Unit 6 continued….

Consumer Learning
What is Learning?

 The process by which individuals acquire the

purchase and consumption knowledge and
experience that they apply to future related
behaviour.
 Process – continually evolves and changes
 Knowledge may be gained from reading, discussions,
observation, thinking
 Actual experience
 Feedback to individual for future behaviour in similar
situations
Elements of Consumer Learning

 For learning to occur, certain basic elements

must be present
 Motivation
 Cues
 Response
 Reinforcement
Elements…

 Motivation
 Unfulfilled needs lead to motivation which spurs learning
 E.g. if you want to learn to play the guitar, you would
seek information regarding purchasing a guitar, or
enrolling for classes
 For those who are not similarly inclined, all information
about guitars and guitar classes might be ignored
 The degree of involvement determines the level of
motivation to search for knowledge related to the
product or service.
Elements…

 Cues
 Cues are the stimuli that direct the motives that
stimulate learning
 E.g. ads, packaging, price, styling, store displays
act as cues to help fulfil their product-specific
needs
 For cues to serve as the stimuli to guide action,
they must be consistent with and reinforce
consumer expectations (designer clothes should
be sold only at exclusive stores)
Elements…

 Response
 How individuals react to a motive or cue – how they
behave..
 Learning can occur even if the response is not overt
i.e. purchase
 If a positive image has been created, there may be
future purchase when the consumer is ready to buy
 Out of so many cues, which one the consumers
responds to depends on previous learning.
Elements…

 Reinforcement
 Increases the likelihood that a particular response
will occur as a result of a cue.
 If the consumer experiences a pleasant feeling
(gets rewarded) upon using the product, he is
likely to repeat purchase
 E.g. good food and service at a restaurant
 The restaurant owner should further reinforce the
customer’s continued patronage
Learning

 Behavioural Learning
 Classical
 Instrumental
 Observational

 Cognitive Learning

 Passive Learning
Behavioural Learning and its
Applications
Classical conditioning
Repetition
Stimulus generalization
Stimulus discrimination

Instrumental (operant) conditioning

Trial-and-error
Reinforcement

Observational (vicarious) learning

3 types of behavioural learning

 Learning through association  - Classical

Conditioning

 Learning through consequences – Operant

Conditioning

 Learning through observation –

Modeling/Observational Learning
Behavioural Learning

 When a person acts (responds) in a predictable way to

a known stimulus, he or she is said to have “learned”.

 Behavioural learning is concerned with inputs and

outcomes of learning – stimulus-response learning.

 Two forms of behavioural learning relevant to

marketing
 Classical conditioning
 Instrumental (or operant) conditioning
Classical Conditioning

 Early classical conditioning theorists believed that

humans can be taught certain behaviours through
repetition (i.e. conditioning).

 Ivan Pavlov proposed a theory

 Conditioned learning results when a stimulus is paired with
another stimulus that elicits a known response.
 Experiment with a dog; meat paste (unconditioned
stimulus); sound of bell (conditioned stimulus); salivation
(after repeated pairings, conditioned response)
 Similarly dinner aromas + 6 o’clock news = salivation
Strategic Applications of Classical
Conditioning – Repetition
 Repetition aids retention but there can be a limit -
advertising wearout may happen

 Changes are made in ads to counter this

 Cosmetic variations (message/theme constant)
 Substantive variations (message content varies)

 Some think 3 repetitions is good. Some think 11-12.

 Effectiveness of repetition depends on amount of

competitive advertising also.
Strategic Applications of Classical
Conditioning – Stimulus Generalisation
 Learning depends, not just on repetition, but also on the
ability to generalise, e.g. dog is able to salivate not just at the
sound of the bell, but a similar sound of jangling keys as well.

 It is due to stimulus generalisation that consumers

confuse products with similar packaging.

 Also applied to Extensions

 Product line extensions – related products added
 Product form extensions – mouthwash + toothpaste
 Product category extension – higher-end chocolate with exotic
flavours (Celebrations)
Strategic Applications of Classical
Conditioning – Stimulus Generalisation

 Another application of the concept of stimulus

generalisation is family branding – marketing a
whole line of products under the same brand
name. e.g. P&G, HLL

 Licensing is another application that works on

stimulus generalisation – affixing a well-known
brand name to products of another manufacturer.
e.g. Pierre Cardin, Tommy Hilfiger, Calvin Klein,
Christian Dior
Strategic Applications of Classical
Conditioning – Stimulus Discrimination

 Opposite of stimulus generalisation – resultsin

selection of a specific stimulus from among similar
stimuli

 Unlike the imitator who hopes consumers will

generalise their perceptions and view their product as
the market leader, the market leader wants the
consumer to discriminate among similar looking
products.
 Positioning strategies aim to help the consumer discriminate
Summing up Classical Conditioning

 Classical conditioning enables marketers to build and nurture

brand associations with specific products.

 As a result of classical conditioning (in the form of associations),

brands create a focused perception with regard to consumers.
 Margo = neem
 CCD = relaxation and socializing
 Robin Blue = white clothes
 Rolex and Omega = prestige
 Saffola = healthy cooking
 iPhone = technological trends and fashion
 Lux = celebrities
 Nike = youthful attitude
How does learning occur?

Behavioural learning and its applications

Classical conditioning
Repetition
Stimulus generalization
Stimulus discrimination
Instrumental (operant) conditioning
Trial-and-error
Reinforcement
Observational (vicarious) learning
Instrumental Conditioning

 Repetition, stimulus generalisation and stimulus

discrimination explain and shape a lot of the consumer
behaviour (repeated advertising messages stressing a
unique competitive advantage),

 However, consumers assess products based on the

degree of satisfaction received i.e. from instrumental
conditioning.
Instrumental Learning

 Occurs through trial-and-error process

 Habits are formed as a result of rewards received for
certain responses or behaviours.
 E.g. after shopping at various stores, consumers learn
which store carries their type of clothing at prices
they like – they then patronize it to the exclusion of
others.
 Every time they purchase at that store, their store
loyalty is rewarded (reinforced) and they are more
likely to repeat purchase from that store.
 E.g. Fabindia loyalists
Instrumental (Operant)
 Instrumental conditioning suggests that consumers learn
by means of a trial-and-error process in which some
purchase behaviours result in more favourable outcomes
(i.e. rewards) than other purchase behaviours. A
favourable experience is “instrumental” in teaching
the individual to repeat a specific behaviour.

 E.g. a consumer who tries on several brands and styles of

jeans before finding her style that fits her figure (positive
reinforcement) has engaged in instrumental learning.
Reinforcement of Behaviour

 Two types of reinforcement that influence the

likelihood that a response will be repeated
 Positive reinforcement – events that strengthen
the likelihood of a specific response
▪ e.g. using a shampoo that leaves your hair silky and shiny
 Negative reinforcement – unpleasant or negative
outcome that also serves to encourage a specific
behaviour
▪ e.g. The Economist’s ads (talking about being left behind)
▪ e.g. fear appeals in life insurance ads
Extinction and Forgetting

 When a learned response is no longer reinforced,

it diminishes to the point of extinction – the link
between stimulus-reward is eliminated.

 When a behaviour is not reinforced, it is

“unlearned”.

 Forgetting is unlearning due to lack of use due to

passage of time than lack of reinforcement –
process of decay.
Strategic Applications of Instrumental
Conditioning – Customer Satisfaction
(Reinforcement)

 Consumers receive reinforcement from other

elements in the purchase situation, such as the
environment in which the purchase takes place
 e.g. an upscale salon, besides the beautiful environment,
also offers cold drinks to waiting customers
 even if the styling is not so great, the customer feels
pampered enough to return and is confident about a
better styling next time
 if customer feels ignored by the staff, then despite a
great styling, he/she is unlikely to return
Strategic Applications of Instrumental
Conditioning – Customer Satisfaction
(Reinforcement)

 Consumers feel reinforced when the company creates

personal connections with them (relationship
marketing).
 E.g. shopper programs reward continued patronage
 E.g. referral discounts offered

 Relationship marketing is a form of non-product

reinforcement
 E.g. shopper stop previews for gold customers
 E.g. banks assign relationship managers to “valued”
customers
Strategic Applications of Instrumental
Conditioning – Reinforcement Schedules

 Reinforcement doesn’t need to be provided

each time a purchase is made.

 3 reinforcement schedules
 Total (continuous) reinforcement
▪ Free after-dinner drink at a restaurant
 Systematic (fixed ratio) reinforcement
▪ A credit voucher sent every 3 months by a retailer
 Random (variable ratio) reinforcement
▪ Lotteries, contests, gambling
Strategic Applications of Instrumental
Conditioning – Shaping

 Reinforcement performed before the desired

consumer behaviour takes place
 E.g. attracting customers to the store by offering
discounts to the first 100 customers
 E.g. offering test drives of a new car for which
customers will visit the showroom
How does learning occur?

Behavioural learning and its applications

Classical conditioning
Repetition
Stimulus generalization
Stimulus discrimination
Instrumental (operant) conditioning
Trial-and-error
Reinforcement
Observational (vicarious) learning
Observational Learning
 Consumers often learn how others behave in response to
certain situations and the ensuing results that occur, and
they imitate the positively reinforced behaviour when faced
with similar situations.
 Teenager sees ad that depicts social success after using a fairness
cream – she will want to buy it

 Consumer models are shown achieving positive outcomes to

common problem situations through the use of the
advertised product.
 Dove is a classic example – shows testimonials by common people
and not celebrities
Cognitive Learning –
learning as a result of thinking and
problem solving
• Information processing (human memory)
• Storing information
• Retaining information
• Retrieving information

• Theoretical models of Cognitive Learning

Information Processing and Cognitive
Learning
 When confronted with
a problem, we
sometimes see the
solution instantly.

 More often, however,

we search for
information on which
to base a decision.
Cognitive Learning

 Learning based on mental activity.

 Unlike behavioural learning theory, cognitive

theory holds that learning involves complex
mental processing of information.

 Cognitive theorists stress upon the

importance of motivation and mental
processes in producing a desired response.
Information Processing
 The human mind processes information it receives as input.
Human memory is the centre of information processing.

 Consumers process information about products

 by their attributes,
 by comparison, or
 by a combination of these two

 Separate and sequential “storehouses” in memory where

information is kept temporarily before further processing
 Sensory store
 Short-term store
 Long-term store
Storing Information
 Sensory information is  In short-term memory,
stored in sensory memory information is processed and
just long enough to be held for a brief period (30
transferred to short-term seconds or less)
 e.g. looking up a number and
memory.
forgetting it just before dialling

 Shortest-term element of  Transferred to long-term

memory. store if rehearsed

 Sensory memory retains  Long-term store retains

(very briefly – for just a information for relatively
second or two) impressions extended periods of time –
of stimuli received. days, weeks, years.
Information Processing and Memory
Stores
Rehearsal and Encoding
 Rehearsal is silent, mental repetition of information.

 Encoding is the process by which we select a word or

picture to represent a perceived object (M represents
McDonald’s; Apple logo).

 The purpose of rehearsal is to hold information in short-

term storage long enough for encoding to take place.

 Information overload may inhibit encoding.

Retention of Information
 Information is not retained as it is but is constantly
organised and re-organised as new links between
chunks of information are forged – as individuals gain
more knowledge, they sometimes search for
additional information.

 This is known as the process of activation – relating

new data to old to make the material more meaningful
 Consumer memory for product name gets activated by
relating the spokesperson used in advertising
Retaining..

 Consumers are more likely to retain information

about new products with familiar brand name.
 For unfamiliar products, they take more time to retain
information.

 Brand imprinting (establishing brand identity),

sound symbolism (sounds of words convey
meanings), and linguistic characteristics
(unusual spelling) facilitate consumer learning
Retrieving Information

 Retrieval is the process by which we recover

information from long-term storage.

 Triggered by situational cues.

 For example, when we see a product in a

store or on TV we automatically retrieve the
applicable information our brain has stored.
Retrieving Information…
 Relevant message with unexpected message elements aid
greater retention and retrieval
 For a brand of carpet cleaner, setting shows an elegant couple
having dinner (unexpected/incongruous). The man knocks the
food to the floor and the mess is cleaned up easily using the
product advertised (message is relevant)

 Unexpected elements that are not relevant to an ad may

not be as effective in aiding retrieval.

 More the number of competitive ads in a product

category, lower the recall (interference effects).
Theoretical models of cognitive learning
based on sequential information processing
Consumer Involvement and
Passive Learning

 Routine purchase decisions do not require

extensive information processing:
 Consumer involvement – Level of consumer
involvement determines level of information processing
▪ High involvement = extensive information processing
▪ Low involvement = limited information processing
 Passive learning
▪ Hemispheric lateralization/low-involvement medium vs high-
involvement (cognitive learning) medium
Consumer Involvement

 Focused on the degree of personal relevance

that the product or purchase holds for that
consumer.

 There is great variation in defining and measuring

consumer involvement.

 The most sensible approach to measuring

involvement is using self-administered surveys –
e.g. semantic differential scale.
Marketing applications of involvement

 Advertisers can use sensory appeals, unusual

stimuli, and celebrity endorsers to generate more
attention for their messages.

 The best strategy –

 Provide benefits that are relevant to customers
 Improve the product and add benefits as competition
intensifies
 Focus on forging bonds and relationships with
customers than just engaging in transactions
Routes to Persuasion – High- and low-
involvement products
 When the purchase is of  Consumers engage in
high relevance to limited information
consumers, they are more search and evaluation
involved – they more
when the purchase holds
carefully evaluate the merits
and weaknesses of a little relevance for them.
product.
 Thus, for low-
 For high-involvement involvement products,
products, the central route peripheral route to
to persuasion is the most persuasion is more
effective marketing strategy
effective.
Hemispheric Lateralisation

 Or the split-brain theory

 Brain is divided into two cerebral hemispheres

 Left hemisphere – language (primarily responsible
for reading, speaking, and information processing
▪ Active, rational and realistic
 Right hemisphere – non-verbal and pictorial
concepts
▪ Emotional, metaphorical, intuitive, impulsive
Passive Learning and Media Strategy

 When consumers watch TV they passively process and store

right-brain information, i.e. without active involvement.
 Therefore TV is considered a low-involvement medium.
 Print media are high-involvement media (contain verbal
information that is processed by left-brain)

 Advertising consisting of moving images and pictorial

information is processed by right-side of the brain with
minimum involvement.

 Advertising in print media is processed by left-side of the

brain with greater complexity and involvement.
Passive Learning

 Highly visual TVCs, packaging, and in-store displays

generate recall and familiarity with the product.

 Verbal ads generate cognitive activity that

encourages evaluation of the product.

 Some people are integrated processors (they

readily engage both hemispheres of the brain).
They have better overall recall of both the verbal
and the visual portion of print ads.
Measures of Consumer
Learning

 How effectively has the consumer “learned” the

message…
 Recall and recognition tests
 Attitudinal and behavioural measures of brand
loyalty
Recognition and Recall Measures

 Recognition and recall tests are conducted to

determine whether consumers remember seeing
an ad and the extent to which they have read it or
seen it and can recall its content.
 Recognition tests are based on aided recall
▪ The consumer is shown an ad and asked whether he/she
remembers seeing it.
 Recall tests are based on unaided recall
▪ The consumer is asked whether he/she has read a specific
magazine or watched a specific TV show and if he/she can
recall any ads seen
Brand Loyalty
 Attitudinal measures are concerned with consumers’ overall
feelings about the product/brand and their purchase intentions.

 Behavioural measures are based on observable, factual

behaviours such as quantity purchased, purchase frequency and
repeated buying.

 Brand loyalty is the synergy among attitudinal components and

the purchase behaviour itself
 A more favourable attitude towards a brand compared to alternatives,
combined with repeated buying are seen as requisite components of
customer loyalty.
Brand Loyalty…

 3 groups of factors that determine consumer loyalty

 Personal degree of risk aversion or variety seeking
 Brand’s reputation and availability of substitute brands
 Social group influences and peers’ recommendations

 4 types of loyalty that are produced

 No loyalty
 Covetous loyalty
 Inertia loyalty
 Premium loyalty
Brand Equity
 The value inherent in a well-known brand name (Coca-Cola, Disney,
Google, Sony).

 This value stems from the consumers’ perception of brand’s superiority,

the social esteem that it provides, and the customer’s trust and
identification with the brand.

 Brand equity enables charging a premium for the product.

 Brand equity reflects brand loyalty. They both lead to increased market
share and profits.

 The major function of learning theory for marketers is to teach

consumers that their product is best, to encourage repeat purchase, and
ultimately to develop brand loyalty and brand equity for the company.