1. Learning and Memory Chapter 3 Copyright 2008 Pearson Education Canada

2. 3-2 The Learning Process Products as reminders of life experiences Products + memory = brand equity/loyalty Learning: a relatively permanent change in behaviour caused by experience –Incidental learning –Ongoing process

3. Copyright 2008 Pearson Education Canada 3-3 Behavioural Learning Theories Learning = responses to external events –“Black box” –Observable behaviour Classical conditioning and instrumental conditioning

4. Copyright 2008 Pearson Education Canada 3-4 Classical Conditioning Ivan Pavlov CS + UCS = response –Over time: CS = response Brand names as CS –Credit card as CS Music, humour, imagery CS first, then UCS

5. Copyright 2008 Pearson Education Canada 3-5 Classical Conditioning (Cont’d) Repetition of exposure –Type of medium used –Prevent decay –Extinction Izod Lacoste crocodile on baby clothes –Beware of… Advertising wearout Frequent product encounters

6. Copyright 2008 Pearson Education Canada 3-6 Classical Conditioning (Cont’d) Stimulus Generalization –Halo effect “Piggybacking” strategy Masked branding –Family branding, product line extensions, licensing, look-alike packaging

7. Copyright 2008 Pearson Education Canada 3-7 Discussion Identify some important characteristics of a product with a well-known brand name. –Based on these attributes, generate a list of possible brand extension or licensing opportunities, as well as some others that would most likely not be accepted by consumers.

8. Copyright 2008 Pearson Education Canada 3-8 Classical Conditioning (Cont’d) Stimulus Discrimination –Brand positioning Unique attributes of brand –Anti-Counterfeiting Coalition combats “knockoffs”

9. Copyright 2008 Pearson Education Canada 3-9 Marketing Applications of Classical Conditioning Transferred meaning can be conditioned by fairly simple associations Goal is to create brand equity –Repetition (H&R Block) –Product Associations –Backward Conditioning

10. Copyright 2008 Pearson Education Canada 3-10 Applications of Stimulus Generalization Family branding Product line extensions Licensing Look-a-like packaging

11. Copyright 2008 Pearson Education Canada 3-11 Instrumental Conditioning Behaviours = positive outcomes or negative outcomes –Deliberate behaviour to obtain a goal Positive reinforcement –Frequency marketing, thank you letters, rebates, follow-up phone calls Negative reinforcement Punishment Extinction

12. Copyright 2008 Pearson Education Canada 3-12 Instrumental Conditioning (Cont’d) Reinforcement schedules include… –Fixed-interval (seasonal sales) –Variable-interval (secret shoppers) –Fixed-ratio (frequent flyer programs) –Variable-ratio (slot machines)

13. Copyright 2008 Pearson Education Canada 3-13 Four Types of Learning Outcomes

14. Copyright 2008 Pearson Education Canada 3-14 Applications of Instrumental Conditioning Principles Reinforcement of consumption (thank you letters) Frequency marketing –Dave Phillips (Pudding Guy) –Shell Full-Service Station

15. Copyright 2008 Pearson Education Canada 3-15 Cognitive Learning Theory Internal mental processes People = problem solvers Active use of information to master environment –Conscious hypotheses

16. Copyright 2008 Pearson Education Canada 3-16 Applications of Cognitive Learning Principles Perfume ad where woman receives positive reinforcement for using the product Celebrity image depends on their social attractiveness –Physical appearance –Expertise –Similarity to the evaluator

17. Copyright 2008 Pearson Education Canada 3-17 Observational Learning We watch others and note reinforcements they receive for behaviours –Vicarious learning –Socially desirable models/celebrities who use or do not use their products

18. Copyright 2008 Pearson Education Canada 3-18 Observational Learning (Cont’d) Modeling: imitating others’ behaviour –Bobo doll experiment

19. Copyright 2008 Pearson Education Canada 3-19 Role of Memory in Learning Memory: acquiring information and storing it over time so that it will be available when needed Information-processing approach –Mind = computer and data = input/output

20. Copyright 2008 Pearson Education Canada 3-20 Encoding The way we encode information can help us retain it later –Sensory meaning –Semantic meaning –Personal relevance Episodic/flashbulb memories Product information conveyed as a narrative

21. Copyright 2008 Pearson Education Canada 3-21 Memory Systems

22. Copyright 2008 Pearson Education Canada 3-22 Chunking Informational unit in short-term memory (STM) –Brand name –Area code of telephone number –Optimal size for retrieval

23. Copyright 2008 Pearson Education Canada 3-23 Associative Networks Activation models of memory –Associative network of related information Knowledge structures of interconnected nodes Hierarchical processing model

24. Copyright 2008 Pearson Education Canada 3-24 Associative Networks (Cont’d)

25. Copyright 2008 Pearson Education Canada 3-25 Spreading Activation As one node is activated, other nodes associated with it also begin to be triggered Meaning types of associated nodes: –Brand-specific –Ad-specific –Brand identification –Product category –Evaluative reactions

26. Copyright 2008 Pearson Education Canada 3-26 Levels of Knowledge Individual nodes = meaning concepts Two (or more) connected nodes = proposition (complex meaning) Two or more propositions = schema –We encode info that is consistent with an existing schema more readily –Service scripts

27. Copyright 2008 Pearson Education Canada 3-27 Retrieval for Purchase Decisions Retrieving information often requires appropriate factors and cues: –Physiological factors –Situational factors Consumer attention; pioneering brand; descriptive brand names –Viewing environment (continuous activity; commercial order in sequence) – Post-experience advertising effects

28. Copyright 2008 Pearson Education Canada 3-28 Retrieval for Purchase Decisions (Cont’d) Appropriate factors/cues for retrieval (cont’d): –State-dependent retrieval/mood congruence effect –Familiarity –Salience/von Restorff Effect (mystery ads) –Visual memory vs. verbal memory

29. Copyright 2008 Pearson Education Canada 3-29 Factors Influencing Forgetting Decay Interference –Retroactive vs. proactive Part-list cueing effect

30. Copyright 2008 Pearson Education Canada 3-30 Products as Memory Markers Furniture, visual art, and photos call forth memories of the past Autobiographical memories –The marketing power of nostalgia –Retro brand –Nostalgia index

31. Copyright 2008 Pearson Education Canada 3-31 Measuring Memory for Marketing Stimuli Recognition vs. recall The Starch Test Problems with memory measures –Response biases –Memory lapses –Memory for facts vs. feelings

32. Copyright 2008 Pearson Education Canada 3-32 Discussion In his 2005 book Blink: The Power of Thinking Without Thinking, author Malcolm Gladwell argues that hallowed marketing research techniques like focus groups aren’t effective because we usually react to products quickly and without much conscious thought so it’s better just to solicit consumers’ first impressions rather than getting them to think at length about why they buy. –What’s your position on this issue?