Consumer Learning

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Chapter 5
Consumer Learning and Memory

• Consumer Learning
• and Memory

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Why Marketers are Concerned about How Consumers
Learn

• Marketers want to teach consumers about their
  products
• product attributes
• where to buy them
• how to use and dispose of them
• They want to know how effective they have been in
  communicating with the consumer
• directly, through advertisements
• Indirectly, through product appearance,
  packaging, price and distribution channels

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What is Learning?

• Generally, learning is a process by which changes
  occur in the content or organization of an
  individuals long-term memory
• From a marketing standpoint, learning can be
  thought of as the process by which individuals
  acquire the purchase and consumption knowledge
  and experience that they apply to future related
  behavior

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Range of Learning Situations

• Learning occurs at various levels of consumer
  involvement
• Low-level involvement consumers have little or
  no motivation to process the information
• High-involvement learning consumers are highly
  motivated to process the information

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Learning Theories

• There are many theories about how people learn
• They fall into two general categories
• Behavioral learning theories
• Cognitive theories

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Behavioral Learning Theories

• Are also referred to as stimulus-response
  theories because based on premise that observable
  responses to specific external stimuli signal
  learning has taken place
• When a person responds in a predictable way to a
  known stimulus, he or she is said to have learned
• There are two behavioral theories with relevance
  to marketing
• Classical conditioning
• Instrumental/operant conditioning

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Classical Conditioning

• The theory that conditioned learning results when
  a stimulus that is paired with a stimulus that
  elicits a known response serves to produce the
  same response when used alone

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Classical Conditioning

• Schematic Presentation of Classical Conditioning

Conditioned Stimulus (CS)
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• The use of a well-known, admired individual to
  advertise a product can condition consumers to
  have positive feelings about the product
• Cause marketing

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Strategic Applications of Classical Conditioning

• Three basic concepts derive from classical
  conditioning
• Repetition
• Stimulus generalization
• Stimulus discrimination

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1. Repetition

• Increases the strength of the association between
  a conditioned stimulus and an unconditioned
  stimulus (learning)
• It is used by advertisers when scheduling media
  exposure for an advertising campaign
• Too much repetition can lead to advertising
  wearout
• Consumers may become annoyed with repetitive ads
  and develop a negative image of the product as a
  result

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2. Stimulus Generalization

• Learning relies not only on repetition, but on
  peoples ability to generalize--that is, respond
  in the same way to slightly different stimuli
• Explains why some manufacturers try to make their
  generic/store brands similar in appearance to
  name brands

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• Marketers use this principle to take advantage of
  a well-known and trusted brand in a number of
  ways
• Product line extensions
• Product form extension
• Product category extension
• Referred to as the halo effect

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3. Stimulus Discrimination

• Opposite of stimulus generalization
• Results in the selection of a specific stimulus
  from among similar stimuli
• Forms the basis for marketers positioning
  strategy
• Permits marketers to differentiate their product
  from competitors (through, e.g. different
  features, colors, ingredients, etc.)

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Operant (Instrumental) Conditioning

• B.F. Skinner
• Learning occurs through trial and error
• Habits are formed as a result of rewards for
  certain behaviors
• Consumers who try different brands, models,
  styles until they find the one that fits are
  engaged in instrumental learning

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Operant Conditioning
Schematic Presentation of Operant Conditioning
Specific Behavior
Reinforcementor Punishment
Increased or DecreasedProbability of Response
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Reinforcement

• A reward given to acknowledge a desired behavior
  and increase the probability it will be repeated
• Positive reinforcement
• Events that strengthen the likelihood of a
  specific response
• Negative reinforcement
• A negative outcome that also serves to encourage
  a specific behavior
• Fear appeals

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Punishment

• Punishment discourages behavior as opposed to
  encouraging behavior to avoid a negative result

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Extinction

• When a learned response is no longer reinforced,
  it diminishes to the point of extinctioni.e.,
  there is no longer a link between the stimulus
  and the expected reward

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Strategic Applications of Instrumental
Conditioning

• Customer Satisfaction
• In order to keep its customers, a marketer or
  business must maximize positive reinforcement
• This can be done through the product itself
• Can also be done with other elements of the
  purchase situation

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Reinforcement Schedules

• The pattern in which reinforcements are given
• Marketers have found that while product quality
  needs to remain high to satisfy consumers,
  non-product positive reinforcement does not have
  to be offered every time

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• Three types of reinforcement schedules
• Continuous/total (every time)
• Systematic/fixed ratio (every nth time)
• Random/variable ratio

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Reinforcement Schedules Forgetting
Continuous Reinforcement
Intermittent Reinforcement
Forgetting occurs gradually over timeand the
residual effects of learning persist
Forgetting occurs more quickly
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Cognitive Learning Theory

• Learning based on mental activity (i.e. thinking
  and problem-solving)
• Unlike simpler organisms, we learn not only by
  trial and error, but by
• searching for information
• evaluating the information, and
• making a decision about what is best for us

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Marketing Implications of Cognitive Learning
Theory

• Primary implication is to emphasize the
  importance of providing information to consumers
• Providing information can be a promotional
  strategy as well

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Cognitive Associative Learning

• Also called Neo-Pavlovian theory
• Learning involves not only the acquisition of new
  reflexes it is the acquisition of new knowledge
  about the world
• Under this theory, consumers are viewed as
  information seekers who use logical and
  perceptual relations among events, along with
  their own preconceptions, to form a sophisticated
  representation of the world

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Implications for Marketers

• Marketers draw on both cognitive and operant
  conditioning theories
• Providing information about a product (e.g., eggs
  are OK to eat) draws on cognitive theory
• Providing rewards (e.g., frequent flyer miles,
  coupons, etc.) draws on classical conditioning
  theory

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Vicarious (Observational) Learning

• The process through which individuals learn
  behavior by observing the behavior of others and
  the consequences of such behavior
• Role models tend to be people consumers admire
  because of traits such as appearance,
  accomplishment, skill, or social class

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• Another alternative form of observational
  learning involves representation of negative
  consequences of not using the advertised product

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Brand Loyalty

• A consumers consistent preference for and
  purchase of a specific brand
• In high-involvement purchases (e.g., a car) it
  reduces risk and facilitates selection
• In low-involvement purchases (e.g., tissues) it
  saves time and effort
• Brand loyalty generally results from consistent
  positive experiences with a company and/or its
  products

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• There has been a recent decline in brand loyalty
• Boredom or dissatisfaction with the products
• Variety-seeking
• Increased concern with price
• To counter these actions, marketers have adopted
  a number of programs (e.g., frequent flyer) that
  reward brand loyalty