1. Perception, Memory & Learning
Professor S.J. Grant
Spring 2007
BUYER BEHAVIOR, MARKETING 3250

2. Outline Perception A model of memory Learning
What are the types of memory?
Organization of memory
How memory works
Storage
Retrieval
Learning

3. Perception
Hemispheric lateralization

4. Perception When do we perceive stimuli?
Absolute and differential thresholds
Just noticeable difference
Weber’s law
Selective – cocktail party
Subliminal perception
Does subliminal perception affect consumer behavior?

5. Perception Does subliminal messaging make people buy?
1956 N.J. movie theater flashed subliminal messages, “Hungry? Eat popcorn. Drink Coca-Cola.”
Increased popcorn sales 58% and Coca-Cola sales 18%, but results were not replicated
Erotic stimuli and sexual symbols in ads purported to increase receptivity to suggestions in the ad

6. A Model of Memory Perceived information is encoded
Explicit
Implicit
Then stored in memory
Short-term store
Long-term store
Retrieval involves calling up stored bits from memory

7. A Model of Memory Long-Term Memory Stimulus Short-Term Memory Recall
Consolidation
Retrieval
Long-Term
Memory

8. A Model of Memory
Sensory
Short-term
Long-term

9. A Model of Memory Sensory Echoic Iconic
Characteristics of sensory memory

10. A Model of Memory Short-term memory (STM) Imagery processing
Discursive processing
Characteristics of short-term memory
Short-term memory is limited (7±2)
Short-term memory is short-lived

11. A Model of Memory Long-term memory (LTM)
Autobiographical (episodic) memory
Semantic memory
Characteristics of long-term memory
Stable memory of events of more distant past
Unlimited capacity
Organized by nodes

12. A Model of Memory
Converting short-term memories to long-term store is physically located in the hippocampus
Elaboration, or rehearsal, of information increases consolidation
Recall from long-term storage is a function of recency and availability
Availability is aided if memory is organized into a well-defined associative network of nodes
Categories
Hierarchies

13. A Model of Memory Beverages Carbonated Non-carbonated Colas Mixers
Juices
Water
Pepsi
Coke
Evian
Poland
Spring

14. A Semantic (or Associative) Network

15. How Memory Is Enhanced Chunking Rehearsal Recirculation Elaboration
Y=mx+b

16. What Is Retrieval? Semantic network Trace strength
Accessibility
Spreading of activation
Priming
Retrieval failures
Decay
Interference
Primacy and recency effects
Retrieval errors

17. What Are the Types of Retrieval?
Explicit memory
Recognition
Recall
Judgments
Implicit memory

18. Retrieval Perceptual Conceptual “His name started with a ‘J’ . . .”
“A brand of personal computers that competes with IBM . . .”

19. How Retrieval Is Enhanced
Characteristics of the stimulus
Salience
Prototypicality
Redundant cues
The medium in which the stimulus is processed

20. How Retrieval Is Enhanced
What the stimulus is linked to
Retrieval cues
Where do retrieval cues come from?
The brand name as a retrieval cue
Other retrieval cues
Consumer implications
Consideration set

21. How Retrieval Is Enhanced
How a stimulus is processed in short-term memory
Dual coding
Consumer characteristics affecting retrieval
Network of associations
Expertise
Mood

22. Information Processing Selective
Exposure
Attention
Interpretation
Memory

23. Purchase and consumption decisions
A Model of Learning
Exposure
Random Deliberate
Attention
Low High-
involvement involvement
Interpretation
Short-term Memory Long-term
Active problem Stored experiences, solving values, decisions, rules, feelings
Purchase and consumption decisions
Perception

24. Information Processing & Implications
Professor S.J. Grant
Spring 2007
BUYER BEHAVIOR, MARKETING 3250

25. Outline A model of information processing The structure of knowledge
Role of attention, or cognitive resources
The structure of knowledge
How the structure of knowledge leads to understanding and persuasion
Implications for positioning

26. A Model of Information Processing
Awareness
Knowledge
Preference
Loyalty
Relevance
Differentiation
Attention
Old
Paradigm
New
Paradigm

27. Information Processing Selective
Attention
Relevance
Differentiation
Memory

28. Relevance
Determining relevance is based on existing knowledge structures
Interpretation is subject to prior learning
Schemas and associations
Categorization
Images
Scripts

29. Taxonomic Category Structure

30. Knowledge Structure Categories and their structure Prototypicality
Correlated associations
Hierarchical structure
Superordinate level
Basic level
Subordinate level

31. Positioning New brands or products must establish in consumers’ minds
Target
Frame of reference (or category membership)
Point of difference

32. Implications for Positioning
Target Audience
Must be broad enough to support a meaningful business, but sufficiently discriminating to guide communication and strategy. This is where segmentation strategies are relevant.
Frame of Reference
The category of competing offerings – substitutes – against which the customer should evaluate the relative merits of the brand.
The brand’s competitive, differentiated reason for being – ideally an emotional benefit that uniquely identifies the brand. This is where the elevated value proposition is expressed/how elevated value is delivered.
Differentiated Benefit
Reason to Believe

33. Product Positioning For busy, health-conscious adults
Target
For busy, health-conscious adults
Prepared, ready-to-eat packaged foods
Lower fat content, reduced calories
Frame of
reference
Point of
difference

34. Product Positioning For adults at risk of heart disease
Target
For adults at risk of heart disease
Any aspirin (acetylsalicylic acid) such as Bayer, Anacin, Bufferin, Excedrin
Safe and gentle
Frame of
reference
Point of
difference

35. Product Positioning For active adults seeking to
Target
For active adults seeking to
be at the top of their game
Bottled water
Enhanced to boost performance due to natural vitamins, nutrients
Frame of
reference
Point of
difference

36. Positioning For leisure travelers seeking pampering
Target
For leisure travelers seeking pampering
Resorts, spas, vacation getaways
Luxurious furnishings, upscale experience
For business travelers who need to be productive
Hotels catering to business travelers (Hyatt, Hilton)
Excellent service, attention to detail
Frame of
reference
Point of
difference

37. Positioning For upscale convertible lovers
Target
For upscale convertible lovers
Other luxury convertibles (BMW, Mercedes, Lexus)
Volvo’s reputation for safety first, rollover protection
For drivers who value Volvo’s safety heritage
Safety-oriented vehicles (station wagons)
A turbocharged convertible with 10-speaker sound
Frame of
reference
Point of
difference

38. Positioning For customers who buy frozen pizza Other frozen pizzas
Target
For customers who buy frozen pizza
Other frozen pizzas
Better quality
Rising crust
For customers who prefer delivery pizza
Delivery pizza
Better value
Lower price than delivery
Frame of
reference
Point of
difference
Reason to
believe

39. Positioning Problems Positioning on conflicting claims
High quality but low cost
Good tasting but low calorie
Sweet but nutritious
Fast acting but long lasting
Sustaining a benefit over time
Benefit relevance may change over decades
How to express benefit in modern ways
Entry of me-too brands
Usually strengthens incumbent