notes on consumer learning

1. CONSUMER LEARNING
Prof. B. B. Mishra

2. OPENING VIGNETTE
 Why did these products fail?
 Listerine Toothpaste
 Ben-Gay Aspirin
 Oreo Little Fudgies
 Why did Pocket Paks succeed?

3. CONSUMER LEARNING
A process by which individuals acquire the
purchase and consumption knowledge and
experience that they apply to future related
behaviour.
 Learning refers to a relatively permanent change
in behavior that is caused by experience.
 Learning is an ongoing process and we can
learn:
 Vicariously by observing events that affect
others,
 By incidental learning which is unintentional.

4. LEARNING PROCESSES
Intentional
learning acquired as a result of a
careful search for information
 Incidental
-- learning acquired by accident or
without much effort

5. IMPORTANCE OF LEARNING
 Marketers must teach consumers:
 where to buy
 how to use
 how to maintain
 how to dispose of products
 There are several theories to explain
the learning process such as the
Behavioral Theory and the Cognitive
Theory.

6. 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.

7. ELEMENTS OF LEARNING THEORIES
 Motivation
 Cues
 Response
 Reinforcement

8. 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.

9. BEHAVIOURAL LEARNING THEORIES
 Classical Conditioning
 Instrumental Conditioning
 Modeling or Observational Learning

10. BEHAVIORAL LEARNING THEORIES
Stimulus
Consumer Response
Consumer’s Black Box
Behavioral Learning Theories Assume that Learning
Takes Place as the Result of Responses to External
Events.

11. BEHAVIORAL LEARNING THEORY:
CLASSICAL CONDITIONING
Classical Conditioning Occurs When a Stimulus That
Elicits a Response is Paired With Another Stimulus That
Initially Does Not Elicit a Response on It’s Own.
Unconditioned
Stimulus
(UCS)
Conditioned
Stimulus
(CS)
Conditioned
Response
(CR)

12. CLASSICAL CONDITIONING
 Pairing a stimulus with another stimulus that
elicits a known response to produce the
same response when used alone.

13. 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

14. FACTORS THAT AFFECT THE
CLASSICAL CONDITIONING PROCESS
Stimulus
Generalization
“Piggybacking”
Stimulus
Discrimination
Repetition

15. MARKETING APPLICATIONS OF
BEHAVIORAL LEARNING PRINCIPLES
 Behavioral Learning
 Brand Equity
 Repetition
 Advertising Wear-Out
 Conditioned Product Association
 Stimulus Generalization
 Family Branding
 Product Line Extension
 Licensing
 Look-Alike Packaging
 Stimulus Discrimination

18. 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

19. 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

20. STRATEGIC APPLICATIONS OF CLASSICAL
CONDITIONING
 Repetition
 Stimulus Generalization
 The inability to perceive differences between slightly
dissimilar stimuli.
 Stimulus Discrimination

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

22. 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.

23. 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

24. STIMULUS DISCRIMINATION
 The ability to select a specific stimulus from
among similar stimuli because of perceived
differences.

25. 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
 Distinguish the product through effective
use of stimulus discrimination

26. 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.
 learning based on a trial-and-error
process, with habits forced as the result of
positive experiences (reinforcement)

28. INSTRUMENTAL (OPERANT) CONDITIONING
BEHAVIOR
REINFORCEMENT
NEGATIVE
REINFORCEMENT
PUNISHMENT
LIKELIHOOD
OF BEHAVIOR
LIKELIHOOD
OF BEHAVIOR
{
NOT the
same thing!

29. 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

30. 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

31. BEHAVIORAL LEARNING THEORY:
INSTRUMENTAL CONDITIONING
Instrumental Conditioning (Operant Conditioning)
Occurs as the Individual Learns to Perform
Behaviors That Produce Positive Outcomes and to
Avoid Those That Yield Negative Outcomes.
It Occurs in One of the Following Ways:
Punishment
Positive Reinforcement
Negative Reinforcement
Extinction

32. INSTRUMENTAL LEARNING
 Reinforcement Schedules
 Fixed - Interval
 Variable - Interval
 Fixed - Ratio
 Variable - Ratio
 Applications of Instrumental
Conditioning
 Reinforcement of Consumption
 Frequency Marketing - reinforces regular
purchasers by giving them prizes with values that
increase along with the amount purchased.

33. 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

34. OTHER CONCEPTS IN REINFORCEMENT
 Punishment
 Choose reinforcement rather than
punishment
 Extinction
 Combat with consumer satisfaction
 Forgetting
 Combat with repetition

35. 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

36. DEVELOPING BRAND LOYALTY: TRICKS
AND TRAPS
 Product quality --->
satisfaction
 Sales promotions
 Stealing loyal consumers
away from others--is it worth
it?
 Price
 value
 exclusiveness

37. COGNITIVE LEARNING THEORY
 Learning through problem solving,
which enables individuals to gain some
control over their environment.
 Three types:
 Observational learning
 Rote Learning
 Reasoning

38. COGNITIVE LEARNING THEORY:
OBSERVATIONAL LEARNING
Consumer’s Attention Must Be Drawn to a Desirable Model
Consumer Must Remember What is Said and Done by Model
Consumer Must Convert This Information Into Actions
Consumer Must be Motivated to Perform These Actions
Is Learning Conscious Or Not?
Observational Learning Occurs When People Watch the
Actions of Others and Note the Reinforcements They Receive
From Others.
Imitating the Behavior of Others is Called Modeling:

39. THE ROLE OF MEMORY IN LEARNING
 Encoding Information for Later Retrieval
 Types of Meaning
 Personal Relevance
 Flashbulb Memories
 Narrative
 Memory Systems
 Sensory Memory
 Short-Term Memory (STM)
 Long-Term Memory (LTM)

40. RELATIONSHIPS AMONG MEMORY SYSTEMS

41. THE ROLE OF MEMORY IN LEARNING
 Storing Information in Memory
 Activation Models of Memory
 Associative Networks
 Knowledge Structures

42. AN ASSOCIATIVE NETWORK FOR PERFUMES

43. THE ROLE OF MEMORY IN LEARNING
 Spreading Activation
 Memory Trace for an Ad Could Be Stored
in One or More of the Following Ways:
 Brand-specific
 Ad-specific
 Brand Identification
 Product Category
 Evaluative Reactions
 Levels of Knowledge

44. THE ROLE OF MEMORY IN LEARNING
 Retrieving Information for Purchase
Decisions
 Factors Influencing Retrieval
 State-Dependent Retrieval
 Familiarity and Recall
 Salience and Recall
 Von Restorff Effect
 Pictorial Versus Verbal Cues: Is a Picture
Worth a Thousand Words?

45. THE ROLE OF MEMORY IN LEARNING
 Factors Influencing Forgetting
 Decay
 Part-List Cueing Effect
 Products as Memory Markers
 Autobiographical Memories
 The Marketing Power of Nostalgia
 Nostalgia
 Spontaneous Recovery
 Memory and Aesthetic Preferences
 Measuring Memory for Marketing Stimuli
 Recognition Versus Recall
 The Starch Test

46. THE ROLE OF MEMORY IN LEARNING
 Problems with Memory Measures
 Response Biases
 Memory Lapses
 Memory for Facts Versus Feelings

47. OBSERVATIONAL LEARNING
 individuals learn by observing the behaviour
of others, and consequences of such
behaviour.
 Also known as modeling or vicarious
learning.

48. ICONIC ROTE LEARNING
 Learning concepts through simple repetition
 Repeated ads teach consumers about a product’s
attributes

49. REASONING
 Highest level of cognitive learning
 Involves creative thinking
 Depends on how information is processed
and stored

51. RETENTION
 Information is stored in
long-term memory
 Episodically: by the
order in which it is
acquired
 Semantically: according
to significant concepts

52. INFORMATION PROCESSING AND
INVOLVEMENT THEORY
 Central and Peripheral Routes to
Persuasion
 highly involved consumers are best reached through
ads that focus on the specific attributes of the product
(the central route)
 uninvolved consumers can be attracted through
peripheral advertising cues such as the model or the
setting (the peripheral route).

53. ELABORATION LIKELIHOOD MODEL (ELM)
 a person’s level of involvement during
message processing determines which route
to persuasion is likely to be effective

54. THE ELABORATION LIKELIHOOD MODEL
Involvement
Central
Route
Peripheral
Route
Message
Arguments
Influence
Attitudes
Peripheral
Cues
Influence
Attitudes
HIGH
LOW

55. 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.

56. 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