Consumer Behavior , Learning and Memory, Understand how consumers learn about products and services ,Conditioning results in learning , Learned associations with brands generalize to other products, and why this is important to marketers ,here is a difference between classical and instrumental conditioning, and both processes help consumers to learn about products, learn about products by observing others' behavior

1. Consumer Behavior
Learning and Memory

2. Objectives:
1. Understand how consumers learn about products and services.
2. Conditioning results in learning.
3. Learned associations with brands generalize to other products, and why
this is important to marketers.
4. There is a difference between classical and instrumental conditioning,
and both processes help consumers to learn about products.
5. learn about products by observing others' behavior.

3. 6. Our brains process information about brands to retain them in
memory.
7. The other products we associate with an individual product
influence how we will remember it.
8. Products help customers to retrieve memories from past.
9. Marketers measure memories about products and ads

4. Elements of learning:
 motivation of the learner; (reason or purpose for learning)
 the right stimulus (in the form of knowledge, skills, or attitudes)
presented in an engaging and interactive manner (teaching)
 opportunities to test your learning (application of learning)
 feedback on the performance, including guidance for wrong
responses and reinforcement of the right responses (feedback and
reinforcement to complete the learning cycle)
 rewards for mastering the subject by passing a final exam
(extrinsic rewards that improve motivation)

5. The Learning Process
 Learning: a relatively permanent change in behavior caused by
experience
 Incidental learning: casual, unintentional acquisition of knowledge
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6. Behavioral Learning Theories:
 Is assume that learning takes place as the
result of responses to external events.

8. Two major approaches of behavioral
learning theories:
 Classical conditioning: occurs when a stimulus that elicits a response is
paired with another stimulus that initially does not elicit a response on its
own.
 Instrumental conditioning (operant conditioning): the individual learns to
perform behaviors that produce positive outcomes and to avoid those that
yield negative outcomes.

9. Classical Conditioning
 occurs when a stimulus that elicits a response is paired with
another stimulus that initially does not elicit a response on its own.
 Dog food=unconditioned stimulus (natural reaction is drooling)
 Bell= conditioned stimulus (dogs learned to drool when bell rang)
 Drooling= conditioned response

10. Repetition
 increase the strength of stimulus-response associations and
prevent the decay of these associations in memory.
 Repetition increases learning.
 More exposures = increased brand awareness
 When exposure decreases, extinction occurs
 However, too much exposure leads to advertising wear out

11. extinction
 occurs when the effects of prior conditioning
diminish and finally disappear.

12. Stimulus Generalization
 refers to the tendency of stimuli similar to a conditioned stimulus to
evoke similar, conditioned responses.
 When the quality of the product turns out to be lower than that of the
original brand, consumers may exhibit even more positive feelings
toward the original. However, if they perceive the quality of the two
competitors to be about equal, consumers may conclude that the price
premium they pay for the original is not worth it.

13. Stimulus Discrimination
 occurs when a ucs does not follow a stimulus similar to a cs.
 Manufacturers of well established brands commonly urge consumers not
to buy "cheap imitations" because the results will not be what they
expect.

14. Marketing Applications of
Conditioned Product
Associations
 Advertisements often pair a product with a positive stimulus to create a
desirable association.
 Various aspects of a marketing message, such as music, humor, or imagery,
can affect conditioning.
 a marketer should present the conditioned stimulus prior to the unconditioned
stimulus.

15. Marketing Applications of
Stimulus Generalization
 The process of stimulus generalization often is central to branding and packaging
decisions that try to capitalize on consumers' positive associations with an existing
brand or company name.
 Strategies that marketers base on stimulus generalization include:
 Family branding.
 Product line extensions.
 Licensing.
 Look-alike packaging.

16. Instrumental
Conditioning
 occurs when we learn to perform behaviors that produce positive outcomes
and avoid those that yield negative outcomes.
 occurs in one of three ways:
1. positive reinforcement.
2. Negative reinforcement.
3. Punishment.

19. Instrumental
Conditioning
 It’s important for marketers to determine the most effective
reinforcement schedule to use.
 Several schedules are possible:
 Fixed-interval reinforcement.
 Variable-interval reinforcement.
 Fixed-ratio reinforcement.
 Variable-ratio reinforcement.

20. Marketing Applications of
Instrumental Conditioning Principles
 Frequency marketing: is a popular technique
that rewards regular purchasers with prizes that
get better as they spend more.

21. Cognitive Learning Theory
 This perspective views people as problem solvers who
actively use information from the world around them to
master their environments. Supporters of this view also
stress the role of creativity and insight during the
learning process.

22. Observational Learning
 Observational learning: occurs when we watch the
actions of others and note the reinforcements they
receive for their behavior.
 Modeling (not the runway kind): is the process of
imitating the behavior of others.

23. Observational Learning
 observational learning in the form of modeling to occur, the marketer
must meet four conditions:
1. The consumer's attention must be directed to the appropriate model,
whom, for reasons of attractiveness, competence, status, or
similarity, he must want to emulate.
2. The consumer must remember what the model says or does.
3. The consumer must convert this information into actions.
4. The consumer must be motivated to perform these actions.

24. THE OBSERVATIONAL
LEARNING PROCESS

26. Memory:
 Memory is a process of acquiring information and storing
it over time so that it will be available when we need it.
 Contemporary approaches to the study of memory
employ an information-processing approach. They
assume that the mind is in some ways like a computer
 THE MEMORY PROCESS:

27. How Our Brains Encode Information
 it's more likely that we'll retain incoming data when we associate it with other
things already in memory.
The way we encode, or mentally program, information helps to determine how
our brains will store this information.

28. How Our Brains
Encode Information
 Encode: mentally program meaning
 Types of Meaning
 sensory meaning: such as the literal color or shape of a package.
 Semantic meaning: refers to symbolic associations.
 Episodic memories: relate to events that are personally relevant.
 Narrative: memories store information we acquire in story form.

29. Memory Systems
 there are three distinct memory systems:
 sensory memory: stores the information we receive from our senses.
 short-term memory (STM): stores information for a limited period of
time, and it has limited capacity.
 and long-term memory (LTM):is the system that allows us to retain
information for a long period of time.

30. Spreading Activation
 spreading activation allows us to shift back and forth among levels of
meaning.
 Meaning types of associated nodes:
 Brand-specific
 Ad-specific
 Brand identification
 Product category
 Evaluative reactions

31. Levels of Knowledge
 Individual nodes = meaning concepts
 Two (or more) connected nodes = proposition (complex
meaning)
 Two or more propositions = schema
 We encode info that is consistent with an existing
schema more readily
 Service scripts

32. How We Retrieve Memories
When We Decide What to Buy
 Retrieval: is the process whereby we recover information from long-
term memory
 Individual cognitive or physiological factors: are responsible for
some of the differences in retrieval ability among people.
 Situational factors
 Consumer attention; pioneering brand.
 Viewing environment (continuous activity; commercial order
in sequence)
 Post experience advertising effects

33. What Makes Us Forget?
 Appropriate factors for retrieval:
 State-dependent retrieval/ mood congruence effect
 Familiarity
 Salience/von Rest Orff effect
 Visual memory versus verbal memory

34. Products as Memory Markers
 Products help us to retrieve memories from our
past.

35. How we measure consumers recall
of marketing messages
 Recognition versus recall
 Problems with memory measures
 Response biases
 Memory lapses
Omitting
Averaging
Telescoping
 Illusion of truth effect

36. Bittersweet Memories:
The Marketing Power of Nostalgia
 Nostalgia: describes the bittersweet emotion that arises
when we view the past with both sadness and longing.
 A retro brand: is an updated version of a brand from a
prior historical period