1. Lecture 4 Laura Grazzini laura.grazzini@unifi.it
Consumer Behaviour
Lecture 4
Laura Grazzini

2. Learning Objectives Behavioral learning theories
Cognitive learning theory
Memory system
Memory retrieval
Forgetting brand information

3. Introduction
Learning refers to a relatively permanent change in behaviour which comes with experience. This experience does not have to affect the learner directly: we can learn vicariously by observing events that affect others. We also learn even when we are not trying to do so. Consumers, for example, recognize many brand names and can hum many product jingles, even for those product categories they themselves do not use. This casual, unintentional acquisition of knowledge is known as incidental learning.
Learning is an ongoing process. Our knowledge about the world is constantly being revised as we are exposed to new stimuli and receive feedback that allows us to modify behaviour in other, similar situations. The concept of learning covers a lot of ground, ranging from a consumer’s simple association between a stimulus such as a product logo (such as Coca-Cola) and a response (e.g. ‘refreshing soft drink’) to a complex series of cognitive activities (like writing an essay on learning for a consumer behaviour exam).
Psychologists who study learning have advanced several theories to explain the learning process. These range from those focusing on simple stimulus–response associations (behavioural theories) to perspectives that regard consumers as complex problem-solvers who learn abstract rules and concepts by observing others (cognitive theory).

4. Introduction
Learning and memory are interrelated yet different concepts. - Learning deals with how we acquire new information whereas memory is the internal recording of information or experiences and is related to our ability to store, retain, and subsequently recall information. Forgetting is our inability to retrieve previously stored information. - This could be caused by many factors including the probability that the information was never encoded into long term memory in the first place (encoding failure) or that, for some reason, we are unable to retrieve the information from long term memory (retrieval failure).
Learning is an ongoing process. Our knowledge about the world is constantly being revised as we are exposed to new stimuli and receive feedback that allows us to modify behaviour in other, similar situations. The concept of learning covers a lot of ground, ranging from a consumer’s simple association between a stimulus such as a product logo (such as Coca-Cola) and a response (e.g. ‘refreshing soft drink’) to a complex series of cognitive activities (like writing an essay on learning for a consumer behaviour exam).
Psychologists who study learning have advanced several theories to explain the learning process. These range from those focusing on simple stimulus–response associations (behavioural theories) to perspectives that regard consumers as complex problem-solvers who learn abstract rules and concepts by observing others (cognitive theory).

5. Introduction
Learning is an ongoing process. Our knowledge about the world is constantly being revised as we are exposed to new stimuli and receive feedback that allows us to modify behaviour in other, similar situations. The concept of learning covers a lot of ground, ranging from a consumer’s simple association between a stimulus such as a product logo (such as Coca-Cola) and a response (e.g. ‘refreshing soft drink’) to a complex series of cognitive activities (like writing an essay on learning for a consumer behaviour exam).
Psychologists who study learning have advanced several theories to explain the learning process. These range from those focusing on simple stimulus–response associations (behavioural theories) to perspectives that regard consumers as complex problem-solvers who learn abstract rules and concepts by observing others (cognitive theory).

6. How consumers learn about product and services?

7. The behavioral learning theories
Behavioral learning theories assume that learning takes place as the result of responses to external events. In these theories the mind is considered as a “black box” in which the observable aspects consist of things that go into the box (stimuli) and things that come out of the box (response). Two major approaches to behavioral learning are: “classic conditioning” and “instrumental conditioning”.
Psychologists who subscribe to this viewpoint do not focus on internal thought processes.
People’s experiences are shaped by the feedback they receive as they go through life. Similarly, consumers respond to brand names, scents, jingles and other marketing stimuli based on the learned connections they have formed over time. People also learn that actions they take result in rewards and punishments, and this feedback influences the way they respond in similar situations in the future.

8. The behavioral learning theories

9. “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 its own.
Over time, the second stimulus causes a similar response because we associate it with the first stimulus.
Ivan Pavlov’ research (dog salivation):
- unconditioned stimulus (UCS) – dried meat powder
- conditioned stimulus (CS) – bell (initially neutral)
- conditioned response (CR) - salivation

10. “Classical conditioning”
Pavlov induced classically conditioned learning by pairing a neutral stimulus (a bell) with a stimulus known to cause a salivation response in dogs (he squirted dried meat powder into their mouths). The powder was an unconditioned stimulus (UCS) because it was naturally capable of causing the response. Over time, the bell became a conditioned stimulus (CS): it did not initially cause salivation, but the dogs learned to associate the bell with the meat powder and began to salivate at the sound of the bell only. The drooling of these canine consumers over a sound, now linked to feeding time, was a conditioned response (CR),

11. “Classical conditioning” issues
Repetition: conditioning effects are more likely to occur after the conditioned (CS) and unconditioned (UCS) stimuli have been paired a number of times. Stimulus generalization (halo effect): stimuli similar to a CS may evoke similar responses. Stimulus discrimination: Conditions may also weaken over time especially when a UCS does not follow a stimulus similar to a CS.
Repeated exposures, increase the strength of stimulus-response associations and prevent the decay of these association in memory. Many classic advertising campaigns consist of product slogans that companies repeat so often they are etched in consumers’ minds.
Stimulus generalization refers to the tendency of stimuli similar to a CS to evoke similar, conditioned responses.5 Pavlov noticed in subsequent studies that his dogs would sometimes salivate when they heard noises that only resembled a bell (e.g. keys jangling). People react to other, similar stimuli in much the same way that they responded to an original stimulus. A chemist shop’s bottle of own-brand mouthwash deliberately packaged to resemble Listerine mouthwash may evoke a similar response among consumers who assume that this ‘me-too’ product shares other characteristics of the original.
Similar colours, shapes and designs are all stimuli which consumers organize and interpret, and up to a point, these tactics are perfectly legal

12. Activity
Find an example of classical conditioning in an advertising and explain

13. Marketing applications of classical conditioning principles
Behavioral learning principles apply to many consumer phenomena, such as creating a distinctive brand image or linking a product to an underlying need. Classical conditioning is used in a plethora of advertisements. The idea behind it is a simple one. Make an ad (UCS) that elicits a positive response (CR) in the person exposed to the ad. The product or brand within the ad then becomes the conditioned stimulus (CS).
These conditioned associations are crucial to many marketing strategies that rely on the creation and perpetuation of positive brand equity, in which a brand has strong positive associations in a consumer’s memory and commands a lot of loyalty as a result

14. Marketing applications of classical conditioning principles
These conditioned associations are crucial to many marketing strategies that rely on the creation and perpetuation of positive brand equity, in which a brand has strong positive associations in a consumer’s memory and commands a lot of loyalty as a result

15. Marketing applications of classical conditioning principles
These conditioned associations are crucial to many marketing strategies that rely on the creation and perpetuation of positive brand equity, in which a brand has strong positive associations in a consumer’s memory and commands a lot of loyalty as a result

16. Examples of marketing application of classical conditioning

17. Examples of marketing application of classical conditioning

18. Examples of marketing application of classical conditioning
For example, the use of celebrities in advertising is to make the general population feel that their fame is related to their position on a certain product or political issue. The use of attractive people in commercials for products, even those that are not related to beauty, influences us to think that the product will make us attractive as well.

19. Examples of marketing application of classical conditioning

20. Marketing applications of classical conditioning principles
Repetition: Marketers that attempt to condition an association must ensure that the consumer they target will be exposed to the stimulus a sufficient number of times to make it “stick”. When exposure decreases, extinction occurs. Too much exposure leads to advertising wear out.

21. Marketing applications of classical conditioning principles
Stimulus generalization:
The process of stimulus generalization is critical to branding and packaging decisions that try to capitalize on consumer’s positive associations with an existing brand or company name.
Strategies that marketers base on stimulus generalization:
• Family branding
• Product line extension
• Licensing
• Look-alike packaging
Family branding, in which a variety of products capitalize on the reputation of a company name. Companies such as Campbell’s, Heinz, Philips and Sony rely on their positive corporate images to sell different product lines.
Product line extensions, in which related products are added to an established brand. Dole, which is associated with fruit, was able to introduce refrigerated juices and juice bars, while Sun Maid went from raisins to raisin bread. Other recent extensions include Woolite rug cleaner, and the various models of Nike Air shoes.
Licensing, in which well-known names are ‘rented’ by others. This strategy is increasing in popularity as marketers try to link their products and services with well established figures. Companies as diverse as McDonald’s and Harley-Davidson have authorized the use of their names on products. Japan Airlines recently licensed the rights to use Disney characters, and, in addition to painting Mickey Mouse and Donald Duck on several of its planes, the carrier is requiring its flight attendants to wear mouse ears on some domestic flights!
Lookalike packaging, in which distinctive packaging designs create strong associations with a particular brand. This linkage is often exploited by makers of generic or private-label brands who wish to communicate a quality image by putting their products in very similar packages

22. Examples of marketing application of stimulus generalization

23. Examples of marketing application of stimulus generalization

24. The behavioral learning theories: “Instrumental conditioning”
Instrumental conditioning (or operant conditioning) occurs when we learn to perform behaviors that produce positive outcomes and avoid those that yield negative outcomes. The learner receives a reward after he/she performs the desired behavior. Responses to classical conditioning are fairly simple and involuntary, but the responses we make to instrumental conditioning are related to obtaining a goal.
This learning process is most closely associated with the psychologist B.F. Skinner, who demonstrated the effects of instrumental conditioning by teaching animals to dance, pigeons to play ping-pong, and so on, by systematically rewarding them for desired behaviours.
Instrumental learning occurs as a result of a reward received following the desired behaviour and takes place over a period in which a variety of other behaviours are attempted and abandoned because they are not reinforced. A good way to remember the difference is to keep in mind that in instrumental learning the response is performed because it is instrumental to gaining a reward or avoiding a punishment. Consumers over time come to associate with people who reward them and to choose products that make them feel good or satisfy some need.

25. The behavioral learning theories: “Instrumental conditioning”
Instrumental conditioning occurs in one of three ways:
1) positive reinforcement - reward
2) negative reinforcement - shows how a negative outcome can be avoided
3) punishment - unpleasant event follows a response
example:

26. The behavioral learning theories: “Instrumental conditioning”
Positive reinforcement - Some events or consequences increase the frequency with which a given behavior is likely to be repeated. If a reward (cash rebate) is given at the time of purchase, it may increase the probability that a shopper will buy something in the same store in the future. In this case, because the reward increases the probability of the behavior being repeated, it is called positive reinforcement - In general, the greater the amount of the reward and the sooner it is received after the behavior, the more likely is that the behavior will be reinforced and that similar behavior will occur in the future

27. The behavioral learning theories: “Instrumental conditioning”
Negative reinforcement – the frequency of consumer behavior is increased by removing aversive stimuli that operate to deter a consumer’s purchase. Ex: refunding of parking costs Extinction – if the environment is arranged so that a particular response results in neutral consequences, over a period of time that response will diminish in frequency. Ex: understock of nationally branded products. --- quit shopping! Punishment – if a response is followed by a noxious or unpleasant result, the frequency of that response is likely to decrease. Ex: the actions of a pushy salesperson)

28. The behavioral learning theories: “Instrumental conditioning”

29. The behavioral learning theories: “Instrumental conditioning”

30. The behavioral learning theories: “Instrumental conditioning”
Under conditions of both positive reinforcement and punishment, the person receives a reaction after doing something. In contrast, negative reinforcement occurs when a negative outcome is avoided: the removal of something negative is pleasurable and hence is rewarding. Finally, when a positive outcome is no longer received, extinction is likely to occur, and the learned stimulus–response connection will not be maintained (as when a woman no longer receives compliments on her perfume). Thus, positive and negative reinforcement strengthen the future linkage between a response and an outcome because of the pleasant experience. This tie is weakened under conditions of both punishment and extinction because of the unpleasant experience.

31. The cognitive learning theory
Cognitive learning theory approaches stress the importance of internal mental processes. This perspective views people as problem-solvers who actively use information from the world around them to master their environments. Proponents of cognitive learning argue that even these simple effects are based on cognitive factors: that is, expectations are created that a stimulus will be followed by a response (the formation of expectations requires mental activity).

32. Observational learning
Observational learning occurs when we watch the actions of others and note the reinforcements they receive for their behaviors. In these situations, learning occurs as a result of vicarious rather than direct experience. People store these observations in memory as they accumulate knowledge and then they use this information at a later point to guide their own behavior. Modeling is the process of imitating the behavior of others. It is a powerful form of learning but it can have also negative effects. For example when the behavior proposed is not good.

33. Observational learning

34. Observational learning

35. Marketing applications of cognitive learning principles
Marketers can show what happens to desirable models (i.e. celebrities) who use or do not use their products. Commercial ad “Life is a journey” Julia Roberts for Calzedonia

36. Memory
Memory is a process of acquiring information and storing it over time so that it will be available when we need it.
Memory involves a process of acquiring information and storing it over time so that it will be available when needed. Contemporary approaches to the study of memory employ an information-processing approach. They assume that the mind is in some ways like a computer: data are input, processed and output for later use in revised form. In the encoding stage, information is entered in a way the system will recognize. In the storage stage, this knowledge is integrated with what is already in memory and ‘warehoused’ until needed. During retrieval, the person accesses the desired information.

37. The information encoding
The way we encode information helps to determine how our brains will store this information.
In general it’s more likely that we’ll retain incoming data when we associate it with other things already in memory.
- Sensory meaning;
- Semantic meaning: symbolic associations
Episodic memories (i.e. flashbulb memories): relate to events that are personally relevant.
Narrative: memories store information we acquire in story form
A consumer may process a stimulus simply in terms of its sensory meaning, such as its colour or shape. When this occurs, the meaning may be activated when the person sees a picture of the stimulus. We may experience a sense of familiarity on seeing an ad for a new snack food we recently tasted, for example. In many cases, though, meanings are encoded at a more abstract level.
Semantic meaning refers to symbolic associations, such as the idea that rich people drink champagne or that fashionable men wear an earring.
Episodic memories are those that relate to events that are personally relevant. Couples often have ‘their song’ that reminds them of their first date or wedding.
One method of conveying product information is through a narrative or a story. Much of the social information that an individual acquires is represented in memory this way. Therefore, utilizing this method in product advertising can be an effective marketing technique. Narratives persuade people to construct a mental representation of the information they are viewing.

38. Memory - General knowledge about their environments and behaviors
The human cognitive system can interpret virtually any type of information and thereby create knowledge, meanings and beliefs.
People can create two types of knowledge:
- General knowledge about their environments and behaviors
episodic vs. semantic
- Procedural knowledge about how to do things
Memory involves a process of acquiring information and storing it over time so that it will be available when needed. Contemporary approaches to the study of memory employ an information-processing approach. They assume that the mind is in some ways like a computer: data are input, processed and output for later use in revised form. In the encoding stage, information is entered in a way the system will recognize. In the storage stage, this knowledge is integrated with what is already in memory and ‘warehoused’ until needed. During retrieval, the person accesses the desired information.

39. Memory
General knowledge: Concerns people’s interpretations of relevant information in their environment (product categories, stores, particular behaviors, etc.)
It is stored in memory as propositions that link or connect two concepts (ex: Diesel jeans – are – expensive)
Episodic knowledge concerns the specific events that happened in a person’s life (ex: “yesterday I bought a Kinder chocolate bar from the vending machine”)
Semantic knowledge concerns objects and events in the environment. (ex: the personal meanings and beliefs you have about Kinder chocolate bar – the milk, chocolate, and calories it contains; the wrapper design; the taste – are part of your semantic knowledge)
Memory involves a process of acquiring information and storing it over time so that it will be available when needed. Contemporary approaches to the study of memory employ an information-processing approach. They assume that the mind is in some ways like a computer: data are input, processed and output for later use in revised form. In the encoding stage, information is entered in a way the system will recognize. In the storage stage, this knowledge is integrated with what is already in memory and ‘warehoused’ until needed. During retrieval, the person accesses the desired information.

40. Memory Procedural knowledge How to do things
It is stored in memory as a production, which is a special type of “if …., then …” proposition that links a concept or an event with the resulting appropriate behavior (ex: “if you are dissatisfied with the service, do not leave the tip” or “If a salesperson presses you for a quick decision, say no and leave”)
When activated from the memory, this knowledge directly and automatically influences a person’s overt behavior
Memory involves a process of acquiring information and storing it over time so that it will be available when needed. Contemporary approaches to the study of memory employ an information-processing approach. They assume that the mind is in some ways like a computer: data are input, processed and output for later use in revised form. In the encoding stage, information is entered in a way the system will recognize. In the storage stage, this knowledge is integrated with what is already in memory and ‘warehoused’ until needed. During retrieval, the person accesses the desired information.

41. Memory systems
According to the information-processing perspective, there are three distinct memory systems: sensory memory, short-term memory (STM) and long-term memory (LTM). Each plays a role in processing brand-related information. The interrelationships of these memory systems are summarized in this figure.
Sensory memory permits storage of the information we receive from our senses. This storage is very temporary: it lasts a couple of seconds at most. While this sensation would only last for a few seconds, it would be sufficient to allow the person to determine if he or she should investigate further. If the information is retained for further processing, it passes through an attentional gate and is transferred to short term memory.
Short-term memory also stores information for a limited period of time, and its capacity is limited. Similar to a computer, this system can be regarded as working memory: it holds the information we are currently processing.
Long-term memory is the system that allows us to retain information for a long period of time. In order for information to enter into long-term memory from short-term memory, elaborative rehearsal is required. This process involves thinking about the meaning of a stimulus and relating it to other information already in memory.

42. Measuring consumers’ memories about products and ads
Marketers pay so much money to place their messages in front of consumers. This is why they hope people will actually remember these ads later on.
Fewer than 40% of television viewers made positive links between commercial messages and the corresponding products;
Only 65% noticed the brand name in a commercial;
Only 7% can recall the product or company featured in the most recent television commercial they watched (it was about 15% in 1965).

43. Measuring consumers’ memories about products and ads
The impact of an advertising can be evaluate using two different measures:
Recognition test – researchers show ads to subjects one at a time and ask if they have seen them before;
Free recall tests – researchers ask consumer to independently think of what they have seen without being prompted for this information first (greater effort).

44. Problems with memory measures
Response bias – is a form of contamination of the measuring instrument or the respondent (i.e. experimental subjects tend to give to the experimenter the answer he expects from them).
Memory lapses – people tend to forget information or retain inaccurate memories.
Omitting (leaving facts out);
Averaging (tendency to normalize memories by non reporting extreme cases);
Telescoping (inaccurate recall of time).

45. SUMMARY
Learning is a change in behaviour that is caused by experience. Learning can occur through simple associations between a stimulus and a response or via a complex series of cognitive activities. Behavioural learning theories assume that learning occurs as a result of responses to external events. Classical conditioning occurs when a stimulus that naturally elicits a response (an unconditioned stimulus) is paired with another stimulus that does not initially elicit this response. Over time, the second stimulus (the conditioned stimulus) comes to elicit the response as well.

46. SUMMARY
Operant or instrumental conditioning occurs as the person learns to perform behaviours that produce positive outcomes and avoid those that result in negative outcomes. While classical conditioning involves the pairing of two stimuli, instrumental learning occurs when reinforcement is delivered following a response to a stimulus. Cognitive learning occurs as the result of mental processes. For example, observational learning takes place when the consumer performs a behaviour as a result of seeing someone else performing it and being rewarded for it.

47. SUMMARY
Memory refers to the storage of learned information. The way information is encoded when it is perceived determines how it will be stored in memory. The memory systems known as sensory memory, short-term memory and long- term memory each play a role in retaining and processing information from the outside world. Memory for product information can be measured through either recognition or recall techniques. Consumers are more likely to recognize an advertisement if it is presented to them than to recall one without being given any cues.