Consumer Learning

CONSUMER LEARNINGProf. Abhipsa Mishra

Learning Objectives

1. To Understand the Process and Four Elements of Consumer Learning.

2. To Study Behavioral Learning and Understand Its Applications to Consumption Behavior.

3. To Study Information Processing and Cognitive Learning and Understand Their Strategic Applications to Consumer Behavior.

Consumer Learning I Prof. Abhipsa Mishra

Learning Objectives (continued)

4. To Study Consumer Involvement and Passive Learning and Understand Their Strategic Affects on Consumer Behavior.

5. To Understand How Consumer Learning and Its Results Are Measured.


In Terms of Consumer Learning, Are These New Products Likely to Succeed?

Consumer Learning I Prof. Abhipsa Mishra4

These Ads Might Induce Learning Due to the Familiar Names


.

The process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior


Elements of Learning Theories


Two Major Learning Theories


Behavioral Learning


It is a type of learning in which an individual's behavior is modified by its antecedents and consequences.

It is a process of behavior modification made famous by Ivan Pavlov and his experiments conducted with dogs.

Ivan Pavlov B. F. Skinner

Classical Conditioning by Ivan Pavlov


Consumer Learning I Prof. Abhipsa Mishra 11

Model of Classical Conditioning


Food and water

12

Example


Dinner aroma

8 O'clock News

8 O'clock News

You are hungry

You are hungry

1313

Discussion Questions For Coca-Cola (or any other beverage company): How have they used classical conditioning in their marketing Identify the unconditioned and conditioned stimuli, the conditioned and unconditioned response.


How effective conditioning can create a very favourable strategy for marketers...

• The cola’s (Pepsi and Coke) have used Classical Conditioning very effectively over the years.

• Thirst (An Unconditioned Response) is generated by various environmental and physical factors like heat, sports, workout, dehydration etc. (These are Unconditioned Stimuli).

• Pepsi and Coke have strategically placed and associated their products with all the above Unconditioned Stimuli like heat, sports, etc repeatedly.

• They have also used key words in their branding like “Thanda Matlab Coca Cola”. This has played the part of a Conditioned Stimulus which is placed along with the Unconditioned Stimuli every time (hence the sponsorships for major sporting events).

• Over time the Conditioned Stimulus (Cola drink) becomes a signal for the arrival of the Unconditioned Stimulus (heat, dehydration) for the brain and we feel thirsty just by seeing a big poster of Coke or Pepsi without actually experiencing any of the above environmental or physical factors. Thus, we don’t only have a Coke/Pepsi when we are thirsty, we feel thirsty when we see a Coke/Pepsi!


Other examples

• Dermi cool – “Aaya mausam thande thande Dermi cool ka”• Fair n Lovely winter fairness cream – “Sardiyon mein

nikhar ghatega nahin badhega”• “Chhoti bhook hai iska naam”


Strategic Applications of Classical Conditioning

• Repetition

• Stimulus generalization

• Stimulus discrimination

• Increases the association between the conditioned and unconditioned stimulus

• Slows the pace of forgetting

• Advertising wear out is a problem

Basic Concepts


Why Did Amul Use Different Ads to Advertise the Same Product?


Repetition of the Message with Varied Ads Results in More Information Processing by the Consumer


How are songs in ads an example of classical conditioning?

Nerolac

Titan

Doordarshan

How are songs in ads an example of classical conditioning?

Nerolac

Titan

Doordarshan


• Repetition



• Having the same response to slightly different stimuli

• Helps “me-too” products to succeed

• Useful in: Product extensions Family branding Licensing

Basic Concepts


Stimulus generalization


What Is the Name of the Marketing Application

Featured Here and Which Concept of Behavioral

Learning Is It Based On?

Consumer Learning I Prof. Abhipsa Mishra Consumer Learning I Prof. Abhipsa Mishra24

Product Category ExtensionStimulus

Generalization

Consumer Learning I Prof. Abhipsa Mishra Consumer Learning I Prof. Abhipsa Mishra25


• Repetition



• Selection of a specific stimulus from similar stimuli

• Opposite of stimulus generalization

• This discrimination is the basis of positioning which looks for unique ways to fill needs

Basic Concepts


Stimulus DiscriminationProduct Differentiation


Instrumental (Operant) Conditioning - Burrhus Frederic Skinner



A Model of Instrumental Conditioning


Reinforcement of Behavior

Positive Negative

Positive outcome Negative outcome

Strengthen likelihood Encourages behavior

Positive reinforcement is a good thing that happens which rewards a behavior – Going to the gym made you feel good so you go every other day.

Negative outcome is a bad thing that happens which encourages a behavior. You ate a donut every morning for breakfast so gained a lot of weight over the past week. This causes you to go to the gym every other day and to stop eating donuts.


Reinforcement of Behavior

Extinction ForgettingA learned response is no longer reinforced

The reinforcement is forgotten

The link is eliminated between stimulus and reward

Extinction and forgetting are easily confused. But think of what the words mean. If the response, is forgotten it can be brought back just by remembering. If it is extinct, it is unlearned. The link between the stimulus and the response is destroyed.


Strategic Applications of Instrumental Conditioning

• Customer Satisfaction (Reinforcement) – It means that each time the customer has an experience with the product or company, there has been positive reinforcement

• This is the reason relationship marketing is so important.



• Reinforcement Schedules can vary

• They can be (otherwise called “Schedules of reinforcements” Total (or continuous) reinforcement Systemic (fixed ratio) reinforcement Random (variable ratio) reinforcement schedule

• Marketers will often use random reinforcement as a bonus for the customer and fixed reinforcement as loyalty points or rewards.



• Shaping is a procedure in which reinforcement is used to guide a response closer and closer to a desired response.

• Shaping occurs by having the reinforcement BEFORE the behavior occurs.

• In this situation, the consumer can be given the offer of a reward before they actually make their decision and purchase a product.



• Massed versus distributed learning: Should the learning and the exposure to the stimuli happen in a relatively short period of time or be drawn out? Media planners are often faced with this decision when putting together an advertising campaign.


Classical and Operant Conditioning



Observational Learning(modeling or vicarious learning

• A process by which individuals learn behavior by observing the behavior of others and the consequences of such behavior


Albert Bandura

Information Processing and Cognitive Learning


Cognitivism

• Grew in response to Behaviorism

• Knowledge is stored cognitively as symbols

• Learning is the process of connecting symbols in a meaningful & memorable way

• Studies focused on the mental processes that facilitate symbol connection

Cognitive Learning Theories

Discovery Learning - Jerome Bruner

Meaningful Verbal Learning - David Ausubel

Cognitive Learning Theory

Discovery Learning Bruner said anybody can learn anything, at any age,

provided it is stated in terms they can understand Powerful Concepts (not isolated facts)– Transfer to many different situations– Only possible through Discovery Learning– Confront the learner with problems and help them find

solutions. Do not present sequenced materials.


Meaningful Verbal Learning Advance Organizers:

New material is presented in a systematic way, and is connected to existing cognitive structures in a meaningful way.

Meaningful Verbal Learning


When learners have difficulty with new material, go back to the concrete anchors (Advance Organizers). Provide a Discovery approach, and they’ll learn.

Cognitivism in the Classroom

• Inquiry-oriented projects

• Opportunities for the testing of hypotheses

• Curiosity encouraged

• Staged scaffolding

Attention Cognitive

Action Conative PurchasePostpurchaseEvaluation

TrialAdoption

DecisionConfirmation

AffectiveEvaluation

InterestEvaluation Persuasion

KnowledgeAwarenessAwareness

Knowledge

InterestDesire

Innovation Adoption

Model

Decision-Making Model

Tricompetent Model

Innovation Decision Process

Promotional Model

Knowledge

Behavior

Evaluation

Generic Framework

Theoretical Models of Cognitive Learning


Measures of Consumer LearningBrand Loyalty

• Recognition and Recall Measures

• Brand Loyalty


http://www.starchresearch.com/services.html

Measures of Consumer Learning Brand Loyalty

Brand Equity – the value inherent in a well-known brand name


Consumer Learning


Education

Consumer Learning