Learning & Consumer Behavior

Prabu Doss. Kdoss@xime.org

Introduction

• Learned connections between products and memories are a

potent way to build brand loyalty

• It is an ongoing process

• Relatively a permanent change in behavior caused by

experience

• Experience may even be by observing

The Learning Process

• Much of our learning happens intentionally (intentional

learning).

• We carefully search for information

• We learn even when we are not trying- recognizing ad jingles

• This casual and unintentional acquiring of knowledge is called

incidental learning

Behavioral Learning Theories

• Assume that learning takes place as the result of

responses to external events.

• View is represented by two major approaches to learning:

– 1) Classical Conditioning

– 2) Instrumental Conditioning

• People’s experiences shaped by feedback they receive as

they go through life

• Actions result in rewards and punishments, which

influences future responses to similar situations.

Classical Conditioning

• Unconditioned stimulus (UCS) – Naturally capable of

causing a response. (meat powder)

• Conditioned stimulus (CS) – Does not initially cause a

response (bell)

• Conditioned response (CR) – Response generated by

repeated paired exposures to UCS and CS (drooling).

Eventually, through learned association and repetition, the

CS will cause the CR.

Classical Conditioning

• Stimulus generalization:

– Tendency of a stimulus similar to a CS to evoke similar,

conditioned responses (imitations can dampen the original

brand)

• Masked branding: Deliberately hiding a product’s true origin

• Stimulus discrimination:

– Occurs when a UCS does not follow a stimulus similar to a

CS.

Lexus uses Masked Branding

Application of Stimulus generation

• Applications of Stimulus Generalization:

– Family branding

– Product line extensions

– Look-alike packaging

• Applications of Stimulus Discrimination:

– Consumers learn to differentiate a brand from its competitors

– Unique attributes of the brand

Instrumental Conditioning

• Occurs as the individual learns to perform behaviors that produce

positive outcomes and avoid behaviors that yield negative outcomes

• Also called “Operant Conditioning”

• Occurs one of the two ways:

– Positive reinforcement

– Negative reinforcement

• Extinction: When a positive outcome is no longer received, the

learned stimulus-response connection will not be maintained.

Examples for positive & negative reinforcement

Applications of instrumental conditioning

• Reinforcement of Consumption:

– Thank you

– Rebates

– Follow-up phone calls

• Frequency Marketing:

– Reinforces regular purchases by giving them rewards with

values that increase along with the amount purchased

• Frequent flyer miles

Cognitive Learning theory

• Stresses on the importance of internal mental process

• People are problem solvers, who actively use information

Observational Learning

• Occurs when people watch the actions of others and note

reinforcements received for their behaviors

• Learning occurs as a result of vicarious, rather than direct,

experience.

• This is also called as Modeling or vicarious learning

http://www.utexas.edu/features/archive/2003/media.html

Information Processing

• Very complex in nature, information's are kept temporarily

in sequential storehouses before any further action takes

place

– Sensory store/sensory memory

– Short-term store (working memory)

– Long-term store