1. Learning & Consumer Behavior
Prabu Doss. K

2. Introduction
Learned connections between products and memories are a potent way to build brand loyalty
It is an ongoing process
Relatively a permanent change in behavior caused by experience
Experience may even be by observing

3. The Learning Process
Much of our learning happens intentionally (intentional learning).
We carefully search for information
We learn even when we are not trying- recognizing ad jingles
This casual and unintentional acquiring of knowledge is called incidental learning

4. Behavioral Learning Theories
Assume that learning takes place as the result of responses to external events.
View is represented by two major approaches to learning:
1) Classical Conditioning
2) Instrumental Conditioning
People’s experiences shaped by feedback they receive as they go through life
Actions result in rewards and punishments, which influences future responses to similar situations.

5. Classical Conditioning
Unconditioned stimulus (UCS) – Naturally capable of causing a response. (meat powder)
Conditioned stimulus (CS) – Does not initially cause a response (bell)
Conditioned response (CR) – Response generated by repeated paired exposures to UCS and CS (drooling). Eventually, through learned association and repetition, the CS will cause the CR.

6. Classical Conditioning
Stimulus generalization:
Tendency of a stimulus similar to a CS to evoke similar, conditioned responses (imitations can dampen the original brand)
Masked branding: Deliberately hiding a product’s true origin
Stimulus discrimination:
Occurs when a UCS does not follow a stimulus similar to a CS.

7. Lexus uses Masked Branding

8. Application of Stimulus generation
Applications of Stimulus Generalization:
Family branding
Product line extensions
Look-alike packaging
Applications of Stimulus Discrimination:
Consumers learn to differentiate a brand from its competitors
Unique attributes of the brand

9. Instrumental Conditioning
Occurs as the individual learns to perform behaviors that produce positive outcomes and avoid behaviors that yield negative outcomes
Also called “Operant Conditioning”
Occurs one of the two ways:
Positive reinforcement
Negative reinforcement
Extinction: When a positive outcome is no longer received, the learned stimulus-response connection will not be maintained.

10. Examples for positive & negative reinforcement

11. Instrumental conditioning
Reinforcement Schedules:
Fixed-interval reinforcement
Variable-interval reinforcement
Fixed-ratio reinforcement
Variable-ratio reinforcement

12. Applications of instrumental conditioning
Reinforcement of Consumption:
Thank you
Rebates
Follow-up phone calls
Frequency Marketing:
Reinforces regular purchases by giving them rewards with values that increase along with the amount purchased
Frequent flyer miles

13. Cognitive Learning theory
Stresses on the importance of internal mental process
People are problem solvers, who actively use information

14. Observational Learning
Occurs when people watch the actions of others and note reinforcements received for their behaviors
Learning occurs as a result of vicarious, rather than direct, experience.
This is also called as Modeling or vicarious learning

15. Information Processing
Very complex in nature, information's are kept temporarily in sequential storehouses before any further action takes place
Sensory store/sensory memory
Short-term store (working memory)
Long-term store