Consumer Knowledge ,Learning, memory, and positioning
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This document discusses key concepts in consumer learning and memory as they relate to marketing. It covers classical and operant conditioning models of how consumers learn associations between products and positive outcomes. Marketers can use techniques like repetition, emotional imagery, and reinforcement to strengthen brand associations through classical conditioning. Operant conditioning involves rewarding behaviors to increase their likelihood, like providing incentives to try new products. The document also discusses how memory forms through encoding experiences into networks and how marketer can leverage existing brand equity.
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Consumer Knowledge ,Learning, memory, and positioning
- 1. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 1 CONSUMER KNOWLEDGE, LEARNING, AND UNDERSTANDING Learning--what is it? – Operant conditioning – Classical conditioning – Brand loyalty Perception – Characteristics of the senses – Accuracy – Ability to detect change – Attention Most useful for vicarious learning! One form of learning...
- 2. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 2 CLASSICAL AND INSTRUMENTAL (OPERANT) CONDITIONING Consumers (often unconsciously) link objects to past experience Consequences of behavior tend to influence subsequent behavior
- 3. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 3 Another Typology Learning Low Involvement High Involvement
- 4. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 4 Classical Conditioning Pavlov’s dogs Objects (stimuli) associated with a response may bring about the response Credit card studies Stimuli and responses
- 5. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 5 NOTE: UR and CR represent the same behavior, but causes differ Classical Conditioning US ----> UR (Unconditioned stimulus) (Unconditioned response) US + CS -----> UR (Conditioned stimulus) CS ------> CR (CS alone is now (Conditioned response) able to bring E.g.: CR) SUGAR -------> insulin release SUGAR + Cola Taste -------> insulin release Cola taste -------> insulin release
- 6. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 6 Consumer Examples Advertising: pairing product with images of desired affect Product: Evoke image of object associated with positive affect (e.g., Mustang; Coke Bottle)
- 7. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 7 Making Classical Conditioning Work Appropriate symbols (for the population in question) to elicit emotion NOTE: Test stimuli for desired effect! Repetition
- 8. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 8 INSTRUMENTAL (OPERANT) CONDITIONING BEHAVIOR REINFORCEMENT NEGATIVE REINFORCEMENT PUNISHMENT LIKELIHOOD OF BEHAVIOR LIKELIHOOD OF BEHAVIOR {NOT the same thing!
- 9. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 9 Reinforcement: An Example You eat a cake (behavior) ----> good taste (reward) ----> more likely to eat cake on another occasion
- 10. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 10 Negative Reinforcement (not the same as punishment!) Aversive stimulus exists Behavior ----> termination of aversive stimulus ----> repetition of behavior during aversive stimulus
- 11. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 11 Negative Reinforcement: An Example Headache (aversive stimulus) Aspirin (behavior) ---> Headache cessation ----> Likely to consume aspirin during future headaches
- 12. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 12 PUNISHMENT Behavior ----> Negative consequences -----> Behavior less likely to be repeated when punishment is anticipated (mostly)
- 13. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 13 Punishment: Examples Parking meters Gas taxes Restocking fees Fees for non-ATM banking transactions Over-base rate utility charges
- 14. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 14 More Punishment Examples Voidance of warranty if product is serviced by competitor Social ostracism for failure to wear deodorant
- 15. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 15 Reinforcement Effectiveness Temporal proximity--conditioning is more effective if consequences immediately follow behavior (delayed reinforcement is much less effective) Recognition of relationship between behavior and consequences Schedules of reinforcement--variable ratio is most effective
- 16. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 16 Strength of Learning Importance Involvement – Product – Message—e.g., AFLAC Insurance Energizer Bunny Mood – Mixed research results More elaboration and associations during positive mood if the association is pleasurable Happy people may seek to avoid thinking to avoid spoiling the good mood Individuals will tend to be more critical of claims under bad mood
- 17. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 17 Extinction Behavior which is not reinforced tends to become extinct gradually
- 18. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 18 Schedules of Reinforcement Fixed interval Fixed ratio Variable ratio <------ Most resistant Variable interval to extinction
- 19. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 19 Shaping Behavior approximating desired kind level ------> Reward e.g., buying new product on sale Increased requirements, when met -------> Reward e.g., magnitude of sale gradually decreased
- 20. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 20 Shaping: Possible Examples Introduction of fruit flavored soft drinks in Indonesia prior to Coca Cola New products given premium shelf space in the beginning Premium given with purchase of new product In-store demonstrations of new products Note that marketers’ power tends to be limited
- 21. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 21 Instrumental (Operant) Conditioning In Practice Marketers typically do not have the power to significantly reward or punish people greatly-- typically have little power to directly influence people’s experience Note that many rewards and punishments are significantly delayed Better able to influence vicarious learning
- 22. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 22 Brand Loyalty vs. Habit Habit: consumer picks product without much thought; may be due to convenience Loyalty: consumer actively seeks out product
- 23. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 23 Loyalty... Multibrand loyalty How strong? ...or lack of it.
- 24. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 24 Stimulus Generalization “Rub off” effect A slightly different stimulus may not be discriminated Both discrimination and generalization are evolutionarily adaptive – Categorizing of like objects (e.g., lions, alphabet letters) – Distinction between dangerous and safe entities
- 25. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 25 Developing Brand Loyalty: Tricks and Traps Product quality ---> satisfaction Sales promotions Stealing loyal consumers away from others--is it worth it? Price – value – exclusiveness
- 26. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 26 Memory Level of conscious intent – Explicit memory Deliberate attempt to retrieve information – Implicit memory Information automatically recalled – E.g., associations – E.g., routine information (social security and phone numbers, web site addresses) Associative Network of Knowledge – Pieces of experience and information (nodes) are tired together – “Activating” one node will tend to activate others which in turn will activate still more nodes E.g., – Thinking of marketing class may activate name of a soft drink always consumed by the instructor – The soft drink may have more “competing” links and may not activate the professor
- 27. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 27 Memory Short term (compare to RAM ---> volatile) – mnemonic devices (e.g., 1-800-FLOWERS) Long term (compare to hard disk ---> longer in duration but imperfect--”I remember it well…”) STM REHEARSAL LTM DECAY
- 28. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 28 Turning STM into LTM “Rehearsal””—repetition of information – By consumer (e.g., phone number) – By advertisement Elaborative activities—thinking of the object to strengthen its association with other nodes and maintenance Extinction from long term memory – E.g., old phone numbers; how to use an old computer program; loss language skills
- 29. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 29 Scripts: The Way to Do Things Procedure for doing various things learned over time E.g., restaurant script: – make reservation – travel to restaurant – await seating – order drinks – study menu – order – have dessert and/or coffee – pay check and leave tip
- 30. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 30 Implications of Scripts Check car odometer If more than 3,000 miles, – go to Joe’s garage or – look in yellow pages for garages Ask mechanic for oil change When asked which brand of oil – select Pennzoil or – think about which brand to use If you were Joe or Pennzoil, which script would you prefer?
- 31. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 31 Positioning and Repositioning Working with existing perceptions Research to identify perception and associations of products—Perceptual Maps Repositioning – Very difficult—may be more cost effective to develop a new brand
- 32. MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 32 Brand Equity and Leverage Consumer associations with product are valuable Brand leverage (brand extensions, brand “family,” “umbrella” branding) – Use of appropriate associations – May involve brand style rather than product similarity – Concept testing is important
Editor's Notes
- Habit involves the purchase of the same brand over and over again not so much because of a strong preference for the product, but more because the consumer lacks the motivation to seriously consider alternatives. At first glance, it might look as though the marketer is relatively invulnerable to brand switching, but if the consumer is forced to switch for reasons such as stock-outs, he or she has little motivation to move back. If the new brand is better, he or she is likely to stay with the newer one. Further, habit may be overcome by convenience. If the consumer moves to a new area and frequents a retailer which does not have his or her traditional brand, the consumer is likely to switch rather than go through the hassle of going to a competing store. An implication of this fact is that intensive distribution is essential to maintain purchases based on habit. For example, while a consumer will likely be willing to go to another retailer to get his or her preferred brand of furniture, it is unlikely that he or she will make that journey for furniture polish. Brand loyalty, in contrast, involves an active preference for the continuously chosen alternative. That is, it is not that the consumer merely fails to examine alternatives; her or she will tend to avoid those alternatives when possible. Thus, the loyal consumer is less likely to switch when the product is given a less prominent display or when its price is raised.
- As alluded to in the prior slide, brand loyalty tends to be a matter of degree. Frequently, there is a real limit to what the consumer will sacrifice to obtain his or her preferred brand. One limitation on brand loyalty involves the instance of multibrand loyalty. Here, the consumer is satisfied with anyone of several brands, and he or she will readily switch depending on factors such as easy availability and sale status. The consumer, however, is reluctant to purchase those brands falling outside the group of acceptable alternatives. For example, consumers may be willing to consider most national brands, but draw the line at regional ones perceived to be of lower quality. Because of limited loyalty to any one brand, many national brands invoke frequent price promotions. For example, in major supermarkets, it is likely that at one brand or another of yogurt or soft drinks will be on sale at any given time, and a large number of consumers will switch according to what is on sale. While a consumer might be willing to consider both Coke and Pepsi, however, other cola brands may not be considered, and if neither Coke or Pepsi is on sale, on or the other will be chosen at full price. Another issue surrounds the strength of loyalty to a brand. Many manufacturers of major brands have discovered that the increasing gap between their price and that of regional brands or generics has caused many consumers to make the switch. Many of these consumers will pay some premium for their preferred products, but draw the line at paying excessively for the brand name. In the cereal industry, where price gaps have come about in large part because of successive price increases of the major brands, defections to lower cost alternatives have been significant.
- Marketers have several tools available to induce brand loyalty among consumers. One approach is to provide consistently high quality to consumers, thus inducing satisfaction and reducing the motivation to consider alternatives. An alternative approach involves the use of sales promotions. This approach, however, represents a double-edged sword since promotions have several important drawbacks: Although promotions bring in new customers, those attracted by promotions are disproportionately brand switchers who will move on to another brand once the deal is retracted. A few will try the new brand and find it preferable to their current favorite, but the manufacturer must offer this discount to a lot of frogs in order to reach a prince. Price promotions are frequently quite expensive, and the discount must be given to those consumers who would have bought the product at full price anyway. Price promotions may build up an expectation of promotions. For some products, intervals between sales may coincide with the depletion period, so that some consumers will be able to buy entirely on deal. (Empirical studies show that “purchase acceleration,” whereby consumers stock up during sales, accounts for only a modest portion of sales during deal periods and thus does not appear to cause a significant problem). Although established products appear to be relatively resistant to reference price erosion from price promotion, promotions may make differences between the non-sale price and those of cheaper alternatives more salient. In general, trying to win over consumers loyal to competing brands is unlikely to be worthwhile. First, the cost of doing so is likely to be high as a great incentive is necessary to facilitate the switch. Further, competitors are likely to fight back with the only weapon they can deploy in the short run, and there are few true victors in a price war.
- Scripts involve our expectations of appropriate ways to achieve certain goals. The above example illustrates a person’s view of going to a restaurant. The consumer normally expects, for example, to order drinks before settling on a meal. The following slide illustrates the importance of scripts for marketers.
- It is useful to have your product be part of the consumer’s script, as illustrated above. Certain firms have attempted to make their products part of consumer scripts. For example, Hallmark’s campaign “When you care to send the very best” is aimed at having the card sending script involve not just any card, but a Hallmark. Similarly, Jiffy Lube’s ads aim at getting the consumer to go to Jiffy Lube rather than encountering the complications of changing his or her own oil.