled keys as well as when he rang a bell, because the sound was similar Can you think of a marketing implication of this phenomenon?
How else might marketers use this principle? Examples? 1. adding new sizes, colors, flavors, etc. 2. Ivory bath soap to Ivory liquid soap to Ivory bath gel 3. Disposable BIC pens to disposable BIC razors; Tylenol into many related products
What is it? Would involve the dog NOT responding to the jangling keys Advertisers of brand name products cautioning customers not to buy cheap imitations is an effort prompt SD
Instrumental conditioning learning… What psychologist is most closely connected to this concept? What were his experiments like? Like Pavlov, worked with animals. Small animals (rats and pigeons) were placed in a box; if they made appropriate movements (e.g., depressing a lever or pecking a key) they received food (positive reinforcement). He actually taught animals to do some amazing things, such as teaching pigeons to play ping-pong and to dance. What was the theory that was developed from his experiments? How does this apply in the marketing context? Examples? Clothing stores Restaurants Automobiles
We’ll talk about reinforcement and punishment next…
What do we mean by “reinforcement”? Examples? A grade in an exam or course; a bribe? What are the two types of reinforcement? Examples in consumer behavior context? Positive? Owning a trouble-free automobile Negative? An ad showing a model with a sunburn as an inducement to buy the advertised lotion (Note it’s not the same thing as punishment) The latter is an example of a “fear appeal,” a common form of negative reinforcement Examples of products and services sold using fear appeals? Life insurance Headache remedies mouthwash deodorant
How does it differ from “negative reinforcement”? Examples? Parking tickets Speeding tickets Some consider fear and guilt advertising forms of “punishment”
An important concept related to learning is… What is it in this context? Examples? When you have a couple of bad meals at your favorite restaurant When the new car you bought because the previous models were trouble-free begins to develop problems
Let’s look at some… How do businesses keep customers once they’ve gotten them? Examples of “other elements”? Toll-free lines warranties Serving complimentary food or beverage Otherwise creating an atmosphere that’s pleasant chocolates on pillows, platters of fruit, etc.
A related concept is… What does this mean? For example, occasional upgrade or unannounced sale
Book says only two Examples of random/variable ratio: slot machines, lotteries, sweepstakes Variable ratios engender high rates of desired behavior and resistance to extinction (‘hope springs eternal’)
Graphs show that while learning occurs more quickly with continuous reinforcement, forgetting does also.
OK, besides behavioral learning theory, the other general theory of learning is… What is it? Skinner and Pavlov worked with simpler organisms; this theory says that...
Example of providing information in a way that is a promotional strategy as well? Infomercials! Classic blend of entertainment and marketing!
Yet another theory, combining both classical and cognitive theories, is referred to as… Suggests that learning is not the simple associative process described earlier; rather…
So, what are the implications of these theories for marketers?
One more learning model… Who are the role models for this type of learning? Examples include people like Tiger Woods and Michael Jordan (e.g., the ad where all the guys in the locker room admire his underwear!) OJ Simpson—I guess not in recent years If you’re selling to the youth market, you might use skate boarders, snow boarders, etc.
Examples? Ads for puncture-free tires (“You’re out on the road; it’s dark; it’s raining…) the old American Express ads (“don’t leave home without it”)
One result of learning is… What are the advantages for the consumer of brand loyalty? Why do consumers become brand loyal?
Why? A number of reasons suggested: As I may have said, United Airlines said the last thing it would let go of in bankruptcy is its frequent flyer program
Chapter 5 Consumer Learning and Memory Consumer Learning and Memory
Why Marketers are Concerned about How Consumers Learn
Marketers want to “teach” consumers about their products
where to buy them
how to use and dispose of them
They want to know how effective they have been in communicating with the consumer
directly, through advertisements
Indirectly, through product appearance, packaging, price and distribution channels
Reinforcement Schedules & Forgetting Forgetting occurs more quickly Forgetting occurs gradually over time and the residual effects of learning persist Continuous Reinforcement Intermittent Reinforcement Time Time Behavior Maintenance Behavior Maintenance
Learning involves not only the acquisition of new reflexe s; it is the acquisition of new knowledg e about the world
Under this theory, consumers are viewed as information seekers who use logical and perceptual relations among events, along with their own preconceptions, to form a sophisticated representation of the world