MEMORY AND LEARNING All notes for the slides are suggestions only. The slides and notes are to be used by lecturer/facilitator in a way that best suits their needs. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Memory and learning At the end of this session, you should understand: The nature of consumer learning The main learning theories and their relevance to consumer behaviour The concepts of conditioning and reinforcement The functions of short-term and long-term memory Some marketing implications of learning and memory Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Why did you do that? Your last purchase: What was it? How much thinking did you do before making the purchase? How did you feel about the purchase at the time? How did past experience with the product, brand or situation influence the purchase or how you felt afterwards? This is a warm-up activity, just to get the participants thinking a little. Provide each participant with 1/3 of an A4 sheet of paper. Ask them to write their responses to the following questions on the paper and label the responses 1,2,3 and 4. Allow 5 minutes (or more). About your last purchase: What was it? It may have been coffee from machine, a soft drink, bus ticket or a pair of jeans. How much thinking did you do before making the purchase? None; it was automatic? Was there a bit of indecision (e.g. do I want coffee or hot chocolate?) or quite a bit of thought (e.g. this pair of jeans or another pair or no jeans)? How did you feel about the purchase at the time? Were you immediately satisfied and gave it no further thought? Were you satisfied and thinking ‘Great, I’m happy with this purchase’ or were you thinking ‘I’m not sure if I should have done that!’? How did past experience with the product, brand or situation influence the purchase or how you felt afterwards? While financial situation and other aspects of consumer behaviour will obviously play a role here, the focus is on the learning and memory effects on the situation. Allow the student to write what they like. Ask them to swap with a partner and discuss for 2-3 minutes, then move on to the next slide. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Learning – some definitions A process that consumers go through to develop knowledge that will help them in their decision making A change in the content or organisation of a person’s long-term memory Read the definitions together and ask the partnered participants if their response to the following could be worked into a process? Let them try and draw/illustrate/make a diagram of some sort of connections. Refer the students to Question 4 (previous slide): How did past experience with the product, brand or situation influence the purchase or how you felt afterwards? You feel like something sweet to drink (internal stimuli). You remember that they have used the fifty cent drink machine coffee previously. You remember it was pretty good for the price. You remember that a friend said the hot chocolate is nice (word of mouth). You think you will try the hot chocolate. You try the hot chocolate and think it is nice. You will buy both hot chocolate and coffee from the machine again. You have learned that the machine has two good drinks. This will increase usage of machine and sales for marketer. This topic attempts to explore and explain the phenomenon of memory and learning and how a market can influence this to achieve marketing objectives. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Marketers and learning Marketers influence consumer decision making by ‘educating’ consumers Marketers want consumers to learn that their product/service offerings are desirable, to buy or use them, and to keep coming back for more (…and tell their friends.) The more a consumer has learnt that the marketer’s product/services/brand/organisation is the best/friendliest/most convenient etc., the more they will tell their friends. This will also allow the marketer to change the price, introduce new products, develop brand equity and maximise the effect of all their marketing efforts in the future. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Information processing The learning process Learning occurs through the processing of internal and external stimuli which leads to a change in long-term memory and potentially the behaviour or belief about the marketer’s offerings to the consumer Stimuli: Internal External Information processing Learning Memory This has been discussed with the warm-up activity, but could be developed, for example, by an activity where it is drawn on the board and all manner of stimuli etc. can be drawn around the diagram and discussed for a number of situations. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

It could be that your left or right brain predominates (p.165) Brain functions Are you better at art and craft or at setting up the DVD player? It could be that your left or right brain predominates (p.165) LEFT BRAIN Logical, factual, ordered, one thing at a time, numerical, analytical, sequential, objective RIGHT BRAIN Visual, creative, random, integrative, the big picture, intuitive Start a discussion on this topic. Most people have had some exposure to this topic and it’s a fun way to remember that physiologically people differ and that this impacts on consumer behaviour. Draw the diagram from the text (Figure 6.2 page 165) on the board to show that while the left brain only sees parts of the face (the eyes etc.), the right brain sees everything (including that the face differs from others). You may have other examples to use in addition. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Left and right brain functions The left and right sides of the brain may be opposite but they are also complementary The left brain assists in recalling information, while the right brain organises the information to give a holistic picture Marketers tend to appeal to the right brain as it sees all the information provided, rather than focusing on just ‘bits’ of a message The sound, visuals and movement will be absorbed as a complete picture, rather than just the appearance of the actors, for example. This holistic experience allows a better connection of the message and the product/service for the consumer. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Learning theories Behavioural learning theories: Classical conditioning (a stimulus-response theory focusing on reflex behaviour) Operant or instrumental conditioning (focusing on reinforcement of behaviour) Cognitive theories - learning is a result of thinking and mental analysis: Iconic rote learning Vicarious learning/modelling Reasoning Suggestion for presentation/facilitation: For slides 8-17, you could have a bingo game to aid listening for topic. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Major approaches to learning Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Classical conditioning A stimulus (food) (UCS) is observed to lead to a response (salivating) (UCR) A new stimulus (bell ringing) (CS) is introduced at the same time as the old stimulus and this is repeated until eventually the second stimulus will achieve the same response (CR) without the original stimulus Ivan Pavlov, a Russian scientist, first established the idea that a stimulus caused a reflex reaction and when paired with another stimulus could eventually allow the second stimulus to obtain the reflex response. He would ring a bell calling his dogs to eat. Over time the dogs would salivate for the bell, rather than salivating just for their dinner. Draw on board. Another recent example that could be discussed in class is in the recent movie Sea Biscuit, the horse had been trained to always run second. It had to be retrained to lead, so the trainers would whip up (the stimulus) the horse right from the start of the track and at the same time sound the start gun (the new stimulus). On the day of the big race, Sea Biscuit galloped off at full steam to the sound of the gun, rather than the whip. Discuss how this applies to marketing i.e. music = feel good Advert for product with same music = feels good See product on its own and feel good, therefore will buy product Ask participants where they feel they have experience this learning in their own purchasing. For reference: Watson’s Little Albert Study available online at www.dushkin.com/connecttext/psy/ch06/watson.mhtml UCS Unconditioned stimulus UCR Unconditioned response CS Conditioned stimulus CR Conditioned response Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Marketing with classical conditioning Applied in low involvement situations Simplistic, relying on feelings or emotions for learning Emotions about music, humour, celebrity image and lifestyle can be contrived to create new associations with that emotion for product/services Repetition is important Message/stimulus must be relevant to consumer Classical conditioning is often applied in low-involvement situations - what sort of situations are these? Discuss with participants. It is simplistic, relying on feelings or emotions for learning - all of us are feeling beings that need emotional experiences. Note marketing examples other than just advertising i.e. friendly people = make people happy Go to shop, service is friendly = customer feels happy When in the shop at any time or talking about shop = customer feels happy Message/stimulus must be relevant to consumer. However, these vary with the individual; where they are in life; what is interesting to them; what is their emotional state at the time. Need for repetition - classical conditioning occurs over many experiences of the S-R situation. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

How is conditioning being achieved with this advertisement? See EXHIBIT 6.1 Humour is used to create an emotional response in this advertisement, page 170. See the text (page 170). This is using humour to create an emotional response. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Operant (instrumental) conditioning Learning occurs through rewarding or punishing behaviour Shaping behaviour Should aim to achieve consumer trial Reward Shop with supermarket and earn discount on fuel purchases Punishment Cheaper product purchased, product is inferior, or fine for speeding Negative reinforcement Avoiding negative consequences by purchasing product (e.g. mouthwash to prevent bad breath) BF Skinner developed this method in the 1900s, working with rats and the Skinner box. The rats pressed a lever to gain a food reward. They learned through trial and error to get food by pressing the lever down. Consumers learn through trail and error also. Discuss, using examples, how marketers can and do use operant conditioning (what motivates consumers) or where they may have to manage it. Examples in the text: Rewards = loyalty program Punishment = fines for speeding Should their product be inferior or not suit the customer, the customer learns not to use those products and to avoid that company. The marketer must try and overcome this by offering good service and refunds with friendly service to offset the negative experience. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Marketing and operant conditioning Determine what motivates the consumer Use of shaping - providing or removing the reinforcement May need to entice consumer to try product/service (i.e. use of in-store trial, sales promotion, personal selling, promise of loyalty program) Attempt to minimise ‘punishment’ (i.e. maintain quality, offer ‘no questions’ refunds) Refer to Case in point 6.2. ‘Yakult fermented milk drink’. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

What is the use of operant conditioning in these messages? See EXHIBIT 6.2 and EXHIBIT 6.3, page 173. Exhibit 6.2: Shaping and enticing trial through experience with the product. Exhibit 6.3: Positive reinforcement. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Cognitive theories – rote learning Human beings think, reason and problem solve in order to learn Rote learning Low involvement situations Repetition of concepts such as ‘buy Australian’ lead to purchase of products that repeatedly promote themselves as ‘Australian owned’ In this example, the ‘buy Australian’ concept is first learned through repetition; a sense of loyalty is developed. This is then linked to the product that promotes itself repetitively this way. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Cognitive theories –modelling/vicarious learning Modelling/vicarious learning is learning through observing and copying the behaviour of others Consumers seek products/services that their friends or role models consume Modelling/vicarious learning Using people in ads that consumers aspire to be like and want to copy, such as celebrities or sports heroes Using people similar to you and your friends in ads In particular, imitating people that they admire, find attractive, more interesting or credible, or that have overcome difficulties, or appear more important than themselves. Testimonials are an example of modelling. For example, Jason and Subway for weight loss: ‘you too can do this’. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Cognitive theories - reasoning Complex process of absorbing new information, relating it to existing knowledge and drawing new conclusions This may involve quite changed thinking for consumers Reasoning Using logical and informative ads There are many examples about reeducation, e.g. the Dairy Australia example in the text (see page 177). Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Cognitive learning and advertising messages See EXHIBIT 6.5 This informational advertisement for PhysiCAL milk relies on a cognitive learning processes, page 175. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

TRY THIS MEMORY TEST Given one (1) minute, try and remember as many of the following as you can. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Shanghai Guangzhou Beijing Nanjing Suzhou Hangzhou Zhengzhou Wuhan Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

2. Sydney. Brisbane. Wollongong. Alice Springs. Darwin. Perth. Hornsby 2. Sydney Brisbane Wollongong Alice Springs Darwin Perth Hornsby Cooranbong Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

3. Marlboro Coca-Cola McDonalds I B M Disney Mercedes Sony Shell Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Memory The total accumulation of prior learning experiences The filing cabinet of your life! Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Three main stages of memory Stimulus information SENSORY MEMORY SHORT- TERM MEMORY LONG- TERM MEMORY encoding attention retrieval rehearsal Sensory memory is a filter for short-term memory. It takes stimuli and passes them on to short-term memory. If it is of interest, it is stored in the sensory store. Rehearsal and repetition cause information to go to long-term memory and it is encoded in this process. It is more likely to be remembered if it is in groups or chunks, and if it relates to something in one’s life and is linked to certain experiences or other memories. Marketers often split their message into chunks. For example, they may do several slightly different adverts to get one complete message across. Information ignored Forgetting Extinction forgetting Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Schematic memory Interpreting and understanding messages based on previous experiences, known as traces, which are chemical elements stored in the brain Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Schematic memory Local club GRADUATION PARTY What drinks? Restaurant Who to invite? Budget My place What food? Where? Schema - a pattern of associations between concepts and past experience (see page 179). Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Sensory memory Receives the incoming stimuli This is the working memory Can only hold a small amount of information at a time Sensory memory - marketers must expose brief, repetitive messages to consumers. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Short-term and long-term memory Short-term memory Information is rehearsed Processing occurs Information is either forgotten or passed on Long-term memory Almost unlimited storage potential It is what is remembered some time after the stimuli has occurred Information is stored in clusters and linked by other information already in the store Short-term memory Marketers group information to assist repetition (rehearsal) and make it interesting, so that it is repeated. Long-term memory The marketer’s message must be linkable to information already in the long-term memory if they want new information to be stored. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Forgetting and extinction If a conditioned response no longer occurs when the conditioned stimulus is present, it is known as the disappearance of a memory trace, extinction Forgetting The information does not pass into the short-term memory It is not sent on to long-term memory Retrieval information cannot be recalled Information that is important to the consumer is more likely to be recalled Elements of an advertising message Some of the types of codes: Visual codes Auditory codes Verbal codes Get a graph from the Internet on recall and forgetting. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Semantic/episodic memory Semantic memory Idea of linking products with episodes in consumer’s life Marketers achieve mental repetition of their message through the consumer’s association of the words in the messages and their meanings Episodic memory Recall of an actual situation or event Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

Applying memory to advertising Appeal to senses - attract initial attention e.g. colours, sounds, size, words, freebies, product samples Ensure immediate rehearsal – short-term memory Assist with transfer to long-term memory: Word associations Ask questions Images that are familiar to the target audience Use reinforcement Same logo and slogans on all promotions, packaging, etc. Use links between words and images Retrieval - use techniques to aid retrieval e.g. Overall theme of ads match in-store promotions Get students to relate these ideas back to the theories they have learned and think of actual examples of ads. Activities: Lecturer to find examples of ads in newspapers that are not memorable - bring in the whole page so that the students can see how the ads disappear into the page. Students should be asked to design a new ad for that space; an ad that uses learning and memory techniques. OR Using the topics for discussion as a guide, ask participants to discuss what advertisements they have seen or heard in the last few days. What factors do they think influenced their memory of the adverts? Where do they think learning theory can be applied to their particular experience? Was it conditioning or cognitive? Design three advertisements for one product or service using different types of learning theory, i.e. positive and negative reinforcement and punishment or modelling, rote or reasoning. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski

ACTIVITY For Homework. Visit www.personalitytype.com and click the link, do the quiz and discover your personality type. Bring your results to our next class. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour by Karen Webb Slides prepared by Sarah Fletcher and Morena Dobrowolski