1. Chapter 7
Consumer Learning

2. Importance of Learning
Marketers must teach consumers:
where to buy
how to use
how to maintain
how to dispose of products

3. Conti…
The reason that marketers are concerned with how individuals learn is that they are vitally interested in teaching them, in their roles as consumers, about products, product attributes , and their potential benefits.
They are also vitally interested in how effectively they have taught consumers to prefer their brands and to differentiate their products from competitive offerings.

4. Conti…
Marketing Strategies are based on communicating with the consumer- directly, through advertisements, and indirectly, through product appearance, packaging, price and distribution channels.
Marketers want their communications to be noted, believed, remembered, and recalled.
For these reasons, they are interested in every aspect of the learning.

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

6. Noted points
Consumer learning is a process; that is, it continually evolves and changes as a result of newly acquired knowledge or from actual experience.
Both newly acquired knowledge and personal experience serve as feedback to the individual and provide the basis for future behavior in similar situations.

7. Learning Processes
Intentional: learning acquired as a result of a careful search for information
Incidental: learning acquired by accident or without much effort

8. Learning Theories
Behavioral 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.

9. Elements of Learning Theories
Motivation
Cues
Response
Reinforcement (outcome)

10. Motivation
The concept of motivation is important to learning theory. Remember, motivation is based on needs and goals. Motivation acts as a spur to learning.

11. For eg;
Men and Women who want to take up bicycle riding for fitness and recreation are motivated to learn all they can about bike riding and also to practice often.
They may seek information concerning the prices, quality, and characteristics of bicycles and “learn” which bicycles are the best for the kind of riding that they do.

12. Conti….
They will also read any articles in their local newspaper about bicycle trails and may seek online information about it.
The degree of relevance, or involvement, determines the consumer’s the consumers level of motivation to search for knowledge or information about a product or service.

13. Cues Cues are the stimuli that give direction to these motives.
The ad is the Cue or the stimuli that suggests a specific way to satisfy a salient movie.
Cues serve to direct consumer drives when they are consistent with consumer expectations.

14. Response
How individuals react to a drive or cue-how they behave –constitute their response.
For eg; The automobile manufacturer that provides consistent cues to a consumer may not always succeed in stimulating a purchase.
However, if the manufacturer succeeds in forming a favorable image of a particular automobile model in the consumer’s mind, it is likely that the consumer will consider that make or model when he or she is ready to buy.

15. Reinforcement
A positive or negative outcome that influences the likelihood that a specific behavior will be repeated in the future in response to a particular cue or stimulus.

16. For eg:
A three step process for facial skin care based on three products (i.e.,cues)

17. Behavioral Learning Theories
Classical Conditioning
Instrumental Conditioning
Modeling or Observational Learning

18. 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.

19. Figure 7.2A Pavlovian Model of Classical Conditioning
Unconditioned Stimulus
Meat paste
Unconditioned Response
Salivation
Conditioned Stimulus
Bell
AFTER REPEATED PAIRINGS
Conditioned Stimulus
Bell
Conditioned Response
Salivation

20. Figure 7.2B Analogous Model of Classical Conditioning
Unconditioned Stimulus
Dinner aroma
Unconditioned Response
Salivation
Conditioned Stimulus
6 o’clock news
AFTER REPEATED PAIRINGS
Conditioned Stimulus
6 o’clock news
Conditioned Response
Salivation

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

22. Figure 7.10 A Model of Instrumental Conditioning
Stimulus Situation (Need good-looking jeans)
Try
Brand D
Brand C
Brand B
Brand A
Unrewarded
Legs too tight
Tight in seat
Baggy in seat
Reward
Perfect fit
Repeat Behavior

23. For eg;
Consumers learn which stores carry the type of clothing they prefer at prices they can afford to pay by shopping in a number of stores. Once they find a store that carries clothing that meets their needs, they are likely to patronize that store to the exclusion of others. Every time they purchase a shirt or a sweater there that they really like, their store loyalty is reinforced.

24. Cognitive Associative Learning
Classical conditioning is viewed as the learning of associations among events that allows the organism to anticipate and represent its environment.
From this viewpoint, classical conditioning is not reflexive action, but rather the acquisition of new knowledge.

25. For eg;
According to this view, the relationship between the conditioned stimulus and the unconditioned stimulus (the bell and the meat paste) influenced the dogs expectations , which in turn influenced their behavior.

26. Strategic Applications of Classical Conditioning
Repetition
Stimulus Generalization
Stimulus Discrimination

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

28. Repetition
Repetition increases the strengths of the association between a conditioned stimulus and an unconditioned stimulus and slows the process of forgetting.
However, research suggests that there is a limit to the amount of repetition that will aid retention.

29. Conti…
Although some overlearning (i.e., repetition beyond what is necessary for learning) aids retention, at some point an individual can become satiated with numerous exposures and both attention and retention will decline. This effect, known as advertising wearout, can be moderated by varying the advertising message.

30. Conti….
Although the principle of repetition is well established among advertisers, not everyone agrees on how much repetition is enough. Some marketing scholars believe that just three exposures to an advertisement are need:

31. Conti… One to make consumers aware of the product
A second to show consumers the relevance of the product
To remind them of its benefits.
This is known as three-hit theory.

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

33. Stimulus Generalization
According to classical conditioning theorists, learning depends not only on repetition but also on the ability of individuals to generalize.
For eg: A dog could learn to salivate not only to the sound of a bell but also to the somewhat similar sound of jangling keys.

34. Conti…
If we were not capable of stimulus generalization-that is, of making the same response to slightly different stimuli-not much learning would take place.

35. Conti….
Stimulus generalization explains why some imitative “me-too”products succeed in the marketplace.
Consumers confuse them with the original product they have seen advertised.
It also explains why manufacturers of private –label brands try to make their packaging closely resemble the national brand leaders.

36. Conti….
They are hoping that consumers will confuse their packages with the leading brand and buy their product rather than the leading brand.

37. Stimulus Generalization and Marketing
Product Line Extensions
Family Branding
Licensing

38. Product Line Extension
The marketers adds related products to an already established brands, knowing that the new products are more likely to be adopted when they are associated with the established brand.

39. Family Branding
The practice of marketing a whole line of company products under the same brand name-is another strategy that capitalizes on the consumer’s ability to generalize favorable brand associations from one product to others.

40. Licensing
Licensing-allowing a well known brand name to be affixed to products of another manufacturer-is a marketing strategy that operates on the principle of stimulus generalization.
Corporations also license their names for purely promotional licensing, in which popular company logos ( “Always Coca-Cola”) are stamped on clothing , toys, coffee mugs, and the like.

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

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

43. Instrumental Conditioning
Consumers learn by means of trial and error process in which some purchase behaviors result in more favorable outcomes (rewards) than other purchase behaviors.
A favorable experience is instrumental in teaching the individual to repeat a specific behavior.

44. Instrumental Conditioning and Marketing
Customer Satisfaction (Reinforcement)
Reinforcement Schedules
Shaping
Massed versus Distributed Learning

45. Reinforcement Schedules
Marketers have identified three types of reinforcement schedules: Total reinforcement, systematic reinforcement, and random reinforcement.

46. Total Reinforcement
For eg: A total reinforcement schedule is the free after dinner drink or fruit plate always served to patrons at certain restaurants. Needless to say, the basic product or service rendered is expected to provide total satisfaction each time it is used.

47. Fixed Ratio (systematic Reinforcement)
A fixed ratio reinforcement schedule provides reinforcement every “nth” time the product or service is purchased (say, every third time).
For eg: A retailer may send a credit voucher to account holders every three months based on the percentage of the previous quarter’s purchases.

48. Variable Ratio ( Random Reinforcement)
A variable ratio reinforcement schedule rewards consumers on a random basis or on an average frequency basis
For eg: Lotteries, door prizes and contests that require certain consumer behavior for eligibility.

49. Shaping
Reinforcement performed before the desired behavior actually takes place is called shaping.
For eg: Retailers recognize that they must first attract customers to their stores before they can expect them to do the bulk of their shopping.

50. Conti…
Some retailers offer loss leaders- popular products at severely discounted prices- to the first hundred or so customers to arrive, since those customers are likely to stay to do much of their shopping.

51. Conti…
Using shaping principles, many car dealers encourage showroom visits by providing small gifts (key chains), larger gifts (Dinner set) to test-drive the car.

52. Massed versus Distributed Learning
Timing has an important influence on consumer 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)?

53. Conti…
The question is an important one for advertisers planning a media schedule, because massed advertising produces more initial learning, whereas a distributed schedule usually results in learning that persists longer.

54. Reinforcement
Negative Reinforcement: Unpleasant or negative outcomes that serve to encourage a specific behavior
Example: Ad showing wrinkled skin as reinforcement to buy skin cream
Positive Reinforcement: Positive outcomes that strengthen the likelihood of a specific response
Example: Ad showing beautiful hair as a reinforcement to buy shampoo

55. Observational Learning
A process by which individuals observe the behavior of others, and consequences of such behavior. Also known as modeling or vicarious learning.

56. Conti….
Consumers often observe how others behave in response to certain situations (stimuli) and the ensuring results (reinforcement) that occur, and they imitate the positively reinforced behavior when faced with familiar situations.

57. Cognitive Learning Theory
Holds that the kind of learning most characteristic of human beings is problem solving, which enables individuals to gain some control over their environment.

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

59. Figure 7.13 Information Processing and Memory Stores
Sensory Store
Working Memory (Short-term Store)
Long-term Store
Sensory
Input
Rehearsal
Encoding
Retrieval
Forgotten;
lost
Forgotten;
lost
Forgotten;
unavailable

60. Retention Information is stored in long-term memory
Episodically: by the order in which it is acquired
Semantically: according to significant concepts

61. For eg:
We may remember having gone to a movie last Saturday because of our ability to store data episodically, and we may remember the stars and the director because of our ability to store data semantically.

62. Involvement Theory
A theory of consumer learning which postulates that consumers engage in a range of information processing activity from extensive to limited problem solving, depending on the relevance of the purchase.

63. Figure 7.14 Split Brain Theory
Right/ Left Brain Hemispheres specialize in certain functions

64. Issues in Involvement Theory
Involvement Theory and Media Strategy
Involvement Theory and Consumer Relevance
Central and Peripheral Routes to Persuasion
Measures of Involvement

65. Involvement theory and media strategy
A pioneer consumer researcher theorized that individuals passively process and store right-brain (nonverbal, pictorial) information-that is, without active involvement.
Because TV is primarily a pictorial medium, TV viewing was considered a right brain activity and TV itself was therefore considered a low-involvement medium.

66. Conti….
To extend this line of reasoning, cognitive information is processed by the left side of the brain; thus, print media and the interactive media are considered high-involvement media.

67. Central and Peripheral Routes to Persuasion
A theory that proposes that highly involved consumers are best reached through ads that focus on the specific attributes of the product (the central route) while uninvolved consumers can be attracted through peripheral advertising cues such as the model or the setting (the peripheral route).

68. Elaboration Likelihood Model (ELM)
A theory that 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.

69. The Elaboration Likelihood Model
Involvement
HIGH
LOW
Peripheral Route
Central Route

70. For eg:
As the message becomes more personally relevant ( involvement increases), people are more willing to expend the cognitive effort required to process the message arguments. Thus, when involvement is high, consumers follow the central route and base their attitudes or choices on the message arguments.

71. Conti….
When involvement is low, they follow the peripheral route and rely more heavily on other message elements (such as spokepersons or background music) to form attitudes or make product choices.

72. Measures of Consumer Learning
Recognition and Recall Measure
Cognitive Responses to Advertising
Copytesting Measures
Attitudinal and Behavioral Measures of Brand Loyalty

73. Recognition and Recall Measures
Recognition and recall tests are conducted to determine whether consumers remember seeing an ad, the extent to which they have read it or seen it and can recall its content, their resulting attitudes toward the product and the brand, and their purchase intentions.

74. Cognitive responses to advertising
Another measure of consumer learning is the degree to which consumers accurately comprehend the intended advertising message. Comprehension is a function of the message characteristics, the consumer’s opportunity and ability to process the information, and the consumer’s motivation.

75. Conti…
To ensure the high level of comprehension, many marketers conduct copy testing either before the advertising is actually run (called pretesting) or after it appears (posttesting).
Pretests are used to determine which if any, elements of an advertising message should be revised before major media expenses are incurred.

76. Phases of Brand Loyalty
Cognitive
Affective
Conative
Action

77. Brand Loyalty As A Function of
Figure 7.19
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