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LEARNING, MEMORY, AND POSITIONING Lars Perner, In CONSUMER KNOWLEDGE, LEARNING, AND UNDERSTANDING Learning--what is it? Operant conditioning Classical conditioning Brand loyalty Perception Characteristics of the senses Accuracy Ability to detect change Attention Most useful for vicarious learning! One form of learning...

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 1 CONSUMER KNOWLEDGE, LEARNING, AND UNDERSTANDING l Learning--what is it? –Operant conditioning

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MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 1

CONSUMER KNOWLEDGE, LEARNING, AND

UNDERSTANDING Learning--what is it?

– Operant conditioning– Classical conditioning– Brand loyalty

Perception– Characteristics of the senses– Accuracy– Ability to detect change– Attention Most useful for

vicarious learning!

One form oflearning...

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 2

CLASSICAL AND INSTRUMENTAL (OPERANT)

CONDITIONING Consumers (often

unconsciously) link objects to past experience

Consequences of behavior tend to influence subsequent behavior

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 3

Another Typology

Learning

LowInvolvement

HighInvolvement

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 4

Classical Conditioning

Pavlov’s dogs Objects (stimuli)

associated with a response may bring about the response

Credit card studies Stimuli and

responses

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 5

NOTE: UR and CR represent the same

behavior, but causesdiffer

Classical ConditioningUS ----> 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

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 6

Consumer Examples

Advertising: pairing product with images of desired affect

Product: Evoke image of object associated with positive affect (e.g., Mustang; Coke Bottle)

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 7

Making Classical Conditioning Work

Appropriate symbols (for the population in question) to elicit emotion

NOTE: Test stimuli for desired effect!

Repetition

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 8

INSTRUMENTAL (OPERANT) CONDITIONING

BEHAVIOR

REINFORCEMENT

NEGATIVEREINFORCEMENT

PUNISHMENT

LIKELIHOODOF

BEHAVIOR

LIKELIHOODOF

BEHAVIOR

{NOT thesame thing!

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 9

Reinforcement: An Example

You eat a cake (behavior) ----> good taste (reward) ----> more likely to eat

cake on another occasion

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 10

Negative Reinforcement(not the same as punishment!)

Aversive stimulus exists

Behavior ----> termination of aversive stimulus

----> repetition of behavior during aversive stimulus

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 11

Negative Reinforcement: An Example

Headache (aversive stimulus)

Aspirin (behavior) ---> Headache

cessation

----> Likely to consume aspirin during future headaches

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 12

PUNISHMENT

Behavior ----> Negative consequences

-----> Behavior less likely to be repeated when punishment is anticipated (mostly)

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 13

Punishment: Examples

Parking meters Gas taxes Restocking fees Fees for non-ATM

banking transactions

Over-base rate utility charges

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 14

More Punishment Examples

Voidance of warranty if product is serviced by competitor

Social ostracism for failure to wear deodorant

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 15

Reinforcement Effectiveness

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

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 16

Strength of Learning

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

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 17

Extinction

Behavior which is not reinforced tends to become extinct gradually

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 18

Schedules of Reinforcement

Fixed interval Fixed ratio Variable ratio <------ Most

resistant Variable interval to

extinction

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 19

Shaping

Behavior approximatingdesired kind level ------> Reward e.g., buying new

product on sale

Increased requirements,when met -------> Reward e.g., magnitude of sale

gradually decreased

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 20

Shaping: Possible Examples

Introduction of fruit flavored soft drinks in Indonesia prior to Coca Cola

New products given premium shelf space in the beginning

Premium given with purchase of new product

In-store demonstrations of new products

Note that marketers’ power tends to belimited

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 21

Instrumental (Operant) Conditioning In Practice

Marketers typically do not have the power to significantly reward or punish people greatly-- typically have little power to directly influence people’s experience

Note that many rewards and punishments are significantly delayed

Better able to influence vicarious learning

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 22

Brand Loyalty vs. Habit

Habit: consumer picks product without much thought; may be due to convenience

Loyalty: consumer actively seeks out product

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 23

Loyalty...

Multibrand loyalty How strong?

...or lack of it.

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 24

Stimulus Generalization

“Rub off” effect A slightly different stimulus may not be

discriminated Both discrimination and generalization

are evolutionarily adaptive– Categorizing of like objects (e.g., lions,

alphabet letters)– Distinction between dangerous and safe

entities

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 25

Developing Brand Loyalty: Tricks and Traps

Product quality ---> satisfaction

Sales promotions Stealing loyal

consumers away from others--is it worth it?

Price– value– exclusiveness

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 26

Memory Level of conscious intent

– Explicit memory Deliberate attempt to

retrieve information– Implicit memory

Information automatically recalled

– E.g., associations– E.g., routine

information (social security and phone numbers, web site addresses)

Associative Network of Knowledge– Pieces of experience and

information (nodes) are tired together

– “Activating” one node will tend to activate others which in turn will activate still more nodes

E.g., – Thinking of marketing

class may activate name of a soft drink always consumed by the instructor

– The soft drink may have more “competing” links and may not activate the professor

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 27

Memory Short term (compare to RAM --->

volatile)– mnemonic devices (e.g., 1-800-

FLOWERS) Long term (compare to hard disk

---> longer in duration but imperfect--”I remember it well…”)

STM REHEARSAL LTM

DECAY

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 28

Turning STM into LTM

“Rehearsal””—repetition of information– By consumer (e.g., phone number)– By advertisement

Elaborative activities—thinking of the object to strengthen its association with other nodes and maintenance

Extinction from long term memory– E.g., old phone numbers; how to use an old

computer program; loss language skills

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 29

Scripts: The Way to Do Things

Procedure for doing various things learned over time

E.g., restaurant script:– make reservation– travel to restaurant– await seating– order drinks– study menu– order– have dessert and/or coffee– pay check and leave tip

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 30

Implications of Scripts

Check car odometer If more than 3,000 miles,

– go to Joe’s garage or– look in yellow pages for garages

Ask mechanic for oil change When asked which brand of oil

– select Pennzoil or– think about which brand to use

If you wereJoe orPennzoil, whichscript would you prefer?

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 31

Positioning and Repositioning

Working with existing perceptions Research to identify perception

and associations of products—Perceptual Maps

Repositioning– Very difficult—may be more cost

effective to develop a new brand

MKTG 371 LEARNING, MEMORY, AND POSITIONING Lars Perner, Instructor 32

Brand Equity and Leverage

Consumer associations with product are valuable

Brand leverage (brand extensions, brand “family,” “umbrella” branding)– Use of appropriate associations– May involve brand style rather than

product similarity– Concept testing is important