1. Consumer Learning CHAPTER SEVEN

2. A Simple Model of Consumer Decision Making Chapter One Slide2 Copyright 2010 Pearson Education, Inc.

3. 3Chapter Seven Slide Definition and elements of Learning 1- Learning definition 2- Elements of learning

4. 1- Learning definition ( a marketing perspective ) The process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior. 4Chapter Seven Slide New knowledge and experience serve as feedback to the consumer and will influence their future behavior.

5. 2- Elements of Learning Unfilled needs lead to motivation Motivation Stimuli that direct consumer’s motives (price, advertising, store displays). Cues Consumer reaction to a drive or cue Response Increases the likelihood that a response will occur in the future (learning) Reinforcement 5Chapter Seven Slide All learning theories agree that in order for learning to occur, four elements must be present:

6. 6Chapter Seven Slide Theories of Learning: 1- Behavioral learning 1/1 Classical conditioning 2/1 Instrumental (operant) conditioning 3/1 Observational learning 2- Cognitive learning

7. Two Major Learning Theories Behavioral Learning Learning based on observable behaviors Responses occur as the result of exposure to stimuli Cognitive Learning Learning based on mental information processing Often in response to problem solving 7Chapter Seven Slide

8. 1/1 Classical Conditioning A learning theory according to which a stimulus (S1) is paired with another stimulus (S2). (S2) serves to produce the same response of (S1) when used alone (Pavlov experiment). 8Chapter Seven Slide 1- Behavioral learning

9. Models of Classical Conditioning Figure 7-2a 9Chapter Seven Slide S1 S2

10. Figure 7-2b 10Chapter Seven Slide

11. Principles of classical conditioning Repetition Stimulus generalization Stimulus discrimination Increases the association between the conditioned and unconditioned stimulus Slows the pace of forgetting Beware: Advertising wear-out is a problem in too much repetition, so that marketers change the ads frequently 11Chapter Seven Slide

12. Why Did Gillette Use Two Different Ads to Advertise the Same Product? 12Chapter Seven Slide Repetition of the Message with Varied Ads The two different ads is meant to break the advertising wear-out.

13. Repetition Stimulus generalization Stimulus discrimination Having the same response to slightly different stimuli Helps “me-too” products to succeed Useful in: – product extensions – family branding – licensing 13Chapter Seven Slide Principles of classical conditioning

14. In Terms of Consumer Learning, Are These New Products Likely to Succeed? 14Chapter Seven Slide These Ads Might Induce Learning Due to the Familiar Names. The same name for the new product. The company is confident that prior consumer learning will drive people’s enthusiastic acceptance of the new products tied with the V8 name ( stimulus generalization, one of the principles of classical conditioning of learning).

15. Repetition Stimulus generalization Stimulus discrimination Selection of a specific stimulus Opposite of stimulus generalization This discrimination is the basis of positioning, which looks for unique ways to fill needs in a competitive market 15Chapter Seven Slide Principles of classical conditioning

16. What Are the Names of the Marketing Application and the Behavioral Learning Concept Featured Here? 16Chapter Seven Slide The yogurt ad demonstrates that this product is substantially different from other yogurts because it is “ ridiculously thick” (stimulus discrimination).

17. 2/1 Instrumental (Operant) Conditioning A behavioral theory of learning based on a trial- and-error process. Habits forced as a result of experiences (reinforcement) resulting from certain responses or behaviors. learning occurs based on rewards. Through trial and error, consumers learn which behaviors lead to rewards and which do not. 17Chapter Seven Slide 1- Behavioral learning

18. A Model of Instrumental Conditioning 18Chapter Seven Slide

19. Reinforcement of Behavior Positive Positive outcome Good feeling (Reward) Negative Negative outcome Bad feeling (punishment) 19Chapter Seven Slide It is important to realize that both of these influence responses. Positive reinforcement is a good thing that happens which rewards a behavior – going to the gym made you feel good so you go every other day. A negative outcome is a bad thing that happens which encourages a behavior. You ate a donut every morning for breakfast so gained a lot of weight over the past week. This causes you to go to the gym every other day.

20. 3/1 Observational Learning (modeling or vicarious learning) A process by which individuals learn behavior by observing the behavior of others and the consequences of such behavior. Observational learning occurs NOT through responses directly to the consumer but by observation of the behavior and responses of others. Marketers often use role models in their advertising so that consumers can understand the rewards of purchasing the advertisers’ products. 20Chapter Seven Slide 1- Behavioral learning

21. 2- Cognitive Learning In Cognitive Learning, learning involves complex mental processing of information Cognitive learning focuses on problem solving and consumer thinking. It is closely tied to information processing and how consumers store, retain, and retrieve information. 21Chapter Seven Slide

22. Attention Cognitive Action Conative Purchase Post-purchase Evaluation Trial Adoption Decision Confirmation Affective Evaluation Interest EvaluationPersuasion Knowledge AwarenessAwareness Knowledge Interest Desire Innovation Adoption Model Decision- Making Model Tricomponent Model Innovation Decision Process Promotional Model Knowledge Behavior Evaluation Generic Framework Theoretical Models of Cognitive Learning 22Chapter Seven Slide