Consumer Behaviour

1. 7-1
Consumer Learning

2. 7-2
Consumer
Learning
A process by which
individuals acquire the
purchase and
consumption
knowledge
and experience
that they apply to
future related behavior.

3. 7-3
Importance of Learning
• Marketers must teach consumers:
– where to buy
– how to use
– how to maintain
– how to dispose of products

4. 7-4
Learning Processes
• Intentional:
learning acquired as
a result of a careful
search for
information
• Incidental:
learning acquired
by accident or
without much effort

5. 7-5
Elements of Learning Theories
• Motivation
• Cues
• Response
• Reinforcement

6. 7-6
Motivation
• The degree of relevance or involvement
determines consumer level of motivation to
search for
– knowledge or
– information about a product or a service.

7. 7-7
Cues
• Motives serve to stimulate learning,
• Cues are the stimuli that gives direction to
these motives e.g. an ad is a cue for
consumer motivation for a specific product
or service.
• In the market place price, styling,
packaging, advertising and the store
displays all serve as cues.

8. 7-8
Response
• How individuals react to a drive or cue
• How they behave constitute their response
e.g. a marketer that provides consistent cues
to a consumer may not always succeed in
stimulating a purchase.

9. 7-9
Response contd…
• However if marketer succeeds in forming a
favorable image of a particular product in
consumer’s mind.
• It is likely that he or she will consider that
product.

10. 7-10
Reinforcement
A positive or
negative outcome
that influences the
likelihood that a
specific behavior
will be repeated in
the future in
response to a
particular cue or
stimulus.

11. 7-11
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:
Removal of Unpleasant
or negative outcomes
that serve to encourage
a specific behavior
• Example: Ad showing
wrinkled skin as
reinforcement to buy
skin cream

12. 7-12
Learning Theories
• Behavioral Theories:
Theories based on the
basis 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.

13. 7-13
Behavioral Learning Theories
• Classical Conditioning
• Instrumental Conditioning
• Modeling or Observational Learning

14. 7-14
Classical
Conditioning
A behavioral learning
theory according to
which a stimulus is
paired with another
stimulus that causes a
known response that
serves to produce the
same response when
used alone.

15. 7-15
Analogous Model of Classical
Conditioning
Unconditioned Stimulus
Dinner aroma
Conditioned Stimulus
9 o’clock news
Unconditioned Response
Salivation
Conditioned Stimulus
9 o’clock news
Conditioned Response
Salivation
AFTER REPEATED PAIRINGS

16. 7-16
Strategic Applications of Classical
Conditioning
• Associative Learning
• Repetition
• Stimulus Generalization
• Stimulus Discrimination

17. 7-17
Associative Learning
• The form of association imparted by
marketers to brands has important
implications for how consumers
spontaneously connect with brands.
Eg: Dettol associates with germ-free
CCD with relaxation and socializing
Saffola with healthy cooking

18. 7-18
Repetition
• Repetition
increases strength
of associations and
slows forgetting but
over time may
result in advertising
wearout.
Figure 7.3 Cosmetic
Variations in Ads

19. 7-19
Three-Hit Theory
• Repetition is the basis for the idea that three
exposures to an ad are necessary for the ad
to be effective
1) to make consumers aware of the product
2) to show consumers the relevance of the
product
3) to remind them of its benefits

20. 7-20
Stimulus
Generalization
The inability to
perceive differences
between slightly
dissimilar stimuli.

21. 7-21
Continued.
• It explain why some imitative products
succeed in the market place.
Because
• Consumers confuse them with original
product they have seen advertised

22. 7-22
Stimulus Generalization and
Marketing
• Product Line, Form and Category
Extensions
• Family Branding
• Licensing

23. 7-23
Product Line Extension
(adding more products to an
already established brand)

24. 7-24
Product Form Extensions

25. 7-25
Product
Category
Extensions

26. 7-26
Family branding
• The practice of marketing a whole line of
company products under the same brand
name

27. 7-27
Family branding
• The practice of marketing a whole line of
company products under the same brand
name.
• A strategy that capitalizes on the consumers
ability to generalized favorable brand
associations from one product to others: e.g
Patanjali

28. 7-28
Licensing
• Allowing a well known brand name to be affixed
to products of another manufacturer.
• A strategy that operates on the principle of
stimulus generalizations.
• Examples: names of designers, manufacturers,
celebrities, corporations and even cartoon
characters are attached with the product.

29. 7-29
Stimulus
Discrimination
The ability to select
a specific stimulus
from among similar
stimuli because of
perceived
differences.
Positioning
Differentiation

30. 7-30
Instrumental
(Operant)
Conditioning
A behavioral theory of
learning based on a
trial-and-error process,
with habits forced as
the result of positive
experiences
(reinforcement)
resulting from certain
responses or
behaviors.

31. 7-31
A Model of Instrumental Conditioning
Stimulus
Situation
(Need good-
looking jeans)
Try
Brand D
Try
Brand C
Try
Brand B
Try
Brand A
Unrewarded
Legs too tight
Unrewarded
Tight in seat
Unrewarded
Baggy in seat
Reward
Perfect fit
Repeat Behavior

32. 7-32
Instrumental Conditioning
• Consumers learn by means of trial and error
process in which some purchase behaviors
result in more favorable outcomes (rewards)
than other purchase behaviors.
• A favorable experience is instrumental in
teaching the individual to repeat a specific
behavior.

33. 7-33
Instrumental Conditioning and
Marketing
• Customer Satisfaction (Reinforcement)
• Reinforcement Schedules
- Total (Continuous)
- Systematic (Fixed ratio)
- Random (Variable ratio)
• Shaping

34. 7-34
Modeling or
Observational
Learning
A process by which
individuals observe
the behavior of
others, and
consequences of
such behavior.

35. 7-35
Model or observational learning
• Consumers often observe how others
behave in response to certain situations
(stimuli) and the ensuing (subsequent)
results (reinforcement) that occur
&
• The imitate (model) the positively
reinforced behavior when faced with similar
situations.

36. 7-36
Information
Processing
how information is
stored in human
memory and how it is
retrieved.

37. 7-37
Information Processing and Memory
Stores
Sensory
Store
Working
Memory
(Short-
term
Store)
Long-
term
Store
Sensory
Input Rehearsal Encoding Retrieval
Forgotten;
lost
Forgotten;
lost
Forgotten;
unavailable

38. 7-38
Retention
• Information is stored in
long-term memory
– Episodically: by the order
in which it is acquired
– Semantically: according
to significant concepts

39. 7-39
Cognitive
Learning
Theory
Holds that the kind
of learning most
characteristic of
human beings is
problem solving,
which enables
individuals to gain
some control over
their environment.

40. 7-40
Involvement
Theory
A theory of consumer
learning which claims
that consumers engage
in a range of
information processing
activity from extensive
to limited problem
solving, depending on
the relevance of the
purchase.

41. 7-41
Issues in Involvement Theory
• Consumer Relevance
• Central and Peripheral Routes to Persuasion

42. 7-42
Consumer Relevance
• Involvement depends on degree of personal
relevance.
• High involvement is:
– Very important to the consumer
– Provokes extensive problem solving

43. 7-43
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) while
uninvolved consumers can
be attracted through
peripheral advertising cues
such as the model or the
setting (the peripheral route).

44. 7-44
Involvement
Central
Route
Peripheral
Route
Peripheral
Cues
Influence
Attitudes
Message
Arguments
Influence
Attitudes
HIGH LOW

45. 7-45
Split Brain
Theory
• Right/ Left Brain
Hemispheres
specialize in certain
functions

46. 7-46
Measures of Consumer Learning
• Recognition and Recall Measures
– Aided and Unaided Recall
• Attitudinal and Behavioral Measures of
Brand Loyalty

47. 7-47
Brand Loyalty
• Function of three groups of influences
– Consumer drivers
– Brand drivers
– Social drivers
• Three types of loyalty
– Covetous loyalty
– Inertia loyalty
– Premium loyalty