Chapter 6Consumer Learning

Learning Objectives

1.To Understand the Process and Four Elements of Consumer Learning.(slide 4-10)

2.To Study Behavioral Learning and Understand Its Applications to Consumption Behavior. (11-27)

3.To Study Information Processing and Cognitive Learning and Understand Their Strategic Applications to Consumer Behavior.(28-37)

4. To Study Consumer Involvement and Passive Learning and Understand Their Strategic Affects on Consumer Behavior.(slide 38-47)

5. To Understand How Consumer Learning and Its Results Are Measured.(slide 47-50)

Learning Objectives

A process by which individuals acquire the purchase and

consumption knowledge

and experiencethat they apply to

future related behavior.

Consumer Learning

Importance of Learning

●Marketers must teach consumers:–where to buy

–how to use

–how to maintain

–how to dispose of products

Learning Processes

-Incidental -- learning acquired by accident

or without much effort

-Intentional– learning acquired as a result of a careful search for information

Elements of Learning Theories

●Motivation

●Cues

●Response

●Reinforcement

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.

Learning Theories

Discussion Question●For Coca-Cola:●How have they used behavioral theory in their marketing?●Cognitive theory?●How have they built brand loyalty?

Behavioral Learning Theories

●Classical Conditioning●Instrumental Conditioning●Modeling or Observational Learning

Classical Conditioning

Pairing a stimulus with another stimulus that elicits a known response to produce the same response when used alone.

Models of Classical Conditioning

Strategic Applications of Classical Conditioning

Basic Concepts

●Repetition

•Stimulus generalization

•Stimulus discrimination

•Increases the association between the conditioned and unconditioned stimulus•Slows the pace of forgetting•Advertising wearout is a problem

Why Did McDonalds UseTwo Different Ads to Advertise

the Same Product?

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

by the Consumer

Strategic Applications of Classical Conditioning

Basic Concepts

•Repetition●Stimulus generalization

•Stimulus discrimination

•Having the same response to slightly different stimuli•Helps “me-too” products to succeed•Useful in product extensions

Strategic Applications of Classical Conditioning

Basic Concepts

•Repetition

•Stimulus generalization●Stimulus discrimination

•Selection of a specific stimulus from similar stimuli•This discrimination is the basis of positioning which looks for unique ways to fill needs

●For Coca-Cola or another beverage company:●How have they used classical conditioning in their marketing?●Identify the unconditioned and conditioned stimuli, the conditioned and unconditioned response.

Discussion Questions

Classical Conditioning and Marketing Strategy

●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●Use stimulus generalization effectively–Continued

Instrumental (Operant)

Conditioning

learning based on a trial-and-error process, with habits forced as the result of positive experiences (reinforcement)

Types of Reinforcement

●Positive

●Negative

●Extinction

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

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

Reinforcement

Positive Reinforcement: Negative Reinforcement:

Reinforcement

Other Concepts in Reinforcement

●Punishment

●Extinction

●Forgetting

●Combat with repetition

A Model of Instrumental Conditioning

Instrumental Conditioning and Marketing

●Make the product the ultimate reward●Provide samples and free trials●Provide non-product rewards●Practice relationship marketing●Reinforcement Schedules–Shaping●Massed versus Distributed Learning

Cognitive Learning Theory

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 Processing●Relates to cognitive ability and the complexity of the information●Individuals differ in imagery – their ability to form mental images which influences recall

The consumer observes a

positive response by two teens.

- Observational learning

- Rote Learning

- Reasoning

Three types of Learning

Observational Learning

●individuals learn by observing the behaviour of others, and consequences of such behaviour. ●Also known as modeling or vicarious learning.

Iconic Rote Learning

● Learning concepts through simple repetition

● Key is Repitition● Similar to classical conditioning

but do not try to stimulate a direct affective response.

–Repeated ads teach consumers about a product’s attributes

Reasoning

●Highest level of cognitive learning

●Involves creative thinking

●Depends on how information is processed and stored

Information Processing and Memory Stores

Involvement and Passive Learning Topics

●Definitions and Measures of Involvement

●Marketing Applications of Involvement

●Central and Peripheral Routes to Persuasion

Measuring Involvement with an Advertisement

Subjects respond to the following statements on a 7-point Likert scale ranging from “Strongly Agree” to “Strongly Disagree.”

The message in the slogan was important to me

The slogan didn’t have anything to do with my needs

The slogan made me think about joining the military

The slogan made me want to join the military

While reading the slogan, I thought about how the military might be useful for me

The slogan did not show me anything that would make me join the military

I have a more favorable view of the military after seeing the slogan

The slogan showed me the military has certain advantages

The slogan was meaningful to me

The slogan was worth remembering

●How do advertisers drive consumers to rehearse information?●When does this work against the advertiser?●Can you think of examples of advertisements which drive you to rehearse?

Discussion Question

●Information is stored in long-term memory●Episodically: by the order in which it is acquired●Semantically: according to significant concepts●Total package of associations is called a schema

Retention

Information processing and Involvement Theory

●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).

Elaboration Likelihood Model (ELM)

●a person’s level of involvement during message processing determines which route to persuasion is likely to be effective

Central and Peripheral Routes to Persuasion

The Elaboration Likelihood Model

Involvement

Central RoutePeripheral

Route

Message Arguments Influence Attitudes

Peripheral Cues

Influence Attitudes

HIGH LOW

Cognitive Learning and Marketing Strategy

●Use rote learning to teach consumers about the brand●Use reasoning or problem solving for complex or high-involvement products●Use modelling to extinguish negative behaviour●Use knowledge of information processing to help consumers store, retain and retrieve messages.

Outcomes and Measures of Consumer Learning

Measures of Consumer Learning

●Recognition and Recall Measures–Aided and Unaided RecallRecognition test: aided recall

Recall test: unaided recall

●Cognitive Responses to Advertising●Copy-testing Measures●Attitudinal and Behavioral Measures of Brand Loyalty

Brand Loyalty●Function of three groups of influences●Consumer drivers●Brand drivers●Social drivers●Four types of loyalty●No loyalty●Covetous loyalty●Inertia loyalty●Premium loyalty

Brand Equity●Refers to the value inherent in a well-known brand name●Value stems from consumer’s perception of brand superiority●Brand equity reflects learned brand loyalty●Brand loyalty and brand equity lead to increased market share and greater profits

“The best teachers are those who show you where to loo, but don't tell you what to see”

Alexandra K. Trenfor