1. Consumer Learning CHAPTER SEVEN

2. Learning Objectives 1.To Understand the Process and Four Elements of Consumer Learning. 2.To Study Behavioral Learning and Understand Its Applications to Consumption Behavior. 3.To Study Information Processing and Cognitive Learning and Understand Their Strategic Applications to Consumer Behavior. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall2Chapter Seven Slide

3. Learning Objectives (continued) 4.To Study Consumer Involvement and Passive Learning and Understand Their Strategic Affects on Consumer Behavior. 5.To Understand How Consumer Learning and Its Results Are Measured. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall3Chapter Seven Slide

4. In Terms of Consumer Learning, Are These New Products Likely to Succeed? 4Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

5. These Ads Might Induce Learning Due to the Familiar Names 5Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

6. Learning The process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall6Chapter Seven Slide

7. Elements of Learning Theories Unfilled needs lead to motivation Motivation Stimuli that direct motives Cues Consumer reaction to a drive or cue Response Increases the likelihood that a response will occur in the future as a result of a cue Reinforcement 7Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

8. Two Major Learning Theories Behavioral Learning Based on observable behaviors (responses) that occur as the result of exposure to stimuli Cognitive Learning Learning based on mental information processing Often in response to problem solving 8Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

9. Behavioral Learning Classical Conditioning Instrumental (Operant) Conditioning Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall9Chapter Seven Slide

10. Classical Conditioning A behavioral learning theory according to which a stimulus is paired with another stimulus that elicits a known response that serves to produce the same response when used alone. 10Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

11. Models of Classical Conditioning Figure 7-2a 11Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

12. Figure 7-2b Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall12Chapter Seven Slide

13. Discussion Questions For Coca-Cola or another beverage company: – How have they used classical conditioning in their marketing? – Identify the unconditioned and conditioned stimuli, the conditioned and unconditioned response. 13Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

14. Strategic Applications of Classical Conditioning Repetition Stimulus generalization Stimulus discrimination Increases the association between the conditioned and unconditioned stimulus Slows the pace of forgetting Advertising wearout is a problem Basic Concepts 14Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

15. Why Did Gillette Use Two Different Ads to Advertise the Same Product? 15Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

16. Repetition of the Message with Varied Ads Results in More Information Processing by the Consumer 16Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

17. Strategic Applications of Classical Conditioning 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 Basic Concepts 17Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

18. Discussion Questions Stimulus Generalization How does a pharmacy like CVS or Rite Aid use stimulus generalization for their private brands? Do you think it is effective? Should this be allowable? 18Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

19. Which Concept of Behavioral Learning Applies to the Introduction of These Two Products? 19Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

20. Stimulus Generalization 20Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

21. What Is the Name of the Marketing Application Featured Here and Which Concept of Behavioral Learning Is It Based On? 21Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

22. Product Category Extension Stimulus Generalization 22Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

23. Strategic Applications of Classical Conditioning Repetition Stimulus generalization Stimulus discrimination Selection of a specific stimulus from similar stimuli Opposite of stimulus generalization This discrimination is the basis of positioning which looks for unique ways to fill needs Basic Concepts 23Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

24. What Are the Names of the Marketing Application and the Behavioral Learning Concept Featured Here? 24Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

25. Stimulus Discrimination Product Differentiation 25Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

26. Instrumental (Operant) Conditioning A behavioral theory of learning based on a trial-and-error process, with habits forced as the result of positive experiences (reinforcement) resulting from certain responses or behaviors. 26Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

27. A Model of Instrumental Conditioning Figure 7.9 27Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

28. Reinforcement of Behavior Positive Positive outcome Strengthen likelihood Negative Negative outcome Encourages behavior 28Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

29. Reinforcement of Behavior 29 Extinction A learned response is no longer reinforced The link is eliminated between stimulus and reward Forgetting The reinforcement is forgotten 29Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

30. Strategic Applications of Instrumental Conditioning Customer Satisfaction (Reinforcement) Reinforcement Schedules Shaping Massed versus Distributed Learning 30Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

31. 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 31Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

32. Information Processing and Cognitive Learning Cognitive Learning – Learning involves complex mental processing of information – Emphasizes the role of motivation 32Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

33. Information Processing and Memory Stores - Figure 7.10 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall33Chapter Seven Slide

34. Discussion Questions How do advertisers drive consumers to rehearse information? When does this work against the advertiser? Can you think of examples of advertisements which drive you to rehearse? 34Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

35. AttentionCognitive ActionConativePurchase Postpurchase Evaluation Trial Adoption Decision Confirmation Affective Evaluation Interest EvaluationPersuasion Knowledge AwarenessAwareness Knowledge Interest Desire Innovation Adoption Model Decision- Making Model Tricompetent Model Innovation Decision Process Promotional Model Knowledge Behavior Evaluation Generic Framework Theoretical Models of Cognitive Learning - Table 7.1 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall35Chapter Seven Slide

36. Involvement and Passive Learning Topics Definitions and Measures of Involvement Marketing Applications of Involvement Central and Peripheral Routes to Persuasion Hemispheral Lateralization and Passive Learning Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall36Chapter Seven Slide

37. Involvement Degree of personal relevance that the product or purchase holds for that customer. High involvement purchases are very important to the consumer Low-involvement hold little relevance, have little perceived risk, and have limited information processing 37Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

38. Measuring Involvement with an Advertisement - Table 7.3 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall38 Subjects respond to the following statements on a 7-point Likert scale ranging from “Strongly Agree” to “Strongly Disagree.” The message in the slogan was important to me The slogan didn’t have anything to do with my needs The slogan made me think about joining the military The slogan made me want to join the military While reading the slogan, I thought about how the military might be useful for me The slogan did not show me anything that would make me join the military I have a more favorable view of the military after seeing the slogan The slogan showed me the military has certain advantages The slogan was meaningful to me The slogan was worth remembering 38Chapter Seven Slide

39. Marketing Applications of Involvement Ads in video games Avatars Sensory appeals in ads to get more attention Forging bonds and relationships with consumers 39Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

40. Central and Peripheral Routes to Persuasion Central route to persuasion For high involvement purchases Requires cognitive processing Peripheral route to persuasion Low involvement Consumer less motivated to think Learning through repetition, visual cues, and holistic perception 40Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

41. Hemispheral Lateralization and Passive Learning Hemispheral lateralization – Also called split-brain theory Left Brain – Rational – Active – Realistic Right Brain – Emotional – Metaphoric – Impulsive – Intuitive 41 Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

42. What Is the Name of the Learning Theory Concept Featured in This Ad and How Is It Applied to Air Travel? 42Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

43. Hemispheric Lateralization Both Sides of the Brain are Involved in Decision 43Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

44. How Is Passive Learning Applied to the Promotional Appeal Featured in This Ad? 44Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

45. The Ad is Targeted to the Right Brain 45Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

46. Measures of Consumer Learning Brand Loyalty Recognition and Recall Measures Brand Loyalty 46 Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

47. Three groups of factors Personal degree of risk aversion or variety seeking The brand’s reputation and availability of substitutes Social group influences Four types of loyalty No loyalty Covetous loyalty Inertia loyalty Premium loyalty Measures of Consumer Learning Brand Loyalty Brand Equity – the value inherent in a well-known brand name 47Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

48. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 48Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide