Learning and Memory

The Importance of Consumer Learning to New Product Success Why did these products fail? Ben-Gay Aspirin Frito-Lay Lemonade Why did PocketPaks succeed?

Definition “A process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior. Perception Learning

Two Schools of Learning Behavioural Learning Theories Based on “Blackbox” and passive acquisition of habits. t1 t2 t3 t4 t5 S1 S2 S3 S4 S5 B1 B2 B3 B4 B5 “Focus on S, B and T. “External World” Cognitive Learning Theory Based on active information processing by the individual. S1 “Focus on Memory and Processing. “Internal World” IP LTM B1

Pavlovian Model of Classical Conditioning Unconditioned Stimulus Meat paste (S1) Unconditioned Response Salivation (R1) Conditioned Stimulus Bell (S2) AFTER REPEATED PAIRINGS Conditioned Stimulus Bell (S2) Conditioned Response Salivation (R1)

Analogous Model of Classical Conditioning Unconditioned Stimulus Superbowl Unconditioned Response Fun Conditioned Stimulus Budweiser AFTER REPEATED PAIRINGS Conditioned Stimulus Budweiser Conditioned Response Fun

Conditions for Optimal 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

Basic Concepts of Classical Conditioning Repetition Stimulus Generalization Stimulus Discrimination

Figure 7.3 Cosmetic Variations in Ads Repetition Repetition increases strength of associations and slows forgetting but over time may result in advertising wearout. Cosmetic variations reduce satiation. Figure 7.3 Cosmetic Variations in Ads

Stimulus Generalization The inability to perceive differences between slightly dissimilar stimuli.

Stimulus Generalization and Marketing Product Line, Form and Category Extensions Family Branding Licensing 1 Look-alike packaging Potential problems Back

Figure 7.5 Product Line Extension

Figure 7.6 Product Form Extensions

Figure 7-8 Shoe Manufacturer Licenses Its Name

Masked Branding

Stimulus Discrimination The ability to select a specific stimulus from among similar stimuli because of perceived differences.

Stimulus Discrimination and Marketing Positioning Differentiation

Figure 7.9 Stimulus Discrimination

Learning through Behavior Instrumental (Operant) Conditioning A behavioral theory of learning based on a trial-and-error process, with habits forced as the result of experiences (reinforcement) resulting from certain responses or behaviors.

A Model of Instrumental Conditioning Try Brand A Neg result Legs too tight Try Brand B Neg result Tight in seat Need good-looking jeans Try Brand C Neg result Baggy in seat Try Brand D Reward Perfect fit Repeat Behavior

Learning through Behavior Instrumental (Operant) Conditioning Instrumental: behavior seen as an instrument to reach a specific goal. . Essential role played by the result of the behavior: Positive versus negative reinforcement. Marketing Implications: Shaping and Loyalty programs.

Four Types of Learning Outcomes Figure 3.2

Learning through Behavior Instrumental (Operant) Conditioning Instrumental: behavior seen as an instrument to reach a specific goal. . Essential role played by the result of the behavior: Positive versus negative reinforcement. Marketing Implications: Shaping and Loyalty programs.

Instrumental Conditioning and Sales Promotion Unknown product Try First Purchase Repeat Purchase Loyal Consumer

Different Types of loyalty ? Brown classification (1952) • Undivided Loyalty ex.: AAAAAAAA • Divided Loyalty ex.: ABABABAB • Unstable Loyalty ex.: AAABBBAA • Non Loyal ex.: ABCDEFGH

Brand Loyalty Consistent preference and/or purchase of the same brand in a specific product or service category.

Brand Loyalty As a Function of Relative Attitude and Patronage Behavior Repeat Patronage High Low Relative Attitude High Loyalty Latent Loyalty Low Spurious Loyalty No Loyalty

Observational Learning A process by which individuals observe the behavior of others, remember it, and imitate it. Also known as modeling.

Learning through Cognition Cognitive Learning Theory A theory of learning based on mental information processing, often in response to problem solving. Holds that the kind of learning most characteristic of human beings is problem solving, which enables individuals to gain some control over their environment.

Figure 7.12 Appeal to Cognitive Processing

Learning through Cognition Learning through the influence of cognition and memory The consumer plays an active role in the learning process. L= f(S, Rep.) L= f (S, Reinf) L = f (IP).

Information Processing A cognitive theory of human learning that focuses on how information is stored in human memory and how it is retrieved.

Information Processing and Memory Stores Sensory Store Working Memory (Short-term Store) Long-term Store Sensory Input Encoding Retrieval Forgotten; lost Forgotten; lost Forgotten; unavailable

Sensory Store The place in which all sensory inputs are housed very briefly before passing into the short-term store.

Short-Term Store The stage of real memory in which information received from the sensory store for processing is retained briefly before passing into the long-term store or forgotten.

Rehearsal The silent, mental repetition of material. Also, the relating of new data to old data to make the former more meaningful.

Encoding The process by which individuals select and assign a word or visual image to represent a perceived object or idea.

Long-Term Store In information-processing theory, the stage of real memory where information is organized, reorganized and retained for relatively extended periods of time.

An Associative Network

Retrieval The stage of information processing in which individuals recover information from long-term storage.

What Is Retrieval? Trace Strength Spreading of Activation Accessibility Spreading of Activation Priming Retrieval Failures Decay Interference Primacy and Recency Effects Retrieval Errors

Measures of Consumers Learning Recognition and Recall Measures Aided and Unaided Recall Cognitive Responses to Advertising Copytesting Attitudinal and Behavioral Measures of Brand Loyalty