Consumer-Learning and behaviour dynamics

Consumer behaviour

1. Prof. B. B. Mishra

2. Why did these products fail?
Listerine Toothpaste
Ben-Gay Aspirin
Oreo Little Fudgies
Why did Pocket Paks succeed?

3. CONSUMER LEARNINGCONSUMER LEARNING
A process by which individuals acquire the purchase
and consumption knowledge and experience that
they apply to future related behaviour.
Learning refers to a relatively permanent change in
behavior that is caused by experience.
Learning is an ongoing process and we can learn:
Vicariously by observing events that affect
others,
By incidental learning which is
unintentional.

4. Intentional
learning acquired as a result of a
careful search for information
Incidental
-- learning acquired by accident or
without much effort

5. Marketers must teach consumers:
where to buy
how to use
how to maintain
how to dispose of products
There are several theories to explain the
learning process such as the BehavioralBehavioral
Theory Theory and the Cognitive TheoryCognitive Theory.

6. Behavioural Theories:
Theories based on the
premise that learning
takes place as the
result of observable
responses to external
stimuli. Also known as
stimulus response
theory.
Cognitive Theories:
A theory of learning
based on mental
information
processing, often in
response to problem
solving.

7. Motivation
Cues
Response
Reinforcement

8. A positive or negative outcome that influences
the likelihood that a specific behaviour will be
repeated in the future in response to a
particular cue or stimulus.

9. Classical Conditioning
Instrumental Conditioning
Modeling or Observational Learning

10. 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.

11. 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)
Conditioned
Stimulus
(CS)
Conditioned
Response
(CR)

12. CLASSICAL CONDITIONINGCLASSICAL CONDITIONING
Pairing a stimulus with another stimulus that
elicits a known response to produce the same
response when used alone.

13. NOTE: UR and CR
represent the same
behavior, but causes
differ
US ----> UR
(Unconditioned stimulus) (Unconditioned response)
US + CS -----> UR
(Conditioned stimulus)
CS ------> CR (CS alone is now
(Conditioned response) able to bring
E.g.: CR)
SUGAR -------> insulin release
SUGAR + Cola Taste -------> insulin release
Cola taste -------> insulin release

14. StimulusStimulus
GeneralizationGeneralization
““Piggybacking”Piggybacking”
Stimulus Stimulus
DiscriminationDiscrimination
RepetitionRepetition

15. Behavioral Learning
Brand Equity
Repetition
Advertising Wear-Out
Conditioned Product Association
Stimulus Generalization
Family Branding
Product Line Extension
Licensing
Look-Alike Packaging
Stimulus Discrimination

18. Classical conditioning is the learning of
associations among events that allows us to
anticipate and represent our environment.
From this viewpoint, classical conditioning is
not reflexive action, but rather the acquisition
of new knowledge

19. Forward Conditioning (CS Precedes US)
Repeated Pairings of CS and US
A CS and US that Logically Belong to Each
Other
A CS that is Novel and Unfamiliar
A US that is Biologically or Symbolically Salient

20. Repetition
Stimulus Generalization
The inability to perceive differences between slightly
dissimilar stimuli.
Stimulus Discrimination

21. Repetition increases strength of
associations and slows forgetting
but over time may result in
advertising wearout.
Cosmetic variations reduce satiation.

22. Repetition is the basis for the idea that three
exposures to an ad are necessary for the ad to
be effective
The number of actual repetitions to equal three
exposures is in question.

23. The inability to perceive differences between
slightly dissimilar stimuli.
Marketing applications
Product Line, Form and Category Extensions
Family Branding
Licensing
Generalizing Usage Situations

24. The ability to select a specific stimulus from
among similar stimuli because of perceived
differences.

25. Identify and pair product with a known,
well-liked stimulus
More attention
More favourable attitudes
Greater intention to buy the product
Learning of key attributes
Use stimulus generalization effectively
Distinguish the product through effective
use of stimulus discrimination

26. Consumers learn by means of trial and error
process in which some purchase behaviours
result in more favorable outcomes (rewards)
than other purchase behaviours.
A favorable experience is instrumental in
teaching the individual to repeat a specific
behaviour.
learning based on a trial-and-error process,
with habits forced as the result of positive
experiences (reinforcement)

28. BEHAVIOR
REINFORCEMENT
NEGATIVE
REINFORCEMENT
PUNISHMENT
LIKELIHOOD
OF BEHAVIOR
LIKELIHOOD
OF BEHAVIOR{
NOT the
same thing!

29. Temporal proximity--conditioning is more
effective if consequences immediately follow
behavior (delayed reinforcement is much less
effective)
Recognition of relationship between behavior
and consequences
Schedules of reinforcement--variable ratio is
most effective

30. Importance
Involvement
Product
Message—e.g.,
AFLAC Insurance
Energizer Bunny
Mood
Mixed research results
More elaboration and
associations during positive
mood if the association is
pleasurable
Happy people may seek to
avoid thinking to avoid spoiling
the good mood
Individuals will tend to be more
critical of claims under bad
mood

31. 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 Ways:
Punishment
Positive Reinforcement
Negative Reinforcement
Extinction

32. Reinforcement SchedulesReinforcement Schedules
Fixed - Interval
Variable - Interval
Fixed - Ratio
Variable - Ratio
Applications of Instrumental ConditioningApplications of Instrumental Conditioning
Reinforcement of Consumption
Frequency Marketing Frequency Marketing - reinforces regular purchasers
by giving them prizes with values that increase along
with the amount purchased.

33. Positive
Reinforcement:
Positive outcomes that
strengthen the
likelihood of a specific
response
Example: Ad showing
beautiful hair as a
reinforcement to buy
shampoo
Negative
Reinforcement:
Unpleasant or negative
outcomes that serve to
encourage a specific
behaviour
Example: Ad showing
wrinkled skin as
reinforcement to buy
skin cream

34. Punishment
Choose reinforcement rather than
punishment
Extinction
Combat with consumer satisfaction
Forgetting
Combat with repetition

35. Make the product the ultimate reward
Provide samples and free trials
Provide non-product rewards
Practice relationship marketing
Reinforcement Schedules
Shaping
Massed versus Distributed Learning

36. Product quality ---> satisfaction
Sales promotions
Stealing loyal consumers away
from others--is it worth it?
Price
value
exclusiveness

37. COGNITIVE LEARNING THEORYCOGNITIVE LEARNING THEORY
Learning through problem solving, which
enables individuals to gain some control
over their environment.
Three types:
Observational learning
Rote Learning
Reasoning

38. 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
Is Learning Conscious Or Not?
Observational Learning Observational Learning Occurs When People Watch the
Actions of Others and Note the Reinforcements They Receive
From Others.
Imitating the Behavior of Others is Called ModelingModeling:

39. Encoding Information for Later Retrieval
Types of Meaning
Personal Relevance
Flashbulb Memories
Narrative
Memory Systems
Sensory Memory
Short-Term Memory (STM)
Long-Term Memory (LTM)

41. Storing Information in Memory
Activation Models of Memory
Associative Networks
Knowledge Structures

43. Spreading Activation
Memory Trace for an Ad Could Be Stored
in One or More of the Following Ways:
Brand-specific
Ad-specific
Brand Identification
Product Category
Evaluative Reactions
Levels of Knowledge

44. Retrieving Information for Purchase
Decisions
Factors Influencing Retrieval
State-Dependent Retrieval
Familiarity and Recall
Salience and Recall
Von Restorff Effect
Pictorial Versus Verbal Cues: Is a Picture
Worth a Thousand Words?

45. Factors Influencing Forgetting
Decay
Part-List Cueing Effect
Products as Memory Markers
Autobiographical Memories
The Marketing Power of Nostalgia
Nostalgia
Spontaneous Recovery
Memory and Aesthetic Preferences
Measuring Memory for Marketing Stimuli
Recognition Versus Recall
The Starch Test

46. Problems with Memory Measures
Response Biases
Memory Lapses
Memory for Facts Versus Feelings

47. OBSERVATIONAL LEARNINGOBSERVATIONAL LEARNING
individuals learn by observing the behaviour of
others, and consequences of such behaviour.
Also known as modeling or vicarious learning.

48. ICONIC ROTE LEARNINGICONIC ROTE LEARNING
Learning concepts through simple repetition
Repeated ads teach consumers about a product’s
attributes

49. Highest level of cognitive learning
Involves creative thinking
Depends on how information is processed and
stored

51. Information is stored in
long-term memory
Episodically: by the order
in which it is acquired
Semantically: according
to significant concepts

52. Central and Peripheral Routes to Persuasion
highly involved consumers are best reached through
ads that focus on the specific attributes of the product
(the central route)
uninvolved consumers can be attracted through
peripheral advertising cues such as the model or the
setting (the peripheral route).

53. ELABORATION LIKELIHOOD MODEL ELABORATION LIKELIHOOD MODEL
(ELM)(ELM)
a person’s level of involvement during message
processing determines which route to
persuasion is likely to be effective

54. Involvement
Central
Route
Peripheral
Route
Message
Arguments
Influence
Attitudes
Peripheral
Cues
Influence
Attitudes
HIGH
LOW

55. Use rote learning to teach consumers
about the brand
Use reasoning or problem solving for
complex or high-involvement products
Use modelling to extinguish negative
behaviour
Use knowledge of information processing
to help consumers store, retain and
retrieve messages.

56. Recognition and Recall Measures
Aided and Unaided Recall
Cognitive Responses to Advertising
Copy-testing Measures
Attitudinal and Behavioural Measures of Brand
Loyalty