Consumer Learning

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IntroductionNeed to understand individual’s capacity to learn. Learning,changes in a person’s behavior caused by information andexperience. Therefore to change consumers’ behavior aboutyour product, need to give them new information re:product...free sample etc.When making buying decisions, buyers must process informa-tion. Knowledge is the familiarity with the product and expertise.Inexperience buyers often use prices as an indicator of qualitymore than those who have knowledge of a product.Non-alcoholic Beer example: consumers chose the mostexpensive six-pack, because they assume that the greater priceindicates greater quality.Learning is the process through which a relatively permanentchange in behavior results from the consequences of pastbehavior.This chapter takes a brief look at the two major categories oflearning theories (behaviorism and constructivism), the majortheorists within those categories, and the implications of thosetheories for the use of multimedia and communications andinformation technology for learning purposes.

ObjectivesAfter learning this lesson you should be able to:1. Explain consumer learning theory and identify the

necessary elements.2. Discuss the elements of Classical Conditioning theory.3. Identify the three strategic applications of Classical

Conditioning.4. Review the elements of Instrumental Conditioning.5. Discuss the strategic applications of Instrumental

Conditioning.6. Describe modeling (observational learning).7. Explain and apply cognitive learning theory in a marketing

situation.8. Describe three ways information may be stored in memory.9. Relate involvement theory to consumer behavior.10. Describe the Elaboration Likelihood Model.11. Outline measures of involvement.12. Understand how consumer learning can be measured.13. Discuss the concepts of brand loyalty and brand equity.

1. What is Learning?

SummaryConsumer learning is the process by which individuals acquirethe purchase and consumption knowledge and experience theyapply to future related behavior. Some learning is intentional;much learning is incidental. Basic elements that contribute to anunderstanding of learning are motivation, cues, response, andreinforcement.There are two schools of thought as to how individuals learn—behavioral theories and cognitive theories. Behavioral theoristsview learning as observable responses to stimuli; whereascognitive theorists believe that learning is a function of mentalprocessing.Three types of behavioral learning theories are classical condi-tioning, instrumental conditioning, and observational(vicarious) learning. The principles of classical conditioning thatprovide theoretical underpinnings for many marketing applica-tions include repetition, stimulus generalization, and stimulusdiscrimination. Neo-Pavlovian theories view traditional classicalconditioning as cognitive associative learning rather than asreflexive action.Instrumental learning theorists believe that learning occursthrough a trial-and-error process in which positive outcomes(i.e., rewards) result in repeat behavior. Both positive andnegative reinforcement can be used to encourage the desiredbehavior. Reinforcement schedules can be total (consistent) orpartial (fixed ratio or random). The timing of repetitionsinfluences how long the learned material is retained. Massedrepetitions produce more initial learning than distributedrepetitions; however, learning usually persists longer withdistributed (i.e., spread out) reinforcement schedules.Cognitive learning theory holds that the kind of learning mostcharacteristic of humans is problem solving. Cognitive theoristsare concerned with how information is processed by the humanmind: how is it stored, retained, and retrieved. A simple modelof the structure and operation of memory suggests theexistence of three separate storage units: the sensory store,short-term store (or working memory), and long-term store.The processes of memory include rehearsal, encoding, storage,and retrieval.Involvement theory proposes that people engage in limitedinformation processing in situations of low importance orrelevance to them and in extensive information processing insituations of high relevance. Hemispheral lateralization theorygave rise to the theory that television is a low-involvementmedium that results in passive learning and that print andinteractive media encourage more cognitive informationprocessing.

UNIT IICONSUMER AS AN INDIVIDUAL

CHAPTER 5:LEARNING

LESSON 13:CONSUMER LEARNING

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Measures of consumer learning include recall and recognitiontests, cognitive responses to advertising, and attitudinal andbehavioral measures of brand loyalty in terms of theconsumer’s behavior or the consumer’s attitude toward thebrand. Brand equity refers to the inherent value a brand namehas in the marketplace.For marketers, the major reasons for understanding howconsumers learn are to teach them that their brand is best andto develop brand loyalty.

IntroductionMarketers are concerned with how individuals learn because theywant to teach them, in their roles as consumers, about prod-ucts, product attributes, and potential consumer benefits; aboutwhere to buy their products, how to use them, how tomaintain them, even how to dispose of them.Marketing strategies are based on communicating with theconsumer.a) Marketers want their communications to be noted,

believed, remembered, and recalled.b) For these reasons, they are interested in every aspect of the

learning process.There is no single, universal theory of how people learn.There are two major schools of thought concerning the learningprocess: one consists of behavioral learning theories, theother of cognitive learning theories.Cognitive theorists view learning as a function of purely mentalprocesses, although behavioral theorists focus almost exclu-sively on observable behaviors (responses) that occur as theresult of exposure to stimuli.

Consumer LearningConsumer learning can be thought of as the process by whichindividuals acquire the purchase and consumption knowledge andexperience that they apply to future related behavior.Several points in this definition are worth noting.a) First, consumer learning is a process; that is, it continually

evolves and changes as a result of newly acquired knowledgeor from actual experience.

b) Both newly acquired knowledge and personal experienceserve as feedback to the individual and provide the basis forfuture behavior in similar situations.

The role of experience in learning does not mean that alllearning is deliberately sought. A great deal of learning is alsoincidental, acquired by accident or without much effort.The term learning encompasses the total range of learning,from simple, almost reflexive responses to the learning ofabstract concepts and complex problem solving.c) Most learning theorists recognize the existence of different

types of learning and explain the differences through theuse of distinctive models of learning.

Despite their different viewpoints, learning theorists in generalagree that in order for learning to occur, certain basic elementsmust be present—motivation, cues, response, and reinforce-ment.

MotivationMotivation is based on needs and goals.a) The degree of relevance, or involvement, with the goal, is

critical to how motivated the consumer is to search forinformation about a product.

Uncovering consumer motives is one of the prime tasks ofmarketers, who try to teach consumer segments why theirproduct will best fulfill their needs.

CuesIf motives serve to stimulate learning, cues are the stimuli thatgive direction to the motives.a) In the marketplace, price, styling, packaging, advertising,

and store displays all serve as cues to help consumers fulfilltheir needs.

Cues serve to direct consumer drives when they are consistentwith their expectations.

ResponseHow individuals react to a cue—how they behave—constitutestheir response.A response is not tied to a need in a one-to-one fashion.A need or motive may evoke a whole variety of responses.The response a consumer makes depends heavily on previouslearning; that, in turn, depends on how related responses werereinforced previously.

ReinforcementReinforcement increases the likelihood that a specific responsewill occur in the future as the result of particular cues or stimuli.

Behavioral Learning TheoriesBehavioral learning theories are sometimes called stimulus-response theories.a) When a person responds in a predictable way to a known

stimulus, he or she is said to have “learned.”Behavioral theories are most concerned with the inputs andoutcomes of learning, not the process.Two theories relevant to marketing are classical conditioningand instrumental (or operant) conditioning.

Classical ConditioningEarly classical conditioning theorists regarded all organisms aspassive recipients.a) Conditioning involved building automatic responses to

stimuli.Ivan Pavlov was the first to describe conditioning and topropose it as a general model of how learning occurs.

b) For Pavlov, conditioned learning results when a stimulusthat is paired with another stimulus elicits a knownresponse and serves to produce the same response whenused alone.

c) He used dogs to demonstrate his theories.d) The dogs were hungry and highly motivated to eat.


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e) Pavlov sounded a bell and then immediately applied a meatpaste to the dogs’ tongues, which caused them to salivate.

f) After a sufficient number of repetitions of the bell sound,followed almost immediately by the food, the bell alonecaused the dogs to salivate.

In a consumer behavior context, an unconditioned stimulusmight consist of a well-known brand symbol (e.g., theMicrosoft “windows” icon) that implies technological superior-ity and trouble-free operation (the unconditioned response).Conditioned stimuli might consist of new products bearingwell-known symbols.

Cognitive Associative LearningRecent conditioning theory views classical conditioning as thelearning of associations among events that allows the organismto anticipate and “represent” its environment.The relationship (i.e., contiguity) between the conditionedstimulus and the unconditioned stimulus (the bell and themeat paste) influenced the dogs’ expectations, which in turninfluenced their behavior (salivation).Classical conditioning is seen as cognitive associative learn-ing not the acquisition of new reflexes, but the acquisition ofnew knowledge about the world.Optimal conditioning—that is, the creation of a strong associationbetween the conditioned stimulus (CS) and the unconditionedstimulus (US)—requires forward conditioning; that is, the CSshould precede the US, repeated pairings of the CS and the US,a CS and US that logically belong together, a CS that is noveland unfamiliar, and a US that is biologically or symbolicallysalient.Under neo-Pavlovian conditioning, the consumer can beviewed as an information seeker who uses logical and perceptualrelations among events, along with his or her own preconcep-tions, to form a sophisticated representation of the world.

Strategic Applications of Classical ConditioningThree basic concepts derive from classical conditioning: repeti-tion, stimulus generalization, and stimulus discrimination.1. Repetition works by increasing the strength of the

association and by slowing the process of forgetting.a) After a certain number of repetitions retention

declines.b) This effect is known as advertising wearout and can

be decreased by varying the advertising messages.c) Wearout may be avoided by varying the message

through cosmetic variation or substantive variation.Some don’t agree about how much repetition is needed.

d) The three-hit theory states that the optimum numberof exposures to an ad is three.

i) One to make the consumer aware of the product.ii) A second to show consumers the relevance of the

product.iii) A third to remind them of its benefits.

The effectiveness of repetition is somewhat dependent uponthe amount of competitive advertising to which the consumeris exposed.e) As exposure increases, the potential for interference

increases.According to classical conditioning theorists, learning dependsnot only on repetition, but also on the ability of individuals togeneralize.2. Stimulus generalization explains why imitative “me too”

products succeed in the marketplace: consumers confusethem with the original product they have seen advertised.

a) It also explains why manufacturers of private labelbrands try to make their packaging closely resemble thenational brand leaders.

The principle of stimulus generalization is applied by marketersto product line, form, and category extensions.b) In product line extensions, the marketer adds related

products to an already established brand, knowing that thenew product is more likely to be adopted when it isassociated with a known and trusted brand name.i) Conversely, it is much more difficult to develop a

totally new brand.c) Marketers offer product form extensions that include

different sizes, different colors, and even different flavors.d) Product category extensions generally target new market

segments.i) The success of this strategy depends on a number of

factors.ii) For example, if the image of the parent brand is one

of quality, consumers are more likely to bring positiveassociations to the new category extensions.

Family branding—the practice of marketing a whole line ofcompany products under the same brand name—is anotherstrategy that capitalizes on the consumer’s ability to generalizefavorable brand associations from one product to the next.Retail private branding often achieves the same effect as familybranding.e) For example, Wal-Mart used to advertise that its stores

carried only “brands you trust.” Now, the name Wal-Martitself has become a “brand” that consumers haveconfidence in, and the name confers brand value on Wal-Mart’s store brands.

Licensing—allowing a well-known brand name to be affixedto products of another manufacturer—is a marketing strategythat operates on the principle of stimulus generalization.Corporations also license their names and trademarks, usuallyfor some form of brand extension, where the name of thecorporation is licensed to the maker of a related product andthereby enters a new product category.Municipal and state governments have begun licensing theirnames to achieve new sources of revenue. The Vatican Librarylicenses its name for a variety of products from luggage to bedlinens.


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The increase in licensing has made counterfeiting a boomingbusiness, as counterfeiters add well-known licensor names to avariety, of products without benefit of control or qualitycontrol.3. Stimulus discrimination is the opposite of stimulus

generalization and results in the selection of specificstimulus from among similar stimuli.a) The consumer’s ability to discriminate among similar

stimuli is the basis of positioning strategy, which seeksto establish a unique image for a brand in theconsumer’s mind.

The key to stimulus discrimination is effective positioning, amajor competitive advantage.

b) The image, or position, that a product orservice has in the mind of the consumer is critical to itssuccess.

c) Unlike the imitator who hopes consumers willgeneralize their perceptions and attribute specialcharacteristics of the market leader’s products to theirown products, market leaders want the consumer todiscriminate among similar stimuli.

Most product differentiation strategies are designed to distin-guish a product or brand from that of competitors on the basisof an attribute that is relevant, meaningful, and valuable toconsumers.It often is quite difficult to unseat a brand leader once stimulusdiscrimination has occurred.d) In general, the longer the period of learning—of

associating a brand name with a specific product—the morelikely the consumer is to discriminate, and the less likely togeneralize the stimulus.

The principles of classical conditioning provide the theoreticalunderpinnings for many marketing applications.e) Repetition, stimulus generalization, and stimulus

discrimination are all major applied concepts that helpexplain consumer behavior.

Instrumental ConditioningLike classical conditioning, instrumental conditioning requiresa link between a stimulus and a response.a) However, in instrumental conditioning, the stimulus that

results in the most satisfactory response is the one that islearned.

Instrumental learning theorists believe that learning occursthrough a trial-and-error process, with habits formed as a resultof rewards received for certain responses or behaviors.b) Although classical conditioning is useful in explaining how

consumers learn very simple kinds of behaviors,instrumental conditioning is more helpful in explainingcomplex, goal-directed activities.

According to American psychologist B. F. Skinner, mostindividual learning occurs in a controlled environment in whichindividuals are “rewarded” for choosing an appropriatebehavior.

c) In consumer behavior terms, instrumental conditioningsuggests that consumers learn by means of a trial-and-error process in which some purchase behaviors result inmore favorable outcomes (i.e., rewards) than otherpurchase behaviors.

d) A favorable experience is instrumental in teaching theindividual to repeat a specific behavior.

Like Pavlov, Skinner developed his model of learning byworking with animals.e) In a marketing context, the consumer who tries several

brands and styles of jeans before finding a style that fitsher figure (positive reinforcement) has engaged ininstrumental learning.

Reinforcement of BehaviorSkinner distinguished two types of reinforcement (or reward)influence , which provided that the likelihood for a responsewould be repeated.a) The first type, positive reinforcement, consists of events

that strengthen the likelihood of a specific response.b) Negative reinforcement is an unpleasant or negative

outcome that also serves to encourage a specific behavior.i) Fear appeals in ad messages are examples of negative

reinforcement.c) Either positive or negative reinforcement can be used

to elicit a desired response.d) Negative reinforcement should not be confused with

punishment, which is designed to discourage behavior.Forgetting and extinction—when a learned response is nolonger reinforced, it diminishes to the point of extinction; thatis, to the point at which the link between the stimulus and theexpected reward is eliminated.a) Forgetting is often related to the passage of time; this is

known as the process of decay .b) Marketers can overcome forgetting through repetition and

can combat extinction through the deliberate enhancementof consumer satisfaction.

Strategic Applications of Instrumental Conditioning

1. The objective of all marketing efforts should be tomaximize customer satisfaction.

2. Aside from the experience of using the product itself,consumers can receive reinforcement from other elementsin the purchase situation, such as the environment inwhich the transaction or service takes place, the attentionand service provided by employees, and the amenitiesprovided.a) Some hotels provide reinforcement to guests in the

form of small amenities.b) Most frequent shopper programs are based on

enhancing positive reinforcement and encouragingcontinued patronage.

3. Relationship marketing—developing a close personalizedrelationship with customers—is another form of non-product reinforcement.


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Reinforcement schedules—marketers have found thatproduct quality must be consistently high and provide customersatisfaction with each use for desired consumer behavior tocontinue.Marketers have identified three types of reinforcement sched-ules: total (or continuous) reinforcement, systematic (fixedratio) reinforcement, and random (variable ratio) rein-forcement.Variable ratios tend to engender high rates of desired behaviorand are somewhat resistant to extinction—perhaps because, formany consumers, hope springs eternal.Shaping—the reinforcement of behaviors that must beperformed by consumers before the desired behavior can beperformed is called shaping.a) Shaping increases the probabilities that certain desired

consumer behavior will occur.Massed versus distributed learning—timing has an importantinfluence on consumer learning.b) Question—should a learning schedule be spread out over a

period of time (distributed learning), or should it be“bunched up” all at once (massed learning)?

The question is an important one for advertisers planning amedia schedule because massed advertising produces moreinitial learning, although a distributed schedule usually results inlearning that persists longer.When advertisers want an immediate impact (e.g., to introduce anew product or to counter a competitors blitz campaign), theygenerally use a massed schedule to hasten consumer learning.When the goal is long-term repeat buying on a regular basis,however, a distributed schedule is preferable.A distributed scheduler with ads repeated on a regular basis,usually results in more long-term learning and is relativelyimmune to extinction.

Modeling or Observational LearningLearning theorists have noted that a considerable amount oflearning takes place in the absence of direct reinforcement, eitherpositive or negative, through a process psychologists callmodeling or observational learning (also called vicariouslearning).They observe how others behave in response to certainsituations (stimuli), the ensuing results (reinforcement) thatoccur, and they imitate (model) the positively-reinforcedbehavior when faced with similar situations.a) Modeling is the process through which individuals learn

behavior by observing the behavior of others and theconsequences of such behavior.

b) Their role models are usually people they admire becauseof such traits as appearance, accomplishment, skill, andeven social class.

c) Children learn much of their social behavior and consumerbehavior by observing their older siblings or their parents.

Advertisers recognize the importance of observational learningin their selection of models, whether celebrities or unknowns.

Sometimes ads depict negative consequences for certain types ofbehavior.d) This is particularly true of public policy ads, which may

show the negative consequences of smoking, of drivingtoo fast, or taking drugs.

Cognitive Learing TheoryNot all learning is the result of repeated trials.a) Learning also takes place as the result of consumer

thinking and problem solving.Cognitive learning is based on mental activity.Cognitive learning theory holds that the kind of learning mostcharacteristic of human beings is problem solving, and it givessome control over their environment.

Information ProcessingThe human mind processes the information it receives as inputmuch as a computer does.a) Information processing is related to both the consumer’s

cognitive ability and the complexity of the information tobe processed.

Individuals differ in terms of their ability to form mentalimages and in their ability to recall information.The more experience a consumer has with a product category,the greater his or her ability to make use of product informa-tion.

How Consumers Store, Retain, and Retrieve InformationThe structure of memory—because information processingoccurs in stages, it is believed that content is stored in thememory in separate storehouses for further processing; asensory store, a short-term store, and a long-term store.Sensory store—all data comes to us through our senses,however, our senses do not transmit information as wholeimages.a) The separate pieces of information are synchronized as a

single image.b) This sensory store holds the image of a sensory input for

just a second or two.c) This suggests that it’s easy for marketers to get

information into the consumer’s sensory store, but hard tomake a lasting impression.

Short-term store—if the data survives the sensory store, it ismoved to the short-term store.d) This is our working memory.e) If rehearsal—the silent, mental repetition of material—

takes place, then the data is transferred to the long-termstore.

f) If data is not rehearsed and transferred, it is lost in a fewseconds.

Long-term store—once data is transferred to the long-termstore it can last for days, weeks, or even years.Rehearsal and encoding—the amount of informationavailable for delivery from the short-term store to the long-term


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store depends on the amount of rehearsal an individual givesto it.g) Encoding is the process by which we select and assign a

word or visual image to represent a perceived object.h) Learning visually takes less time than learning verbal

information.i) How much consumers encode depends on their cognitive

commitment to the intake of the information and theirgender.

Information overload takes place when the consumer ispresented with too much information.j) It appears to be a function of the amount of information

and time frame of that information.k) There are contradictory studies on what constitutes

overload.l) The difficulty is determining the point of “overload.”Retention—information is constantly organized and reorga-nized as new links between chunks of information are forged.m) In fact, many information-processing theorists view the

long-term store as a network consisting of nodes (i.e.,concepts) with links among them.

n) As individuals gain more knowledge they expand theirnetwork of relationships, and sometimes their search foradditional information.

o) This process is known as activation, which involves relatingnew data to old to make the material more meaningful.

p) The total package of associations brought to mind when acue is activated is called a schema.

q) Research has found that older adults appear to be morereliant on schema-based information processing strategiesthan younger adults.

r) Consumers’ information search is often dependent uponhow similar or dissimilar (discrepant) presented productsare to product categories already stored in memory.

i) Consumers recode what they have already encoded toinclude larger amounts of information (chunking).

s) The degree of prior knowledge is an importantconsideration.

t) Knowledgeable consumers can take in more complexchunks of information than those who are lessknowledgeable in the product category.

u) Information is stored in long-term memory in two ways:episodically (i.e., by the order in which it is acquired) andsemantically (according to significant concepts).

v) Many learning theorists believe that memories storedsemantically are organized into frameworks by which weintegrate new data with previous experience.

Retrieval is the process by which we recover information fromlong-term storage.w) A great deal of research is focused on how individuals

retrieve information from memory.x) Studies show that consumers tend to remember the

product’s benefits, rather than its attributes.

y) Motivated consumers are likely to spend time interpretingand elaborating on information they find relevant to theirneeds; and are likely to activate such relevant knowledgefrom long-term memory.

z) Research findings suggest that incongruent (e.g.unexpected) elements pierce consumers’ perceptual screensand improve the memorability of an ad when theseelements are relevant to the advertising message.

aa) Incongruent elements that are not relevant to an ad alsopierce the consumer’s perceptual screen but provide nomemorability for the product.

Interference effects are caused by confusion with competingads and result in a failure to retrieve.bb) Advertisements for competing brands or for other

products made by the same manufacturer can lower theconsumer’s ability to remember advertised brandinformation.

cc) There are actually two kinds of interference.i) New learning can interfere with the retrieval of previously

stored material.ii) Old learning can interfere with the recall of recently learned

material.

Limited and Extensive Information ProcessingFor a long time, consumer researchers believed that all consum-ers passed through a complex series of mental and behavioralstages in arriving at a purchase decision (extensive informationprocessing).a) These stages ranged from awareness (exposure to

information), to evaluation (preference, attitudeformation), to behavior (purchase), to final evaluation(adoption or rejection). This same series of stages is oftenpresented as the consumer adoption process.

Some theorists began to realize that there were some purchasesituations that simply did not call for extensive informationprocessing and evaluation; that sometimes consumers simplywent from awareness of a need to a routine purchase, without agreat deal of information search and mental evaluation (limitedinformation processing).Purchases of minimal personal importance were called low-involvement purchases, and complex, search-oriented purchaseswere considered high-involvement purchases.

Involvement TheoryInvolvement theory developed from research into hemisphericallateralization or split-brain theory.a) The premise is that the right and left hemispheres of the

brain specialize in the kinds of information they process.b) The left hemisphere is responsible for cognitive activities

such as reading, speaking, and attribution informationprocessing.

c) The right hemisphere of the brain is concerned withnonverbal, timeless, pictorial, and holistic information.


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Involvement Theory and Media StrategyIndividuals passively process and store right-brain information.a) Because it is largely pictorial, TV viewing is considered a

right hemisphere activity.b) Passive learning was thought to occur through repeated

exposures to low-involvement information.i) TV commercials were thought to produce change in

consumer behavior before it changed consumerattitudes.

c) The left hemisphere is associated with high-involvementinformation.

i) Print media (newspapers and magazines) are considered lefthemisphere or high-involvement activity.

Right-brain theory is consistent with classical conditioning andstresses the importance of the visual component of advertising.d) Recent research suggests that pictorial cues help recall and

familiarity, although verbal cues trigger cognitive functions,encouraging evaluation.

e) The right-brain processing theory stresses the importanceof the visual component of advertising, including thecreative use of symbols.

f) Pictorial cues are more effective at generating recall andfamiliarity with the product, although verbal cues (whichtrigger left-brain processing) generate cognitive activity thatencourages consumers to evaluate the advantages anddisadvantages of the product.

There are limitations to split-brain theory.Research suggests the spheres of the brain do not alwaysoperate independently of each other, but work together toprocess information.There is evidence that both sides of the brain are capable oflow- and high-involvement.It does seem the right side is more cognitively oriented and theleft side more affectively oriented.

Involvement Theory and Consumer RelevanceA consumer’s level of involvement depends on the degree ofpersonal relevance that the product holds for the consumer.a) High-involvement purchases are those that are very

important to the consumer in terms of perceived risk.b) Low-involvement purchases are purchases that are not

very important to the consumer, hold little relevance, andlittle perceived risk.

Highly involved consumers find fewer brands acceptable (theyare called narrow categorizers); uninvolved consumers arelikely to be receptive to a greater number of advertisingmessages regarding the purchase and will consider more brands(they are broad categorizers).

Central and Peripheral Routes to PersuasionCentral and peripheral routes to persuasion—the centralpremise is that consumers are more likely to weigh informationcarefully about a product and to devote considerable cognitiveeffort to evaluating it when they are highly involved with theproduct category and vice versa.

a) Use of the central route to persuasion is more effective inmarketing for high-involvement purchases.

b) The peripheral route to persuasion is more effective forlow-involvement purchases.

The elaboration likelihood model (ELM) suggests that aperson’s level of involvement during message processing is thecritical factor in determining the most effective route ofpersuasion.c) Thus, when involvement is high, consumers follow the

central route and base their attitudes or choices on themessage arguments.

d) When involvement is low, they follow the peripheral routeand rely more heavily on other message elements to formattitudes or make product choices.

The marketing implications of the elaboration likelihoodmodel are clear:e) For high-involvement purchases, marketers should use

arguments stressing the strong, solid, high-qualityattributes of their products—thus using the central (i.e.,highly cognitive) route.

f) For low-involvement purchases, marketers should use theperipheral route to persuasion, focusing on the method ofpresentation rather than on the content of the message(e.g., through the use of celebrity spokespersons or highlyvisual and symbolic advertisements).

Measures of InvolvementResearchers have defined and conceptualized involvement in avariety of ways including ego involvement, commitment,communication involvement, purchase importance, extent ofinformation search, persons, products situations, and purchasedecisions.a) Some studies have tried to differentiate between brand

involvement and product involvement.b) Others differentiate between situational, enduring, and

response involvement.The lack of a clear definition about the essential components ofinvolvement poses some measurement problems.c) Researchers who regard involvement as a cognitive state are

concerned with the measurement of ego involvement, riskperception, and purchase importance.

d) Researchers who focus on the behavioral aspects ofinvolvement measure such factors as the search for andevaluation of product information.

e) Others argue that involvement should be measured by thedegree of importance the product has to the buyer.

Because of the many different dimensions andconceptualizations of involvement, it makes sense to developan involvement profile, rather than to measure a single involvementlevel.

Marketing Applications of InvolvementInvolvement theory has a number of strategic applications forthe marketer.f) The left-brain (cognitive processing)/right-brain (passive

processing) paradigm seems to have strong implications


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for the content, length, and presentation of both print andtelevision advertisements.

g) By understanding the nature of low-involvementinformation processing, marketers can take steps to increaseconsumer involvement with their ads.

Measures of Consumer LearningMarket share and the number of brand-loyal consumers are thedual goals of consumer learning.a) Brand-loyal customers provide the basis for a stable and

growing market share.b) Brands with larger market shares have proportionately

larger groups of loyal buyers.

Recognition and Recall MeasuresRecognition and recall tests are conducted to determinewhether consumers remember seeing an ad, the extent to whichthey have read it or seen it and can recall its content, theirresulting attitudes toward the product and the brand, and theirpurchase intentions.a) Recognition tests are based on aided recall, although recall

tests use unaided recall.b) In recognition tests, the consumer is shown an ad and

asked whether he or she remembers seeing it and canremember any of its salient points.

c) In recall tests, the consumer is asked whether he or she hasread a specific magazine or watched a specific televisionshow, and if so, can recall any ads or commercials seen, theproduct advertised, the brand, and any salient points aboutthe product.

Cognitive Responses to AdvertisingComprehension is a function of the message characteristics,the consumer’s opportunity and ability to process the informa-tion, and the consumer’s motivation (or level of involvement).To ensure a high level of comprehension, many marketersconduct copy testing either before the advertising is actually runin media (called pre-testing) or after it appears (post-testing).Pre-tests are used to determine which, if any, elements of anadvertising message should be revised before major mediaexpenses are incurred.Post-tests are used to evaluate the effectiveness of an ad thathas already run, and to identify which elements, if any, shouldbe changed to improve the impact and memorability of futureads.

Attitudinal and Behavioral Measures of Brand LoyaltyBrand loyalty is the ultimate desired outcome of consumerlearning.a) There is no single definition of this concept.Attitudinal measures are concerned with consumers’ overallfeelings (i.e., evaluation) about the product and the brand, andtheir purchase intentions.Behavioral measures are based on observable responses topromotional stimuli—purchase behavior, rather than attitudetoward the product or brand.

A basic issue among researchers is whether to define brandloyalty in terms of consumer behavior or consumer attitudes.b) Behavioral scientists who favor the theory of instrumental

conditioning believe that brand loyalty results from aninitial product trial that is reinforced through satisfaction,leading to repeat purchase.

c) Cognitive researchers, on the other hand, emphasize the roleof mental processes in building brand loyalty.

They believe that consumers engage in extensive problem-solving behavior involving brand and attribute comparisons,leading to a strong brand preference and repeat purchasebehavior.To cognitive learning theorists, behavioral definitions (e.g.,frequency of purchase or proportion of total purchases) lackprecision, because they do not distinguish the “real” brand-loyalbuyer.Often consumers buy from a mix of brands within theiracceptable range (i.e., their evoked set).An integrated conceptual framework views consumer loyalty asthe relationship between an individual’s relative attitude towardan entity (brand, service, store, or vendor) and patronagebehavior.The consumer’s relative attitude consists of two dimensions:d) The strength of the attitude.e) The degree of attitudinal differentiation among competing

brands.Some theorists suggest that brand loyalty is correlated with theconsumer’s degree of involvement:f) High involvement leads to extensive information search

and, ultimately, to brand loyalty.g) Low involvement leads to exposure and brand awareness,

and then possibly to brand habits.As a customer’s satisfaction with a product increases along withrepeat purchases, the search for information about alternativebrands decreases.

Brand EquityBrand equity refers to the value inherent in a well-knownbrand name.From a consumer’s perspective, brand equity is the added valuebestowed on the product by the brand name.Brand equity facilitates the acceptance of new products and theallocation of preferred shelf space, and enhances perceivedvalue, perceived quality, and premium pricing options.For many companies, their most valuable assets are their brandnames.Well known brand names are known as megabrands.Because a brand that has been promoted heavily in the pastretains a cumulative level of name recognition, companies buy,sell, and rent (i.e., license) their brand names, knowing that it iseasier to buy than to create a brand name with enduringstrength.


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Brand equity enables companies to charge a price premium—anadditional amount over and above the price of an identical storebrand.A relatively new strategy among some marketers is co-branding(also called double branding).In co-branding, two brand names are featured on a singleproduct.It uses another product’s brand equity to enhance the primarybrand’s equity.Some experts believe that using a second brand’s equity mayimply that the host brand can no longer stand on its own.Others question whether a co-branded product causes con-sumer confusion as to who actually makes the product, andwhether the host brand can survive if the second brandendorsement is taken away.Brand equity is important to marketers because it leads to brandloyalty, which in turn leads to increased market share and greaterprofits.To marketers, the major function of learning theory is to teachconsumers that their product is best, to encourage repeatpurchase, and, to develop loyalty to the brand name.

Discussion Questions1. How can the principles of a) classical conditioning theory

and b) instrumental conditioning theory be applied tothe development of marketing strategies?

2. Describe in learning terms the conditions under whichfamily branding is a good policy and those under which itis not.

4. Which theory of learning (i.e., classical conditioning,instrumental conditioning, observational learning, orcognitive learning) best explains the followingconsumption behaviors: (a) buying a six-pack of Bisleriwater, (b) preferring to purchase clothes at the Benettonstore, (c) buying a digital camera for the first time, (d)buying a new car, and (e) switching from one cellular phoneservice to another? Explain your choices.


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Learning Process User Payer Buyer Cognitive learning User learns about the use

of products and services by reading about them

Payer learns about used-car prices from the used-car price book

Buyers learn about new stores by word of mouth and about brand ratings from choice etc.

Classical conditioning Food preferences are acquired in early childhood

Perceived fairness of price levels is classically conditioned.

Buyers are conditioned through patronage of the same vendors.

Instrumental conditioning

Users adopt new products and services if they find them beneficial.

Payers ‘buy cheap’ at first, then experience shoddy performance and learn to ‘invest’ more.

Buyers learn they can get better terms by changing vendors.

Modelling Users model their clothing and car choice after people they admire.

Budgeting decisions mirror those of admired companies. Payers learn norms for tipping by observing others.

Buyers may switch preferences to stores and vendors that are trendy.

Adoption of innovation Users adopt product and service feature innovations

Payers adopt financing innovations like credit cards, leasing etc.

Buyers adopt purchase procedure innovations like buying through the internet.

The Three Customer rolesFig 5.1 The learning processes among the customer rolesFigure 5.1 above shows how the different learning processesvary for the different roles that customer that plays.

BEHAVIORIST COGNITIVIST Definition of learning Change in behaviour based on

experience Process of gaining or changing insights, outlooks, or through patterns

Conditions that influence learning

Environment Needs, interests, feelings, etc. of learner. S-R

Learning process Conditioning in small steps. Reinforcement

Discovery. S-O-R

Central argument We can't know students have learned unless we can measure changes in observed behavior.

Something must go on inside the learner that can't be measured, but must be inferred from observed behavior. There is more to learning than just observed behavior

4.3 Comparison of Learning Theories

Key Terms

• Cognitive Learning• Classical Conditioning• Instrumental conditioning• Modeling• Behaviorism• Constructivism• Social Learning• Locus of Control• Social Reinforcement• Self Reinforcement• Vicarious Emotional Arousal• Vicarious Reinforcement• Semantic Generalization• Rule-based learning• Observational learning

• Behaviorist Theory• Learning Process• Transfer of learning

Learning

Article # 1

The Writing on the MallEvolution, not revolution. The Indian retailer is brimmingwith ideas, but is still on the learning curve. Here’s areality check on where retail is headed. WELL then, is the retail boom happening or not? The past twoyears have thrown up as many answers as questions. Thenumbers have boggled minds, estimates have varied, existingbig-time retailers have bled, and projections have fallen short.Most importantly, the lessons have been learnt.While the Big Daddies are doing a rethink on strategy, and trial,error, experimentation and caution are the new buzzwords, thepath has been paved - retail in India is undoubtedly on its way


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to slicker evolution. Slower than expected, perhaps, but on trackall right.“The implications for retailers,” outlines Arvind Singhal,Chairman, KSA Technopak, “are to rethink value propositions,recast business plans, take clear focus on specific consumersegments and unmet consumer demands and expand carefully,confidently and ambitiously.”“Organised retail is moving in concentric circles,” observes R.Subramanian, Director, and Subhiksha Trading Services, of theChennai-based supermarket and pharmacy chain, which hascreated a copybook success for itself in Tamil Nadu.The shining examples set by South-based chains such asNilgiris, Subhiksha, FoodWorld, Vivek’s, Margin Free and theRPG group’s other retail ventures such as the Gianthypermarket and Health & Glow are being replicated by the restof India, but gradually. In fact, slow and steady is the rule evenfor successful Southern chains wanting to move up North.Margin Free, the Kerala-based retail chain which has scripted areasonable success story in Kerala and Tamil Nadu, would haveliked to come up North earlier if it wasn’t for steep real estatecosts, says Imam Salih, Chief Executive, Margin Free Market.The Bangalore-based Nilgiris Franchise has begun to look forfranchisees in Delhi, Mumbai and Kolkata, “but the rightlocation and right partners are absolutely essential”, says C.Gopalakrishnan, Managing Director, Nilgiris. Of the 26 storesthat the chain operates, six are company-owned and 20 arefranchised.Explains R.S. Roy, Managing Editor, Images, a fashion, market-ing and retail magazine, ‘’Expansion plans are now morerealistic. The figures for Indian retail are small, but they areattractive enough to invite the investor’s attention.”And while foreign direct investment in retail has been ruled outin the Union Budget 2002, it’s doesn’t really come in the way ofexpansion, feel industry observers.The mood will turn positive in 2002, but the impact will be feltin 2003, predicts KSA Technopak’s recently-released 4thConsumer Outlook 2002 report. According to Rajan Chibba,Managing Director, KSA Technopak, while consumerismcontinued to grow last year (indicated by the number ofconsumers entering the market for any category), per capitaspend for each category fell across the board mainly due tocompetitive pressures. The study shows a 33 per cent increase inthe number of new consumers entering a category in year 2001against last year.

The Lessons LearntWhile one key learning has been that it’s category-specificretailing that impresses the consumer, another has been thatcatchment areas are shrinking. So while food and fashionretailing have succeeded, consumers now seek convenientlocations to shop (with the exception of apparel shopping).Therefore, Bombay Store is now at a strategic airport location inMumbai. Says Asim Dalal, Managing Director, Bombay Store,“We may go international in the long run, but the pace ofactivity here is satisfactory.”Yet another learning has been that consumer niches arebeginning to drive the market and are becoming more impor-

tant, with positive and negative sub-segments of consumersgaining significance. The growth accelerator last year, forexample, has decidedly been the working woman with theaverage money spent by her averaging 1.3 times that of ahousewife.Elaborating on the category pattern that seems to have emergedover the past one year, KSA’s Singhal points out that it is thetraditional channels that continue to dominate the retailindustry. Therefore, while grocery, home appliances, consumerelectronics and eating out continue to be the safest bet for aretailer, here’s the big surprise - retailing of personal careproducts, clothing, and books and music isn’t really hotproperty any more.Also, private labels by retailers are not only coming of age, theyare giving conventional players a breathless run for their money,especially in foods and clothing. Explains Subhiksha’sSubramanian, “Stocking a private label is a natural incentive for aretailer, especially in agri-commodities like rice, dal,<147,1,0>wheat and spices.” The chain is now consideringintroducing its own line of in-store brands.And it is value retailing that primarily seems to be enhancing thelifetime value of the product. “A one-stop shop is an easy routeto success. However, this kind of shop will only succeed if itcaters to the right kind of products,” cautions Chibba.According to the just-released Images Retail study, the food andfashion-related industry will together account for 85 per cent oforganised retailing - which is projected to touch Rs 14,250 crorein 2002 (within the private sector).The Images study predicts that the next two years will witness aninvestment of Rs 1,000 crore for retail expansions. Also, expectsome 15 hypermarkets, 20 large format department stores, 10large supermarkets, and 1,500 brand chains of which 80 per centwill be in 40 key cities. Existing hypermarkets include Giant, BigBazaar and Metro Sabka Bazaar.The best examples in the food sector remain FoodWorld ofRPG, Nilgiris, Subhiksha, and Sabka Bazaar from the HomeStores group. Barista, Qwiky’s, Milkfood’s Cafe 100,McDonald’s, Baskin Robbins, Nirula’s, Movenpick, Subway &Company are expected to contribute in decent numbers to foodretailing.Clothing retail giants such as Shoppers’ Stop, Pantaloon,Ebony, Westside and Globus continue to expand, but verycautiously owing to the huge investment and the huge riskfactor involved. As Sriram Srinivasan, Managing Director, IndusLeague Clothing Ltd, says, his company will look “at all kindsof retail formats” for its two brands - Indigo Nation andScullers - before investing the big bucks.The optimism exists, but so does caution. Take the Body Shop,which sells a product every 0.4 seconds worldwide. It is doingits bit of soul searching before going the whole hog in India.Says Peter Tyson, Head of retail and franchising, Asia Pacific,The Body Shop International Plc., ‘’It is quite a challenge toenter this market. Quite a few retailers here have overestimatedthe buying power of the emerging middle class.”As Singhal surmises, the need is to invest more in processesand systems development, logistics, supply chain management


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and customer relationships. “It’s the usual management jargon,but unfortunately not always understood and practiced,” hesays.The writing on the mall is clear - the consumer will shop, butshe wants range, efficiency, displays and price deals in hershopping basket first.

Points To Remember

Importance of Learning

nMarketers must teach consumers:– where to buy– how to use– how to maintain– how to dispose of products

Learning Theories

n Behavioral Theories: Theories based on the premise that learning takes place as the result of observable responses to external stimuli. Also known as stimulus response theory.

n Cognitive Theories: A theory of learning based on mental information processing, often in response to problem solving.

Consumer Consumer LearningLearning

A process by which individuals acquire the

purchase and consumption knowledge

and experiencethat they apply to

future related behavior.

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


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Elements of Learning Theories

nMotivationn Cues

n Responsen Reinforcement

Reinforcement

A positive or negative outcome that influences the likelihood that a specific behavior

will be repeated in the future in response to a

particular cue or stimulus.

Behavioral Learning Theories

n Classical Conditioningn Instrumental ConditioningnModeling or Observational Learning

Classical Classical ConditioningConditioning

A behavioral learning theory

according to which a stimulus is paired

with another stimulus that elicits a known response that serves to produce the same response when used

alone.


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Instrumental Instrumental (Operant) (Operant)

ConditioningConditioning

A behavioral theory of learning based on a

trial-and-error process, with habits forced as the result of positive

experiences (reinforcement)

resulting from certain responses or behaviors.

Figure 7.2A Pavlovian Model of Classical Conditioning

Unconditioned StimulusMeat paste

Conditioned StimulusBell

Unconditioned ResponseSalivation

Conditioned StimulusBell

Conditioned ResponseSalivation

AFTER REPEATED PAIRINGS

Cognitive Associative Learning

n Classical conditioning is viewed as the learning of associations among events that allows the organism to anticipate and represent its environment.

n From this viewpoint, classical conditioning is not reflexive action, but rather the acquisition of new knowledge

Neo-Pavlovian Conditioning

n Forward Conditioning (CS Precedes US)

n Repeated Pairings of CS and USn A CS and US that Logically Belong to

Each Othern A CS that is Novel and Unfamiliarn A US that is Biologically or Symbolically

Salient


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Strategic Applications of Classical Conditioning

n Repetitionn Stimulus Generalizationn Stimulus Discrimination

Repetitionn Repetition increases

strength of associations and slows forgetting but over time may result in advertising wearout.

n Cosmetic variations reduce satiation.

Figure 7.3 Cosmetic Variations in Ads

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.

Stimulus Stimulus GeneralizationGeneralization

The inability to perceive differences

between slightly dissimilar stimuli.


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Stimulus Generalization and Marketing

n Product Line, Form and Category Extensions

n Family Brandingn Licensingn Generalizing Usage Situations

Stimulus Stimulus DiscriminationDiscrimination

The ability to select a specific stimulus

from among similar stimuli because of

perceived differences.

Positioning

Differentiation

Figure 7.10 A Model of Instrumental Conditioning

Stimulus Situation

(Need good-looking jeans)

Try Brand D

Try Brand C

Try Brand B

Try Brand A

UnrewardedLegs too tight

UnrewardedTight in seat

UnrewardedBaggy in seat

RewardPerfect fit

Repeat Behavior

Instrumental Conditioning

n Consumers learn by means of trial and error process in which some purchase behaviors result in more favorable outcomes (rewards) than other purchase behaviors.

n A favorable experience is instrumental in teaching the individual to repeat a specific behavior.


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Instrumental Conditioning and Marketing

n Customer Satisfaction (Reinforcement)n Reinforcement Schedules

– Shaping

nMassed versus Distributed Learning

Reinforcement

n Positive Reinforcement: Positive outcomes that strengthen the likelihood of a specific response

n Example: Ad showing beautiful hair as a reinforcement to buy shampoo

n Negative Reinforcement:Unpleasant or negative outcomes that serve to encourage a specific behavior

n Example: Ad showing wrinkled skin as reinforcement to buy skin cream

Other Concepts in Reinforcement

n Punishment– Choose reinforcement rather than

punishment

n Extinction– Combat with consumer satisfaction

n Forgetting– Combat with repetition

Observational Observational LearningLearning

A process by which individuals observe

the behavior of others, and

consequences of such behavior. Also known as modeling

or vicarious learning.


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Cognitive Cognitive Learning Learning TheoryTheory

Holds that the kind of learning most characteristic of human beings is problem solving,

which enables individuals to gain some control over their environment.

Information Information ProcessingProcessing

A cognitive theory of human learning patterned after

computer information processing that focuses on how

information is stored in human memory

and how it is retrieved.

Figure 7.13 Information Processing and Memory Stores

Sensory Store

Sensory Store

Working Memory (Short -term Store)

Working Memory (Short-

term Store)

Long-term Store

Long-term Store

Sensory Input Rehearsal Encoding Retrieval

Forgotten; lost

Forgotten; lost

Forgotten; unavailable

Retention

n Information is stored in long-term memory– Episodically: by the

order in which it is acquired

– Semantically: according to significant concepts


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Table 7.1 Models of Cognitive Learning

Attention Cognitive

Action Conative PurchasePostpurchaseEvaluation

TrialAdoption

DecisionConfirmation

AffectiveEvaluation

InterestEvaluation Persuasion

KnowledgeAwarenessAwareness

KnowledgeInterestDesire

Sequential Stages

of Processing

Innovation Adoption

Model

Decision-Making Model

Tricompetent Model

Innovation Decision Process

Promotional Model

Involvement Theory

A theory of consumer learning which postulates that

consumers engage in a range of information processing activity from extensive to limited problem

solving, depending on the relevance of the

purchase.

Issues in Involvement Theory

n Involvement Theory and Media Strategyn Involvement Theory and Consumer

Relevancen Central and Peripheral Routes to

PersuasionnMeasures of Involvement

Central and Peripheral Routes to

Persuasion

A theory that proposes that highly involved consumers

are best reached through ads that focus on the specific

attributes of the product (the central route) while

uninvolved consumers can be attracted through

peripheral advertising cues such as the model or the

setting (the peripheral route).


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Elaboration Elaboration Likelihood Likelihood

Model Model (ELM)(ELM)

A theory that suggests that a person’s level of

involvement during message processing is

a critical factor in determining which

route to persuasion is likely to be effective.

The Elaboration Likelihood Model

Involvement

Central Route

Peripheral Route

Peripheral Cues

Influence Attitudes

Message Arguments Influence Attitudes

HIGH LOW

Measures of Consumer Learning

n Recognition and Recall Measures– Aided and Unaided Recall

n Cognitive Responses to Advertisingn Copytesting Measuresn Attitudinal and Behavioral Measures of

Brand Loyalty

Phases of Brand Loyalty

n Cognitiven Affectiven Conativen Action


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Figure 7.19 Brand Loyalty As A Function of Relative Attitude and Patronage

Behavior

LatentLoyalty

No Loyalty

Spurious Loyalty

Loyalty

LowLow

HighHigh

HighHigh LowLowRepeat PatronageRepeat Patronage

Relative Relative AttitudeAttitude

Notes

Consumer Learning

Documents

Transcript of Consumer Learning