Consumer Learning
Module 4
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Learning
 The process by which individuals acquire the

purchase and consumption knowledge and
experience that they apply to future related
behavior
The Elements Of Consumer Learning
 Motivation: Motivation is important to learning theory.

Motivation is based on needs and goals. Motivation
acts as a spur to learning
 Cues: If motives serve to stimulate learning, cues

are the stimuli that give direction to these
motives. An advertisement for an exotic trip that
includes bike riding may serve as a cue for bike
riders, who may suddenly “recognize” that they “need”
a vacation. The ad is the cue, or stimulus, that
suggests a specific way to satisfy a salient motive. In
the marketplace price, styling, packaging,
advertising, and store displays all serve as cues
to help consumers fulfill their needs in productspecific ways.
 Response: How individuals react to a drive or

cue- how they behave- constitute their
response. Learning can occur even when
responses are not overt.
 Reinforcement: 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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Behavioral Learning Theories
 Classical Conditioning
 Instrumental Conditioning
Classical
Conditioning

A behavioral learning
theory according to
which a stimulus is
paired with another
stimulus that elicits a
known response that
serves to produce the
same response when
used alone.
Models of Classical Conditioning
Analogous Model of Classical
Conditioning
 In a consumer behaviour context, an

unconditioned stimulus might consists of a wellknown brand symbol (such as the Neutrogena
name) that implies dermatologists’ endorsement
and pure (chemically free) products. This
previously acquired consumer perception of
Neutrogena is the unconditioned response.
Conditioned stimuli might consist of new products
bearing the well-known symbol (of Neutrogena),
and the conditioned response would be trying
these products because of the belief that they
embody the same attributes with which the
Neutrogena name is associated.
 Neo-Pavlovian Model: Under neo-Pavlovian

theory, the consumer can be viewed as an
information seeker who uses logical and
perceptual relations among events, along with
his or her own pre-conceptions, to form a
sophisticated representation of the world.
Conditioning is the learning that results from
exposure to relationships among events in the
environment; such exposure creates expectations
as to the structure of the environment.
Strategic Applications of Classical
Conditioning
Basic Concepts
 Repetition

 Increases the

 Stimulus

association between the
conditioned and
unconditioned stimulus
 Slows the pace of
forgetting

generalization
 Stimulus
discrimination

 Although some overlearning

aids retention, at some point an
individual can become satiated
with numerous exposures, and
both attention and retention will
Strategic Applications of Classical
Conditioning
Basic Concepts
 Repetition

 Having the same

 Stimulus

response to slightly
different stimuli
 Useful in product
extensions

generalization
 Stimulus
discrimination
Strategic Applications of Classical
Conditioning
Basic Concepts
 Repetition

 Selection of a specific

 Stimulus

stimulus from among
similar stimuli
 This discrimination is
the basis of positioning
which looks for unique
ways to fill needs

generalization
 Stimulus
discrimination
 Honda Amaze
USP- India’s most fuel efficient compact sedan
Waiting Period: 4-5 months
Price Range : (Rs Lakh)- 4.99-7.66
Honda Amaze
 Maruti DZire

USP: Largest sold compact sedan with Maruti
reliability
Waiting Period: 1-2 months
Price range: (Rs lakh): 4.92-7.50
Maruti DZire
24
Harley Davidson motorcycles

25
Hidesign leather bag

26
Instrumental
(Operant)
Conditioning

Instrumental learning theorists
believe that learning occurs
through a trial-and-error
process, with habits formed as
a result of rewards received
for certain responses or
behaviour. This model of
learning applies to many
situations in which consumers
learn about products, services,
and retail stores.
Types of Reinforcement
 Positive: Consists of events that stengthen the

likelihood of a specific response. Using a
shampoo that leaves your hair feeling silky and
clean is likely to result in a repeat purchase of the
shampoo.
 Negative: It is an unpleasant or negative outcome
that also serves to encourage a specific behavior.
Fear appeals in ad messages are examples of
negative reinforcement. Many life insurance
advertisements rely on negative reinforcement to
encourage the purchase of life insurance.
 Extinction: When a learned response is no longer

reinforced, it diminishes to the point of extinction. If a
consumer is no longer satisfied with the service a
retail store provides, the link between the stimulus
(the store) and the response (expected satisfaction) is
no longer reinforced, and there is little likelihood that
the consumer will return.
 Forgetting: Here the behaviour is unlearned because
of lack of use rather than lack of reinforcement.
Forgetting is often related to the passage of time; this
is known as the process of decay.
 Marketers can overcome forgetting through repetition,

and can combat extinction through the deliberate
enhancement of consumer satisfaction.
Fear appeal (Negative
reinforcement)
United India Assurance:
Today…. A picture of Safety
Tomorrow…. An invitation to Disaster
Your Protection Is Our Concern
Take Cover Under United India
Tonight
Sleep Better Than Your Neighbour
It Costs So Little To Insure Your
Household Belongings
Instrumental Conditioning and
Marketing
 Customer Satisfaction (Reinforcement)
 Relationship marketing
 Shaping ( Reinforcement performed before the

desired consumer behaviour actually takes place is
called shaping).
 Massed versus Distributed Learning (Should a
learning schedule be spread out over a period of time
(distributed learning) or should it be “bunched up” all
at once (massed learning)? When advertisers want an
immediate impact (e.g., to introduce a new product or
to counter a competitor’s blitz campaign), they
generally use a massed schedule to hasten consumer
learning. However, when the goal is long-term repeat
buying on a regular basis, a distribution schedule is
preferable. A distributed schedule, with ads repeated
on a regular basis, usually results in more long-term
learning and is relatively immune to extinction.
Observational
Learning

A process by which
individuals observe how
others behave in response to
certain stimuli and
reinforcements. Also
known as modeling or
vicarious learning. Their
role models are usually
people they admire because
of such traits as appearance,
accomplishment, skill, and
even social class.
The consumer
observes a
positive
response by
two teens.
Cognitive
Learning
Theory

Learning based on
mental activity is called
cognitive learning.
Holds that the kind of
learning most
characteristic of human
beings is problem
solving, which enables
individuals to gain
some control over their
environment.
Information Processing and
Memory Stores
Information Processing
 Information processing is related to both the

consumer’s cognitive ability and the complexity of
the information to be processed.
 Consumers process product information by
attributes, brands, comparisons between brands,
or a combination of these factors.
 Consumers with higher cognitive ability
apparently acquire more product information and
are more capable of integrating information on
several product attributes than consumers with
lesser ability.
 Movement from short-term to long-term storage

depends on
 Rehearsal : The purpose of rehearsal is to hold

information in short-term storage long enough for
encoding to take place.
 Encoding: It is the process by which we select a
word or visual image to represent a perceived
object. Marketers, for example, help consumers
encode brands by using brand symbols. Kellog’s
uses Tony the Tiger on its Frosted Flakes, Dell
Computer turns the e in its logo on its side for quick
name recognition.
Retention:
 Information is stored in longterm memory
 Episodically: by the order in

which it is acquired
 Semantically: according to
significant concepts
 Retrieval: Retrieval is the process by which we

recover information from long-term storage. For
example, when we are unable to remember
something with which we are very familiar, we are
experiencing a failure of the retrieval system.
Involvement theory
 Involvement theory developed from a stream of

research called hemispheral lateralization, or
split-brain theory. The basic premise of splitbrain theory is that the right and left
hemispheres of the brain “specialize” in the kinds
of information they process. The left hemisphere
is primarily responsible for cognitive activities
such as reading, speaking, etc. The right
hemisphere of the brain is concerned with
nonverbal, pictorial , and holistic information.
 The left side of the brain is rational, active, and
realistic; the right side is emotional, impulsive,
and intuitive.
Issues in Involvement Theory
 Consumer Relevance
 Central and Peripheral Routes to Persuasion
 Measure of Involvement
Consumer Relevance
 Involvement depends on degree of personal

relevance.
 High involvement purchases are:
 Very important to the consumer (e.g., in terms of

perceived risk)
 Provoke extensive problem solving (information
processing)
Highly involved consumers find fewer brands
acceptable (they are called narrow categorizers);
uninvolved consumers are likely to be receptive to a
greater number of advertising messages regarding
the purchase and will consider more brands (they
Central and Peripheral Routes
to Persuasion
 Central route to persuasion
 For high involvement purchases
 Requires cognitive processing

 Peripheral route to persuasion
 Low involvement purchases
 Consumer less motivated to think
 Learning through repetition, visual cues, and holistic

perception
The Elaboration Likelihood Model
 ELM suggests that a person’s level of

involvement during message processing is a
critical factor in determining which route to
persuasion is likely to be effective.
 Thus when involvement is high, consumers follow
the central route and when involvement is low
they follow the peripheral route.
Measures of Consumer Learning
 Recognition and Recall Measures
 Recognition tests are based in aided recall, whereas

recall tests use unaided recall. In recognition tests,
the consumer is shown an ad and asked whether he
or she remembers seeing it and can remember any of
its salient points. In recall tests, the consumer is
asked whether he or she has read a specific
magazine or watched a specific television show, and
if so, can recall any ads or commercials seen, the
product advertised, the brand, and any salient points
about the product.
 Cognitive Responses to Advertising
 Comprehension
 Pretesting and Posttesting
 Attitudinal and Behavioral Measures of Brand

Loyalty
 Brand loyalty is the ultimate desired outcome of

consumer learning.
 Attitudinal measures are concerned with
consumers’ overall feelings about the product and
the brand (i.e., evaluation), and their purchase
intentions.
 Behavioral measures are based on observable
responses to promotion stimuli-repeat purchase
behavior rather than attitude towards the product or
brand.
 Four types of loyalty
 No loyalty – no purchase at all and no cognitive

attachment to the brand
 Covetous loyalty- no purchase but strong
attachment and predisposition towards the brand
that was developed from the person’s social
environment
 Inertia loyalty- purchasing the brand because of
habit and convenience but without any emotional
attachment to the brand
 Premium loyalty- high attachment to the brand and
high repeat purchase
Harley-Davidson Has Strong Brand
Loyalty

weblink

consumer behaviour learning

  • 1.
  • 2.
  • 3.
    Learning  The processby which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior
  • 4.
    The Elements OfConsumer Learning  Motivation: Motivation is important to learning theory. Motivation is based on needs and goals. Motivation acts as a spur to learning  Cues: If motives serve to stimulate learning, cues are the stimuli that give direction to these motives. An advertisement for an exotic trip that includes bike riding may serve as a cue for bike riders, who may suddenly “recognize” that they “need” a vacation. The ad is the cue, or stimulus, that suggests a specific way to satisfy a salient motive. In the marketplace price, styling, packaging, advertising, and store displays all serve as cues to help consumers fulfill their needs in productspecific ways.
  • 5.
     Response: Howindividuals react to a drive or cue- how they behave- constitute their response. Learning can occur even when responses are not overt.  Reinforcement: Reinforcement increases the likelihood that a specific response will occur in the future as the result of particular cues or stimuli.
  • 6.
  • 8.
    Behavioral Learning Theories Classical Conditioning  Instrumental Conditioning
  • 9.
    Classical Conditioning A behavioral learning theoryaccording to which a stimulus is paired with another stimulus that elicits a known response that serves to produce the same response when used alone.
  • 10.
    Models of ClassicalConditioning
  • 11.
    Analogous Model ofClassical Conditioning
  • 12.
     In aconsumer behaviour context, an unconditioned stimulus might consists of a wellknown brand symbol (such as the Neutrogena name) that implies dermatologists’ endorsement and pure (chemically free) products. This previously acquired consumer perception of Neutrogena is the unconditioned response. Conditioned stimuli might consist of new products bearing the well-known symbol (of Neutrogena), and the conditioned response would be trying these products because of the belief that they embody the same attributes with which the Neutrogena name is associated.
  • 13.
     Neo-Pavlovian Model:Under neo-Pavlovian theory, the consumer can be viewed as an information seeker who uses logical and perceptual relations among events, along with his or her own pre-conceptions, to form a sophisticated representation of the world. Conditioning is the learning that results from exposure to relationships among events in the environment; such exposure creates expectations as to the structure of the environment.
  • 14.
    Strategic Applications ofClassical Conditioning Basic Concepts  Repetition  Increases the  Stimulus association between the conditioned and unconditioned stimulus  Slows the pace of forgetting generalization  Stimulus discrimination  Although some overlearning aids retention, at some point an individual can become satiated with numerous exposures, and both attention and retention will
  • 15.
    Strategic Applications ofClassical Conditioning Basic Concepts  Repetition  Having the same  Stimulus response to slightly different stimuli  Useful in product extensions generalization  Stimulus discrimination
  • 19.
    Strategic Applications ofClassical Conditioning Basic Concepts  Repetition  Selection of a specific  Stimulus stimulus from among similar stimuli  This discrimination is the basis of positioning which looks for unique ways to fill needs generalization  Stimulus discrimination
  • 20.
     Honda Amaze USP-India’s most fuel efficient compact sedan Waiting Period: 4-5 months Price Range : (Rs Lakh)- 4.99-7.66
  • 21.
  • 22.
     Maruti DZire USP:Largest sold compact sedan with Maruti reliability Waiting Period: 1-2 months Price range: (Rs lakh): 4.92-7.50
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
    Instrumental (Operant) Conditioning Instrumental learning theorists believethat learning occurs through a trial-and-error process, with habits formed as a result of rewards received for certain responses or behaviour. This model of learning applies to many situations in which consumers learn about products, services, and retail stores.
  • 28.
    Types of Reinforcement Positive: Consists of events that stengthen the likelihood of a specific response. Using a shampoo that leaves your hair feeling silky and clean is likely to result in a repeat purchase of the shampoo.  Negative: It is an unpleasant or negative outcome that also serves to encourage a specific behavior. Fear appeals in ad messages are examples of negative reinforcement. Many life insurance advertisements rely on negative reinforcement to encourage the purchase of life insurance.
  • 29.
     Extinction: Whena learned response is no longer reinforced, it diminishes to the point of extinction. If a consumer is no longer satisfied with the service a retail store provides, the link between the stimulus (the store) and the response (expected satisfaction) is no longer reinforced, and there is little likelihood that the consumer will return.  Forgetting: Here the behaviour is unlearned because of lack of use rather than lack of reinforcement. Forgetting is often related to the passage of time; this is known as the process of decay.  Marketers can overcome forgetting through repetition, and can combat extinction through the deliberate enhancement of consumer satisfaction.
  • 30.
    Fear appeal (Negative reinforcement) UnitedIndia Assurance: Today…. A picture of Safety Tomorrow…. An invitation to Disaster Your Protection Is Our Concern Take Cover Under United India Tonight Sleep Better Than Your Neighbour It Costs So Little To Insure Your Household Belongings
  • 31.
    Instrumental Conditioning and Marketing Customer Satisfaction (Reinforcement)  Relationship marketing  Shaping ( Reinforcement performed before the desired consumer behaviour actually takes place is called shaping).  Massed versus Distributed Learning (Should a learning schedule be spread out over a period of time (distributed learning) or should it be “bunched up” all at once (massed learning)? When advertisers want an immediate impact (e.g., to introduce a new product or to counter a competitor’s blitz campaign), they generally use a massed schedule to hasten consumer learning. However, when the goal is long-term repeat buying on a regular basis, a distribution schedule is preferable. A distributed schedule, with ads repeated on a regular basis, usually results in more long-term learning and is relatively immune to extinction.
  • 32.
    Observational Learning A process bywhich individuals observe how others behave in response to certain stimuli and reinforcements. Also known as modeling or vicarious learning. Their role models are usually people they admire because of such traits as appearance, accomplishment, skill, and even social class.
  • 33.
  • 34.
    Cognitive Learning Theory Learning based on mentalactivity is called cognitive learning. Holds that the kind of learning most characteristic of human beings is problem solving, which enables individuals to gain some control over their environment.
  • 35.
  • 36.
    Information Processing  Informationprocessing is related to both the consumer’s cognitive ability and the complexity of the information to be processed.  Consumers process product information by attributes, brands, comparisons between brands, or a combination of these factors.  Consumers with higher cognitive ability apparently acquire more product information and are more capable of integrating information on several product attributes than consumers with lesser ability.
  • 37.
     Movement fromshort-term to long-term storage depends on  Rehearsal : The purpose of rehearsal is to hold information in short-term storage long enough for encoding to take place.  Encoding: It is the process by which we select a word or visual image to represent a perceived object. Marketers, for example, help consumers encode brands by using brand symbols. Kellog’s uses Tony the Tiger on its Frosted Flakes, Dell Computer turns the e in its logo on its side for quick name recognition.
  • 40.
    Retention:  Information isstored in longterm memory  Episodically: by the order in which it is acquired  Semantically: according to significant concepts
  • 41.
     Retrieval: Retrievalis the process by which we recover information from long-term storage. For example, when we are unable to remember something with which we are very familiar, we are experiencing a failure of the retrieval system.
  • 42.
    Involvement theory  Involvementtheory developed from a stream of research called hemispheral lateralization, or split-brain theory. The basic premise of splitbrain theory is that the right and left hemispheres of the brain “specialize” in the kinds of information they process. The left hemisphere is primarily responsible for cognitive activities such as reading, speaking, etc. The right hemisphere of the brain is concerned with nonverbal, pictorial , and holistic information.  The left side of the brain is rational, active, and realistic; the right side is emotional, impulsive, and intuitive.
  • 43.
    Issues in InvolvementTheory  Consumer Relevance  Central and Peripheral Routes to Persuasion  Measure of Involvement
  • 44.
    Consumer Relevance  Involvementdepends on degree of personal relevance.  High involvement purchases are:  Very important to the consumer (e.g., in terms of perceived risk)  Provoke extensive problem solving (information processing) Highly involved consumers find fewer brands acceptable (they are called narrow categorizers); uninvolved consumers are likely to be receptive to a greater number of advertising messages regarding the purchase and will consider more brands (they
  • 45.
    Central and PeripheralRoutes to Persuasion  Central route to persuasion  For high involvement purchases  Requires cognitive processing  Peripheral route to persuasion  Low involvement purchases  Consumer less motivated to think  Learning through repetition, visual cues, and holistic perception
  • 46.
    The Elaboration LikelihoodModel  ELM suggests that a person’s level of involvement during message processing is a critical factor in determining which route to persuasion is likely to be effective.  Thus when involvement is high, consumers follow the central route and when involvement is low they follow the peripheral route.
  • 47.
    Measures of ConsumerLearning  Recognition and Recall Measures  Recognition tests are based in aided recall, whereas recall tests use unaided recall. In recognition tests, the consumer is shown an ad and asked whether he or she remembers seeing it and can remember any of its salient points. In recall tests, the consumer is asked whether he or she has read a specific magazine or watched a specific television show, and if so, can recall any ads or commercials seen, the product advertised, the brand, and any salient points about the product.  Cognitive Responses to Advertising  Comprehension  Pretesting and Posttesting
  • 48.
     Attitudinal andBehavioral Measures of Brand Loyalty  Brand loyalty is the ultimate desired outcome of consumer learning.  Attitudinal measures are concerned with consumers’ overall feelings about the product and the brand (i.e., evaluation), and their purchase intentions.  Behavioral measures are based on observable responses to promotion stimuli-repeat purchase behavior rather than attitude towards the product or brand.
  • 49.
     Four typesof loyalty  No loyalty – no purchase at all and no cognitive attachment to the brand  Covetous loyalty- no purchase but strong attachment and predisposition towards the brand that was developed from the person’s social environment  Inertia loyalty- purchasing the brand because of habit and convenience but without any emotional attachment to the brand  Premium loyalty- high attachment to the brand and high repeat purchase
  • 50.
    Harley-Davidson Has StrongBrand Loyalty weblink