Module III (Perception Learning).pptx

AMITY SCHOOL OF BUSINESS
Principles of Consumer
Behavior
MODULE III
Internal Influences on Buying Behavior
BY
Dr. Ruchika Jeswal

Model of consumer behaviour
2

TOPICS TO BE COVERED
• Perception and Marketing Strategy
• Learning, Memory and Product Positioning
• Motivation: Nature and role of motives and their
significance in marketing.
• Personality, Self-concept and Lifestyle and its
relevance in consumer behavior.
• Attitudes: Characteristics, functions and its importance
in buyer behavior, Strategies for changing attitude and
intentions
3

PERCEPTION and Marketing Strategy
• The process by which an individual selects, organizes,
and interprets stimuli into a meaningful and coherent
picture of the world.
• Consumers process only a small fraction of the
available information.
• Interpretation can be highly subjective also.
• Reality and consumer’s perception of that reality are
quite different.
4

• Information Processing consists of 4 major steps:
1. Exposure- it occurs when a stimulus such as a banner
ad comes within range of a person’s sensory receptor
nerves.
2. Attention- It occurs when the stimulus is “seen”.
3. Interpretation – It is the assignment of meaning to the
received sensations.
4. Memory- It is the short term use of the meaning for
immediate decision making or the long term retention
of meaning. 6

EXPOSURE
• Exposure occurs when a stimulus is placed within a
person’s relevant environment and comes within range
of their sensory receptor nerves.
• Types of Exposure
• Selective Exposure
• Voluntary Exposure
7

ATTENTION
Attention occurs when the stimulus activates one or more
sensory receptor nerves and the resulting sensations go
to the brain for processing.
• STIMULUS
• INDIVIDUAL FACTORS
• SITUATIONAL FACTORS
8

Stimulus Factors
• SIZE
• INTENSITY
• ATTRACTIVE VISUALS
• COLOR AND MOVEMENT
• POSITION
• ISOLATION
• FORMAT
• CONTRAST AND EXPECTATIONS
• Interestingness
• Information quality
9

Individual Factors
• Motivation
• Ability
Situational Factors
• Clutter
• Program Involvement
10

Interpretation
• Interpretation is the assignment of meaning to
sensations. It is related to how we comprehend and
make sense of incoming information based on
characteristics of the stimulus, the individual and the
situation.
• Cognitive Interpretation- stimuli are placed into existing
categories of meaning
• Affective Interpretation- is the emotional or feeling
response triggered by a stimulus such as an ad.
11

PERCEPTION AND MARKETING
STRATEGY
• Retail Strategy
• Brand Name and Logo Development
- Linguistic Considerations
- Branding Strategies
- Logo design and Typographics
• Media Strategy
• Advertisements
• Package design and Labelling
12

LEARNING
• Learning is any change in the content or organization of
long-term memory or behaviour and is the result of
information processing.
• CB is largely learned behaviour.
• People acquire most of their attitudes, values, tastes ,
behaviours , preferences, symbolic meanings and
feelings through learnings.
• E.g movie choices influenced by what you read online
and discussions we have with friends.
13

Copyright © 2006 Pearson Education
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Opening Vignette
• Why did these products fail?
–Listerine Toothpaste
–Ben-Gay Aspirin
–Oreo Little Fudgies
• Why did PocketPaks succeed?

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Consumer Learning
A process by which individuals acquire the purchase
and consumption knowledge and experience that they
apply to future related behaviour.
1) Consumer learning is a process.
2) It continually evolves and changes as a result of nely
acquired knowledge.
3) Knowledge may be acquired by
reading/discussion/observation/thinking
4) Or from actual experience

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Learning Processes
• Intentional
–learning acquired as a result of a careful
search for information
 Incidental
-- learning acquired by accident or
without much effort

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

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Elements of Learning Theories
• Motivation
• Cues
• Response
• Reinforcement- increases the likelihood that a specific
response will occur in the future as the result of
particular cues or stimuli.

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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.

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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.

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Behavioural Learning Theories
• Classical Conditioning
• Instrumental Conditioning
• Modeling or Observational Learning

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Classical Conditioning
• Pairing a stimulus with another stimulus that elicits a
known response to produce the same response when
used alone.
• Conditioning has come to mean a kind of a reaction or
a response to a situation built up through repeated
exposure.
• E.g. Experiment by Ivan Pavlov.

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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.

e.g. of Classical conditioning
• Unconditioned stimulus- well known brand ( Nutrogena
brand)
• Unconditioned response – previously acquired
consumer perception of that brand.
• Conditioned stimuli might consist of new products
bearing the well-known symbol and the conditioned
response would be trying these products because of
this belief .
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Strategic Applications of Classical
Conditioning
• Repetition-increases the strength of the association between a conditioned
stimulus and unconditioned stimuli and slows the process of forgetting.Advtg wearout
sets in after some time.
• Stimulus Generalization
– The inability to perceive differences between slightly dissimilar stimuli.e.g no difference
between bell sound and keys sound.Me too products are always successful.
• Stimulus Discrimination- consumers ability to discriminate among similar stimuli
is the basis of positioning strategy.

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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

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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

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Repetition
• Repetition increases strength of
associations and slows forgetting
• but over time may result in advertising
wearout.
• Cosmetic variations reduce satiation.

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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.

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Stimulus Discrimination
• The ability to select a specific stimulus from among
similar stimuli because of perceived differences.

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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
» Continued

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Classical Conditioning and Marketing
Strategy
• Distinguish the product through effective use of
stimulus discrimination

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Instrumental (Operant) Conditioning
• learning based on a trial-and-error process, with habits
forced as the result of positive experiences
(reinforcement)

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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.

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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

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Other Concepts in Reinforcement
• Punishment
– Choose reinforcement rather than
punishment
• Extinction
– Combat with consumer satisfaction
• Forgetting
– Combat with repetition

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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

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Cognitive Learning Theory
• Learning through problem solving,
which enables individuals to gain some
control over their environment.
• Three types:
– Observational learning
– Rote Learning
– Reasoning

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Observational Learning
• individuals learn by observing the behaviour of others,
and consequences of such behaviour.
• Also known as modeling or vicarious learning.

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Iconic Rote Learning
• Learning concepts through simple repetition
– Repeated ads teach consumers about a product’s attributes

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Reasoning
• Highest level of cognitive learning
• Involves creative thinking
• Depends on how information is processed and stored

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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.

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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

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