1. 1 MKT201 - Weeks 3 & 4 Learning and Memory (Ch. 3)

2. 2 The Learning Process Learning: –A relatively permanent change in behavior caused by experience Learning is an Ongoing Process and we can learn: –Vicariously by observing events that affect others (don’t need direct experience) –By incidental learning which is unintentional (can hum product jingles, without using the product) * There are several theories to explain the learning process, such as the Behavioral Theory and the Cognitive Theory

3. 3 Learning is a Process Our tastes are formed as a result of a learning process, sometimes with painful results.

4. 4 Two Major Approaches: (a) Classical Conditioning »Ivan Pavlov (Russian physiologist) (b) Instrumental Conditioning ( Operant Conditioning) (1)BEHAVIORAL LEARNING THEORIES (stress on stimulus-response connection)

5. 5 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.

6. 6 Behavioral Learning Theories Stimulus Consumer Response Consumer’s Black Box Behavioral Learning Theories Behavioral Learning Theories Assume that Learning Takes Place as the Result of Responses to External Events (NOT focus on internal thought processes).

7. 7 Behavioral Learning Theory: (a) Classical Conditioning 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 It’s Own. Unconditioned Stimulus (UCS) meat powder Unconditioned Stimulus (UCS) meat powder Conditioned Stimulus (CS) bell Conditioned Stimulus (CS) bell Conditioned Response (CR) salivate Conditioned Response (CR) salivate Ivan Pavlov’s experiment on dogs

8. 8 Behavioral Learning Theory: (a) Classical Conditioning 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 It’s Own. Unconditioned Stimulus (UCS) meat powder Unconditioned Stimulus (UCS) meat powder Conditioned Stimulus (CS) bell Conditioned Stimulus (CS) bell Conditioned Response (CR) salivate Conditioned Response (CR) salivate Visual cues, Olfactory cues A brand name / product; Sexual arousal, huger, thirst, other basic drives Repeated Pairing

9. 9 Classical Conditioning Ivan Pavlov’s Dogs –Unconditioned stimulus (UCS) – Naturally capable of causing a response. –Conditioned stimulus (CS) – Does not initially cause a response –Conditioned response (CR) – Response generated by repeated paired exposures to UCS and CS. Eventually, through learned association and repetition, the CS will cause the CR.

10. 10 (1) Repetition (CS paired with UCS, repeated exposure increase the strength) (2) Stimulus Generalization (react to similar conditioned stimuli CS with similar responses) (3) Stimulus Discrimination (similar CS not followed by a UCS, so original manufacturers urge consumers not to buy “cheap imitations”) Factors That Affect the Classical Conditioning Process

11. 11 (1) Repetition of exposure –Type of medium used (and frequency/interval) affect the effectiveness –Extinction (as CS is only occasionally paried with the UCS -> conditioning will not occur)) Izod Lacoste crocodile on baby clothes –Beware of… Advertising wearout Frequent product encounters

12. 12 In the 1980’s, the Lacoste crocodile was an exclusive logo symbolizing casual elegance. When it was repeated on baby clothes and other items, it lost its cache and began to be replaced by contenders such as the Ralph Lauren Polo Player. Can you thing of other logos that have lost their prestige due to repetition? Discussion Question

13. 13 Classical Conditioning in Advertising This American Airlines ad points to classical conditioning as an explanation for why their AAdvantage Marketing Programs (travel awards programs) will work. Can you identify the UCS, CS, and the CR in this example?

14. 14 (2) Stimulus Generalization –Halo effect (react similarly to similar stimulus) “Piggybacking” strategy (producing me-too products) Masked branding (Levi’s markets its Red Tab) –Family branding, product line extensions, licensing, look-alike packaging

15. 15 Masked Branding Plank Road Brewery: Icehouse beer Levi’s markets its Red Tab targeting to younger customers (who don’t like “old” brand)

16. 16 (3) Stimulus Discrimination –Brand positioning Unique attributes of brand –Anti-Counterfeiting Coalition combats “knockoffs” (unauthorized copy) CONSUMERS’ DISCRIMINATION FOR PROCTER & GAMBLE’S PACKAGING/LABELING

17. 17 Marketing Applications of Behavior Learning Principles Brand Equity: –A brand has strong positive associations in a consumer’s memory and commands loyalty. Applications of Repetition (avoid advertising wearout) Applications of Conditioned Product Associations : –Semantic associations (meaning of words/language) –Phonemes (smallest phonetic unit in a language that is capable of conveying a distinction in meaning) (pleasant music, humor, … with the product)

18. 18 Loyalty to Brands Rewarding consumers with frequent flyer miles is an effective way to reinforce them and build brand loyalty.

19. 19 Marketing Applications of Behavior Learning Principles (cont’d) Applications of Stimulus Generalization: –Family branding –Product line extensions –Licensing –Look-alike packaging Applications of Stimulus Discrimination: –Consumers learn to differentiate a brand from its competitors –Unique attributes of the brand

20. 20 Beware of Knockoffs (imitation)

21. 21 Behavioral Learning Theory: (b) Instrumental Conditioning Instrumental Conditioning (Operant Conditioning) Instrumental Conditioning (Operant Conditioning) Occurs as the Individual Learns to Perform Behaviors That Produce Positive Outcomes and to Avoid Those That Yield Negative Outcomes. It Occurs in One of the Following Three Ways: Punishment Positive Reinforcement Negative Reinforcement

22. 22 Four Types of Reinforcement Figure 3.2 Try to use perfume as examples

23. 23 Instrumental Conditioning Reinforcement Schedules (trying to reward consumers to condition desired behaviour)  Fixed-interval reinforcement (seasonal sales – fixed time period)  Variable-interval reinforcement (not knowing the exact time of reinforcement; secret shoppers for testing service quality)  Fixed – Ratio reinforcement (grocery-shopping receipt programs, collection of 10 trading stamps – fixed no. of responses)  Variable – Ratio reinforcement (slot machine)

24. 24 Applications of Instrumental Conditioning Principles Reinforcement of Consumption: –Simple “Thank you” –Rebates –Follow-up phone calls Frequency Marketing (a popular technique): –Reinforces regular purchases by giving them rewards with values that increase along with the amount purchased Frequent flyer miles

25. 25 Stress on the importance of internal mental process View people as problem solvers with the use of information Is learning cognitive/conscious or not? Behavioural learning theory - automatic nature of conditioning: no, not conscious Cognitive learning theory: yes, react to a stimulus consciously –Trigger feature A stimulus that cues an individual toward a particular pattern and activates a reaction e.g. seductive woman (trigger feature) in an ad for a car -> better rating (2) COGNITIVE LEARNING THEORY

26. 26 Cognitive Learning Theory: Observational Learning Consumer’s Attention Must Be Drawn to a Desirable Model Consumer Must Remember What is Said and Done by Model Consumer Must Convert This Information Into Actions Consumer Must be Motivated to Perform These Actions Observational Learning Observational Learning Occurs When People Watch the Actions of Others and Note the Reinforcements They Receive From Others. Modeling Imitating the Behavior of Others is Called Modeling:

27. 27 Components of Observational Learning Figure 3.3

28. 28 Applications of Cognitive Learning Principles Consumers learn vicariously by seeing others receive reinforcement for their behaviors. Marketers can reinforce or punish consumers indirectly by showing what happens to desirable models who do or do not use their products. Consumers’ evaluations of models are not limited to stimulus-response connections. –Attractiveness can be based on several components (e.g. physical attractiveness, expertise, similarity to the evaluator)

29. 29 The Role of Memory in Learning Memory –A process of acquiring and storing information such that it will be available when needed. Stages of Memory –Encoding stage Information entered in a recognizable way –Storage stage Knowledge integrated into what is already there and warehoused –Retrieval stage The person accesses the desired information

30. 30 The Memory Process Figure 3.4

31. 31 Memory and Advertising This Brazilian ad illustrates that external memory aids like Post-Its can help us to remember many of the details of modern life.

32. 32 Encoding Information for Later Retrieval Types of meaning: –Sensory meaning (e.g. color or shape) –Sense of familiarity (e.g. seeing a food that we have tasted) –Semantic meaning: Symbolic associations (e.g. rich people drink champagne) (Semantics – also refers to the aspects of meaning that are expressed in a language, code, or other form of representation.)meaning languagecode (Semiotics - the study of signs and symbols, both individually and grouped in sign systems.)signs Personal relevance: –Episodic memories: Relate to events that are personally relevant –Flashbulb memories: Especially vivid associations –Narrative: An effective way of persuading people to construct a mental representation of the information that they are viewing

33. 33 Memory Systems 1.Sensory Memory: –Very temporary storage of information we receive from our senses 2.Short-Term Memory (STM): –Limited period of time & limited capacity –Working memory (i.e., holds memory we are currently processing) 3.Long-Term Memory (LTM): –Can retain information for a long period of time –Elaboration rehearsal is required: Process involves thinking about a stimulus and relating it to information already in memory

34. 34 Storing Information in Memory Activation Models of Memory Short-Term and Long-Term Memory are Interdependent (and associated together) Activation Models of Memory Short-Term and Long-Term Memory are Interdependent (and associated together) Associative Networks Incoming Information is Organized by Knowledge Structures Relationships and Stored in Knowledge Structures Associative Networks Incoming Information is Organized by Knowledge Structures Relationships and Stored in Knowledge Structures Spreading Activation Allows Consumers to Shift Back and Forth Between Levels of Meaning such as Brands Spreading Activation Allows Consumers to Shift Back and Forth Between Levels of Meaning such as Brands Levels of Knowledge Knowledge is Coded to Produce Meaning Concepts, then Propositions/Beliefs, then Schemas Levels of Knowledge Knowledge is Coded to Produce Meaning Concepts, then Propositions/Beliefs, then Schemas

35. 35 Storing Information in Memory Multiple Store Models of Memory: –Traditional perspective which assumes that STM & LTM are separate systems (now, we think they are mutually dependent). Activation Models of Memory: –Argues that different levels of processing occur depending on the nature of the processing task. –The more effort it takes to process information, the more likely that information will be placed in LTM. –Propose the existence of associative network

36. 36 Storing Information in Memory (cont’d) Associative Networks: –Contains many bits of related information organized according to some set of relationships –Knowledge structures: Complex “spider webs” filled with pieces of data –Hierarchical processing model: Message is processed in a bottom-up fashion (i.e., starts at a basic level and is subject to increasingly complex processing which requires increased cognitive capacity) –Node: A concept related to a category –An associative network is developed as links form between nodes.

37. 37 Figure 3-6: An Associative Network for Perfumes Links formed between nodes

38. 38 Storing Information in Memory (cont’d) Spreading Activation: –A process which allows consumers to shift back and forth between levels of meaning (e.g., brand-specific, product category, ad-specific). Levels of Knowledge: –Knowledge is coded at different levels of abstraction and complexity. –Proposition (a.k.a. belief): A larger unit of meaning (i.e., formed by combinations of nodes) –Schema: A cognitive framework (comprised of propositions) developed through experience Script: A type of schema consisting of a sequence of events expected by an individual

39. 39 Retrieving Information for Purchase Decisions Factors Influencing Retrieval: –Physiological Factors (e.g. age) –Situational Factors: Pioneering brand: First brand to enter a market. Is generally easier to retrieve from memory. Descriptive (or suggestive) brand names easier to recall than names that do no provide cues to what the product is. –Viewing environment: Commercials shown first in a series of ads are recalled better than those shown last. –Postexperience advertising effects: When consumers confuse recently viewed ads with their own experiences.

40. 40 Retrieving Information for Purchase Decisions (cont.) State-Dependent Retrieval: –(a.k.a. mood congruence effect) A process by which consumers are better able to access info if their mood is the same at the time of their recall as when the info was learned. –A few marketing researchers use hypnosis to dredge up past memories of experiences with products. Familiarity and Recall: –Prior familiarity enhances recall. Salience and Recall: –Salience: The prominence or level of activation of stimuli in memory –Von Restorff Effect: Any technique that increases the novelty of a stimulus also improves recall.

41. 41 Retrieving Information for Purchase Decisions Physiological Factors SuchAs: Age Physiological Factors SuchAs: Age Situational Factors SuchAs: E nvironment Situational Factors SuchAs: E nvironment Viewing Environmental Factors Viewing Environmental Factors Influencing Retrieval Factors Influencing Retrieval Football/basketball better than baseball in recall of ads Pioneering & descriptive brands

42. 42 Retrieving Information for Purchase Decisions State-Dependent Retrieval State-Dependent Retrieval Salience and Recall Familiarity and Recall Pictorial Vs. Verbal Cues Pictorial Vs. Verbal Cues Mood congruence effect Von Restorff Effect (novelty, more prominent, better recall) High familiarity – good recall Extreme familiarity – no good ! Visual better than verbal

43. 43 Pictorial versus Verbal Cues There is some evidence for the superiority of visual memory over verbal memory. Pictorial ads may enhance recall, but do not necessarily improve comprehension. How many of these Ad icons can you remember from the picture alone?

44. 44 Factors Influencing Forgetting (s4) Decay: –Structural changes in the brain produced by learning simply go away. Retroactive Interference: –Consumers forget stimulus-response associations when new responses to the same or similar stimuli are learned. Proactive Interference: –As new responses are learned, a stimulus loses its effectiveness in retrieving the old response. (Prior learning interferes with new learning) Part-list Cueing Effect: –When only a portion of the items in a category are presented to consumers, the omitted items are not as easily recalled. (e.g., in comparative ad, only mentions weak competitors, not strong competitors).

45. 45 Products as Memory Markers Products and ads can serve as powerful retrieval cues. –Autobiographical memories: Consumer memories related to their own past. –Mnemonic (associated, related to) qualities: Aspects of a consumer’s possessions that serve as a form of external memory which prompts the retrieval of episodic memories. The Marketing Power of Nostalgia –Spontaneous recovery: The ability of a stimulus to evoke a response years after it is initially perceived. Memory and Aesthetic Preferences –Ads and products that remind consumers of their past also help to determine what they like now.

46. 46 Products as Memory Markers Marketing Power of Nostalgia Memory and Aesthetic Preferences >Nostalgia is an emotion where the past is viewed with sadness and longing. >Retro Marketing attempts to bring back old commercials to appeal to the nostalgia market. > Our prior experiences also help to determine what we like now. (popular songs – age 23.5; fashion models – age 33; movie stars – age 26-27)

47. 47 Memories of the Past as Retrieval Cues

48. 48 Nostalgia Appeal Fossil’s product designs evoke memories of earlier classic designs

49. 49 Starch Test - Test to Measure Recognition & Recall Measuring Memory for Marketing Stimuli Measuring the Impact (Impression) that Advertising Makes on Consumers RecognitionRecall (whether having seen the ads before) (showing an ad, recall what have seen) (advertising recall for magazine, score/index)

50. 50 Problems With Memory Measures Response Biases Results Obtained May be Biased Due to the Measuring Instrument or Respondent (YES man) Response Biases Results Obtained May be Biased Due to the Measuring Instrument or Respondent (YES man) Memory Lapses People are Prone to Unintentionally Forgetting Information (Omitting, averaging, …) Memory Lapses People are Prone to Unintentionally Forgetting Information (Omitting, averaging, …) Memory for Facts Vs. Feelings Difficult to Take “Feelings” Out of Impressions About Ads (arouse emotion rather than convey benefits) Memory for Facts Vs. Feelings Difficult to Take “Feelings” Out of Impressions About Ads (arouse emotion rather than convey benefits)

51. 51 Ads with celebrities like Britney Spears tend to have very high recall rates. Name some ads with celebrities that you can recall easily. Why does the celebrity association with the ad aid your recall? Discussion Question