Consumer Learning By Dr Sena Copyright 2006

Consumer Learning A process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behaviour. Copyright © 2006 Pearson Education Canada Inc. 6 -2

Learning Processes n Intentional – learning acquired as a result of a careful search for information n Incidental -- learning acquired by accident or without much effort Copyright © 2006 Pearson Education Canada Inc. 6 -3

Importance of Learning n Marketers must teach consumers: – where to buy – how

Learning Theories n Behavioural Theories: n Cognitive Theories: Theories based on the A theory of learning premise that learning based on mental takes place as the result information of observable responses processing, often in to external stimuli. response to problem Also known as solving. stimulus response theory. Copyright © 2006 Pearson Education Canada Inc. 6 -5

Elements of Learning Theories n Motivation n Cues n Response n Reinforcement Copyright ©

Reinforcement § A positive or negative outcome that influences the likelihood that a specific behaviour will be repeated in the future in response to a particular cue or stimulus. Copyright © 2006 Pearson Education Canada Inc. 6 -7

Behavioural Learning Theories n Classical Conditioning n Instrumental Conditioning n Modeling or Observational Learning

Classical Conditioning n Pairing a stimulus with another stimulus that elicits a known response

Instrumental (Operant) Conditioning n learning based on a trial-and-error process, with habits forced as the result of positive experiences (reinforcement) Copyright © 2006 Pearson Education Canada Inc. 6 -10

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Classical conditioning – cont’d n Classical conditioning is the learning of associations among events that allows us to anticipate and represent our environment. n From this viewpoint, classical conditioning is not reflexive action, but rather the acquisition of new knowledge Copyright © 2006 Pearson Education Canada Inc. 6 -13

Neo-Pavlovian Conditioning n Forward Conditioning (CS Precedes US) n Repeated Pairings of CS and US n A CS and US that Logically Belong to Each Other n A CS that is Novel and Unfamiliar n A US that is Biologically or Symbolically Salient Copyright © 2006 Pearson Education Canada Inc. 6 -14

Strategic Applications of Classical Conditioning n Repetition n Stimulus Generalization – The inability to perceive differences between slightly dissimilar stimuli. n Stimulus Discrimination Copyright © 2006 Pearson Education Canada Inc. 6 -15

Repetition n Repetition increases strength of associations and slows forgetting n but over time may result in advertising wearout. n Cosmetic variations reduce satiation. Copyright © 2006 Pearson Education Canada Inc. 6 -16

Three-Hit Theory n Repetition is the basis for the idea that three exposures to an ad are necessary for the ad to be effective n The number of actual repetitions to equal three exposures is in question. Copyright © 2006 Pearson Education Canada Inc. 6 -17

Stimulus Generalization n The inability to perceive differences between slightly dissimilar stimuli. n Marketing applications – Product Line, Form and Category Extensions – Family Branding – Licensing – Generalizing Usage Situations Copyright © 2006 Pearson Education Canada Inc. 6 -18

Stimulus Discrimination n The ability to select a specific stimulus from among similar stimuli

Classical Conditioning and Marketing Strategy n Identify and pair product with a known, well -liked stimulus – More attention – More favourable attitudes – Greater intention to buy the product – Learning of key attributes n Use stimulus generalization effectively » Continued Copyright © 2006 Pearson Education Canada Inc. 6 -20

Classical Conditioning and Marketing Strategy n Distinguish the product through effective use of stimulus

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Instrumental Conditioning n Consumers learn by means of trial and error process in which some purchase behaviours result in more favorable outcomes (rewards) than other purchase behaviours. n A favorable experience is instrumental in teaching the individual to repeat a specific behaviour. Copyright © 2006 Pearson Education Canada Inc. 6 -23

Reinforcement n Positive Reinforcement: Positive outcomes that strengthen the likelihood of a specific response n Example: Ad showing n beautiful hair as a reinforcement to buy shampoo n Negative Reinforcement: Unpleasant or negative outcomes that serve to encourage a specific behaviour Example: Ad showing wrinkled skin as reinforcement to buy skin cream Copyright © 2006 Pearson Education Canada Inc. 6 -24

Other Concepts in Reinforcement n Punishment – Choose reinforcement rather than punishment n Extinction – Combat with consumer satisfaction n Forgetting – Combat with repetition Copyright © 2006 Pearson Education Canada Inc. 6 -25

Instrumental Conditioning and Marketing n Make the product the ultimate reward n Provide samples and free trials n Provide non-product rewards n Practice relationship marketing n Reinforcement Schedules – Shaping n Massed versus Distributed Learning Copyright © 2006 Pearson Education Canada Inc. 6 -26

Cognitive Learning Theory n Learning through problem solving, which enables individuals to gain some control over their environment. n Three types: – Observational learning – Rote Learning – Reasoning Copyright © 2006 Pearson Education Canada Inc. 6 -27

Observational Learning n individuals learn by observing the behaviour of others, and consequences of such behaviour. n Also known as modeling or vicarious learning. Copyright © 2006 Pearson Education Canada Inc. 6 -28

Iconic Rote Learning n Learning concepts through simple repetition – Repeated ads teach consumers

Reasoning n Highest level of cognitive learning n Involves creative thinking n Depends on

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Retention n Information is stored in long-term memory – Episodically: by the order in which it is acquired – Semantically: according to significant concepts Copyright © 2006 Pearson Education Canada Inc. 6 -32

Information processing and Involvement Theory n Central and Peripheral Routes to Persuasion – highly involved consumers are best reached through ads that focus on the specific attributes of the product (the central route) – uninvolved consumers can be attracted through peripheral advertising cues such as the model or the setting (the peripheral route). Copyright © 2006 Pearson Education Canada Inc. 6 -33

Elaboration Likelihood Model (ELM) na person’s level of involvement during message processing determines which route to persuasion is likely to be effective Copyright © 2006 Pearson Education Canada Inc. 6 -34

The Elaboration Likelihood Model Involvement HIGH LOW Central Route Peripheral Route Message Arguments Influence Attitudes Peripheral Cues Influence Attitudes Copyright © 2006 Pearson Education Canada Inc. 6 -35

Cognitive Learning and Marketing Strategy n Use rote learning to teach consumers about the brand n Use reasoning or problem solving for complex or high-involvement products n Use modelling to extinguish negative behaviour n Use knowledge of information processing to help consumers store, retain and retrieve messages. Copyright © 2006 Pearson Education Canada Inc. 6 -36

Measures of Consumer Learning n Recognition and Recall Measures – Aided and Unaided Recall n Cognitive Responses to Advertising n Copy-testing Measures n Attitudinal and Behavioural Measures of Brand Loyalty Copyright © 2006 Pearson Education Canada Inc. 6 -37