Perception & LearningPerception & Learning

Dr. Rohit Vishal KumarDr. Rohit Vishal Kumar

Reader, Dept. of MarketingReader, Dept. of Marketing

Xavier Institute of Social ServiceXavier Institute of Social Service

Ranchi - 834001Ranchi - 834001

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A Video for the ClassA Video for the Class

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QUIZ: Identify the Product!!!QUIZ: Identify the Product!!!

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The Model of Information ProcessingThe Model of Information Processing

ExposureRandom ---------------- Deliberate

AttentionLow Involvement ---------------- High Involvement

Interpretation Low Involvement ---------------- High Involvement

MemoryShort Term ---------------- Long Term

Active Problem Stored Experiences, ValuesSolving Decisions, Rules, Feelings

Purchase & Consumption Decisions

Perc

epti

on

Learn

ing

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ExposureExposure• Exposure occurs when a stimulus comes within the range of our

sensory receptor nerves– For exposure to occur the only requirement is that the stimulus be

placed in the individuals relevant environment– Most of the exposure is self-selected– Exposure can be voluntary or involuntary

• In a marketing environment, there is a continuous “war” between the individuals and organizations:– Organizations try to expose individuals to marketing stimulus

• Advertisements, POP, Mailers, Banner Ads, Hoardings, Emails etc

– Individuals try to avoid being exposed to all the stimulus• Zipping, Zapping, Muting, Ignoring

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AttentionAttention• Attention occurs when the stimulus activates one or more

sensory receptors and the resulting sensation go to the brain for processing

• Consumers are selective in attention

• Factors affecting Attention:– Stimulus Factors:

• Size of the Stimulus– Larger stimulus are more likely to be noticed

• Intensity of the Stimulus– Loud / Bright / Eye Catching stimulus are more likely to be noticed

• Color of the Stimulus– Colorful stimulus is more likely to be attractive

• Movement of the Stimulus– Audio Visual stimulus are more likely to be noticed

• Position of the Stimulus– Ease of recognition / Placement in visual field more likely to be noticed

• Contrast of the stimulus– Use of white spaces more likely to be noticed

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AttentionAttention• Factors affecting Attention:

– Individual Factors:• Interest• Need

– Situational Factors:• Involvement with the media / program• Hemispheric Lateralization

– Left Brain: » Responsible for Verbal Information, Symbolic Representation, Sequential

Analysis, Conscious Reporting» Requires Frequent Rest

– Right Brain: » Responsible for Pictorial Representation, Geometric Patterns, Emotions» Can operate for a longer period of time

• Subliminal Stimulus:– Stimulus presented without the aid of conscious knowledge

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InterpretationInterpretation• Interpretation is the assignment of meaning to a sensation• It is a function of the gestalt i.e. patterns formed by the

characteristics of the stimulus, the individual and the situation

• Meaning is assigned by:– Cognitive Interpretation

• Is a process by which meaning is placed in to existing categories of meaning

• If a product brand or language term is radically different a new categorization may be developed

– Affective Interpretation:• The emotional response generated by the stimulus

Interpretation is dependent on an Individual’s Learning

Expectation Inference

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Identify this AdvertisementIdentify this Advertisement

This Advertisement is not an advertisement for Absolut Vodka

It was created to promote the movie “Signs” At a competition before the launch of the movie

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Perception and Marketing StrategyPerception and Marketing Strategy• Retailing:

– Increase total exposure by spacing out frequently brought items– Place high margin items in high traffic area– Display of products to draw attention

• Brand Name & Logo Development– Allows consumers to associate the product with

• Quality• Price• Expected Performance• Self Image• Differentiation

Have you seen the movie 3000?Pretty Woman

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Perception and Marketing StrategyPerception and Marketing Strategy• Media Planning:

– TRP and OTS important for planning– Larger ads tend to draw more attention

• Advertisement – Use of humor, Sex Appeal, Bright Colors preferred– Usage should be coordinated with product usage

• Insurance Ads sold by glamorous model

• Package Design– Task to capture attention and convey information– Needs to be carefully designed to meet legal rules of the country

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Evaluation of AdvertisingEvaluation of Advertising• Measure of Exposure:

– Verification, circulation, readership used in print to compute OTS– People Meter used in television to compute TRP– Click-through rate used in internet

• Measure of Attention:– Eyeball tracking devices– Day after Recall (DAR)– Recognition Test– Starch Test

• Noted: – Percentage of people who recall seeing the advertisement

• Seen-Associated: – Percentage of people who recall reading some part of the advertisement

• Read Most:– Percentage of people who have read more than 50% of the advertisement

• Measure of Interpretation:– Focus Group Discussion– Day after Recall

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Ambush MarketingAmbush Marketing• Involves any communication or activity that implies, or from

which one could reasonably infer, that an organization is associated with an event, in fact when it is not

• Forms of ambush marketing:– Sponsor Media Coverage of the Event– Sponsor a small part of the event and advertise heavily– Advertise heavily during the event

Coke / Pepsi tends to advertise heavily during cricket matches even whenThey are not the official sponsors of the match

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ExerciseExercise• Groups to Present H and I:• Have a Power-Point presentation ready (4-5 pages)• The group would be called to present in the class• Evaluation will be out of 15 marks

Question H

Develop a Brand Name and a Logo for a local fast food vegetarian restaurant and justify your brand name and logo on the basis of what you have learned in perception

Question I

Visit websites of various companies until you find the one that you think makes the most effective use of principles of perception. Justify your choice of the site [ use snapshots of the webpage to illustrate your answer]

LearningLearning

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LearningLearning• Learning is any change in content or organisation of long term

memory or behaviour• It is the key to Consumer Behaviour

CultureSub CultureSocial ClassFamilyFriendsGroupExperiencesMediaAdvertising

ValuesAttitudesTastesPreferencesSkillsFeelingsMeaningsBehaviours

Purchase And Use Behaviour

Learning

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Theories of Learning (Conditioning)Theories of Learning (Conditioning)• Classical Conditioning:

– Based on the association of a stimulus and response– Most common in low involvement situations– Also known as Pavlovian Conditioning

• Operant Conditioning– Based on reward / punishment to desired response – Use of free samples highly effective in operant conditioning– Also known as Instrumental Learning

Unconditional Stimulus(Popular Film Music)

Unconditional Response(Positive Emotions)

Conditional Stimulus(Pen Advertisement

with Popular Film Music)

Conditional Response(Association of Pen with Music)

Stimulus(popcorn)

Desired Response(Consumption)

Reinforcement(Pleasant Taste)

Higher Probability of Purchase

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Theories of Learning (Cognitive)Theories of Learning (Cognitive)• Iconic Rote Theory

– Association between two concepts in the absence of conditioning– Particularly useful in low / medium involvement purchase– EG: Ketoprofin is a headache remedy

• Vicarious Learning / Modeling– Learning by observation– Useful in both high and low involvement purchase

• Reasoning / Analogy– Also known as Cognitive Learning– Is a problem solving process associated with goal achievement

Goal Purposive Behaviour Insight Goal Achievement

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Factors Affecting LearningFactors Affecting Learning• Importance of Information• Message Involvement• Mood• Reinforcement• Punishment• Repetition• Imagery

• Related Aspects:– Forgetting:

• Process of elimination of the link between stimulus and response due to cessation of the stimulus

– Extinction:• Process of elimination of the link between stimulus and response due to

self choice of an individual

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MemoryMemory• Memory is the total accumulation of the prior learning

experience

• Short Term Memory– That portion of the memory which is currently active or in use– Has limited capacity to store information and sensation– Two basic types of information processing:

• Elaborative Activities– Use of previously stored experiences, activities, values, attitudes beliefs and

feelings to interpret and evaluate information in working memory as well as to add relevant previously stored information

• Maintenance Rehearsals:– Is the continuous repetition of a piece of information in order to hold it in

current memory for use in problem solving or transfer to long term memory

– Is dependent on• Concepts:

– Abstractions of reality that capture the meaning of an item in terms of other concepts

• Imagery:– Concrete Sensory Representation of Ideas, feelings and objects

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MemoryMemory• Long Term Memory

– Is an unlimited permanent storage– Can be roughly divided in to 4 parts:

• Semantic Memory:– Basic knowledge and feeling an individual has about a concept– Represents a persons understanding of a concept at it’s simplest level

» EG: If features like soft cushion seats, AC, Power Steering and Car Theatre System is present the car is a luxury car

• Episodic Memory:– Memory of events in which an individual participated– Evoked through “Nostalgia”

• Schematic Memory:– Is a complex web of association– Developed by breaking down of information into smaller pieces of related

information linked together

• Script Memory:– Memory of how action sequence should occur– Necessary for consumers to shop effectively

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A Schematic Memory for Mountain Dew A Schematic Memory for Mountain Dew

Mountain Dew

Crisp Fun Green Cool

Refreshing

Lemon Based

Daredevil

Chasing Lions

“Do the Dew”

Different

Young

Carbonated

Parties

ColaFor People like Me

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Memory in MarketingMemory in Marketing

BRAND DECISIONS ARE BASED ON MODIFYING

TARGET MARKET’S MEMORY

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Memory in MarketingMemory in Marketing• Brand Image

– Is the schematic memory of the brand

• Product Positioning– Is the decision by the management to try and achieve a defined brand image

relative to competition in a market segment– Related Concepts:

• Product Repositioning• Product Depositioning

• Brand Equity– Is the value assigned by consumers to a brand over and above the functional

characteristics of the product– People are willing to pay a “Premium” for brands with higher equity

• Brand Leverage– Is the use of brand equity of an existing brand for a new product– Is also known as brand extension, family branding or umbrella branding

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ExerciseExercise• Groups to Present J and K• Have a Power-Point presentation ready (4-5 pages)• The group would be called to present in the class• Evaluation will be out of 15 marks

Question J

Find and describe three advertisements based on (1) Cognitive Learning (2) Operant Conditioning and (3) Classical Conditioning. Justify your choice of advertisement

Question K

Discuss any brand extension which has taken place in the Indian market and show how memory has been used to position the product