Consumer learning is vital in creating Brand loyalty and Brand equity. In this presentation you will come to know about how people learn and what you should do as a company to make consumers learn about your product.
“Learning is defined as the process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior” “It is a relatively permanent change in behavior caused by experience” Learning is a process. It’s the result of Knowledge or Experience. It serves as the feedback and affects future behavior. Learning can be intentional or incidental.
ELEMENTS OF LEARNING Motivation: Unfulfilled needs leads to motivation. Motives serves to stimulated learning. Cues: Stimulus that directs the motives. Marketers must provides cues that don’t upset their expectation. Response: How individual react to drive or cue – how they behave – constitute their response. Reinforcement: Reinforcement increases the likelihood that a specific response will occur in the future as the result of particular cues or stimuli.
BEHAVIORAL LEARNING THEORIES Classical Conditioning:- IVAN PAVLOV EXPERIMENT
DIAGRAMMATIC REPRESENTATION OF CLASSICALCONDITIONING
CONSUMER BEHAVIOR APPLICATION Unconditioned Stimulus – Brand Name Unconditioned Response – Previously acquired Consumer Perception Conditioned Stimuli – Versions (product or service) of the same brand. Conditioned Response – Consumer Trying the product. Examples: Amul, Tata, Birla group, Microsoft.
COGNITIVE ASSOCIATIVE LEARNING From this viewpoint, classical conditioning is not reflexive action, but rather the acquisition of new knowledge. Optimal Conditioning – Creating strong association between the conditioned stimulus(new product from same brand) and unconditioned stimulus(Brand name).
HOW IT SHOULD BE DONE:- Step 1:- Forward conditioning – CS should precede US. Step 2:- Repeated pairing of CS and US. Step 3:- CS and US should logically blend together Step 4:- CS that is novel and unfamiliar Step 5:- US that is biologically or symbolically salient.This model is called Neo Pavlovian Conditioning
In Neo Pavlovian theory, consumers are viewed as Information seekers (who use logical and perceptual relationship among events). They do have preconceptions. Conditioning is the learning that results from exposure to relationship among events. Exposure creates expectations.
STRATEGIC APPLICATIONS OF CLASSICALCONDITIONING Repetition Stimulus Generalization Stimulus Discrimination
REPETITION HSBC AD 1 HSBC AD 2 More repetition will lead to Advertisement wear out. Substantive Variations should be given to consumers. For same products develop two ads stressing two different attributes in a product.
Three hit theory: Three repetitions are required To make consumer aware of the product/ service. To show consumers relevance to the product To remind benefits Repetition depends on the competitive ads. If more competitors are there, consumer may forget your product.
STIMULUS GENERALIZATION Learning depends not only by repetition but also on the ability of individuals to generalize. Marketing Applications:- Product Line, Form and Category Extensions. Family Branding Licensing
PRODUCT FORM EXAMPLEDove Shampoo and Conditioner, Colgate Paste andMouthwash. Laptop and Desktops
STIMULUS DISCRIMINATION Opposite to Stimulus Generalization and that results in the selection of specific stimulus from among the similar stimulus. It’s key in developing positioning strategy. To create a distinctive image in the minds of the customers about your product.
OPERANT CONDITIONING Learning occur through trail and error basis. VIDEO. According to B.F.Skinner, “Individual learning occurs in a controlled environment in which individuals are rewarded for choosing an appropriate behavior”.
REINFORCEMENT OF BEHAVIOR Positive reinforcement – Events that strengthen the likelihood of a specific response. Ex: Using Shampoo – if you feel good, you will buy it again. Negative reinforcement – Unpleasant or Negative outcome that also serves to encourage a specific behavior. Ex: The Atlantic – Are you missing what is important? The Economist – Get a world view.
FEAR APPEAL IN ADS VIDEO Ads related to toothpaste, mouthwash, headache use negative reinforcement. Punishment should not be confused with negative reinforcement.
EXTINCTION AND FORGETTING Extinction – When a learned response is not longer reinforced, it diminishes to the point of extinction. Eg) UTI bank to Axis bank. Where extinction is highly necessary. Forgetting is often related to passage of time. Eg) Visited a restaurant long back.
MARKETING APPLICATIONS Customer Satisfaction: Relationship Marketing. Reinforcement Schedules Total ( or Continuous) Systematic ( or Fixed Ratio) – every nth time. Random (or Variable) – lotteries, sweepstakes, gambling. Shaping – Reinforcement performed before the desired consumer behavior actually takes place. Eg) Test drive, Discounts for few products in the showroom which tends people to buy non discounted products.
OBSERVATIONAL LEARNING Also called as Modeling or Vicarious Learning
EXAMPLES OF LEARNING IN DAILY LIFE Classical Conditioning – Soap, Paste, Food. Operant Conditioning Positive reinforcement – Dad buys a cycle for getting first mark. Negative reinforcement – Dad ask you to get good marks or study well else you will not get good college or job. Punishment – Dad beats you for coming late to home. Observational Learning You want to wear dress like the hero who comes in the movie.
COGNITIVE LEARNING THEORIES Information Processing:- Sensory Store Short term store Long term store Rehearsal and Encoding Retention Retrieval
SENSORY STORE - EXAMPLES Retains in the memory for 2 – 3 seconds. Using new soap, paste, advertisement music, pamphlet, fragrance of a retail shop.
SHORT TERM STORE Looking phone number while dialing. If the Short term memory does rehearsal then it reaches Long term memory. Transfer process takes 2 – 10 seconds, and lost in 30 seconds if not Rehearsed.
MEMORIZE THESE LETTERS IN 15 SECONDS –ENCODING & CHUNKING EXAMPLE BGI TAE LTE GDO ETLNow try this one,BIG EAT LET DOG THEEncoding makes it easy to retain information. ( E in Dell, McD in McDonald.)Chunking is recoding the information which was encoded earlier.
RETENTION Information is stored in long-term memory Episodically: by the order in which it is acquired Semantically: according to significant concepts Total package of associations is called a schema
CONSUMER INVOLVEMENT AND PASSIVE LEARNING High involvement consumer Low involvement consumer CENTRAL AND PERIPHERAL ROUTES OF PERSUASION HEMISPHERIC LATERALIZATION
OUTCOMES AND MEASURES Measurement:- RECOGNITION TEST– AIDED RECALL TEST – UNAIDED
BRAND LOYALTY AND BRAND EQUITY Brand loyalty factors:- Personal degree of risk aversion or variety seeking Brand reputation and availability of substitutes Social group influences. Loyalty types: No loyalty Covetous loyalty – no purchase/ strong association Inertia loyalty - purchase/ no strong emotional attachment Premium loyalty – high attachment and high purchase
BRAND EQUITY Brand equity refers to the value inherent in a well known brand name. Well known brand names are referred to as Megabrands. Co branding – two brand names featured on a single product.